Cambodia’s Manufacturers Shift to Higher-Value Clothing
Cambodia’s factories are moving away from producing the most basic clothing items and diversifying to manufacture more intricate products for international buyers. As the garment sector has grown over the past decade, most garment factories have stuck to producing items such as T-shirts and jeans due to the poor skill level among workers. But factories are now starting to produce items with more complex designs and stitching techniques. … “They are moving away from basic items,” said Ken Loo, secretary-general of the Garment Manufacturers Association in Cambodia. “In the past, the value creation is lower because it was just a simple transformation of fabric—cutting the dimensions. But now we do something to the fabric.” … British retailer Marks & Spencer started buying higher-value items such as clothes bearing lace or rhinestones a year-and-a-half ago from a factory in Kandal province. … Swedish retail giant H&M currently sources both basic items and “more detail-oriented products” from the country, said Andrea Roos, a spokesperson for the brand. However, she said Cambodia must invest more in developing the skills of local workers, making its own accessories and having a direct shipping connection with the European Union and U.S. … For Spanish clothing brand Mango, their suppliers in Cambodia are only focusing on orders for T-shirts, pants and sweaters, said Sergio Odriozola, managing director of the Barcelona-based brand. “We would like to find factories that can manufacture high-value garments, but for the moment it is not the case,” Mr. Odriozola said. … “It is a good thing for the industry because it means the industry is able to generate more value added in Cambodia and it creates an upgrading on the kind of manpower they need in factory,” [senior country economist of the Asian Development Bank] Mr. [Peter] Brimble said.
Dene-Hern Chen
http://www.cambodiadaily.com/business/cambodias-manufacturers-shift-to-higher-value-clothing-44792/
