The Asian Development Bank (ADB) approved a $50 million policy-based loan under sub-programme 1 of the Trade and Competitiveness Programme to support Cambodia in diversifying its economy through better global competitiveness.
The loan would facilitate the government of Cambodia to implement National Policy Framework for Cambodia’s Economic Productivity 2022-35 it announced in November; to raise the potential of investment and trade besides improving the national economic productivity.
The Asian Development Bank loan would back economic diversification besides boosting competitiveness, and extension of the Better Factories Cambodia (BFC) programme. Apparel exports accounted for 41.3 percent of Cambodia’s total exports of 18.7 billion during the first 10 months of 2022. It’s a relatively new export sector that is growing fast. The Cambodian government is taking steps to improve productivity, technology, and sustainability.
EuroCham Cambodia will set up a public training programme with the Cambodian Garment Training Institute in Phnom Penh, focused on sustainable textile sourcing, occupational safety, and health and compliance. Germany’s Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) will fund the training initiative.
The Cambodian commerce ministry and the ministry of labor and vocational training signed an MoU in October with Travel Goods Association in Cambodia (TAFTAC) and the International Labour Organisation to continue the Better Factories Cambodia (BFC) programme for another five years from January 2023 to December 2027.
