![Cambodian workers sew at a factory in Sihanouk province on September 9, 2009. The global economic downturn has forced at least 20,000 workers to lose their jobs in Cambodia's garment industry this year. [AFP]](http://www.abc.net.au/reslib/200910/r448728_2179829.jpg "Cambodian workers sew at a factory in Sihanouk province on September 9, 2009. The global economic downturn has forced at least 20,000 workers to lose their jobs in Cambodia's garment industry this year. [AFP]")
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Cambodian workers sew at a factory in Sihanouk province on September 9, 2009. The global economic downturn has forced at least 20,000 workers to lose their jobs in Cambodia's garment industry this year. [AFP]
Anna Walker
The United Nations has warned that many of the Cambodians that have lost their jobs in the garment industry this year, might be forced into sex work.
The comments come after Cambodia's Labour Ministry found that between January and September this year, nearly 80 garment factories have closed, leading to more than 20,000 job losses.
Around a third have found work in other factories, but spokesman for the United Nations Inter-Agency Project on Human Trafficking, Lim Pith says many will have no choice but to go into the entertainment or sex industries.
"The first place they go is to the entertainment industry, which I think would be increased from 20% to maybe up to 30% of them have got a job in the entertainment industry," he said.
"In addition to that some of them will go to work in the restaurants and beer gardens."
Earlier this year, the UN released research findings showing Cambodia's garment sector had been the hardest hit by the global economic crisis, and that newly unemployed women in particular were seeking work in brothels, karaoke bars and massage parlours.
Mr Pith says the large number of Cambodians out of work has also driven wages down.
"Probably because [employers] have more people who want jobs, [employees] have to work longer hours in order to get money and also we see that the wage they receive from their work has decreased."
Shrinking economy
The International Monetary Fund has predicted Cambodia's economy will shrink by 2.75 per cent this year.
The Garment Manufacturers Association of Cambodia agrees with the IMF's figures.
The Association's Secretary General Ken Loo says the industry's shrunk by around 25 percent since the middle of last year.
He says garment factories have relied too heavily on the United States market and are now having to look elsewhere.
"Approximately three quarters or 70% of our exports go to the USA...now if you look at countries like Vietnam or Bangladesh they have a good mix - it's about fifty fifty between Europe and the USA,
So I think our factories here are starting to look to other areas, newer markets. Europe, Japan, Canada, China would be another alternative that we are looking at," he said.
Stiff competition
Mr Loo says stiff competition from abroad is contributing to Cambodia's garment industry crisis.
"For example, our costs are relatively high as compared to our competitors like Vietnam and Bangladesh," he said.
"We have too many unions within each factory which result in many walkouts and strikes and leads to confusion to management who don't know who to negotiate with."
"We also have infrastructure gaps whereby for example the price of electricity is double that of our neighbours. "
Mr Loo says the industry is well aware of the problems it faces, but says the economy is something over which Cambodians have no control over.
"I don't think that there's anything the government can do per se...we just have to wait for the economy to recover and hopefully then these people can come back and reopen their factories."
The garment industry is Cambodia's largest source of income, providing 80 percent of its foreign exchange earnings and employing an estimated 350,000 people last year.
The comments come after Cambodia's Labour Ministry found that between January and September this year, nearly 80 garment factories have closed, leading to more than 20,000 job losses.
Around a third have found work in other factories, but spokesman for the United Nations Inter-Agency Project on Human Trafficking, Lim Pith says many will have no choice but to go into the entertainment or sex industries.
"The first place they go is to the entertainment industry, which I think would be increased from 20% to maybe up to 30% of them have got a job in the entertainment industry," he said.
"In addition to that some of them will go to work in the restaurants and beer gardens."
Earlier this year, the UN released research findings showing Cambodia's garment sector had been the hardest hit by the global economic crisis, and that newly unemployed women in particular were seeking work in brothels, karaoke bars and massage parlours.
Mr Pith says the large number of Cambodians out of work has also driven wages down.
"Probably because [employers] have more people who want jobs, [employees] have to work longer hours in order to get money and also we see that the wage they receive from their work has decreased."
Shrinking economy
The International Monetary Fund has predicted Cambodia's economy will shrink by 2.75 per cent this year.
The Garment Manufacturers Association of Cambodia agrees with the IMF's figures.
The Association's Secretary General Ken Loo says the industry's shrunk by around 25 percent since the middle of last year.
He says garment factories have relied too heavily on the United States market and are now having to look elsewhere.
"Approximately three quarters or 70% of our exports go to the USA...now if you look at countries like Vietnam or Bangladesh they have a good mix - it's about fifty fifty between Europe and the USA,
So I think our factories here are starting to look to other areas, newer markets. Europe, Japan, Canada, China would be another alternative that we are looking at," he said.
Stiff competition
Mr Loo says stiff competition from abroad is contributing to Cambodia's garment industry crisis.
"For example, our costs are relatively high as compared to our competitors like Vietnam and Bangladesh," he said.
"We have too many unions within each factory which result in many walkouts and strikes and leads to confusion to management who don't know who to negotiate with."
"We also have infrastructure gaps whereby for example the price of electricity is double that of our neighbours. "
Mr Loo says the industry is well aware of the problems it faces, but says the economy is something over which Cambodians have no control over.
"I don't think that there's anything the government can do per se...we just have to wait for the economy to recover and hopefully then these people can come back and reopen their factories."
The garment industry is Cambodia's largest source of income, providing 80 percent of its foreign exchange earnings and employing an estimated 350,000 people last year.
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