Garment exports represent nearly 80% of Cambodia’s exports. With over 300,000 employed in the industry in nearly 300 factories, the Cambodian economy is extremely vulnerable to a sudden downturn in the industry in the wake of the elimination of multilateral garment quotas. In order to remain competitive and retain this key source of formal sector employment, factories must strive to modernize management techniques and improve their productivity.

These issues were explored in previous work, including a scoping study conducted by AIRD and a productivity benchmarking survey led by AIRD and conducted by Werner International in Cambodia.

In 2005 AIRD and its partners Nathan Associates and Werner International were awarded a three-year, $3.4 million project to develop and implement a Garment Industry Productivity Center (GIPC) in Cambodia. The GIPC project represents an innovative move by USAID to support private sector competitiveness via a twin emphasis on improving factory productivity and promoting workforce development in Cambodia’s most critical formal manufacturing sector.

Led by Chief of Party Jane O’Dell, GIPC works in close collaboration with both the industry (represented by the Garment Manufacturers Association in Cambodia), the International Labor Organization’s Better Factories Cambodia project, and the Mekong Private Sector Development Facility. In April 2006, GIPC completed its pilot phase and established a Center Advisory Committee (for results of the pilot training, see news item). GIPC was recently profiled by the International Labor Organization’s Better Factories project in their February 2007 newsletter.

Lynn Salinger & Jane O’Dell meet with Youth Council members in Kampong Cham Province.

Within the GIPC project, AIRD is responsible for economic governance and workforce development themes. Lynn Salinger conducted a workforce assessment and skills gap analysis for the garment industry in May-June 2006, interviewing representatives of industry, workers, education and training institutions, students, and youth to identify interventions that will help to strengthen communication of the industry’s skills requirements to education and training providers. The workforce assessment was presented to industry stakeholders in October 2006, and to the education and training sector in January 2007 (see news item).

Both the report and the presentations are available below.

Cambodia Garment Industry Workforce Assessment (Final report).pdf

Cambodia Garment Industry WFA Presentation.pdf

Cambodia Garment Industry WFA Presentation to Educators.pdf

Salinger presents to educators in Phnom Penh in January 2007 (right).