Kampuchea Exports Leather Products Rapidly In 2014

In 2014, the export of leather shoes and garments exported to Kampuchea totaled more than $6 billion, and the number of new factories increased. The government of Kampuchea was introducing new policies to attract more investors.

LTH Somheng, an official of the labor and vocational training department, said the number of shoemaking and garment factories in Kampuchea has increased significantly this year compared with the previous years.

In addition to agriculture and tourism, ready-made garments and

Manufacturing industry is a relatively stable two industry in Kampuchea's export industry. The main export markets include

And the United States.

The government of Kampuchea set a goal to achieve 7% economic growth by 2015. Therefore, the government is introducing new policies to attract more foreign investors to invest in clothing and leather shoes manufacturing, rice production, agricultural exports and tourism.

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In an interview with the Daily Star in Dhaka on Monday, Nate Herman, vice chairman of the AAFA, said that AAFA will urge the Obama administration to resume trade preferences for Bangladesh because Bangladesh is an important destination for us customers to purchase.

Herman is currently attending a fashion summit hosted by the Bangladesh garment manufacturers and Exporters Association in Dhaka.

AAFA represents the US $361 billion shoe and shoe retail market, more than 1000 retailers and brands, and is the most authoritative industry organization in the shoe and clothing trade in the United States.

"We will also strive to incorporate Bangladesh's domestic leather goods, backpacks, suitcases, wallets and smart phones into the GSP preferential terms."

He said, "this is our first step towards pushing the GSP implementation plan next year."

He said that in the past 5 years, AAFA tried to incorporate Bangladesh's clothing products into the GSP policy, but failed.

In June 2013, after the collapse of Rana Plaza, the major trade negotiating groups in the United States decided to suspend their consideration of the GSP policy in Bangladesh, taking into account the lack of labor rights and safety working environment in Bangladesh.

Since then, Bangladesh has been lobbying the United States government to restore the GSP policy and is willing to improve work safety and labor rights in accordance with the 16 action plan provided by the Obama administration.

Because Bangladesh's export garments do not enjoy zero tariff preferences, exporters are required to pay a higher tariff rate of 15.61% for exporting to the US market.

The United States is the largest market for garment exports in Bangladesh, and 23% of Bangladesh garments are exported to the US market each year.

But over the past 4 years, Bangladesh's clothing exports to the US market have increased by 20%.

He believes Bangladesh garments will continue to grow in the US, but it is hard to predict the growth rate in the next 10 years.

Hernan puts forward 3 suggestions for the development of Bangladesh garment industry: continue to reform, improve production efficiency and ensure work safety.