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2015 GMAC BULLETIN 2015 smaKmeragcRkkat;edrenAkm<úCa Garment Manufacturers Association in Cambodia (GMAC) Contents 1. Message from Senior Minister, Minister of Commerce ..............................2 2. Message from Chairman of GMAC .............................................................3 3. About GMAC ...............................................................................................4 4. Cambodian Garment and Footwear Industries ............................................9 5. Legal and Labour Relations Assistance ....................................................13 6. Trade Facilitation .......................................................................................16 7. Skills & Productivities ...............................................................................19 8. Cambodian Garment Training Institute (CGTI) ........................................23 9. GMAC & General Department of Taxation ..............................................25 10. Trade Promotion ......................................................................................27 11. Health & Safety .......................................................................................29 12. Social Activities .......................................................................................33 13. Member Directory ...................................................................................36 1 Message from Senior Minister, Minister of Commerce Manufacturers 2 Message from Chairman It gives me great pleasure to introduce you to the 2015 GMAC bulletin. The main objective of GMAC is to establish a conducive and healthy business environment for the garment and footwear industries through our regular activities of representation and advocacy, capacity building, information sharing and dissemination, networking and trade facilitation. In order to achieve the above objectives, GMAC works very closely with the Royal Government of Cambodia to help reduce bureaucracy and encourage trade facilitation. We also assist our members in the area of industrial relations and work hand in hand with the trade unions to promote and ensure industrial harmony. We constantly try to upgrade the technical skills and knowledge of our members and the workers by providing relevant training courses in a timely manner. This bulletin tries to capture the many different activities of GMAC and will hopefully allow all of you to better understand what we do and who we are. You will also be able to find other relevant information pertaining to our industry. We hope you enjoy reading and find our information useful. Sincerely yours, VAN SOU IENG Chairman 3 About GMAC 4 About GMAC stablished since 1996, Garment Manufacturers Association in Cambodia (GMAC) is the apex trade body that represents Ethe garment and footwear industries in Cambodia. GMAC is governed by a 25-Member Executive Committee (Exco) elected at our biannual General Assembly. The multi-national Executive Committee sets the policy and direction of the Association with the ultimate aim of ensuring continued growth and development of the garment and footwear sector in Cambodia. 8 Sub- Committees have been set up to deal with various priority issues the industries are facing. The Secretary-General reports to the Executive Committee and is responsible for the operations of the Secretariat and to ensure that the decisions of the Executive Board are carried out. At December 2014, GMAC has a total of 570 export- oriented garment factory members and 58 footwear factory members, as well as 70 associate members. Together, our members employ more than 600,000 workers making us the largest industry in Cambodia. 5 Executive Committee Van Sou Ieng Chairman Kong Sang John Cha Peng Koi Albert Tan Larry Kao First Deputy Chairman Second Deputy Chairman Treasurer Deputy Treasurer Mercedes Cha Enjoy Ho Albert Teoh Lee Hye Sook Xia Guo Tian Thomas Chen Exco Member Exco Member Exco Member Exco Member Exco Member Exco Member Le Kewen Van Porphin Jack Lui Eddie Liao Wang Ching Fei Chris Yin Exco Member Exco Member Exco Member Exco Member Exco Member Exco Member Taing Meng Raymond Tam Robert Hwang Kevin Mathew Plenty David Tan Elaine Chung Exco Member Exco Member Exco Member Exco Member Exco Member Exco Member Paul Zheng Charlie Chang Adam Lin Gina Shih David Tang Exco Member Exco Member Exco Member Exco Member Exco Member 6 GMAC Organization Structure 7 Secretariat Day-to-day operations are carried out by a professional team of secretariat staff under the supervision of a Secretary General. Our Mission To make Cambodia a preferred partner in the competitive global apparel and shoes market Our Inspiration Our Vision To collaborate with all stakeholders to promote a High Quality conducive business environment for the growth and development of Cambodia apparel and shoes industry; Low Cost To provide prompt and crucial information pertaining Shorter Lead-Time to the industry; Innovation & Services To support Cambodian government and the industry in the development of human capital; Corporate Social Responsibility To embrace corporate social responsibility in management principles so as to develop mutually beneficial relationships and sustainable development. 8 Cambodia Garment and Footwear Industries 9 Cambodian Garment and Footwear Industries ambodia, officially known as the Kingdom of Cambodia, is a country located in the southern portion of the Indochina Peninsula in Southeast CAsia with a total landmass of 181, 035 square kilometers. It is bordered by Thailand to the northwest, Laos to the northeast, Vietnam to the east and the gulf of Thailand to the southeast. The kingdom is a constitutional monarchy with a King being Head of State and a Prime Minister being Head of government. Cambodia has a population of 14.8 million people most of whom are young and economically active labour force. The official religion is The Ravada Buddhism that is practiced by around 95% of the Cambodian population. Rebuilding from decades of civil war, Cambodia has seen rapid progress in the economical and human resource areas. The country has had one of the best economic records in Asia, with an average of economic growth rate of 7% for the last 10 years. Strong garment, agriculture, construction, and tourism sectors led to foreign investments and international trade. In 2005, oil and natural gas deposits were found beneath Cambodia's territorial waters, and once commercial extraction begins in 2013, the oil revenues could profoundly affect Cambodia's economy. The Cambodian garment industry started in 1993 when foreign quadruple since 2008. In 2014, the number of investors started to venture into Cambodia. With the granting functioning factories grew to 58 with total exports of MFN/GSP trade privileges to Cambodia in1996 by both the of $268.66 million. USA and EU, the garment industry has maintained its pre- Both garment and footwear exports account for eminent position in the industrial landscape of Cambodia. approximately 80% of Cambodia's total export and The imposition of garment quotas by the USA in 1999 did not foreign trade. Our industry contributes substantially hamper this meteoric rise. In retrospect, the quota issue spurred to the economy both directly as well as indirectly on more investments into the sector as the quotas imposed upon through employment generation, inflow of foreign Cambodia by the USA were, on a per capita basis, the most currencies minimizing the country's current account generous among all countries subjected to this unilateral quantitative deficit, transfer of technologies and human capital restraint regime due to Cambodia's commitment to uphold development. fundamental labor standards. Quotas were abolished in 2005 with Cambodian Economy at a Glance the expiration of the Multi Fibre Agreement in December 2004. The success and development of the industries can hardly be overemphasized. The number of garment factories has grown from 48 in 1996 to 540 by December 2014 with total export value of exceeding $5 billion. The footwear industry has also grown significantly over the last 6 years. The number of factories has nearly doubled and we have seen exports more than 10 Cambodian Garment and Footwear Industries Regional Affiliation ASEAN Federation of Textile Industries GMAC continue to be an active member of the ASEAN Federation of Textile Industries (AFTEX) which has been in existence since 1978. AFTEX promotes cooperation and coordination among textile and apparel industries in ASEAN, the community with a total population of 600 million people. 11 Cambodian Garment and Footwear Industries Though building respective national competitiveness is one of the key things to sustain and grow in the marketplace, there is a need for deeper ASEAN integration as a necessary requirement for continued growth and to stay competitive. Everybody knows that even a small move in integration could benefit the region greatly through more intra-ASEAN trade. Every link in the supply chain can be found in the member countries. The region's joint and coordinated efforts can improve the situation and ASEAN will be a stronger community and economic block. This is possible, particularly, with the development of the ASEAN Economic Community Blueprint endorsed by leaders of all the ASEAN countries. 12 Legal and Labour Relations Assistance 13 Labour and Industrial Relations MAC Legal and Labour team provides inspection and legal consultation services to factories when they apply to become our member. The team also assists
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