European garment brands including H&M are weighing up what their future sourcing strategies in Cambodia will look like as the country looks set to be partially stripped of its Everything but Arms (EBA) trade benefit in August.
In a Facebook update last week, Cambodia’s Ministry of Commerce said it had held meetings with brands including H&M and Adidas during which discussions centred around free trade agreements and support to get the sector back on its feet following the Covid-19 outbreak and its impact on the industry.
Many factories across the nation have temporarily suspended production while others have closed down operations after some buyers refused to accept products already produced, pay for goods produced and delivered, and cancelled orders. Yesterday (23 June), factories made a plea to the government to suspend its upcoming wage negotiations in the country to help them sustain their businesses.
In full: https://www.just-style.com/news/brands-re-evaluating-cambodia-sourcing-strategy_id139029.aspx
