Phnom Penh: Ministry of Labor and Vocational Training spokesman Sun Mesa said that Cambodia needs to worry about the labor shortage in factories that are currently operating, as well as in the hundreds more planned to open.
According to Pav Sina, president of the Collective Union of Movement of Workers, “Cambodia is currently facing a labor shortage in the garment sector. This is a good opportunity because the problems between Cambodia and Thailand have caused many Cambodian workers to return to their homeland and work in our country.”
The union leader emphasized, “For me, the Ministry of Labor’s attention to workers who have returned from Thailand shows that the Royal Government of Cambodia cares deeply about their jobs and livelihoods. At the moment, the Ministry of Labor’s team, through the National Agency for Employment and Labor, has been working hard to find jobs for our workers in their homeland and in other areas facing labor shortages.”
According to Sun Mesa, the US tariff rate is a global issue, not just a Cambodian one. For example, Laos and Myanmar are subject to a 40% tariff rate, Thailand and Indonesia to 36%, Bangladesh to 35%, and Cambodia to 36%. After tariff negotiations, Cambodia received a higher tariff reduction than other Asian countries, from 49% down to 36%.
He noted that the US tariffs imposed during Donald Trump’s term will end in 2027, just two years away, as the US will elect a new president. This will allow factories to continue doing business in Cambodia. Large factories have markets worldwide and can turn to Europe, Canada, Australia, Japan, the UK, China, and others. However, small factories that receive many orders without a clear market will face increased competition.
He stated, “International factories such as H&M, GAP, PUMA, and NIKE will not move their factories from Cambodia because these large companies have many markets besides the United States, including Europe, the United Kingdom, Japan, China, Canada, and Australia.”
