Research Mission: Read this economic brief about the textile industry in Cambodia. Focus on its importance to the national economy, the composition of its workforce, and the future challenges it faces. Hover over the underlined vocabulary for definitions.
Economic Brief: The Textile & Garment Sector
The textile and garment industry is a fundamental pillar of the modern Cambodian economy. Since the 1990s, it has grown into the country's largest export sector, accounting for a significant portion of the national GDP. It is heavily export-oriented, producing clothing and footwear primarily for markets in the United States and the European Union.
Beyond macroeconomic statistics, the sector is crucial for employment. It employs upwards of 700,000 workers, who are predominantly young women migrating from rural provinces to industrial zones around Phnom Penh. The wages earned in these factories are often sent back home as remittances, providing essential financial support for rural families.
However, the industry faces significant challenges. Rising labor costs and intense regional competition from countries like Vietnam and Bangladesh are threatening Cambodia's competitiveness. To remain sustainable, the sector needs to diversify beyond basic "cut-make-trim" operations and invest in higher skills and technology.
Academic Comprehension Check (B2)
1. According to the text, why is the textile industry described as a "pillar" of the economy?
2. What does the text state about the workforce in this sector?
3. What is mentioned as a significant future challenge for the industry?
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