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A woman weaves silk in Roka Korng 1 commune in Kandal province’s Muk Kampoul district last year. Photograph: Heng Chivoan/Phnom Penh Post
Cambodia's silk producers say they must cut costs in order to continue reaching troubled European markets, the primary target for the Kingdom’s sericulture products.
Insiders said Cambodian companies must start producing their own silk for the industry to survive.
Silk craftspeople import some 400 tonnes of silk per year from China then export finished products.
The reduction in price would come directly out of the silk
itself, Seung Kimyonn, director of the Cambodian Craft Cooperation, said this week.
Silk producers have already started adding cotton to the products, he said. Seung Kimyonn’s company, which caters to the European market, used a total of two tonnes of silk per year about two years ago.
The amount of silk used in his export products was cut in half last year.
“In the past, I produce products from 100 per cent silk, but now we are making changes in order to maintain the market,” said Seung Kimyonn, who is also a silk craftsman.
International demand for Cambodian craft products have dropped substatially as European purse strings have tightened, the Post reported earlier this year.
Seung Kimyonn’s team is designing products that will blend a significant amount of cotton, which sells for US$4 per kilogramme, compared to $50 for the same amount of silk.
There are other ways to lower the price of the country’s silk, Sisowath Pheanuroth, president of the Advisory Board for Small and Medium Industry Association of Cambodia, said.
Cambodians should reduce their reliance on Chinese silk by producing their own, he said.
“Unless Cambodia can produce silk by itself, there will be challenges for our silk products,” Sisowath Pheanuroth said.
Seung Kimyonn said his company will start to target regional tourist from China and Korea.
Six companies from China’s Guangzhou city and Guangxi province met with Kim Sithan, Cambodia’s secretary of state at the Ministry of Commerce, yesterday to discuss investment in the country Heavy machinery, fertiliser and chemical companies expressed interest in Cambodia’s agricultural sector and said they would seek more business information about Cambodia.
Cambodia’s political and macro-economic stability and strong economic growth lured them to the Kingdom, Kim Sithan said, adding that the agricultural, garment, tourism and construction sectors would be key in Cambodia’s economic growth.
Cambodia’s open investment policy and a duty-free status in many other advanced economies were also contributing factors in the decision to invest in the Kingdom, he said.
According to data from Council for the Development of Cambodia, Chinese investment in Cambodia reached US$1.192 billion in 2011, a year-on-year increase of 71.82 per cent.
Last week, 10 memoranda of understanding were signed between China and Cambodia. The MoUs included Chinese contracts for 60,000 tonnes of rubber, 1 million tonnes of cassava, 500,000 tonnes of milled rice and 3,500 tonnes of black pepper per year, as well as processed wood and spices. Also included were Chinese imports such as processed foods, mobile phones, clothing materials and agricultural equipment.
