Garment industryCambodia's garment exports face a huge decline, according to Cambodia’s Ministry of Commerce. Garment exports generated only US$70 million in January 2009, compared with $250 million in January 2008. Garment manufacturing, Cambodia's only significant export industry, has been the hardest hit sector in the developing country's economy during the global financial downturn, with more than 30 factories closing so far this year.According to the Garment Manufacturers Association of Cambodia, its garment industry imported US$1 billion in raw materials last year. This led to calls for more local production to cut costs and improve access to Western markets. The association said 66% of garment compoenents were imported from China, while the rest were from Taiwan and South Korea. Despite these calls for localization, little has happened.According to a report from the World Bank, Cambodia's garment exports to the United States dropped by about 35% while exports to Europe were down by about 10%. More than 30,000 garment factory workers lost their jobs in the past 12 months.
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