Regional garment manufacturers must increase cooperation

PHILIPPINES NEWS AGENCY

PHNOM PENH, Jan. 10 (PNA/VNA) -– ASEAN garment manufacturers stressed the importance of free trade and cooperation to address an alarming drop in demand during a two-day conference, which concluded on Jan. 9 in Phnom Penh.

They proposed a number of crisis measures, including a move to purchase raw materials regionally to reduce production costs instead of importing them from other countries.

"How are we to survive the current [economic] situation? To survive, we need to find a strategy and fight," Cambodian Minister of Commerce Cham Prasidh was quoted as saying. "But we must not fight with each other or compete among member states," he added.

Minister Prasidh also urged garment makers to target low-price markets. Van Sou Ieng, president of the Garment Manufacturers Association of Cambodia, said the lack of locally-produced fabric has driven up manufacturing costs by forcing factories to import raw materials.
"Developing countries have been given some incentives, with the European Union, Canada and Japan allowing us to export garments duty-free," he said.

Van Sou Ieng said some progress had also been made in easing regional trade barriers.

"In the past, fabric purchased in Thailand attracted 15 percent in duty. Now, Cambodia pays no duty. Our buyers also no longer require customs permits for purchases," he said.

ASEAN includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. (PNA/VNA)