Apparel workers in Cambodia seem to have no place to go as factories are either shutting down or furloughing their employees, as is the case across the globe.
In some cases, the owners have fled away. Sadly, these workers get to know that they have been left in the lurch once the factories are locked! At least 57 factories in Cambodia have stopped operating and more than 18,000 workers have been temporarily laid off.
As the world faces the catastrophe, factories that first struggled to source raw materials from China are now facing a disintegrated demand from buyers.
Buyers from the US and Europe that form majority of Cambodia’s demands have suspended orders for at least 2 months, while others have refused to accept delivery of completed orders.
This breaks the cash flow in the supply chain, at the end of which worker doesn’t get his pay!
Many brands are citing force majeure while declining to pay for goods, even though many of their contracts signed with suppliers do not allow for cancellation on the basis of a global health crisis.
Naypyidaw has prepared a rescue package that includes 100 billion kyat of low-interest loans to help hard-hit sectors like garment, manufacturing and tourism.
Cambodia has eased the liquidity of banks so that they can help distressed borrowers and Prime Minister Hun Sen also announced tax breaks and a bailout plan of up to US $ 2 billion, last month.