Cambodia's garment industry is confronted with some major challenges. The most pressing concern is a new rule that workers are entitled to seniority bonuses twice a year. Workers support the plan but fear that employers will somehow find a way to pay them less than entitlement.
Workers have questions about the size of the bonus and how much they will receive if they have worked at a factory for six or seven years. Workers, who form a massive voting bloc, were promised more protection and higher incomes during last year’s elections.
Another threat lies with the possible suspension of Cambodia from the Everything But Arms (EBA) trade scheme between the European Union and the world's least developed nations. The EBA allows Cambodia to export its products tariff-free to EU countries.
Cambodia would suffer badly if suspended from the EBA. Garment factories in the country which supply to major brands such as H&M, Adidas, Nike, C&E and Puma employ more than 7,00,000 Cambodians. The EU is by far the country's most important export market. A loss of trade preferences could mean that fashion brands turn away from Cambodian factories. Although the suspension won't start before 2020, workers already fear the impact.
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Luxury under pressure as stagflation and geopolitics redefine the winners’ circl…
The 2025 earnings for Europe’s listed luxury majors have delivered a verdict that has far more implications than the prevailing... Read more
Luxury resale goes global, sneakers, handbags, archival fashion redrawing border…
The luxury resale market in 2026 is no longer a monolithic global block. According to the RB Insights January 2026... Read more
China out but can India deliver? The realities of the global sourcing shift
With the US imposing a flat 15 per cent tariff on Chinese imports under Section 122 as of February 2026,... Read more
Luxury in Retreat: Why the aspirational consumer is gone for good
The global luxury industry is confronting an unprecedented situation. The active consumer base, which peaked at 400 million in 2022,... Read more
The Invisible Bleed: How a single chemical is slowing India’s apparel machine
The global fashion industry has spent the better part of the past two years obsessing over visible disruptions viz. volatile... Read more
The Closet Paradox: How ‘nothing to wear’ is driving global overconsumption
In an era of overflowing wardrobes and instant fashion gratification, a striking paradox has emerged: the more clothes we own,... Read more
US trade rulings and labor slowdown reshape 2026 cotton supply chains
The global cotton industry is entering a period of adjustment, shaped by legal rulings, trade policy recalibrations, and a softening... Read more
Zero-tariff paradigm drives strategic re-sourcing at Global Sourcing Expo 2026
Projected to reach a valuation of $30.3 billion this year, the Australian textile and apparel market is entering a period... Read more
Strategic manufacturing takes center stage at Gartex Texprocess Mumbai 2026
A $179 billion industrial cornerstone contributing 2 per cent to the national GDP, the Indian textile and apparel sector is... Read more
The Hidden Tax on Fashion: 2026’s EPR rules squeeze margins and shake supply cha…
As the 2026 enforcement deadlines for California’s SB 707 and the European Union’s harmonized Waste Framework Directive loom, the global... Read more












