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Walmart: Walmart to Source more from Cambodia

Walmart is committed to buying more garment, footwear and luggage products from Cambodia. The US multinational is encouraged by the increased capacity of factories and improved labor conditions in the country. It is also happy with the quality of garment, footwear and luggage products.Walmart with a chain of large stores with branches in most US states is a big buyer of garment products from Cambodia. Cambodia’s garment and footwear exports to the United States were up 6.9 per cent in the first half of this year.

The US last year granted duty-free benefits for Cambodia for the export of travel goods such as luggage, backpacks, handbags and wallets under the Generalised System of Preferences. The country gets 100 per cent preference from Australia, New Zealand, Norway and Switzerland and 99 per cent preference from the EU under the Everything But Arms clause.

The garment industry of Cambodia earns 80 per cent of Cambodia’s foreign exchange earnings and employs an estimated 3,50,000 people in more than 300 factories. Companies which buy from Cambodia include H&M, Inditex, Marks & Spencer, New Look, Adidas, Nike, Levi’s and Uniqlo.Cambodia relies heavily on garment exports to earn foreign earnings. There are now plans to shift from low-priced garment manufacturing to higher end manufacturing of automobile, machinery and electronic parts.



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