A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management

Research Studies Project Report (M.BA.) - Asian Institute of Technology, 2004

Garment industry has become one of the main export revenue earners, thank to its nature of intensive labor, with the privileges provided through MFA, Cambodia has capture a good market share in EU and USA. Facing with the phase out of MFA in the early of 2005, Cambodia has to find another way to secure the market, it has built. This comprehensive study of Cambodia garment industry had the purpose to assess the competitiveness of this industry, when it has to compete on more equal footing basis. In this research, author found that exploiting all comparative advantages through certain measures and develop more on the potential that Cambodia possess, its products will never be driven out from the competitive market, but rather will be enjoying a specific market share with long term growth prospects. Cambodia must succeed in expanding the garment manufacturing from the lower end to the higher end. It needs to restructure its textile and ready made garment industries with appropriate backward and forward linkages, improve substantially its labor productivity and management efficiency. It must implement well-formulated cost reduction and product diversification strategies. Government's supportive policy packages and its drastic reform have to be broadened and made more effective. Most importantly the author concludes the government must opt for high quality political and business diplomacy to cope with other forms of non-tariff baITiers and negotiate for other favorable trading term form its partners.