Investors from Korea relocate to Cambodia

7 February 2013
The Phnom Penh Post
Economy and commerce / Investment / Unions
Business Research Institute for Cambodia / Cheat Khemara / Chinese aid / Garment Manufacturers Association / garment production / Hiroshi Suzuki / Indonesia / Indonesian factories / Korea / Korean Chamber of Commerce / Korean garment factories / labour costs / minimum wage / Nam Shik-kang / Philippines / Thailand / TK Garment Co

Korean investors are relocating labour-intensive businesses to countries such as Cambodia after Indonesia raised its minimum wage. A number of Korean investors had closed their Indonesian factories and relocated to other countries in the region because their requests for minimum-wage exemption had been refused, The Jakarta Post reported. Indonesia has raised provincial minimum wages about 40 per cent to RP 2.2 million ($226) a month. … From last month, every Thai worker is entitled to a 300 baht ($10) daily minimum wage. Monthly wages in Vietnam rose to 2.4 million dong ($113) in January, and Beijing has pledged to increase minimum wages to at least 40 per cent of average salaries. The minimum wage for a Cambodian in a garment factory is $61 a month. Trade unions have called for the minimum monthly wage to be increased to between $120 and $150. …

http://www.phnompenhpost.com/2013020761220/Business/investors-from-korea-relocate-to-cambodia.html