Kampuchea Has Increasingly Become A New Choice For Trade And Investment In Textile And Garment Industry.

< p > Kampuchea is one of the fastest growing countries in the world, < a target= "_blank" href= "//www.sjfzxm.com/" > clothing < /a >.

At present, the world's investment in Thailand, including Kampuchea, "a" target= "_blank" href= "//www.sjfzxm.com/" > textile "/a" has increased year by year, mainly due to lower local labor costs and preferential treatment given by Kampuchea government to investors and their trading partners.

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< p > Kai Tai Research Center believes that with the increase of production costs in Thailand, Kampuchea is becoming a new choice for trade and investment in textile and clothing industry. The SEZ and industrial parks located in Kampuchea provinces are the most suitable investment bases, including the surrounding areas of Phnom Penh, Svay Rieng, bu Di cotton Zhi Zhi, Sihanouk port and the industrial park of ggogong Province, especially in the surrounding areas of Phnom Penh City, because close to the capital Phnom Penh, public facilities and pportation lines are relatively complete, and the pportation of raw materials and finished products is more convenient.

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< p > however, Kampuchea's domestic textile and upstream products, such as yarns and fabrics, which are used as downstream raw materials, are unable to meet the needs of their domestic textile and garment production lines because of their insufficient output.

Thailand investors should make full use of Kampuchea's location advantages, low tariffs and product quality inspection approved by trade partners to penetrate the upstream textile products market in Kampuchea.

According to the Kai Tai Research Center, the total value of Thailand's upstream textile products to Kampuchea in 2013 is expected to reach US $120 million, an increase of 25% over the same period last year.

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< p > Kai Tai Research Center believes that Kampuchea's clothing export potential is huge. Meanwhile, with Kampuchea's economic growth, its domestic clothing consumption demand also has growth potential.

Therefore, Thailand textile enterprises should grasp the opportunity to expand investment in Kampuchea's upstream and middle reaches, and supply raw materials to Kampuchea's garment industry.

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< p > although there are favorable factors for attracting foreign investment in Kampuchea, Thailand investors must pay attention to the hidden costs that may lead to higher operating costs and the limitations of low labor skills, which make local production limited to tailoring, sewing and pruning (C.M.T). Most of the products are still cheap products, and the production of high value-added products is very limited.

At the same time, China and other major foreign investment also occupy a larger market share with economies of scale.

Therefore, the Thailand manufacturers who want to expand their market in Kampuchea should position their products in the middle to the top grade. They should not compete for the market share with the low price strategy, because the Thailand products can only compete at the inferior position in the middle and low market competition.

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< p > besides, Kampuchea's imperfect infrastructure is still a major obstacle to the formation of the supply chain system. Therefore, Thailand manufacturers should consider investing in a more mature production line and choosing the most appropriate investment mode.

Most importantly, investors should seek to cooperate with local partners in order to make investment and operation more convenient and smooth with local governments.

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