Due to the bad market environment, the sales of clothes are much lower than in previous years. Not only in Southeast Asia, many manufacturing countries around the world are facing a series of problems such as no orders and high costs. In Cambodia in Southeast Asia, nearly 47 factories are facing closure, mostly because the economic environment is too unstable. These factories have not placed orders for a long time and can no longer pay workers' wages. Many bosses choose to run away directly. Some factories closed down, because there was too little labor, and workers' wages had to be raised. The increase in these costs has made the already unsustainable manufacturing plants worse.
This part of the factory is mainly responsible for clothing orders. The European Union was once one of Cambodia's most important export markets, but the serious economic downturn in western countries caused the decline of Cambodia's export situation. In addition to Cambodia, India's textile industry has also been affected. Due to the slow retail demand in the west, many orders for clothing and home textiles have dropped by 20%. According to news reports, many importers in western countries can't sell their goods now because of inflation.
Due to the reduction of orders in Southeast Asia, China's related industrial chains will also be affected to some extent. After all, China's textile and light industry manufacturing industry has deep ties with related industries in Southeast Asia. However, with the continuous increase of labor costs in China, the industry is also being optimized and upgraded. Some manufacturers have moved their factories in Southeast Asia to the mainland, and China manufacturers have mastered the core technology and capacity control of the industry, so they don't have to worry about being greatly affected.