$2.4M Bag and Shoe Factory Gets CDC’s Nod

$2.4M Bag and Shoe Factory Gets CDC’s Nod

The Council for the Development of Cambodia (CDC) has approved a new garment factory in Kandal province. Auspicious Bag and Shoes Accessories Co Ltd is investing $2.4 million in the project at Kraing Makak in Ang Snuol district. The CDC says it is likely to create 380 jobs for locals.

In recent months the CDC has approved 10 new projects worth nearly $80 million in total. Most of the factories will produce garments, travel bags and footwear.

The CDC announcements come at a time when the industry is suffering from the impact of the Coronavirus pandemic. Factories have been forced to shut temporarily because of local outbreaks and some have shut their doors permanently.

Last year 101 factories closed according to the industry ministry, most of them in the garment sector. By mid-May this year 27 factories had closed because of Covid-19 outbreaks and 75 had filed for bankruptcy. The garment industry is Cambodia’s biggest employer.

There are signs that the worst is over though. Figures from the Ministry of Commerce for the first half of the year showed that Cambodia exported more than $3 billion worth of goods to the US, the Kingdom’s biggest export destination. That represented a 35 percent increase compared with the same period in 2020. A large proportion of those exports were clothing, bags and footwear.

The CDC is the highest decision-making level of the government for private and public sector investment. It is chaired by the Prime Minister and composed of senior ministers from related government agencies.

It grew from a recognition that the real economic growth necessary to achieve the country’s goals lies in the development of a healthy, thriving private sector.