Cambodia marks UNESCO recognition of Khmer Rouge sites as places of 'peace and reflection'
PHNOM PENH (Reuters) -Cambodia held ceremonies across the country on Sunday to celebrate UNESCO's recognition of three former Khmer Rouge sites as World Heritage, honouring their transformation from centres of repression to places of peace and reflection.
The Tuol Sleng prison and Choeung Ek killing fields in Phnom Penh, and M-13 prison in Kampong Chhnang province were inscribed as "Cambodian Memorial Sites: From centres of repression to places of peace and reflection" during a UNESCO meeting in Paris on Friday.
"This is a model for the world, showing the long struggle of Cambodia, reconciliation, the spirit of national unity, finding justice for the victims and building peace," said interim Culture Minister Hab Touch.
The Khmer Rouge sites mark Cambodia's fifth World Heritage listing, and is the country's first modern-era nomination and among the first globally tied to recent conflict.
The sites are a stark reminder of the atrocities committed under Pol Pot's regime from 1975 to 1979, during which an estimated 1.7 million to 2.2 million people died, many from starvation, torture, or execution.
The Tuol Sleng prison, which held approximately 15,000 prisoners, is now a genocide museum.
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Cambodia will start military conscription next year as tensions with Thailand persist
PHNOM PENH, Cambodia (AP) — Cambodia's Prime Minister Hun Manet said Monday that his country will implement military conscription starting next year, in an announcement that coincides with persistent border tensions with Thailand. Relations between the neighbors have deteriorated sharply following an armed confrontation on May 28 in which one Cambodian soldier was killed in one of several small contested patches of land. The sides have agreed to de-escalate their dispute to avoid further clashes, but continue to implement or threaten measures that have kept tensions high, alongside exchanging sharp words. The dispute has also roiled Thailand's domestic politics. Prime Minister Paetongtarn Shinawatra was suspended from office after making what critics saw as a disparaging comment about her country's military in a phone call to Cambodia's former Prime Minister Hun Sen, who leaked a recording of it. Hun Manet, Hun Sen's son and successor, said that starting in 2026, an existing law on conscription would be implemented to fill shortages and upgrade the military's capabilities. 'This is our commitment,' Hun Manet said in a speech to military forces in the northern province of Kampong Chhnang. He wore his military uniform displaying his rank of a four-star general. Hun Manet said that soldiers joining the ranks through conscription were more effective than a voluntary force and at least as professional. The conscription law was passed in 2006, but never activated. Cambodians of both sexes, aged 18 to 30, must serve but for women, service is voluntary. Thailand has long implemented conscription for men reaching 20 years of age, with an annual lottery determining who among them is called up. The CIA's World Factbook estimates Cambodia's armed forces total 200,000 personnel, including a large force of military police. It says Thailand has 350,000 active-duty personnel in its armed forces. Hun Manet also called for increasing the military budget. Cambodia is one of the region's poorer countries, with a $9.32 billion national budget for 2025, out of which the biggest share, $739 million, went for defense. He also repeated calls for Thailand to reopen without conditions all border crossings it had closed, saying that Cambodia would reciprocate within hours.
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Hundreds of Cambodia's Garment Factories Unsure About Operations Beyond 3 Months
That the White House lowered Cambodia's so-called 'reciprocal' tariff figure from a 'Liberation Day' high of 49 percent to a potential 35 percent this week will come as little comfort for the Southeast Asian nation, which has less than three weeks to secure a deal that could lower customs duties for the clothing and footwear that make up more than half of its $26 billion in annual exports, a sizable portion of which is destined for the United States. In Prime Minister Hun Manet's version of what has essentially been a boilerplate letter, President Donald Trump said that the tariff rate would redress what he described as an 'unfair' and 'persistent' trade imbalance between the two countries. More from Sourcing Journal Trump Announces 30% Duties on EU, Mexico US Apparel Imports From China Fell to a 22-Year Low in May Amid Trade War Escalation US-Brazil Trade Battle Puts Shoe Firms in Crossfire 'Our trading relationship with Cambodia has been far from reciprocal,' he wrote, citing, by way of evidence, a $12.3 billion trade deficit in 2024. 'These tariffs are necessary to correct many years of Cambodia's tariff and non-tariff policies and trade barriers.' The implications of this are only beginning to hit Cambodia's roughly 900,000 apparel, footwear and travel goods workers, most of them women, because they've been clocking overtime hours to hurry out orders before the duty hike's original July 9 deadline, said Tharo Khun, program manager at the Center of Alliance of Labor and Human Rights, the workers' rights group better known as CENTRAL. But how major U.S. buyers such as Adidas, Nike, Gap Inc., Levi Strauss & Co., Puma, Under Armour, Calvin Klein owner PVH Corp. and The North Face parent VF Corp. react over the next few months, even weeks, could shift the fate of an entire country. All the brands either declined to comment, with some citing a quiet period before earnings results, or did not respond to requests. 'Surely having a 16 percent difference with Vietnam will pose huge challenges for us going forward vis a vis our competitiveness compared to Vietnam,' Ken Loo, secretary general of the Textile, Apparel, Footwear and Travel Goods Association of Cambodia, said of Vietnam's 20 percent tariff rate, which saw a marked reduction from the originally imposed 46 percent in April. Loo said there was still plenty to recommend Cambodia over Vietnam, such as what he said was a more abundant supply of labor and 'certainly' higher levels of compliance with mandatory International Labor Organization monitoring in all exporting apparel, footwear and travel goods factories. 'We hope there is a breakthrough in the next three weeks,' he added. Whether companies selling into the European Union will pick up the slack is also questionable, if not downright doubtful, following the trading bloc's partial withdrawal of Cambodia's Everything But Arms trade preferences in 2020 due to human rights concerns, including violations of freedom of expression. And the fact remains that the United States is the world's largest consumer market. 'I can't predict what will happen, but it's very, very concerning,' Khun said. 'This will affect the job security and livelihoods of workers.' Sun Chanthol, deputy prime minister and first vice president of the Council for the Development of Cambodia, moved to reassure factory owners and investors on Tuesday, spinning the rate as a 'success' because it involved the highest tariff reduction among the first tranche of 14 countries to which it belonged. Others, like Malaysia and Japan, saw their numbers tick up. 'I would like to take this opportunity to call on companies with factories in Cambodia to stay calm,' he said. 'The Royal Government has the full capability to protect employers, employees and Cambodia's national interests. We have both the capacity and the conditions to attract more investors, which in turn will help create more jobs for Cambodians.' But suppliers, facing a murky future beyond the short-term crunch, are already rattled. Nearly half (44 percent) of the more than 750 apparel, footwear and travel goods factories surveyed in May by Better Factories Cambodia, an International Labour Organization-backed program designed to improve working conditions in the country's garment sector, are uncertain if they will be able to sustain current operations beyond three months because that's when orders run out. Some 15 percent say they currently have no confirmed orders, or orders only for the next few weeks. More than one-quarter (27 percent) also reported that their buyers have requested reduced pricing for orders placed during the year, which Better Factories Cambodia said provided some indication of the 'willingness' of buyers to shift costs to suppliers in the case of a tariff-driven upswing. Among the respondents, 91 percent said that their factory exports at least a portion of their production to the United States. As with the 'demand shock' triggered by the Covid-19 pandemic, the report noted, sudden order disruptions could potentially result in negative repercussions that include worker retrenchments, suspensions and dismissals. While most factories are looking to expand their customer base, only 26 percent have secured new buyers or opportunities. All this comes at a time of growing concern about a skilled labor shortage, especially sewing and technical staff, because of increasing competition from new factories in provincial areas and a reluctance among workers to return after their relocation. This has resulted in high turnover, reduced production efficiency and greater operational instability that changing sourcing behavior will only exacerbate, Better Factories Cambodia said. 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It was also at the summit that PVH Corp., together with Asos, H&M Group and Primark, announced that they had signed binding 'support' commitments with IndustriALL that obligated them to, among other things, ring-fence labor costs, guarantee specific volumes and pay into a skills development fund for workers. The idea—as channeled through the international union federation's global framework agreement on living wages, dubbed Action, Collaboration, Transformation, or ACT—was to incentivize or otherwise assure suppliers that signing collective bargaining agreements with trade unions to increase wages wouldn't result in price-sensitive buyers cutting and running whenever the stakes grew too high. One caveat was that the volume pledges would only kick into effect once a certain threshold of factories—as determined by the specific brand or retailer achievement—was achieved. PVH Corp. and a few other firms have conveyed to IndustriALL and its Cambodian affiliates that they will continue to place orders in the country, said Athit Kong, president of the Coalition of Cambodian Apparel Workers Democratic Union, which was involved in ACT's negotiations. While he hasn't heard from members about whether U.S. brands have paused or canceled orders, it's early days yet for that information to filter down, he added. Jason Judd, executive director of Cornell University's ILR Global Labor Institute, isn't holding his breath. Working in Phnom Penh as country director for the Solidarity Center and then for the International Labour Organization, he witnessed 'a decade of fierce wage suppression, fake unions, violence against workers, followed by climate brinksmanship and more' because trade and basic protections for workers are not connected. That applies to the United States, too, he said. 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China's Production Spillover Floods Asian Markets, Threatening Local Supply Chains
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Malaysian Prime Minister Anwar Ibrahim put it bluntly: 'Tools once used to generate growth were now being wielded to pressure, isolate, and contain,' he said. He noted that the trade war was clearly here to stay, calling it the 'new weather of our time.' Anwar addressed what was clearly on the minds of many delegates: the need to 'enhance trade among each other in the face of global uncertainty,' and 'act with purpose.' A largely unspoken concern at the meeting (but one casting a long shadow) was: with the tariff wars and the high tariff numbers facing China, where will the flood of Chinese products shift? With the threat of tariffs looming, regional analysts put it simply: China's immense production capacity must find a home. This has been made easier via e-commerce platforms like Lazada, Temu, and Shopee, which dominate in Southeast Asia. Regional shifts are apparent, triggering transformative change in both retail marketplaces and manufacturing. In April, exports from China to ASEAN countries rose sharply—18.3 percent to Vietnam, 29.9 percent to Cambodia, 12 percent to 15 percent to Malaysia and Indonesia, and 8 percent to 12 percent to Thailand. There is little doubt that consumers in the region benefit from the lower prices offered by the Chinese products, which are substantially lower than those offered by local manufacturer—a double-edged sword cutting deep into local economies. A recent Citigroup report underlined the phenomenon, showing surging exports from China to Southeast Asia, while China's exports to the U.S declined in recent months. The report warned that the influx of more affordable Chinese goods would create greater challenges for local businesses in the region and impact their economies. For instance, Indonesia recently recorded a new monthly high in textile imports from China, adding pressure to its already struggling garment industry, which has laid off thousands of workers. The trade diversion was more significant in Vietnam, Indonesia and Thailand, the report noted, with the U.S. tariffs disrupting regional trade dynamics Voices calling for regulation have grown louder in recent months as tariffs turn from threat to reality. Thailand introduced new import regulations in July last year, including inspecting low-quality goods, seizing counterfeit items worth over 506 million baht ($15.61 million), and applying a 7-percent Value Added Tax (VAT) on cheap imported e-commerce goods. The result was a 20-percent drop in such imports. Further measures, including requiring foreign e-commerce firms to incorporate locally and pay VAT, are under consideration. Thailand is being further impacted by the high tariffs from the U.S, according to apparel industry leaders. 'Cheaper Chinese fashion e-commerce is beneficial in the short term. Affordable and accessible fashion increases purchasing power and provides a variety of styles and trends,' Nutra Uttamapinant, secretary general of the Textile Industry Club at the Federation of Thai Industries (FTI), told Sourcing Journal. 'However, if left unregulated, it can be harmful in the long term due to loss of local industry competitiveness for the Thai economy. The effects could lead to closures, job losses, and weakening of the domestic textile and apparel industry. The quality and environmental standards of these Chinese e-commerce products are also in question, with little regard for labor practices,' she said. As in other countries, e-commerce platforms like Temu, Lazada, Shopee, and TikTok Shop have been at the forefront of this trend. The urgency is growing: Chinese goods priced far below local standards are exerting additional downward pressure on domestic manufacturers. 'We must enhance the competitiveness of Thai domestic brands on these platforms through tech tools and digital marketing, helping the local fashion industry adapt, specialize, and thrive in niche or premium segments. Campaigns to 'Buy Thai' could promote mindful purchasing and support ethical, environmentally conscious production,' Uttamapinant added. Overall, analysts said that most ASEAN governments are taking 'a more cautious approach, balancing domestic pressures with the allure of foreign investment and export-led growth', and Malaysia and Vietnam are weighing restrictions while exploring bilateral and regional trade agreements. It's not a new trend,' a Jakarta-based manufacturer said. 'This has been increasing for the past few years. But now we're going to face a further deluge. And are we worried? Very much so. In Indonesia alone, hundreds of factories have closed, leading to widespread job losses and plummeting productivity.' Imports of Chinese textiles into Indonesia have been growing fast, from $309.7 million between January and April 2024 to $834 million in the same period in 2025. Footwear imports rose from $152.36 million to $199.4 million. Earlier this month, Trade Minister Zulkifli Hasan addressed reporters about oversupply from China being redirected to Indonesia, once again underscoring the fact that it was 'a threat to smaller local businesses, which could collapse.' Indonesia responded to factory closures by slapping 100 percent to 200 percent tariffs on select Chinese imports, including textiles and footwear, which had to be revisited due to the complex nature of supply chains originating in China. Meanwhile, the economic integration with China in the region remains. The visit by Chinese Premier Li Qiang to Indonesia last weekend marked the 75th anniversary of Indonesia-China diplomatic relations, a moment ripe for strengthening the strategic partnership. Accompanied by a business delegation, investment deals were inked, along with agreements to strengthen business ties. Ian Williams, an award-winning author and former journalist, put it simply: 'Chinese President Xi Jinping has seen this coming for a while,' he observed. 'A lot of the investment in Southeast Asia has been strategic. Many governments in the region recognize that—which is why they are publicly supportive, but privately quite wary about the double-edged nature of the investment coming in, and the goods being sent out. China has to put those somewhere. It's facing serious deflation, overproduction, falling prices. The U.S. market is closing, the European market is becoming more difficult. So, where are they going to go?' He said that while ASEAN countries understood the situation, they were still figuring out how to respond. 'I would say that 'scared' is not too strong a word for the redirected exports coming their way.' 'Different countries have various cards they can play—I think Vietnam and Thailand are in quite a strong position, and Malaysia to some extent as well. Cambodia and Laos, there's no way they can say anything to China,' he added. Shay Wester, Director of Asian Economic Affairs at the Asia Society Policy Institute and co-author of a report entitled 'ASEAN Caught Between China's Export Surge and Global De-Risking,' pointed to shifting geopolitical pressures over the past two years. 'This influx of Chinese goods, including intermediate goods for re-export and consumer goods for ASEAN markets, has widened trade deficits and intensified pressure on local industries,' he noted. 'ASEAN overtook the United States and the EU as China's largest export market in 2023. In 2024, Chinese exports to the region rose another 12 percent, while ASEAN exports to China increased by only 2 percent. Chinese imports surged by nearly 18 percent to Indonesia and 14 percent to Thailand, even as their exports declined by roughly 4–5 percent,' the report stated. The pressure to act is intensifying, as is the search for solutions. In Indonesia, President Prabowo Subianto spoke candidly about the situation, including the important issue of textile smuggling issue, even suggesting drastic action. 'If it threatens Indonesia's sovereignty, we sink the ship,' he said in a December speech on Development Planning. Analysts estimate that 1,000 containers arrive illegally in Indonesia each year, packed with surplus Chinese goods priced so low that local manufacturing becomes unviable. Hundreds of apparel factories have shut down in the past two years, resulting in over 70,000 lost jobs. Even efforts to assist companies like the bankruptcy and resurrection of the prominent Indonesian apparel and textile manufacturer Sritex or PT Sri Rejeki Isman Tbk have been bogged down in bureaucracy. The crisis is not limited to apparel exports. Spinners, weavers, and the entire fiber industry are also struggling. 'Dozens of factories are at risk of shutting down as they struggle to compete with cheap Chinese-made clothing that has flooded the market in recent years,' said Redma Gita Wirawasta, chairman of the Indonesian Filament Yarn and Fiber Producers Association. 'We are facing dual pressure: weakening exports and a flood of cheap imports.' Among the solutions being listed out are ways of resetting e-commerce agreements to restrict products crossing borders, and carefully balancing the explosive growth planned by online platforms like Lazada, Shopee, Temu and TikTok Shop. The proposal of a 200-percent import tariff on Chinese goods has resurfaced, aiming to protect more than 60 million small enterprises. An earlier regulation that introduced import quotas faced criticism and revisions for blurring the line between essential supply chain items and surplus imports. In addition to tariffs, other protection measures, from subsidies to export bans and regulatory shifts, are being considered to preserve millions of jobs across the region. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
