ExpertiseIndustrial and Manufacturing

Garments and light manufacturing

Garments and light manufacturing

Garment manufacturing is the cornerstone of Cambodia’s export economy. It remains a high growth, high value industry. Recent labor unrest revealed some of the challenges the industry faces but it also highlighted the fact that Cambodian workers have relatively satisfactory working conditions compared to problematic jurisdictions like Bangladesh and China. Going forward, the outlook for the garment sector is strong, with improving productivity and reduced logistical costs offsetting higher wages. The sector is also diversifying, and light manufacturing is likely to grow significantly.

Within this context, investors remain excited about Cambodia, but labor concerns, supply chain logistics and rapidly changing markets are all challenges that can undermine profitability. VDB Loi works with a wide variety of clients in the manufacturing sector, including many of the region’s biggest players.

We understand that success or failure in the manufacturing sector relies on the most limited of margins. We can provide you with structuring, supply chain management and financing arrangements that ensure that you can maximize your investment. Our cutting edge research on garment sector taxation and regulation places us well ahead of the competition and equips us to handle the most complex challenges.

With our strong regional presence we have assisted major regional players in establishing cross-border supply chains and identified significant tax savings through targeted investment incentives.

Our close relationships with special economic zones, many of which are our clients, mean that we can truly provide a comprehensive service. Our legal, tax and commercial advising adds value to your business, speeds up the investment process and limits your risk.

There is a reason that the Garment Manufacturers Association of Cambodia partners with VDB Loi: It’s because we’re the best.

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