JUNE 2005 This publication was produced for review by the United States Agency for International Development. It was prepared by Nathan Associates Inc. and its partner organizations.
Measuring Competitiveness and Labor Productivity in Cambodia’s Garment Industry
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The authors of this report are Lynn Salinger of Associates for International Resources and Development; Sok Hach, Chea Samnang, and Neou Seiha of the Economic Institute of Cambodia; and Mauro Pereira, Heinz Reich, and Jan Urlings of Werner International.
Executive Summary 1. Why This Study? 2. Cambodian and Global Industry Shifts 3. Description of Cambodian Garment Industry and Sample Survey Sample Survey Design and Implementation Description of the Industry 4 Defining and Measuring Labor Productivity Measuring Labor Productivity Determinants of Labor Productivity 5. Benchmarking Productivity Factors Benchmarking Parameters General Observations Benchmarking Results International Benchmarking Comparisons 6. Conclusions and Industrywide Recommendations Conclusions Recommendations Bibliography Appendixes Appendix A. Detailed Survey Findings Appendix B. Regression Analysis of the Determinants of Labor Productivity Appendix C. Garment Industry Training v 1 3 9 9 10 17 17 18 19 19 19 23 25 31 31 32 37
List of Tables
Table 2-1. Evolution of Cambodia’s Garment Industry Table 2-2. U.S. Import Duties on Key Clothing Categories Imported from Cambodia, 2004 Table 2-3. U.S. Apparel Imports 1995–2005: Evolution of U.S. Market Share of Top 10 Suppliers Table 2-4. Comparison of Year-to-Date Growth Rates of U.S. Textiles and Apparel Imports Table 2-5. Comparison of Volume of Cambodian and Chinese Imports to United States for Key Clothing Categories, Year-to-Date Table 3-1. Garment Industry by Number of Employees Table 3-2. Garment Industry by Owner’s Nationality Table 3-3. Garment Industry by Product Manufactured Table 3-4. Garment Export Market Share by Value (%) Table 3-5. Year of Establishment of Garment Factories Table 3-6. Factory Owners’ Garment Industry Experience Table 3-7. Imports of Fabric by Country Table 3-8. Imports of Accessories by Country Table 3-9. Factory Intentions to Invest Table 3-10. Factory Investment Objectives Table 5-1. Benchmarking Parameters Table 5-2. Characteristics of Cambodia’s Factories by Quartile List of Figures
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Figure 5-1. Quartile Benchmarking of the Cambodian Garment Industry, 2005 Figure 5-2. Factor Benchmarking of the Cambodian Garment Industry 2005 Figure 5-3....