1. BUILD BRIGHT UNIVERSITY
Stung Treng Campus, Cambodia
MBA Program, Promotion I
IMPACTS OF ECONOMIC
RECESSION ON CAMBODIA’S
GARMENT INDUSTRIES
Lectured by Professor Dr. T.R Dash
Prepared by Ninth Group Members

2. Group Members
1. Mr. Por Narith, Team Leader
2. Mr. Dara Angkeapheakdei, Member
3. Mr. Mov Poly, Member

3. Contents
1. Introduction
2. Research Methodology
3. Research Finding
-Global Economy
-Cambodia Economy
-Cambodia garment industries
-Impact of economic recession on Cambodia
garment industries
4. Conclusion and Recommendation

4. 1. Introduction
1.1 Problem Statements
How about the global economy- recession?
Global recession of 2007-2009
How about the Cambodia global economic
recession?
In 2007, Cambodia's GDP grew by 18.6%.
2008 economic crisis, it 23% drop in exports to
the United States of America and Europe
60,000 workers were laid off
Last quarter of 2009 and early 2010, Cambodian
economy is recovering

5. 1.2 Research questions
•What is the global economic trend?
•What is the Cambodia economic trend?
•What is the situation of garment factory
in Cambodia?
•What is the impact of the economic
recession on Cambodia’s garment
industries?

6. 1.3 Research Objectives
•To find out the Global and Cambodia’s
economic trend and its economic
recession;
•To assess the impact of the economic
recession on garment industries in
Cambodia;
•To provide recommendation

7. 1.4 Significance of the research
•Students to understand the context of
economic in Cambodia and effect on the
Cambodia’s garment industries

8. 2. Research Methodology
• Data collection
• Data Analysis
• Report Writing

9. 3. Finding
What is Recession, Economic, Garment
Industry?
- Recession-falling GDP
- Economy- the production, trade, and use of
goods and services
- Garment Industry -makers and sellers of
fashionable clothing apparel industry,
fashion business, fashion industry, rag trade
industry

10. Global Economy
• Global Economy- in 2011, largest
economies- United States, China, Japan
, Germany, France, the United
Kingdom, Brazil, and Italy
• Global Economic Recession- global
recession of 2007-2009, financial crisis of
2007–2008

11. Cambodia Economy
 Cambodia Economy
 Open market system,
 Rapidly increasing but low compared with most
neighboring countries
 Largest industries are textiles and tourism
 Agricultural activities
 Service sector
 Economy slowed in 1997-98 due to the regional economic
crisis, civil unrest, and political infighting
 1998 the main harvest was hit by drought
 Integrate itself into regional (ASEAN) and global (WTO)
trading systems

12. • Economic recession-
– 2008 economic crisis- 23% drop in exports
to the United States of
America and Europe
– 60,000 workers were laid off

13. GDP GDP per Capita

14. GDP Distribution

15. GDP growth rate by economic
activities
Growth Rate of GDP (%)
2005 2006 2007 2008 2009 2010 2011e
Agriculture, Fisheries & Forestry 15.7 5.5 5.0 5.7 5.4 4.0 3.6
Crops 27.6 5.3 8.2 6.6 5.8 5.7 3.7
Livestock & Poultry 5.6 8.2 3.7 3.8 5.0 5.6 3.9
Fisheries 5.6 3.8 0.8 6.5 6.0 0.4 3.8
Forestry & Logging 5.1 7.0 1.1 0.9 1.1 0.2 1.1
Industry 12.7 18.3 8.4 4.0 -9.5 13.6 8.5
Manufacturing 9.7 17.4 8.9 3.1 -15.5 29.6 9.0
Textile, Apparel & Footwear 9.2 20.4 10.0 2.2 -9.0 18.5 10.4
Construction 22.1 20.0 6.7 5.8 5.0 -25.5 6.4
Services 13.1 10.1 10.1 9.0 2.3 3.3 6.3
Trade 8.5 7.1 9.5 9.4 4.2 7.5 6.0
Hotel & Restaurant 22.3 13.7 10.2 9.8 1.8 11.2 10.7
Transport & Communication 14.5 2.1 7.2 7.1 3.9 8.0 6.8
Real Estate & Business 7.8 10.9 10.7 5.0 -2.5 -15.8 5.1
Other Services 18.3 17.2 12.1 12.0 2.9 4.2 4.6
Taxes on Products 6.1 7.6 45.7 9.1 6.1 0.1 4.1
GDP 13.3 10.8 10.2 6.7 0.1 6.0 6.0

16. Breakdown of industry in GDP

17. Gross Domestic Expenditures

18. GNI per capita 2009

19. Consumer Price Index

20. CPI Year on Year Change

21. Cambodia Garment Industries
Nationality of Ownership Ownership by percentage Number of factories owned
Taiwan 28% 66
China 19% 44
Hong Kong 17% 39
South Korea 13% 31
Malaysia 6% 14
Cambodia 5% 13
Singapore 4% 10
USA 4% 9
10
Others 4%

22. US Garment Imports by Country
Dec 2009-Dec 2010

23. Cambodia’s Garment Exports,
2001-2010

24. Number of Factories, 2000-2010

25. Impact of Economic Recession
on Garment Industry

26. High Vulnerabilities in Slumping
US Retail Sales

27. Reduction in Factory Numbers

28. Reduction in Numbers of
Workforces

29. Reduction in Total Wages
Source : MoC, 2009

30. Decline in Daily Earning

31. Reduction in Workers’
Remittance

32. Conclusion and
Recommendation
Conclusion
•including high vulnerabilities in slumping US
retail sales
•Reduction in factory numbers
•Reduction in numbers of workforces,
reduction in total wages
•Declining in daily earning and reduction in
workers’ remittance

33. Recommendations
•Diversify the current market destinations, i.e.
Japan, Russia, Middle-Eastern countries and
ASEAN members
•Help factory management secure 0.3% of
workers’ wage per month of the 0.8% to be
submitted for safety net pensions
•Create fund for vocational training for laid-off
workers

34. Thanks for Your Attention!!!