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Cambodia reaps benefit of China’s rising wages

Inside a gleaming white and blue garment factory in Cambodia stand rows of second-hand Singer sewing machines transported from a plant in China that closed last year.

The Hong Kong-headquartered Top Form, which has 700 workers at the plant, is one of many businesses that have moved to Cambodia, mostly from China, in the past year or so to take advantage of its lower wages, which are roughly a third of those in China.

Double-digit wage increases in China and a shortage of factory labour have prompted several companies to move to cheaper countries such as Vietnam, Bangladesh and Indonesia.

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