Cambodia's garment industry is confronted with some major challenges. The most pressing concern is a new rule that workers are entitled to seniority bonuses twice a year. Workers support the plan but fear that employers will somehow find a way to pay them less than entitlement.
Workers have questions about the size of the bonus and how much they will receive if they have worked at a factory for six or seven years. Workers, who form a massive voting bloc, were promised more protection and higher incomes during last year’s elections.
Another threat lies with the possible suspension of Cambodia from the Everything But Arms (EBA) trade scheme between the European Union and the world's least developed nations. The EBA allows Cambodia to export its products tariff-free to EU countries.
Cambodia would suffer badly if suspended from the EBA. Garment factories in the country which supply to major brands such as H&M, Adidas, Nike, C&E and Puma employ more than 7,00,000 Cambodians. The EU is by far the country's most important export market. A loss of trade preferences could mean that fashion brands turn away from Cambodian factories. Although the suspension won't start before 2020, workers already fear the impact.

- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Crude correction gives polyester a fresh cost advantage
A sustained correction in crude oil and petrochemical benchmarks is reshaping the economics of synthetic yarns, widening the cost gap... Read more
Chinese apparel majors trade volume for margin in premiumisation push
China’s apparel and consumer goods market is moving beyond the traditional volume-at-any-cost model, with leading domestic brands betting on premium... Read more
India’s MMF push faces rising risk from China’s petrochemical dominance
India’s ambition to build a globally competitive synthetic textile industry is facing constraints as downstream capacity alone cannot solve: concentration... Read more
Shein’s Vietnam retreat exposes the limits of nearshoring
The global apparel industry has spent the past few years pursuing a straightforward strategy: reduce dependence on China by moving... Read more
Regional pavilions compete on fiber strengths and supply chain niches at Yarn Ex…
The trade floor at Yarn Expo Autumn 2026 in Shanghai, held between Aug 25-27, capitalizing on a sharp rebound in... Read more
Inside activewear's shift from stitched mesh to precision engineered textiles
The global functional apparel market, on track to touch $640 billion, is looking at a production shift as activewear manufacturers... Read more
Brazil’s cotton dominance puts Asian spinners on a new sourcing map
Brazil’s emergence as the world’s largest cotton exporter is no longer simply an agricultural success story. It has given a... Read more
Textile industry sees long-term growth but $100-bn export goal stays a stretch: …
India’s textile and apparel industry is entering a phase of optimism, but that confidence is tempered by a hard export... Read more
Apparel trade slumps as global textile mills move upstream
Global manufacturing is growing, but finished apparel is failing to capture that growth. United Nations Industrial Development Organization (UNIDO) data... Read more
Global apparel value chain converges in Shanghai as Intertextile Autumn 2026 ope…
The global apparel and textile community gathered in full force yesterday, August 25, 2026, as the Autumn Edition of Intertextile... Read more












