Cambodia Country Report

CAMBODIA 2016 COUNTRY REPORT ASHLEE SCOTT

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FASM 420

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WINTER 2016

CONTENTS COUNTRY STABILITY

OVERVIEW & TRAITS

3

STATE OF INDUSTRY

5

MAIN SUPPLIERS

TRADE AGREEMENTS

12

CONDUCTING BUSINESS

20

10

TRANSPORTATION & SHIPPING

14

RISKS & BENEFITS

16

APPENDIX & REFERENCES

22

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HISTORY OF CAMBODIA

Originating from the Angkor Empire, an expansive empire that covered much of Southeast Asia and reached its peak around the 13th century, Cambodians consider themselves descendants of Angkor known as Khmers. Series of attacks eventually weakened the Angkor Empire, leading into a long period of decline.

In 1863, the king of Cambodia placed the country under French protection which led to the country becoming a part of French Indochina in 1887. In 1953, Cambodia received independence from France.

In the following years, Cambodia faced political unrest with the Khmer Rouge regime trailed by a ten year Vietnamese occupation. Not until 1998 with the formation of a coalition government did Cambodia see renewed political stability.

COUNTRY TRAITS • LOCATION: Southeast Asia, bordering Gulf of Thailand • GEOGRAPHIC SIZE: 181,035 sq km; slightly smaller than Oklahoma • CLIMATE: Tropical

• ETHNIC COMPOSITION: Khmer 90%, Vietnamese 5%, Other 5% • GENDER: Male 49%

• LANGUAGE: Khmer (official) 96.3%

• POPULATION: 15,708,756

Other 3.7%

• RELIGION: Buddhist (official) 96.9% Other 3.1%

Female 51%

• MEDIAN AGE: Overall- 24.5 yrs.; Male- 23.8 yrs.; Female- 25.2 yrs.

• LITERACY RATE: Total 77.2% 3

NATURAL RESOURCES

Oil & Gas

Timber

Gemstones

Minerals

Water

GOVERNMENT

MONEY

• TYPE: Multiparty Democracy under a Constitutional Monarchy

• CURRENCY: Cambodian Riel

• HEAD OF STATE: King Norodom SIHAMONI • CAPITOL: Phnom Penh • NATIONAL HOLIDAY: Independence Day, November 9

EXPORTS

7.407 BILLION

• GDP: $16.5 Billion • GDP GROWTH RATE: 7% • INFLATION: 1.4% • POVERTY RATE: 17.7%

10.62 BILLION

UK 8.7% US 24.1%

GERMANY 8.1%

VIETNAM 5.3%

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Land

JAPAN 6.5%

CANADA 7%

IMPORTS CHINA 20.6%

THAILAND 28.1% VIETNAM 16.8% S. KOREA 4.1%

HK 5.7%

SINGAPORE 7%

COMMODITIES:

COMMODITIES:

Clothing, timber, rubber, rice, fish,

Petroleum, cigarettes, gold, construction,

tobacco, and footwear

machinery, motor vehicles, and pharmaceutics

COUNTRY STABILITY SOCIAL With a population of over 15 million, Cambodia reflects a diverse culture. Though 90% are Khmer, other ethnicities are present including Vietnamese and Chinese. The population growth rate is at 1.58% with over 20% considered urban population. The age of a Cambodian is fairly young with the average age of males being 23.8 and the average age of females being 25.2.

Buddhism is the official religion of the country, making up 96.9%. Likewise, Cambodian culture reflects the ideals and beliefs of the Buddhist faith with a strong emphasis on community as opposed to the individual.

ISSUE OF SLAVERY Cambodia is a major source and location for human trafficking. Men, women, and children are often subjected to forced labor and sex trafficking. Cambodia is ranked 14th in the world for modern slavery. In fact, child labor consists of 39% of the population. Additionally, Cambodia has become a popular destination for child sex tourism with the median age of rape victims being 12 years of age. While efforts have been made to eliminate human trafficking, little implementation of standards have been carried out.

Life expectancy is 64.14 years. The birth rate is 23.83 births/1,000 population and the death rate is 7.68 deaths/1,000 population. HIV/AIDS affects .64% of the population, accounting for 74,600 deaths. Health expenditures account for 7.5% of GDP with 0.17 physicians/1,000 population. Due to lack of health facilities and unclean environments, there is a very high degree of risk for major infectious disease.

Education expenditures account for 2.6% of GDP, with the literacy rate at 77.2% for the entire population. 84.5% of males are literate compared to 70.5% of females. While the education sector has seen improvement, Cambodia remains among the bottom for education in Asia. Due to poverty in rural areas, poor education quality, and lack of available teachers, school dropout rates for primary school sit at 8.7% and 19.6% for lower secondary school.

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COUNTRY STABILITY TECHNOLOGICAL Technology in Cambodia is still very limited compared to other Asian nations. There is virtually no opportunity within Cambodia to pursue scientific training or research.

However, Cambodia has largely sidestepped traditional technologies and quickly adapted newer alternative technologies. For example, telecommunications mostly skipped over land line phones and instead went directly to mobile communications. Cambodia’s telecom sector continues to grow having around ten mobile operators within the country and over 25 million mobile subscribers by the end of 2015. Additionally, 31.1% of the population has direct access to the Internet.

Electricity continues to be an area for improvement, as it is among the most expensive in Southeast Asia. However, an agreement signed in November 2015 with Russia will help build the capacity for nuclear power in Cambodia. This new agreement is planned to come to fruition within the next 10-15 years.

Recent breakthroughs in Cambodia’s technology includes the country’s first 3D printing service, started by two brothers of Cambodian imigrants. The company, ARC Hub, produces ready to use objects as well as teaches others how to use 3D printing technology. The goal is to make Cambodia a leader in 3D printing and has the potential to redefine the manufacturing sector.

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SOCIAL MEDIA USAGE

99.74%

0.13%

0.06%

+25 Million

Mobile Subscribers

COUNTRY STABILITY ECONOMIC Cambodia has experienced strong economic growth over the last decade. The tourism, garment, construction and real estate, and agriculture sectors accounted for the bulk of growth. Around 600,000 people, the majority of whom are women, are employed in the garment and footwear sector. An additional 500,000 Cambodians are employed in the tourism sector, and a further 50,000 people in construction. The tourism industry has continued to grow rapidly with foreign arrivals exceeding 2 million per year since 2007 and reaching around 4.5 million visitors in 2014.

EXCHANGE RATE Riels (KHR) per US Dollar- 4,080.3 (2015)

Cambodia remains one of the poorest countries in Asia and long-term economic development remains a daunting challenge, inhibited by endemic corruption, limited educational opportunities, high income inequality, and poor job prospects. As of 2012, approximately 2.66 million people live on less than $1.20 per day with 17.7% of the population living below the poverty line. With over 7 million people accounted in Cambodia’s labor force, the majority work in agriculture (48.7%) followed by service (31.5%) and industry (19.9%.) Currently, unemployment rates account for 0.3% of the population.

More than 30% of the government budget comes from donor assistance. GDP stands at $4.17 billion with a growth rate of 7%. As of 2015, inflation was 1.4%, having decreased from 3.9% in 2014. Cambodia’s debt amounts to $7.222 billion as of December 2014.

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COUNTRY STABILITY ENVIRONMENTAL Cambodia has a rich environment with a wide array of both plant and animal species. However, the country faces several environmental issues: climate change, water resources, and agriculture and land degradation. Rich in biodiversity, Cambodia is home to the third largest lowland dry evergreen forest in Southeast Asia. The country maintains 58% forest cover; however, only 24% of the land is protected. Industrialized agriculture and mine exploration continue to degrade forests significantly. Additionally, illegal logging activities also contribute to this growing problem.

Climate change has also affected the longevity of both dry and wet seasons on Cambodia.

Attributed to both the change in climate as well as poaching, many animal species are endangered. Fish stocks have seen a major decline especially due to illegal fishing and water contamination.

Water resources are limited in Cambodia, especially in rural areas. 6.3 million people out of 14.9 million are unable to access clean drinking water. Stored water often becomes stagnated which contributes to many health problems within the nation. Air pollution is another environmental concern with high levels around 70.83, mostly contributed to increased traffic in the city.

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TOP CONCERNS

Climate Change

Water Resources

Agriculture & Land Degradation

COUNTRY STABILITY POLITICAL Since the end rule of radical communist Khmer Rouge’s time in power, resulting in over 2 million deaths, Cambodia has had relative stability with the process of democratic reconstruction since 1991; however, corruption is deeply rooted in the country and remains a threat to stability. Many elections since the 1990s have been marred by fraud or forms of government interference. This corruption could seriously hinder economic development and social stability.

LEGAL Legal system is primarily based on civil law with legislation as the main source of law in Cambodia. New laws and regulations combine aspects of the French civil code with common law principles.

Cambodia offers patent protections as well as trademark protection laws.

Additionally, Cambodia signed the Memorandum of Understanding which allows Singapore patents to also be protected in Cambodia.

The political scene in Cambodia often fluctuates with periods of stability followed by periods of instability. The government does not fully respect freedom of speech and the judiciary branch is also marred by inefficiency and corruption. Additionally, very few independent unions exist and are often illtreated.

In July 2013, Cambodia plunged into political turmoil after rigged elections that lead to a series of attacks and violence. Most recently, two Cambodian opposition lawmakers were attacked and beaten outside Cambodia’s parliament in October 2015. With two-thirds of the Cambodia population under 30 years of age, many citizens are seeking political change though progress has been slow and wavering.

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STATE OF INDUSTRY OVERVIEW The apparel and textile industry plays an important role in Cambodia’s economy.

In fact, the garment industry accounts for about 80% of Cambodia’s exports totaling $5.7 billion worth of exports in 2014. In addition, exports of garments and footwear to the European Union rose more than 27% while exports to the U.S. declined 6% in 2014. Cambodia has around 640 known factories with Cut-Make-Trim making up 60% of the work done. H&M, Gap, Marks & Spencer, and Wal-Mart lead production volume in Cambodia with selling directed towards the European Union and the U.S.

LABOR & WAGES The apparel industry accounts for over 600,000 workers, 90% which are women who live on less than $3 a day. The garment sector alone contributes to 8.5% of all employment in the country. Wages for this industry have seen increase over the past several years, though the minimum wage in Cambodia is significantly lower compared to nearby countries such as China, Thailand, and the Philippines. Monthly wages for February 2014 were $100 and increased to $128 a month by January 2015. Minimum wage in Cambodia has been an ongoing problem as the current wages are still lower than living wage standard. Garment workers along with independent trade unions have gone on strike due to this issue which has caused ceases on production. Other issues deal with the conditions of factories, which have lead to significant mass faintings, trade union rights violations, and the widespread use of fixed duration contracts.

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FUTURE OUTLOOK For the future, Cambodia’s garment industry faces many challenges. With the rise of wages, cheaper production in countries like Bangladesh threaten Cambodia’s growth. Additionally, the fluctuation of strikes and protests could hamper performance.

Lastly, Cambodia has almost no upstream supplies in fabrics and threads, forcing the country to import these items from other countries primarily from China and Taiwan which limits Cambodia’s growth within the garment sector.

ORGANIZATIONS • Garment Manufacturers Association of Cambodia: facilitate efficient bureaucracy and cooperate with the labor movement to ensure observation of basic labor standards.

• International Labor Organization: with Cambodia being a member since 1969, this organization as part of the United Nations deals with international labor standards, social protection, and work opportunities for all.

• Labour Advisory Committee: sets and reviews minimum wages for the country • Better Factories Cambodia: monitors factories, trains management and workers, and provides guidance and advice on factory improvements that help enterprises preserve profits while respecting workers' rights.

• Decent Work Country Program: skills and human resources development that promotes decent work and employment opportunities for women and youth

LEAD TIMES Average Cambodians work 6 days a week, with one day for rest. The country celebrates around 20 different public holidays, many of which include paid days off. Key holidays include: International New Year Day, the King’s Birthday, Constitutional Day, Independence Day, and the Water Festival Ceremony.

NATURAL DISASTERS FLOODS

TYPHOONS

STORMS

DROUGHTS

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TRADE AGREEMENTS

THE

Cambodia has several trade agreements throughout the world, most notably with neighboring countries. In 1995, Cambodia joined the International Organization for Standardization which is an international organization that brings experts from around the world together to share trade knowledge. Additionally, Cambodia became a member of the World Trade Organization in 2004.

U.S.

The U.S. is one of Cambodia’s largest trading partners with 33% of total exports destined for the U.S., which consists primarily of garment and footwear products. The U.S. is also one of Cambodia’s largest donors and official assistance has amounted to around $122 million as of 2014. U.S.-Cambodia Trade and Investment Framework Agreement (TIFA) is the major trade agreement between the two countries. Signed in 2006, TIFA facilitates and promotes greater trade and investment between the two countries and provides a forum to address bilateral trade and investment issues. However, the U.S. does not provide preference for garments from Cambodia and must therefore pay the normal U.S. tariff rate.

OTHER AGREEMENTS EURPEAN UNION Offers duty free entry to all Cambodian exports that meet the EU origin criteria. Roughly three quarters of Cambodia’s exports to the EU benefitted from duty free entry.

CANADA Duty free under Duty-Free Quota-Free program. More than 95% of exports benefitting from duty-free entry were garments.

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LAOS Bilateral agreement that allows trucks to cross the border.

While Laos has this opportunity, a lack of a clear cross-border agreement between Cambodia, Thailand, and Vietnam remain.

VIETNAM Bilateral agreement that provides each country to issue up to 300 permits within each other’s nation.

ASEAN Association of Southeast Asian Nations

ASEAN is a political and economic organization of Southeast Asian countries that aims to accelerate economic growth, social progress, and sociocultural evolution. Cambodia is also a member of the ASEAN Consultative Committee on Standards and Quality (ACCSQ), a division of ASEAN that seeks to align national standards among Member States.

MEMBERS:

• Indonesia

• Brunei

• Malaysia

• Cambodia

• Philippines

• Laos

• Singapore

• Myanmar

• Thailand

• Vietnam

NEW TRADE INITIATIVE

Conceived in 2013, the Regional Comprehensive Economic Partnership is a strategic trade agreement that is being negotiated among the ten members of ASEAN in addition to regional trading partners including Australia, China, India, Japan, New Zealand, and South Korea. The RCEP aims to establish deeper economic cooperation with a focus on trade in goods, services, and investments.

If signed, the RCEP would account for nearly 30% of world trade. This agreement strives to be the largest free trade bloc in the world.

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MAIN SUPPLIERS

Cambodia has over 350 apparel suppliers and 84 textile suppliers. Unlike countries like Vietnam and Bangladesh, Cambodia’s garment sector is not vertically integrated.

The majority of Cambodia’s industry is focused on CutMake-Trim (CMT) with fabrics and trims imported from surrounding countries, most notably China.

BENOH APPAREL CAMBODIA CO., LTD. • SHIPMENTS: 653 • TOP PRODUCTS: Women’s, Junior’s, and Misses Dresses (Rayon and Spandex) • CUSTOMERS: The Cato Corp., Kmart Corp., Wal-Mart Canada Corp., Old Navy Llc., and H&M Hennes and Mauritz L.P.

+855 23 355 782 Phann Tek Heng: tekhengtekhengs@yahoo.com

BRIGHT SKY PTE., LTD. • SHIPMENTS: 1,002 • TOP PRODUCTS: Cotton, Cotton Polyester, Polyester Knitted • CUSTOMERS: Disney Store USA, Llc., Old Navy Llc., Aeropostale Inc., Nautica Men’s Sportswear, The Gap Inc.

+855 23 424 135 Soriya Ven: boonwat_magcheav@oceanskyintl.com

EXPEDITORS CAMBODIA LTD. • SHIPMENTS: 4,179 • TOP PRODUCTS: Polyester & Cotton (Wholesale) • CUSTOMERS: Expeditors International, Levi Strauss & Co., Wal-Mart Canada Corp., Lamrite West Inc., Academy Ltd.

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+855 23 212 791 David Jude: jude.b.david@expeditors.com

ROO HSING GARMENT CO., LTD. • SHIPMENTS: 483 • TOP PRODUCTS: Cotton, Woven Pants, Denim Woven, Cotton Blue Denim • CUSTOMERS: Levi Strauss & Co., Sears Roebuck & Company, The Cato Corp., Macy’s Merchandising Group Inc., Belk International Inc.

+855 23 367 701 Kan: baden@khroohsing.com

SABRINA GARMENT MANUFACTURING CO., LTD. • SHIPMENTS: 462 • TOP PRODUCTS: Knit Apparel & Body • CUSTOMERS: Nike Inc., Lululemon Athletica USA Inc., The North Face, VF Outdoor Inc., Lucy Active Wear, Fred’s Inc.

+855 15 753 886 Luke: luke_kh@sabrina.com.tw

UNITED APPAREL CAMBODIA INC. • SHIPMENTS: 331 • TOP PRODUCTS: Cotton, Cotton Polyester, Cotton Knitted • CUSTOMERS: Kohl’s Department Stores Inc., Eddie Bauer LLC, Abercrombie & Fitch Trading Co., Belk International Inc.

+855 23 219 380 Cindy Chuang: grace-yang@mail2@ltgkc.com

WINCAM CORPORATION • SHIPMENTS: 395 • TOP PRODUCTS: Spandex, Swimwear, Polyester, Knit Swimwear • CUSTOMERS: A.H. Schreiber Co. Inc., Forever 21 Inc., Kmart Corp., Gottex Swimwear Brands Ltd., Charlotte Russe Inc.

+855 23 864 2735 Eddy: wincam2005@everyday.com.kh 15

TRANSPORTATION & SHIPPING HIGHWAYS Road networks in Cambodia measure approximately 44,709 kilometers. Major efforts at rehabilitation have been ongoing since the 1990s, though the road transport industry is still inefficient with most goods being carried in old overloaded trucks that lack utilization. Only about 20% of roads are covered in asphalt and are in passable condition, whereas 70% of roadways are made of crushed gravel or unimproved earth. Additionally, increasing traffic volumes are becoming issues in major cities like Phnom Pehn and Siem Reap where vehicle accidents are prevalent. In fact, the number of registered automobiles has been increasing 19% each year.

RAILWAYS The Royal Cambodian Railway consists of two main lines used for both passenger and freight trains. The Northern Line is designed for an axle load limit of 10 tons and has suffered damage. The Southern Line, though, is in good condition and can accommodate up to 20 tons. The tracks measure 642 kilometers, though many parts of the rail system are undergoing restoration. Recent initiatives from both the Cambodian government and foreign partners aim to revitalize the railway system to increase economic growth and strength.

AIRWAYS Cambodia has a total of 16 airports, 6 of which are paved. In addition, Cambodia also has around 26 airfields. Phnom Pehn International Airport and Angkor International Airport (Siem Reap) serves international flights. Phnom Pehn International Airport is the country’s largest, while Angkor International Airport is the second largest but the country’s busiest. Both of these international airports welcome 1.5 million tourists annually.

WATERWAYS Inland waterways include the Mekong and Tonlé Sap Rivers which have been historically important in domestic trade. Cambodia’s extensive waterways measure over 3,000 kilometers and play key roles for communication and transportation in many villages. Cambodia has two key ports, Sihanoukville (Major Sea Port) and Phnom Pehn (River Port), in addition to five minor ports. Only the ports at Sihanoukville and Phnom Pehn handle international containers and both are improving their volume capacities.

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KEY PORTS SIHANOUKVILLE PORT • Largest and only deep seawater port • 2 channels, 12 berths, and modern cargo handling facilities • Traffic estimated at 2.4 million tonnes per year • Can accomodate 10,000 DWT cargo ships

PHNOM PEHN PORT • Key river port • Features container terminal, passenger terminal, and warehouses • Can accomodate 740,000 tons of cargo • Capable of receiving 8,000 ton ships during wet season and 5,000 tons during dry season

Ranked 98 out of

189 economies for ease of trading across borders.

• • • • • • • •

Bill of Lading Certificate of Origin Commercial Invoice Customs Export Declaration Export Permit Insurance Certificate Packing List Terminal Handling Receipt

EXPORT DOCUMENTS

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SHIPPING COMPANIES FREIGHT FORWARDERS: • C.L Cargo Co., Ltd. • GBG Logistics • Bright Star Logistics • Cam Freight Services

Established in 2004, the Cambodia Freight Forwarders Association (CAMFFA) is the official representation of freight companies in the country. Its goal is to strengthen and promote the freight industry and to assist members in shipping processes. Currently, the CAMFFA has 59 active members. Beyond the CAMFFA, many other freight companies are also present within Cambodia.

Costs for freight vary depending on the commodity and volume. Costs can range from $500-$5,000 depending on whether cargo is full-container load versus less than container load, destination, weight, insurance, and taxes and duties. Air freight is typically priced 12-16 times more than sea transport, but has much shorter lead times.

• RDL Logistics • Protrans Line Co., Ltd. • Asian Freight Co., Ltd. • EP Logisitcs Co, Ltd.

TOP U.S. PORTS for CAMBODIAN EXPORTS 1. L.A. 2. SAVANNAH 3. NEWARK 4. LONG BEACH 18

Cambodia applies duty rates between 0% and 35%, with an average rate of 15%

DAMCO ABOUT: One of the world’s leading providers of freight forwarding and supply chain management with services in over 300 locations across 100 countries.

+855 23 960 000

cambodia@damco.com

HAPAG-LLOYD ABOUT: A leading global liner shipping company with 350 locations in 117 countries and a annual of 7.5 million TEU transported among 175 modern container ships.

+855 23 424 731-6

mithona.mam@issshipping.com

YUSEN LOGISTICS ABOUT: Provides supply chain management, planning, and consulting with a global network spanning almost 300 cities in 40 countries with over 20,000 employees.

COST:

+855 23 998 620

support.center@ us.yusen-logistics.com

TIME:

TO L.A. : $3,376-$3,731

TO L.A. : 23 DAYS

TO SAVANNAH : $4,640-$5,129

TO SAVANNAH : 34 DAYS

TO NEWARK : $4,298-$4,750

TO NEWARK : 32 DAYS

TO LONG BEACH : $3,410-$3,769

TO LONG BEACH : 23 DAYS

* Cost and time based on 40 foot full container load with $5,000 worth of apparel with included insurance.

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CONDUCTING BUSINESS CULTURE Cambodia is a collective society where the individual takes second place to the group whether that be family or community.

Cambodians value a sense of harmony and balance. Additionally, the concept of face is key to this culture. Controlling one’s face shows dignity and honor. Cambodian men are addressed with the title of “Lok” and women are addressed with the title of “Lok Srey” followed by first and surname.

Cambodian society is also highly hierarchical. When meeting a group, one will be introduced to the highest ranking individual first. The traditional Cambodian greeting is called a “sampeah,” which is a bow combined with a bringing of the hands together at chest level. For greater respect, the bow would be lower and the hands higher. Though many Cambodians have adopted the Western handshake, it is impolite to not return a sampeah.

Gift giving usually occurs at Cambodian New Year or when one is invited to a person’s home. Birthdays, however, are not typically celebrated in Cambodia and no gifts are given. Thoughtful gifts include fruit, sweets, or flowers, but never wrap gifts in white paper as this is a color of mourning. Both hands are used when giving a gift and the receiver typically does not open them immediately.

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TABLE MANNERS • Table manners are fairly formal • Take off shoes before entering one’s home • Wait to be told where to sit • The oldest person is usually seated first • Do not begin eating until after the eldest member has started eating • Never discuss business in social settings and events

BUSINESS ETIQUETTE • When handing a business card, use both hands or right hand. If the receiver is of higher social standing, support right elbow with fingers of left hand when presenting • Never write on or fold a business card • If a handshake is offered, be more on the gentle side and do not linger • Arriving on time is important, though meetings may not begin exactly on time

NEGOTIATION & COMMUNICATION • Verbal communication tends to be nonconfrontational and indirect • Periods of silence are considered acceptable and expected • Do not interrupt, show displeasure through facial movements, or talk over another person • Address senior or elder in the room first • Small talk often takes place at the beginning of meetings

Cambodians value relationship building and harmony, so avoid pressure tactics, hard selling, or any form of confrontation. Likewise, do not display anger or impatience. Do not become emotional when negotiating as this is seen as a sign of weakness. Price is often a determining factor in business decisions so expect bargaining.

Additionally, many Cambodians tend to avoid using “no” when answering questions as they do not like to cause conflict.

PROPER ATTIRE • For men, nice pants and collared shirts are expected. Jackets and ties are not always neccessary but good to have just in case • Men should be well-groomed • For women, ankle length skirts and blouses are expected • Shorts and sleeveless tops are not appropriate, and women are expected to dress modestly, especially in holy places 21

RISKS & BENEFITS PROS • Proximity to neighboring countries to access needed imports and materials • Lower costs of doing business compared to other countries in Asia • Large and young pool of available labor • High levels of foreign investment in the country with promising growth potential

CONS • High levels of corruption and political instability • Poor infrastructure • Growing competition from other markets like Bangladesh • Lead times are longer than most other Asian countries, specifically China • Disaster prone area that is susceptible to storms, flooding, and typhoons

IN CONCLUSION In conclusion, Cambodia is a growing nation that has made vast improvements within the past two decades. While Cambodia still has a way to go, especially when dealing with political stability and rehabilitating infrastructure, the country has proven to actively strive to change and develop. Millions of dollars’ worth of foreign investments indicate that the global community also sees Cambodia’s potential. With the garment industry as Cambodia’s largest sector and highest volume of exports, apparel manufacturers have access to multiple businesses, organizations, and resources. For the future, Cambodia showcases enormous potential and has the opportunity to become a key global market.

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FIGURE 1

APPENDIX

FIGURE 2

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FIGURE 3

FIGURE 4

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FIGURE 5

FIGURE 6

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Suppliers. 2016. 18 February 2016. <https://panjiva.com/search/globalsupplier?q=apparel&x_history=eJx1jV1rwjAYhf9LbieSJm2aCrsbG8is4NjVGCxSW0wHyVNRTf23xdLLwa62_Occ55v1AfVahNVQKsPNA4Qg5AKpIgCLRL0cmwiCCeh8 bYX7oI-F0iMsVMu6kbHC0R_VA6t0N4-n5_W-lSToXvXvnpK9RdsOz4UG8N323O8q3sqBeb7ftjur5qnbLpZoDWBwvGJ7FMR1miUlsQxgDH BU5RK8yg5tGUQU6qvGIFw2xeDGPfG60CHJSHINxBXQFe8pxTwnFJOCG05HebMLqh EWay53_tBWE39pQlO-cVIZiVs_0GZVn1LyL0PsKUVtmEfn4BXdd8Ew >.

Tolson, Michelle. Made in Cambodia: Garment Workers Fight Gap, H&M and Others for a Minimum Wage. 20 February 2014. 16 February 2016. <http://rhrealitycheck.org/article/2014/02/20/made-cambodia-multi-fiber-thread-tears/ >.

Transport in Cambodia. 2013. 18 February 2016. <http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/EASTASIAPACIFICEXT/E XTEAPREGTOPTRANSPORT/0,,contentMDK:20458706~menuPK:2066305~pagePK:34 004173~piPK:34003707~theSitePK:574066,00.html >.

Welsh, David. Fair Trade for the Global Garment Industry. 20 May 2015. <http://www.nytimes.com/2015/05/21/opinion/fair-trade-for-the-global-garmentindustry.html?_r=0 >.

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CAMBODIA

2016 COUNTRY REPORT ASHLEE SCOTT

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FASM 420

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WINTER 2016