Cambodia subsidises garment, textile and tourism sectors

The government will continue to offer subsidies to the garment and textile industry, which accounts for 80% of the country’s exports.
By: | January 5, 2021

Prime minister Hun Sen said Cambodia has set aside more than US$20.17 million in subsidies for the garment and textile industry, as well as the tourism sector, which has more than 330,000 workers. 

He said the government will extend the financial aid for the next three months to uplift the economy which has been badly hit by the pandemic. 

“The garment and textile industry saw 44 enterprises suspending its operation that affected 14,578 workers, while the tourism sector suspended 118 enterprises with 9,403 employees jobless.” Mr Hun Sen said in a TVK broadcast. 

National Trade Union Confederation president Far Saly welcomed the government’s move to continue providing subsidies to the textile and garment sector. 

He said that the industry is opening up now with more job offers, while the tourism industry has practically come to a standstill. 

Currently, some garment and textile factories are opening their businesses. However, there is still the fear that the subsidies may come late and may be insufficient in amount to help out with the payment of workers’ allowances. Nevertheless, he said it will go some way in boosting monthly incomes of workers. 

Concurring, Collective Union of Movement Workers president Pav Sina commended the government’s subsidies for suspended workers and the extension of tax exemption to enterprises related to the garment and textile industry and tourism sectors. However, he hoped to see the government subsidies being made available to casinos and other private companies too. 

READ: Cambodia’s plans to buy vaccine lifts business confidence

Cambodian Association of Travel Agents president Chhay Sivlin said she is happy that the government is looking into helping the tourism sector, which had been badly impacted by the pandemic. 

She said although Cambodia has effectively contained the spread of COVID-19, many countries are still battling with it and this is affecting the local tourism business, reported Khmer Times.