Cambodia u2013 known to many as the Kingdom of Wonder u2013 is a developing Southeast-Asian nation separating Thailand and Vietnam. It is also home to a vibrant garment, fashion and lifestyle manufacturing sector that in 2018 accounted for 74% of its export earnings. However, with so many producers present on the ground, it can be a challenge for buyers to find the right partner.
Brands in the US or UK can benefit from savings of up to 40% on import duties
As an increasingly competitive option for those looking to move production away from China, Cambodia offers not only more attractive production costs, but also savings on US & UK import duties of as much as 40% depending upon the relevant product category. This creates serious advantages for brandsu2019 bottom lines.u00a0
Here in Cambodia, the benefits are widespread too. As the manufacturing sector has grown in the Kingdom, increased employment opportunities and higher wages have had a huge impact on peoplesu2019 ability to feed, clothe and educate their families. It has also reduced the likelihood of labor migration to neighboring Thailand and Vietnam, which has already torn thousands of families apart, especially in the west of the country where the manufacturing sector is less well represented. That said, human rights abuses are an issue and in order to maintain your brandu2019s integrity, it is crucial to partner with the right manufacturer.u00a0
Moreover, the manufacturing sector is to a large extent in the hands of foreign investors, who maintain their headquarters in their home countries. This affords very little autonomy or leeway to the way production is run in the local factories. Pactics is an exception, because it is headquartered and managed in Cambodia under Dutch management and ownership. Pactics managers work, eat and talk every day alongside our employees, and their decisions integrate what they can see and hear is best for them.u00a0
For our customers, it means we are able to create everything under one roof from design to customer-focused supply-chain solutions underpinned by full customer support
Here at Pactics, we created a one-stop-shop production facility in northwest Cambodia, for two very good reasons. For our customers, it means we are able to create everything under one roof from design to customer-focused supply-chain solutions underpinned by full customer support. But it also gave us the opportunity to have a profound, positive impact on the local community. We not only offer decent work in decent conditions supported by a range of educational and health programs, we also help to improve family life by bringing the factory close to where our employees live, contrary to the still current standard among fashion and lifestyle manufacturers elsewhere in the country. u00a0
This approach has allowed us to both nurture our customersu2019 brands, as well as changing peopleu2019s lives, every day. The ideal combination.u00a0
If youu2019re interested in learning more about producing Fashion and Lifestyle products in Cambodia or would like to discuss the future of sustainable manufacturing with us, visit our website for information, or contact us directly.