Editing Economy of Cambodia (section)

=== Garment industry ===
The garment industry represents the largest portion of Cambodia's manufacturing sector, accounting for 80% of the country's exports. In 2012, the exports grew to $4.61 billion up 8% over 2011. In the first half of 2013, the garment industry reported exports worth $1.56 billion.<ref name="investvine">{{cite web|url=http://investvine.com/cambodias-textile-industry-grew-32/|title=Cambodia's textile industry grew 32%|first=Arno|last=Maierbrugger|work=Inside Investor|date=11 July 2013|access-date=11 July 2013|archive-date=2 October 2013|archive-url=https://web.archive.org/web/20131002063558/http://investvine.com/cambodias-textile-industry-grew-32/|url-status=dead}}</ref> The sector employs 335,400 workers, of which 91% are female.

The sector operates largely on the final phase of garment production, that is turning yarns and fabrics into garments, as the country lacks a strong textile manufacturing base. In 2005, there were fears that the end of the [[Multi Fibre Arrangement]] would threaten Cambodia's garment industry; exposing it to stiff competition with China's strong manufacturing capabilities.<ref>[https://www.nytimes.com/2013/04/09/business/global/wary-of-events-in-china-foreign-investors-head-to-cambodia.html ''Wary of China, Companies Head to Cambodia''] April 8, 2013 New York Times</ref> On the contrary, Cambodia's garment industry at present continues to grow rapidly. This is can be attributed to the country's open economic policy which has drawn in large amounts of foreign investment into this sector of the economy.

Garment Factories by Ownership Nationality in 2010:<ref>{{cite web |url= http://www.gmac-cambodia.org/bulletin/2010.pdf |title= Annual Bulletin 2010 |author= Garment Manufacturers’ Association in Cambodia (GMAC) |page= 10 |date= March 17, 2010 |access-date= July 7, 2015 |url-status= dead |archive-url= https://web.archive.org/web/20160303224422/http://www.gmac-cambodia.org/bulletin/2010.pdf |archive-date= March 3, 2016 }}</ref>
{| class="wikitable sortable"
|-
! 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
|}
[[File:Cambodiahealth1.jpg|thumb|A garment factory worker in Cambodia undertaking health precautions]]

In 2010, 236 garment export-oriented factories were operating and registered with GMAC, the Garment Manufacturers Association in Cambodia, with 93% being foreign direct investment (FDI).

As seen in the table above, Cambodia's garment industry is characterized by a small percentage of local ownership. This is a reflection of the deficiency of skilled workers in the country as well as the limited leverage and autonomy Cambodian factories have in strategic decisions.<ref>{{cite journal|last=Lee|first=Joosung J.|title=An Outlook for Cambodia's Garment Industry in the Post-Safeguard Policy Era|journal=Asian Survey|date=May–June 2011|volume=51|issue=3|pages=562|doi=10.1525/as.2011.51.3.559}}<!--|access-date=9 February 2013--></ref> Another characteristic of the industry is the country's competitive advantage as the only country where garment factories are monitored and reported according to national and international standards.<ref>{{cite journal|last=Lee|first=Joosung J.|title=An Outlook for Cambodia's Garment Industry in the Post-Safeguard Policy Era|journal=Asian Survey|date=May–June 2011|volume=51|issue=3|pages=564|doi=10.1525/as.2011.51.3.559}}<!--|access-date=9 February 2013--></ref>

This has allowed Cambodia to secure its share of quotas for exports to the US through the US-Cambodia Trade Agreement on Textiles and Apparel (1999–2004), which linked market access to labor standards. However, the Cambodian garment industry remains vulnerable to global competition due to a lack of adequate infrastructure, labor unrest, the absence of a domestic textile industry, and almost complete dependence on imported textile material.<ref>{{cite journal|last=Lee|first=Joosung J.|title=An Outlook for Cambodia's Garment Industry in the Post-Safeguard Policy Era|journal=Asian Survey|date=May–June 2011|volume=51|issue=3|pages=566|doi=10.1525/as.2011.51.3.559}}<!--|access-date=9 February 2013--></ref>

GMAC is establishing a specialized training institute to train garment workers. The institute is in Phnom Penh Special Economic Zone and will be completed by late 2016.{{update inline|date=March 2022}} It aims to train 1,600 garment workers in the first three years and 240 university students each year as part of a separate program.<ref>{{cite news|title=Training institute to boost garment sector in Cambodia|url=http://banglaapparel.com/en/news/2015-09-06_17:24:56:0.098492001441538696.en.html|access-date=9 September 2015|newspaper=BanglaApparel.com|date=24 May 2015|author=Kaniz Fatima Kanta|archive-url=https://web.archive.org/web/20150930201310/http://banglaapparel.com/en/news/2015-09-06_17:24:56:0.098492001441538696.en.html|archive-date=30 September 2015|url-status=dead}}</ref>