Cambodia garment makers call on buyers to honour contracts

A trade body representing garment manufacturers in Cambodia has appealed to buyers asking them to commit to orders already fulfilled.

The Garment Manufacturers Association in Cambodia (GMAC) issued an open letter to its buyers in which it said all parties in the global apparel supply chain are feeling the “extreme burden” caused by Covid-19, but warned that manufacturers operate on “razor-thin” margins and were less able to absorb financial shock compared to customers.

The Cambodian economy depends heavily on the garment industry, which accounts for more than 78% of the country’s total merchandise exports and 20% of its annual economic growth and is the main non-agrarian employer in the country with nearly 700,000 garment workers employed in 1,500 factories.

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