The Ministry of Commerce reclassified over 120 inactive garment and footwear factory entries as closed or suspended during the first quarter of 2016.
While the figures cited in the bulletin provided no indication of the cause or duration of factory inactivity, they would appear to support claims of a recent surge in factory closures.
GMAC told the Post last week that the closures were further evidence that international garment and footwear manufacturers were relocating their production lines to more cost-effective investment destinations.
“We have been saying for many years that Cambodia is not competitive and that companies will divest,” he said of the factory closures. “There has been a decline in incoming investors, as well as our existing investors pulling out. I believe this is a trend that will continue for the rest of the year.”
Phnom Penh Post