[PHNOM PENH POST]
THE Cambodian government has approved a footwear association to operate
under the umbrella of the Garment Manufacturer’s Association in
Cambodia.
The decision was agreed to by representatives of 37 of Cambodia’s 38 footwear factories, with one absentee.
Speaking
at a meeting late on Tuesday, Minister of Commerce Cham Prasidh
acknowledged it was difficult for factories to approach the government
individually, adding an association would help with solving the
industry’s problems.
“As the Minister of Commerce, I want you to
be able to have collective bargaining power with the government,” he
said during the meeting with GMAC members and footwear factory owners.
“We
don’t want you to have problems and then run away, so this is the
willingness of the government to open face dialogue with the footwear
factories.”
The footwear industry has grown rapidly in the
Kingdom. Footwear factories exported products worth about US$172 million
in 2010, a 55.82 percent increase year-on-year, according to previous
Ministry of Commerce statistics.
GMAC Chairman Van Sou Ieng said he supported shoe manufacturers as members of the garment association.
The association will also help match potential buyers to factories, he said.
“Having an association of your own can help promote your production,” he said.
Cham
Prasidh also suggested GMAC may consider changing its name to account
for the footwear association, as well as increase footwear
representation on its board.
“I would like GMAC, when the time is
right, to organise an election for a new board and amend the statutes
of the association — the name should change to Garment and Footwear
Manufacturers’ Association of Cambodia,” he said.
Footwear has
been highlighted as a particularly strong area of growth for the
Cambodian economy. The industry had grown by about 50 percent last year,
but could potential increase between 80 percent and 100 percent in
2011, he said.
Van Sou Ieng said GMAC would hold a meeting to
consider a name change, as well as include representatives from the shoe
factories to sit on the board.
“What GMAC will do is to invite
representatives from the shoes factories to sit on the board to make it
more effective,” he added.
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