Minimum wage for 2025 keeping Cambodia competitive in attracting investments, says economic expert
Minimum wage for 2025 keeping Cambodia competitive in attracting investments, says economic expert
The minimum wage of $208 for workers in the garment, textile, footwear, and travel goods sectors will be implemented starting in January 2025.
Ky Sereyvath, senior economist and Director of the Institute of China Studies at the Royal Academy of Cambodia believes that the 2025 minimum wage is reasonable and keeps Cambodia competitive in the international market.
He explained that the 2025 minimum wage is aligned with the global economic situation and Cambodia’s investment environment.
“The $208 figure is a level that ensures Cambodia remains competitive in attracting investment, similar to other countries with industrial sectors comparable to Cambodia’s. This means that the minimum wage is neither excessively high nor too low when compared to those countries,” he said.
Ky Sereyvath observed that given the current economic situation, the Cambodian government’s decision to maintain the minimum wage increase for 2025 reflects the government’s concern for the welfare of workers. However, he also warned that if the wage were set too high without corresponding productivity growth, it could result in Cambodia losing its competitive edge, affecting foreign investment flows.
However, he praised the government for consistently considering the well-being of workers by improving wages and other benefits.
He highlighted that focusing on worker productivity and wages is crucial to ensure sustainable investment and high competitiveness. He hopes that productivity in Cambodia, along with investment levels, will continue to improve, enabling the government to further increase the minimum wage for workers.
Ministry of Labour and Vocational Training spokesman Katta Orn said the garment, textile, footwear, and travel goods industries are Cambodia’s largest foreign exchange earners, with approximately 1,300 factories and branches employing around 840,000 workers, mostly women.
