Workers seeking compensation from the shuttered Canteran Apparel garment factory have moved their tents to the sidewalk after they were made to leave the factory compound, they said.
The Cambodian economy could grow by 5.3% this year, said ADB economists on Wednesday, pointing to a manufacturing rebound as helping to drive renewed growth.
As the pandemic spreads through workplaces, income loss and mounting debt are shocking households now and could hold longer-term adverse effects for Cambodia’s economy, according to a series of reports.
The World Bank projected 4 percent GDP growth for Cambodia this year as the region starts to recover from the global pandemic-induced economic downturn, but noted continuing issues with the country’s tourism- and garment-driven economy as well as a high risk of lasting income inequality.
The World Bank points to a rise in some agricultural and non-garments manufacturing exports this year despite a pandemic-induced economic downturn as it forecasts that Cambodia will be back to economic growth next year.
Economists say the standardizing of regulations in 15 countries that signed a regional free-trade deal could make it attractive for companies to operate in or relocate to low-cost countries like Cambodia.
Following aggressive expansion by the country’s delivery services, a number of drivers speak of fast-dropping delivery fees, which some say have fallen to a third of what they once got; uncertainty over worker benefits; and a lack of collective representation.
About 16,000 factory workers are currently unable to go to work due to flooding in Phnom Penh and the provinces of Kandal and Takeo, the Labor Ministry said on Wednesday, with an economist warning of a hit to the economy and rising prices due to the recent extreme weather.
The Asian Development Bank on Tuesday revised Cambodia’s expected economic contraction this year from 5.5 percent to 4 percent, noting growth in non-garment exports thanks in part to demand for work-from-home electronics.
The government must ensure the Cambodia-China Free Trade Agreement has the nation’s and the people’s interests at heart, and both improves the country’s economic competitiveness and garners Chinese investment that produces local jobs.
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