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Article

9 Feb 2020

Author:
Savi Khorn, The Phnom Penh Post

Cambodia: Officials warn the deadly Coronavirus will cause factories' closure due to a shortage of raw materials supplied by China

"Coronavirus likely to result in lay-offs as China factories close", 9 February 2020

The Ministry of Labour and Vocational Training has warned that some garment factories in Cambodia may be forced to shut down temporarily or lay off workers next month due to a shortage of raw materials.

As the 2019 Novel Coronavirus … continues to spread across China, many textile factories there have halted operations, disrupting the supply of raw materials to Cambodia, said ministry spokesman Heng Sour. Most Cambodian garment factories import fabric from China, he said.

Sour said some government critics might link future factory closures and lay-offs with the potential cancellation of the EU’s Everything But Arms (EBA) scheme, …

To contain the virus’ spread, China has allowed major companies to close their doors …

The virus has killed more than 800 people and infected 37,198 others across mainland China as of press time…

Critics, he said, could hijack the issue of factory closures and worker lay-offs to hurt the government. “Any closures should not be linked to the EBA issue as its caused by the shortage of raw materials,” he stressed…

Collective Union of Movement of Workers president Pav Sina said the government should intervene if workers are laid off.

“If factories close due to a lack of raw materials, workers will not have any source of income. Many loans must be repaid, so they could be in serious financial trouble. The government could consider providing some sort of financial aid to these workers …,” he said.

Garment Manufacturers Association in Cambodia (GMAC) deputy secretary-general Kaing Monika could not be reached for comment ...