Wednesday, 22 July 2009

China's Taiwan holds edge in Cambodian garment investment

PHNOM PENH, July 22 (Xinhua) -- China's Taiwan is the leading investor in Cambodia's garment sector with 68 factories out of 274 in operation, local media reported on Wednesday.

The industry figures were released by the Garment Manufacturers Association of Cambodia (GMAC), an industry body.

Kaing Monika, GMAC's external affairs manager, was quoted by the Phnom Penh Post as saying that Chinese mainland is the second-biggest investor in the sector, with 55 factories. China's Hong Kong is third with 51 factories, while South Korea has 32 factories.

The leading non-Asian investor in the garment sector is the United States which is in 7th place with 10 factories.

GMAC President Van Sou Ieng said that although China's Taiwan has the largest number of factories, Chinese mainland brings in 70percent more raw material, worth around 1 billion U.S. dollars.

"Regardless of where the investment comes from, it is good because all investors have capital and experience, and they can provide jobs for the Cambodian people," he said.

A report from GMAC earlier this year revealed that 56 garment factories shut down in the first six months of 2009. About 24,000 workers lost their jobs, two-thirds of whom worked at the 23 factories that were GMAC members.

Figures from the Council for the Development of Cambodia (CDC) show that China's Taiwan invested 7 million U.S. dollars in Cambodia this year, which is around 0.5 percent of total inward investment.

Chinese mainland has invested 242 million U.S. dollars, which is around 20 percent. Last year, Chinese mainland invested 4.3 billion U.S. dollars against Taiwan's 21.5 million U.S. dollars.

Editor: Zhang Xiang

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