News / US trade deal with neighbours and higher wages could rip into Cambodia's garment exports

Damco's container freight station near Phnom Penh

Cambodia’s garment exports could take a hit from the inclusion of neighbouring Vietnam in the controversial Trans-Pacific Partnership (TPP) trade agreement.

“The TPP can be a low-light for Cambodia’s export industry, as factory owners are looking for other countries to manufacture their products,” said Marco Civardi, area managing director for Vietnam & Cambodia at Damco.

“It is therefore foreseeable that some low-end garment production will shift to Vietnam as factories rightfully want to benefit from TPP’s reductions in duty and taxes.”

He added ...