Phnom Penh: After the strike demanding for a higher minimum wage from Cambodian garment workers, a Vietnamese businessman Thunh Thanh, CEO of Lucky Corp, announced that his company will be moved from Cambodia.
Speaking in the Business Club of Phnom Penh monthly luncheon at the Raffles Hotel, Thunh Thanh said: “we’ve decided that at the end of this year, we will relocate our entire manufacturing operation to Bangladesh.” Recently the strike demanding for a minimum wage 160 USD per month forced almost all factories in Phnom Penh to shut down for a period of time. Thunh Thanh also raised this issue up in his speech. “As a result of the strike, we have lost 500.000 USD”, he added “our factory is facing a annual loss of $5 million (2013), and that’s our quarterly loss ever” However, not just the strike was the only reason that caused this factory to move out from Cambodia. World economic issue and the increase of fuel price also took part in it. “With the problems of the world economy, companies, like individuals, are facing hart times. It’s becoming very difficult to get access to credit to expend or even maintain our operations”, he said. He added, “With the rise in oil and energy prices our costs, for both production and distribution have rise dramatically.” The absence of this factory in Cambodia will leave 850 Cambodian garment workers to be unemployed and only 100 jobs will remain in Phnom Penh.
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