The Cambodian government is understood to have promised tax breaks to garment factories hit by the EU’s partial removal of preferential trade access, and supply chain disruptions from the coronavirus epidemic.
Prime Minister Hun Sen made the announcement yesterday (24 February) at a meeting of the Council of Ministers in Phnom Penh. He said factories “strongly affected” by the tariffs or coronavirus would be exempt from tax for at least six months, according to Reuters.
The government has also pledged to help pay partial wages to workers if production is halted. “When these factories suspend operations, they will pay 40% of the current minimum wage (to their workers), while the government will pay workers an additional 20%. So, in total, workers will get 60% of their current wage,” Reuters reported Sen as saying.