Garment Industry Productivity Center - Cambodia

USAID focused its attention on the needs of Cambodia’s garment industry in 2004, recognizing the sector’s importance as an economic driver and an employment source facing huge uncertainties. The integration of textiles into the World Trade Organization in 2005 was expected to create major changes in the industry and many questioned whether the Cambodia apparel makers would survive. Two studies followed, the first identifying productivity improvement as a need that was not addressed by existing programs and the second assessing the state of manufacturing productivity in the industry.

The team of Nathan Associates, Inc., Werner International, Inc., and AIRD, Inc., surveyed the industry in 2005, assessing productivity and other factors in 80 of the 230 registered apparel exporters and benchmarking results against the manufacturers in other countries. They found reason for concern.

Cambodia also ranked lower than the benchmark countries in training, especially of managers and supervisors, and in management processes and controls.

As a direct result of the survey, USAID launched the GIPC project, envisioned as a productivity training center to prepare the Cambodian industry for the challenges of global competition. The Center initiated its first programs in January, 2006.