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Cambodia limits truck sizes, affects garment industry

Cambodia has banned trucks longer than 16 meters from serving the garment industry. The industry wants the ban revoked or at least modified to exclude trucks slightly longer than the specified limit. Garment manufacturers say the enforcement push poses a new threat to the garment, footwear, and traveling goods sectors, which are facing an increasingly competitive global market and shorter orders from buyers. They acknowledge that any problems are the fault of the private sector for not complying with legal requirements regarding truck length, but say the crackdown would have negative effects for the garment sector if it isn’t modified soon.

As of now more than half of the vehicles serving the garment industry have been forced off the roads. Transport companies don’t dare to drive and have not accepted orders for their services from factories because their trucks do not comply with the law. Most trucks are used trucks imported from the US and EU and they meet proper safety standards but fail only in meeting the 16 meter length standard.

In the past month, industry leaders have warned persistently high logistics costs, rising wages and lax customs enforcement are threatening foreign investment levels in the country.