Phnom Penh: CUMW President, Mr. Pav Sina, said that the EBA and GSP are important for the people, especially workers, so if Cambodia can maintain the preferential system given by the EU and the United States, it will help create more jobs for workers in 2023.
His remarks come at a time when the rate of investors and employment in Cambodia is declining sharply, with declining orders and factory closures due to the loss of the EBA and GSP. Workers face unemployment because some factories have closed and others have suspended operations.
Mr. Pav Sina said that the garment and footwear sector in Cambodia relies on the EBA and GSP, which allows investors to invest in Cambodia, creating job opportunities for people or workers.
"On the other hand, I see that in 2023, the situation in all factories, whether shoes, clothes or travel products, will decrease. The issue is orders, it has negatively affected the workers, causing them to face the problem of declining incomes. We see some factories have closed. There are also factories that have suspended operations. Even if they work normally, they are not fully operational, all of which will affect the revenue of the workers. "
Other challenges that have led to declining orders, he said, are due to the war between Russia and Ukraine and the outbreak of Covid-19, which has left buyers difficult to find and all countries also face problems.
He expressed concern about the future unemployment of workers due to the lack of buyers. Some factories are facing closure in Cambodia.
Mr. Pav Sina added that if Cambodia loses the EBA and GSP, it will put Cambodia at serious risk, leaving investors in the garment, footwear and manufacturing sectors. The process of turning away from Cambodia.
"One can turn away from Cambodia to find a country that provides a favorable system for investors. Therefore, the Cambodian government, as well as the relevant parties, must think and consider, because normally investors look at countries that are profitable," he said. "It will benefit investors. So if we lose both the EBA and GSP, it could have a negative impact on the workers who are working in these sectors."