Cambodia: Apparel Factory Closure Sees Workers Rehired, Authorities Facilitate Transition

In Cambodia's garment manufacturing sector, employment issues arising from the closure of a major factory are coming to the forefront. Hi-Tech Apparel (Cambodia) has announced it will cease operations in August 2026, and efforts are underway to help the numerous workers employed by the company find new jobs. According to the spokesperson for the Ministry of Labour and Vocational Training, the company has agreed to pay wages upon contract termination, remaining annual leave entitlements, notice pay, severance pay for the second half of 2026, and other legally stipulated benefits. This resolution was reached after officials from the Ministry of Labour and Vocational Training intervened to mediate between workers, employers, and trade unions, facilitating the payment of appropriate benefits in accordance with the law, with full agreement from all parties involved. The spokesperson stated that some former workers of Hi-Tech Apparel have already found new employment, while others have been hired by Sunky Apparel Cambodia in Kampong Chhnang province and by other factories in the vicinity of Banteay Meanchey province, enabling them to continue earning a monthly income. Furthermore, the Ministry is urging other workers who have not yet decided on employment at different factories to seek new job opportunities through the National Employment and Vocational Services (NEA) under the Ministry of Labour and Vocational Training. NEA has dispatched personnel to company sites to assist in matching workers with jobs according to their preferences. Workers are also reminded to collect their wages and other benefits at the Hi-Tech factory in the Poipet Special Economic Zone, Poipet City, Banteay Meanchey Province, from July 21, 2026, to August 30, 2026. This case highlights the potential impact of business downsizing in Cambodia's labor-intensive industries on workers' livelihoods. The authorities' prompt response is seen as part of an effort to minimize social disruption and protect workers' rights.