Garment Sector Investment Increases Sharply

According to a report by Cambodian Development Resource Institute  in July and August. The amount of garment sector investment approved by the Council of the Development of Cambodia (CDC) increased sharply up 57 percent from the previous three months.

Approved investment by the CDC totaled 16.5 million US dollars in July and August, compared with 10.5 million dollars in the second quarter, the Cambodia Daily Friday quoted the report as saying.

Most of the fixed assets approved are expansion projects, a CDC official said. Two new garment factories were approved in July and August, totaling about 2.3 million dollars, according to CDC documents.

A CDC official said recently that the rise in garment investment is mostly due to big companies setting up more factories.

Since worldwide garment quotas expire for World Trade Organization members at the end of 2004, government and industry officials are watching the garment sector closely. Though the rise in planned investment is a good sign, some wonder if the industry can sustain itself in the long run.