Economic tensions are high, and the government agreed to raise wages by 25%, but the reality is that Cambodia has no salable natural resources other than rice and cheap labor. None of the textile fibers are raised here, and energy prices are among the highest in the world. Freight and the price of business (corruption) are high. So why are 80% of Cambodia’s exports garments? Cheap labor.
The only way to correct that is by becoming more productive and producing more of the necessary resources domestically. As nice as it sounds, the doubling of wages, will only drive away what little employment we have and destroy the economy of the country. We need enterprises that add or create value. That’s FCOP!