Cambodiaʼs Garment Industry and Labor Conditions - A Showcase for Social Sustainability, or not better than its Neighbors?

Abstract

The garment industry accounts for a lion’s share of Cambodiaʼs exports, and about a quarter of industrial employment in the country. An agreement with the USA on preferential trade terms based on the stipulation of better working conditions led to an improvement of working conditions in Cambodiaʼs garment industry. This also has had a positive effect on demand for garments produced in Cambodia, as good working conditions are increasingly important for clothing brands. In the last years, however, after the end of a trade agreement with the USA, the industry has been increasingly experiencing strikes and labor unrest, as well as a decline in demand. Also, China (a major investor in this industry) has partly moved production to cheaper locations. This leads to the following research questions/starting points: • Assessment of the labor conditions in the garment industry in Cambodia. • What are the potentials and challenges for sustainable social development in Cambodiaʼs textile industry? The paper combines qualitative and quantitative research methods by integrating a SWOT analysis and analysis of statistical data to show the tensions between economic development and social cohesion in this emerging economy.