Mass cancellation of orders in European and American markets
2022-11-27 20:39
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According to the Cambodia Daily, the Cambodian Chamber of Footwear issued a notice on April 4 stating that due to the impact of the new coronary pneumonia epidemic, buyers in the European and American markets have cancelled a large number of orders one after another, resulting in the Cambodian shoe industry facing huge challenges.
According to the circular, according to a survey conducted by the Chamber of Commerce on March 30, among the approximately 127,000 workers in April, about 57% of 72,000 workers were able to work normally, 25% of workers faced a shutdown, and 12% of workers faced a total shutdown. In addition, 6% of the factories could not confirm whether the order status can smoothly arrange production.
The situation in May was even more precarious. Only 11% of workers were able to work normally, and most of the 60% of workers ’factories could not confirm the order status. The orders from June to the following months were even more uncertain, which would severely impact the overall employment population and production economy.
The Cambodian Footwear Chamber of Commerce calls for the assistance of the Cambodian government. “We plead for the government to provide financial assistance to subsidize workers, subsidize workers and subsidize factories at the same time, or give enterprises special loans to allow businesses to maintain financial operations.” In 2020 1 -In February, when there was a shortage of materials, the factory still had orders. The government called on the factory to subsidize 40% of the worker's base salary during the shutdown due to material problems. But now the factory is faced with no orders, no income cash flow, and continuous subsidies to workers, the factory will fall into a greater crisis.
02
According to the Cambodian Single Network report, on April 7, Prime Minister Hun Sen of Cambodia held a special press conference announcing the cancellation of the Cambodian New Year holiday in April, and Cambodian companies and factories can operate as usual.
According to the announcement made by Cambodian Prime Minister Hun Sen, as of now, more than 100 factories in Cambodia have ceased production due to the epidemic. He emphasized that there are two main reasons for the factory's shutdown: the first is the lack of raw materials; the second is that the buyer cancels the order.
He said that at the suggestion of the Cambodian Garment Manufacturers Association, the government has reissued a document stipulating that during the factory ’s temporary suspension of production due to the epidemic, workers can receive $ 70 in wages, of which $ 30 is paid by the factory and another $ 40 is paid by the factory. Government subsidies.