The risks of Industry 4.0 in cambodia garment sector

There are major innovations in the global economy which could change the face of industrial production forever. A term that embodies multiple new technologies in manufacturing is Industry 4.0. Highly developed countries have the necessary monetary, intellectual and industrial resources to embrace and shape this change, unlike developing countries which are still catching up economically. This is especially true when an economy is highly dependent on just one sector and its low labor costs, as is the case with Cambodia and its garment industry. The impact of digitalization on manufacturing will be significant. Low-skilled jobs could disappear on a large scale and there will be an urge to restructure. To get a better understanding of Cambodia’s economy, this report asks the question: What impact does Industry 4.0 have on the garment sector in Cambodia? The first chapter will focus on global trends in manufacturing which are often described by the term Industry 4.0 and their impact on the garment sector. Afterwards, the report analyzes the risks stemming from these developments on the Cambodian economy in general and on the garment industry in particular, before finally finding and presenting approaches that policymakers could take in order to attain the most positive outcome for Cambodia.

Fighting Automation through Education

Are workers in high-risk occupations educating themselves?