Can Cambodia continue to compete effectively in the textile sector?
A recent Asian Development Bank report found that much depends on what steps are taken by the Cambodian government and, to a lesser extent, by the industry itself in the near future. Cambodian labour costs in the garment industry are among the lowest in the world, at 23 US cents per hour. However costs are driven up by informal and unpredictable payments within the government bureaucracy and the high costs of transport, electricity and other inputs. For example, electricity costs US 15 cents per kilowatt-hour in Cambodia, compared with the international norm of just 6 cents. Unofficial payments added up to 7 per cent to the cost of total sales. For example, the transport of one container from factory to the customer should cost just under US$4,000, according to the official schedule of charges, including port fees, loading costs and customs charges. However the real cost is well over US$6,000 – adding more than 37 per cent to the official costs. Labour productivity also needs to improv
