The garment industry - fueling the country's development

Along with other developing countries of the world, Cambodia has focused on the garment industry as its entrée into rapid industrialization. Ready Made Garments, along with construction and tourism, are responsible for Cambodia’s double-digit growth in previous years. Although growth has stalled somewhat in the last few years due to the impact of the global financial crisis, Cambodia is poised to speed forward and maintain competitiveness in the region by maintaining low prices on exports. Factory managers cite rising energy costs as a chief impediment to growth and competitiveness. Cambodia must therefore find news ways to meet this increasing demand for electricity and energy – either by accelerating import of electricity from neighboring countries or investing in local energy producers like hydropower plants. This source of energy will likely come not from the city, but from the rivers and jungles of the Northeastern provinces of Cambodia.

Each day, more and more workers pore into the city from the provinces to seek work as garment factory workers, laborers, and construction workers. Yet despite double-digit growth rates in the country, workers still find it difficult to make ends meet. Food prices, rent, and transportation costs continue to skyrocket, while wages in Cambodia remain one of the lowest in the country. The average income for garment workers in Cambodia, excluding overtime, is 67 USD per day. With overtime, this figured reached only 79 USD. A survey conducted by the Cambodian Institute for Development Study found that garment factory workers needed a minimum of 90 USD per month to survive in Cambodia.

Garment factory workers working along Veng Sreng Road leave the factories in the late afternoon to return to their dormitories. A majority of the garment factory workers come from the outside provinces and are female. They come to the city to find work to support their families back home.

Many shops and markets set up shop outside the factories to cater to young factory workers.

Food prices have shot up the roof this year and market sellers don't know why. A report released by the Cambodia Institute of Development Study, the UN Development Program and the International Labor Organization reveal that 55 percent of 1,200 garment workers interviewed last year had difficulties covering food costs, due to a reduction in their wages as a result of the economic crisis.