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Cambodia: $2.7 million of investment welcome in times of need
Logwood Apparel Co Ltd has been given the go-ahead from the Council for the Development of Cambodia (CDC) to build a factory in Kandal Stung district, Kandal province.
The newly-approved project with a total investment of $2.7 million covers the production of clothes and medical facemasks, according to a CDC news release.
The investment amid the COVID-19 pandemic shows the confidence of foreign investors in Cambodia.
The new project is expected to create 814 jobs for the locals of Kandal province.
The news comes a few days after garment workers found out their salaries would be bumped up by $2 in 2021, making the monthly minimum wage $192 – or $187 for workers during their probationary period.
Cambodia’s garment industry is struggling because of lower demand worldwide as a result of the Coronavirus pandemic.
According to the Garment Manufacturers Association, more than 150,000 jobs had been lost as 400 factories suspended production as of July.
Labour Minister Ith Samheng told reporters that the new wage level tried to balance workers’ livelihoods against the industry’s competitiveness.
“I hope this wage will help the livelihoods of workers who are facing difficulties and will help increase work productivity. I want to make our factories more competitive with foreign countries,” Samheng said.
“It is also a signal to attract more investment, to establish new factories in Cambodia.”
With the closure of so many factories, investment from companies such as Logwood apparel will be welcomed by communities such as Kandal province.
Source: https://www.khmertimeskh.com/50764132/2-7-million-of-investment-welcome-in-times-of-need/