A series of challenges affecting China, Thailand and Vietnam have attracted investments in factories in Cambodia, stimulating the economy, the rise of wages and development of skilled labor. This video from Bloomberg presents the interests and benefits of the developing manufacturing sector in Cambodia.
Key points and advantages of manufacturing in Cambodia
- Rising wages in China is one of the major factor that makes firms relocate their production to Cambodia, but floods and political instability in Thailand and investment saturation in Vietnam are also pushing companies that want to mitigate their risks into Cambodia.
- The garments and shoes industry is especially dynamic for the creation of new factories.
- Wages in Cambodia have risen more than 65% in the last 5 years. Wages are however still under 130 USD per month, which compares to more than 500 USD for the same work in Shanghai.
- Cambodians growing their skill set and productivity also help the manufacturing sector to move up the value chain, in garments, auto parts, electronics.