abusesaffiliationarrow-downarrow-leftarrow-rightarrow-upattack-typeblueskyburgerchevron-downchevron-leftchevron-rightchevron-upClock iconclosedeletedevelopment-povertydiscriminationdollardownloademailenvironmentexternal-linkfacebookfilterflaggenderglobeglobegroupshealthC4067174-3DD9-4B9E-AD64-284FDAAE6338@1xinformation-outlineinformationinstagraminvestment-trade-globalisationissueslabourlanguagesShapeCombined Shapeline, chart, up, arrow, graphLinkedInlocationmap-pinminusnewsorganisationotheroverviewpluspreviewArtboard 185profilerefreshIconnewssearchsecurityPathStock downStock steadyStock uptagticktooltiptriangletwitteruniversalitywebwhatsappxIcons / Social / YouTube
Article

10 Sep 2026

Author:
Thang Sinorn, Kiripost

Cambodia: Hi-Tech garment factory suspends operations amid prolonged border closure and no brand orders, laying off 2,500 workers

Allegations

"Prolonged Border Closure Forces Hi-Tech Apparel Factory to Suspend Work, Lays Off 2,500 Workers", 22 July 2026

A...garment factory in the Poipet O'Neang Special Economic Zone (SEZ) has suspended operations, leaving over 2,500 workers jobless, as prolonged border closure and falling orders disrupted production...

...the company manager, Thitipong Wongsayang, said the decision was driven by economic problems, and difficulties transporting raw materials and finished products.

“The company experienced no further orders from brand owners, which led the company to decide to suspend production until August 30, 2026,” he said, adding that they would pay termination benefits, including seniority payments for the first half of 2026, in accordance with the labour law.

The company also agreed to continue the benefits for female workers, including National Social Security Fund (NSSF) contributions for pregnant workers until their delivery, 50 percent of their wages during 90 days of maternity leave, and a monthly allowance of $5 for workers with children aged between 18 and 36 months...

...the factory had struggled when the Cambodia-Thailand border conflict escalated. "Since the border conflict, the production dropped,"...

Hi-Tech Apparel manufactures sportswear, activewear and performance knitwear for international brands, including Nike...

Khun Tharo, programme manager at CENTRAL, said factory closures threaten workers' livelihoods as well as reflects the growing economic impact of the border dispute. He said border restrictions have disrupted imports of raw materials and increased transportation costs, forcing manufacturers to reroute shipments...

Kiripost has reached Nike...for comment.

Sun Mesa, spokesperson for the Ministry of Labour and Vocational Training, told Kiripost that the company and workers had agreed to the compensation package...

Workers have started receiving their compensation...