On February 20, 2012, there was an incident in the eastern
Svay Rieng province of Cambodia in which a gunman opened fire at a rally
conducted by thousands of textile workers. These workers were demanding better
working conditions at factories in Cambodia. Three female workers at a Puma
supply factory were shot and injured. To date, there has been no arrest even
though the Bavet City governor is the suspected perpetrator. Now, several
retail giants including Puma, Gap, H&M, and American Eagle Outfitters are
applying pressure to the Cambodian government to take action. The textile
industry is a primary source of foreign income for Cambodia. It employs more
than 300,000 people.
This article tells a lot about business in Cambodia. The
most important thing though is that the government has a general attitude of
impunity when resolving such conflicts. This is important for businesses who
are interested in working with or within Cambodia to know. Politics within a
given country play a huge role in conducting business within that country and
unfortunately for Cambodia, the government didn’t prove itself ready to deal
with the needs that naturally come from large businesses.
Published 12 March, 2012
It is interesting to think about how companies like H&M and Gap can influence a country. Because Cambodia relies so much on the textile industry, it makes sense that Cambodia will listen to countries that purchase and manufacture textiles in Cambodia.
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