1 AIT Asian Institute of Technology

Post-quota garment industry and WTO membership : strenthening the Cambodian garment industy in the WTO

AuthorKen Ratha
Call NumberAIT RSPR no.SM-05-110
Subject(s)World Trade Organization
Clothing trade--Cambodia
NoteA research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management
PublisherAsian Institute of Technology
Series StatementResearch studies project report ; no. SM-05-110
AbstractA slowdown in economic growth, an increase in unemployment and fluctuations in quantity in terms of exports and prices as well as poor competition of Cambodia's economic sector have suggested to launch a study on the Cambodian garment industry which is one of the most important economic sectors of Cambodia. The garment sector has been affected by the quota elimination in early 2005 and the WTO membership. Therefore, the research study analyzes their impacts on the national economy, in particular on the Cambodian garment industry in order to search for strategies to strengthen this industry in the global market. The research study has found some crucial impacts on the Cambodian garment industry. It now works under big uncertainty (global market conditions). The most crucial impacts were realized in terms of job creation and poverty, economic growth, investments, competition, market shares, and market access. However, with tough competition in the global textile and apparel markets, the major influencing factors to competitiveness of garment industry were mainly identified from internal factors including internal constraints, quality, management and training, labor standard image, technological capabilities, productivity and worker motivation as well as integrated control system. Furthermore, the external and value chain analysis was consecutively conducted through: business climate, investment characteristics, infrastructure, market access, labor laws and management, suppliers reliabilities, competitors' status , buyers' trend, and some vital chains of textile and garment manufacturing factories. As a result, those mentioned factors reveal a moderate level of competitiveness of the industry with outstanding evidences. The study recommends to the Royal Government of Cambodia to strengthen the implementation of the trade reforms, improve market access, introduction of some necessary units and a comprehensive HRD strategy for garment sector. More importantly, some prioritized recommendations to the particular garment industry are made to focus on the improvement in both company level and industry level.
Year2005
Corresponding Series Added EntryAsian Institute of Technology. Research studies project report ; no. SM-05-110
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Zimmermann, Willi
Examination Committee(s)Sununta Siengthai; Swierzeck, Fredric William
Scholarship Donor(s)Government of France;AIT Fellowship
DegreeResearch report (M.Sc.) - Asian Institute of Technology, 2005


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