Garment factories rely on raw materials from China, and as manufacturing plunged in China, factory owners in Cambodia and Myanmar have begun suspending operations and retrench workers.
Ten factories in Cambodia informed the government that production would be suspended. It is estimated that 200 factories in the sector will either suspend operations or decrease productivity. One source reported that 5,000 Cambodian workers have already lost their jobs.
Factories who have suspended operations are obliged to pay workers 60 per cent of the minimum wage, and the Cambodian government has offered affected employers to pay 20 per cent of that.