6:11 PM
seangkhun
Source www.investincambodia.com/gmac.htm
Garment Manufacturer's Association in Cambodia (GMAC)
GMAC is recognised by the Royal Government of Cambodia, and represents all export-oriented garment factories in Cambodia.
Established officially in 1998 due to the increasing need for the garment industry to stand together with a unified voice, GMAC has become one of the most active trade associations in the country, representing, promoting and safeguarding the rights and interests of its members. GMAC provides a forum for consultation and discussion among members of common interests and seek for the adoption of sound policies allowing the industry to grow and develop.
GMAC is headed by 25 Executive Committee members consisting of representatives from well-established factories. They are elected every two years during the Association's General Meeting. The elected Executive Committee members are responsible for providing advice on strategy and policy development, while day-to-day operation is carried out by professional secretariat staff under the supervision of the Secretary General.
The most important role of GMAC is to influence policy and legal environment, making sure it is conducive for the growth and development of the textile and apparel industry in Cambodia. Additionally, GMAC provides various value-added services to members, such as market linkages, trade promotion, support for market access, policy discussion, advisory and capacity building trough training, legal updates including government announcement, general business information, trade fairs, networking… and others. GMAC also works very closely with the Government, especially the Ministry of Commerce, to lobby for preferential trade agreements.
REPRESENTATION
The pivotal role of GMAC is to influence policy and legal environment, making sure that it is conducive for the growth and development of the industry. In this regard, GMAC having established different committees within the association, represents its members in various bodies, such as the Government-Private Sector Forum, Labour Advisory Committee, National Social Security Fund, National Arbitration Council, Customs-Private Sector Partnership Mechanism, just to name a few.
Of particular importance to the industry is the G-PSF which consists of 8 Working Groups. GMAC is most active in the Working Group on Export Processing and Trade Facilitation and Working Group on Industrial Relations where the 2 major issues of the industry are to be settled. The Government-Private Sector Forum (G-PSF) improves the business environment, builds trust, and encourages private investment through a demand driven process with the private sector identifying issues and recommending solutions.
GMAC also negotiates minimum wage of the industry on behalf of its members at the Labour Advisory Committee. The Chairman of GMAC also sits as a member of the board of the national Social Security Fund.
TRADE PROMOTION
In October 2008, GMAC led a delegation comprising of representatives from factories, government and union for a business mission to Japan in order to explore more about the Japanese markets. The mission was sponsored by Japan's Ministry of Economy, Industry and Trade and Japan Textile Federation.
The mission visited ITO YOKADO categorized as a General Merchandise Store, MUJI Store, and UNIQLO Store which is wholly owned by Fast Retailing Co. Ltd. The company operates over 680 UNIQLO casual clothing stores in Japan as well as stores in London, Korea, Shanghai and Beijing.
There was also a policy dialogue session between the Cambodian delegates and METI/JTF. The group raised the issue of raising cost in China and why it would be ideal for Japan to consider production in Cambodia. Although Japan's economic performance and protected economy look rather gloomy, Japan has a plan to develop more with Cambodia especially in the area of textile and apparel. This is supported by the ASEAN-Japan Economic Partnership Agreement which has just recently ratified by the Cambodian assembly. This will allow more Cambodian factories to tap more into the Japanese markets.
As another activity to promote the industry, GMAC organized a Business Forum on 27 May 2009 at Raffles Hotel Le Royal Phnom Penh, with participation from many big brands such as H&M, Walt Disney, Redcats Asia, Mast Industries Far East, Auchan, Li & Fung, and many more. Investors/Factory owners together with other stakeholders were also present.
The forum, organized amid the severe economic crisis period, intended to promote Cambodia as one of the best apparel sourcing bases, persuade existing buyers to buy more from Cambodia and potential buyers to consider buying. It was also the intention of GMAC to promote more investment in Cambodia’s garment industry. After all, the forum created a platform for dialogue among all stakeholders. All parties could express their concerns and challenges they were facing. Finally the forum sought to answer the question "What does it take to invest in Cambodia?"
REGIONAL AFFILIATION
The Garment Manufacturers Association in Cambodia is affiliated with the ASEAN Federation of Textile Industry (AFTEX). AFTEX was established in 1978 with the objective of promoting cooperation and coordination among textile and apparel industry in ASEAN member countries in line with the objective of the ASEAN Chamber of Commerce and Industry (ASEAN-CCI).
Every year, AFTEX hold its regular meetings on a rotation basis among member countries. Not a talk shop, AFTEX discuss concrete issues of significant relevance to growth and development of the textile and apparel industry in the region, ranging from ASEAN linkage to workforce development, to trade fairs, to Rules of Origin, to Free Trade Agreements. AFTEX Cambodia/GMAC is currently holding the Chairmanship for the period 01 January 2009 to 31 December 2010.
Since April 2009, the focus of AFTEX has been on Source ASEAN Full Service Alliance Strategy which aims at forming Virtual Vertical Factories capable of providing faster speed to market and other services required by the customer.
AFTEX has also signed a Memorandum of Understanding with the International Trade Centre in order to tap into the resources, training and technical supports, from this UN body in the area of textile and apparel.
GMAC/GRET HEALTH INSURANCE PROJECT
GMAC and GRET have been jointly implementing a project called Health Insurance Project under financial support of AFD. Also endorsed by the Ministry of Labour and Vocational Training, the project is to provide health care insurance to garment workers under the auspices of AFD’s Social Adjustment Fund with voluntary participation from factories.
At the premium rate of $1.6 per month, employers of participating factories will help pay 50% of the amount. The benefit package for the workers will cover both primary and secondary care with a strict referral mechanism. After a year, if the premium collected is not paid out, coverage will be extended.
1. Primary Health Care / Basic Care
• All primary care provided by accredited health providers are covered;
• Ante-natal and post natal care is fully covered;
• Drugs listed in the “Essential Drug List” from the Ministry of Health are included.
2. Secondary and Tertiary Care
• Insured members must be referred by an accredited primary health care provider to an accredited secondary or tertiary hospital;
• Out-patient and in-patient care provided by accredited health providers are covered;
• Out-patient consultations and hospitalization include drugs listed in the “essential drug list” from the Ministry of health;
• All delivery matters are covered.
In addition to Corporate Social Responsibility, the project will serve as a platform to gather data and understand the issues in the transition period of medical insurance scheme in 2010 under the Cambodian National Social Security Fund, which is currently being implemented by the government.
OUR INSPIRATION
- Higher Quality
- Lower Cost
- Shorter Lead Time
- Innovation & Services
- Corporate Social Responsibility
VISION
- To make Cambodia a preferred partner in the competitive global apparel market
MISSION
- To collaborate with all stakeholders to pursue a conducive business environment for the growth and development of the apparel industry
- To provide prompt and crucial information pertaining to the industry
- To support the Cambodian Government and industry in the development of human capital
- To embrace corporate social responsibility in management principles so as to develop mutually beneficial relationships and sustainable development
Garment Manufacturers Association
in Cambodia (GMAC)
Nr.175, Jawaharlal Nehru Blvd., (Street 215),
SK Phsar Dem Kor, KH Tuol Kork,
12159 Phnom Penh, Cambodia
Phone +855-23-331183 Fax +855-23-882860
Email: info@gmac-cambodia.org
www.gmac-cambodia.org
We understand that 40 new garment factories opened in Cambodia in 2009 and 77 closed. So how many jobs have been lost and how many new ones created?
These numbers I would assume were obtained from the Ministry of Labour. As you are aware, GMAC members are all exporting garment factories and the numbers quoted above include many smaller factories that act as sub-contractors and do not export. Our figures reveal that for 2009, we have seen a total of 29 factories opening and 56 closed. Approximately 7,500 jobs were created while 29,000 jobs were lost.
Would you say that 2009 was a disaster for Cambodia’s
garment industry?
Yes, I think it is right to say that 2009 has been a disaster year as we have had more job losses than new ones created. It is also the first time in a decade that we saw a decline in our membership. Also, I think that 2009 will experience a decline in our exports as compared to 2008. Again, this is the first time in a decade that we have seen our exports drop. To add salt to our wounds, our competitors Vietnam and Bangladesh continue to experience growth, albeit at a slower rate.
Will demand from the USA remain low for a long period?
This is a question better put to the economists... However, our expectation is that demand will continue to be weak for 2010. We should see demand recovering back to levels before the crisis only in 2011.
Can this lost business be replaced by new markets in Asia and Europe?
Traditionally, more than 70 per cent of our exports go to the USA. With the current crisis and weaker demand there, many of our members are trying to identify new buyers in new markets in Asia and Europe. However, this takes time and regardless I do not think that the new businesses found will be able to cover for the losses from our main markets. This is mainly due to the fact that most of these markets are smaller than the US market currently.
What can the Cambodia garment industry offer that its competitors cannot?
Cambodia's main competitive advantage lies in our abundant supply of labour as well as our market access. As a least developed country, many of the developed nations have given us preferential access and our exports enjoy duty-free access to these markets. Examples include Canada, Japan, European Union and China. Surprisingly, the market that we export the most to – the USA – does not provide Cambodia with such preferential access. Most importantly, being one of the main pillars of economic growth of Cambodia, we have the attention of the Royal Government in facilitating and providing assistance to all garment factories in resolving any problems that may arise.
Cambodia also has plenty of unskilled workers that can meet the demand of any manufacturing industry. This is due mainly to the fact that currently there are no other industries presently competing for these workers. The government estimates that each year, there are more than 250,000 new entrants to the job market.
Isn’t this the perfect time for investors to establish manufacturing plants here?
Cambodia has always had a steady supply of workers. This alone is insufficient to attract investors to Cambodia. We have to consider other factors such as infrastructure, costs, etc. In times of crisis such as the one we are experiencing currently, investors would be even more prudent before making any decision regarding new investments, especially abroad.
What is your opinion of Cambodian factory workers?
Generally, Cambodia workers are highly trainable. Most of them are hard working and honest. However, some are easily misled by others and unable to think for themselves.
Effective communications with the workers are absolutely vital. Ensure that you have staff within your HR department that can do so effectively. This will help to prevent misunderstandings between management and workers. In addition, investors to Cambodia should also take note that there is little or no local market for their products and should ensure that they have an overseas market for their products. Investors also need to take note of the lack of skilled human resources available locally and be prepared for this.
0 comments:
Post a Comment