Nearly 500 mills shut down in Cambodia last year due to declining textile orders from US and Europe

The Cambodian China Times reported on Mar 3 that hit by decreasing European and US orders, a total of 491 mills in Cambodia had to be closed last year, causing 59,000 workers to lose their jobs and 100 mills to suspend operation.

According to a spokesperson of Cambodian Labor Department, those worst-hit mills were largely apparel manufactures who were in lack of feedstock and received less orders from US and Europe.

The weak demand in US and Europe market had great impact on global economy, said the spokesperson. Consumption willingness in US and Europe has diminished due to Covid and uncertainties came along with Russia-Ukraine conflict. Besides, the soaring prices of energy resources around the world drove up the cost for production and transport. He also pointed out that some apparel mills filed for production suspension due to insufficient raw material.

Total value of Cambodian apparel export exceeded USD 10billion in 2022, and in first half of this year this figure is expected to fall by 30% because of a decline in international orders.