KINGDOM PULLS FACTORIES

Covid-19 had been several months disrupting global trade and economy. Though six had shut down but 77 new factories had set up their operation in the Kingdom.

 

For the first quarter of this year, the total number of factories register with Ministry of Industry, Science, Technology and Innovation has reached 1,801 according to a senior ministry officer.

 

Ministry’s secretary of state, Heng Sokkong attributed the growth is due to the attractive open policies and sufficient supply of raw materials. He further indicate that while the six factories’ closure had put 6,052 workers out of jobs, the new factories are expected to create 27,909 new ones which should be proud of especially when other countries still struggling with Covid-19. The number reported exclude factories that had suspended their operations due to pandemic.

 

Meanwhile, he stated that Cambodia is making efforts to expand its production line in order to create new jobs for people by avoiding exporting raw materials abroad. Government is urging manufacturers to convert into smart factories. Diversify from workforces-reliant industry to skilled workforce-reliant industries.

 

According to the World Bank’s projection, Cambodia’s economic growth will slow significantly to 2.5 per cent this year but is likely to recover to 5.9 per cent in 2021 under the baseline scenario.

 

The Kingdom’s tourism sector has been hit hardest by the Covid-19 outbreak, while the garment industry is facing a significant drop in global demand due to the pandemic and the partial withdrawal of the EU’s Everything But Arms (EBA) scheme.

 source: https://www.phnompenhpost.com/business/kingdom-pulls-factories

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