Kumolica, the deputy secretary general of the Garment Association of Cambodia, said the negotiations between Vietnam and the European Union on the establishment of a free trade area (FTA) are coming to an end. It is likely that the agreement will be signed in 2015.
The agreement or two years after the formal entry into force, when the Vietnamese goods will receive EU duty-free concessions, the Cambodian garment industry will bring a great impact, so local business must be prepared.
Drainage said that two years is not a long time, manufacturers should start planning response from now on.
The Ministry of Commerce is also worried that Vietnam and the European Union to set up a free trade zone, Cambodia's garment and footwear industry a major impact.
Song Sampa, Director-General of the Department of Trade and Commerce of the Ministry of Commerce, has said that the Ministry of Commerce hopes to provide enterprises with convenience and cost reduction through various efforts to meet future challenges.
Labor costs in Cambodia and Vietnam are not much different, but Vietnamese workers are more productive and have more advantages in terms of production lines and exports.
Cambodia's ready-made garments and shoes will lose competitiveness when Vietnam enjoys the EU's GSTP status as Cambodia does.