Even if garment factories are wholly Chinese-owned and utilise materials manufactured in China, they might take pleasure in relaxed tax regimes and quotas when exporting to Europe and America, furnished items are assembled in Cambodia. Nevertheless, in August 2020, the EU partly withdrew Cambodia’s EBA privileges as a consequence of human rights concerns. This withdrawal impacts twenty% of exports for the EU, largely clothes—and that is A significant focus for corporations working throughout the SSEZ.
Cambodia began to integrate SEZs into its lengthy-phrase advancement method way back to 1998. This was expanded in subsequent Rectangular Method documents, the five-calendar year designs that established out The federal government growth agenda. SEZs have persistently acquired large-degree help as Portion of a drive to attract overseas financial commitment, raise productiveness, create employment, and bolster the export-oriented financial state.
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A report by an area civil Culture team (Khmer, English) in 2018 documented interviews with 20 workers from ten factories within the SEZ, who recounted a number of obvious labour rights violations, like docked purchase folks using sick go away and force to work extra time. Firm representatives were questioned for comment on these accusations and denied their validity, stating that their businesses operated in compliance Using the labour regulation.
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