Garment manufacturing in Cambodia and Laos

Abstract

This paper uses the systemic quad to examine the strength of the embedding support and firm-level technological capabilities of garment firms in Cambodia and Laos. Although garment exports have surged in both countries, it is argued in the paper that its sustenance will require institutional capacity building. Laos is the more disadvantaged of the two countries as it is landlocked and endowed with too small a labour force. The paper argues that unless the institutional and firm-level technological capabilities are developed further, both countries will find it difficult to retain a significant presence of garment firms once the preferential trade privileges are withdrawn.