![Page 1: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/1.jpg)
BUILD BRIGHT UNIVERSITYBUILD BRIGHT UNIVERSITY
Prepared by Ninth Group Members Prepared by Ninth Group Members
Stung Treng Campus, CambodiaMBA Program, Promotion I
Lectured by Professor Dr. T.R Dash
IMPACTS OF ECONOMIC RECESSION ON CAMBODIA’S
GARMENT INDUSTRIES
IMPACTS OF ECONOMIC RECESSION ON CAMBODIA’S
GARMENT INDUSTRIES
![Page 2: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/2.jpg)
Group MembersGroup Members
1. Mr. Por Narith, Team Leader
2. Mr. Dara Angkeapheakdei, Member
3. Mr. Mov Poly, Member
![Page 3: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/3.jpg)
ContentsContents
1. Introduction2. Research Methodology 3. Research Finding -Global Economy-Cambodia Economy-Cambodia garment industries-Impact of economic recession on Cambodia garment industries4. Conclusion and Recommendation
![Page 4: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/4.jpg)
1. Introduction
1.1 Problem StatementsHow 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 offLast quarter of 2009 and early 2010,
Cambodian economy is recovering
![Page 5: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/5.jpg)
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?
![Page 6: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/6.jpg)
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
![Page 7: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/7.jpg)
1.4 Significance of the research•Students to understand the context of economic in Cambodia and effect on the Cambodia’s garment industries
![Page 8: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/8.jpg)
•Data collection•Data Analysis • Report Writing
2. Research Methodology
![Page 9: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/9.jpg)
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
![Page 10: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/10.jpg)
• 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
Global Economy
![Page 11: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/11.jpg)
Cambodia Economy
Cambodia EconomyOpen market system,Rapidly increasing but low compared with most
neighboring countriesLargest industries are textiles and tourismAgricultural activities Service sector Economy slowed in 1997-98 due to the regional
economic crisis, civil unrest, and political infighting1998 the main harvest was hit by droughtIntegrate itself into regional (ASEAN) and global
(WTO) trading systems
![Page 12: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/12.jpg)
• Economic recession- –2008 economic crisis- 23% drop in
exports to the United States of America and Europe–60,000 workers were laid off
![Page 13: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/13.jpg)
GDP GDP per Capita
![Page 14: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/14.jpg)
GDP Distribution
![Page 15: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/15.jpg)
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
![Page 16: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/16.jpg)
Breakdown of industry in GDP
![Page 17: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/17.jpg)
Gross Domestic Expenditures
![Page 18: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/18.jpg)
GNI per capita 2009
![Page 19: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/19.jpg)
Consumer Price Index
![Page 20: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/20.jpg)
CPI Year on Year Change
![Page 21: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/21.jpg)
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
Others 4% 10
![Page 22: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/22.jpg)
US Garment Imports by Country Dec 2009-Dec 2010
![Page 23: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/23.jpg)
Cambodia’s Garment Exports, 2001-2010
![Page 24: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/24.jpg)
Number of Factories, 2000-2010
![Page 25: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/25.jpg)
Impact of Economic Recession on Garment
Industry
![Page 26: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/26.jpg)
High Vulnerabilities in Slumping US Retail Sales
![Page 27: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/27.jpg)
Reduction in Factory Numbers
![Page 28: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/28.jpg)
Reduction in Numbers of Workforces
![Page 29: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/29.jpg)
Reduction in Total Wages
Source : MoC, 2009
![Page 30: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/30.jpg)
Decline in Daily Earning
![Page 31: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/31.jpg)
Reduction in Workers’ Remittance
![Page 32: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/32.jpg)
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
![Page 33: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/33.jpg)
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
![Page 34: Impacts of economic recession on cambodia garment industries](https://reader033.vdocuments.mx/reader033/viewer/2022061221/54be8c9d4a79593d228b4587/html5/thumbnails/34.jpg)
Thanks for Your Attention!!!Thanks for Your Attention!!!