Investigation Report on Cambodia Silk Industry
Invited by Minister of Commerce of Cambodia, International Silk Union organized Chinese member units and paid a five-day visit to Cambodia since April 30th, 2017.
The members of investigation delegation come from eight provinces, cities and Hong Kong Special Administrative Region (HKSAR). There are totally twenty persons from thirteen enterprises, including senior executives from big dealers in silk industry such as High Fashion International Group, Zhejiang Cathaya Group, Shangdong Hirun Investment Group, Shanghai Silk Group, Yunnan Baoshan Ligen Silk Company etc. Covering all industry chain of silk, an investigation group consisting of elites goes to the ground of Cambodia with their heart full of exploration desire.
Minister of Commerce of Cambodia paid high attention to this investigation and made a thorough arrangement of visit and meeting. Through serious thinking, the investigation delegation of International Silk Union worked out an investigation report and submitted it to Ministry of Commerce of Cambodia and Cambodia Silk Sector Promotion and Development Committee at the end of investigation. This report includes three parts, i.e. investigation impression, the work that can be carried out by International Silk Union, and strategies and proposal to the development of silk industry in Cambodia.
Part One. Investigation Impression
1. Silk products of Cambodia are traditional, classical and full of ethnic characteristics, but industry basis is weak and the labor efficiency is low.
On May 1st, 3rd to 5th, the investigation delegation visited silk community of Takeo Province, National Silk Centre(CNS) and art school, Artisans Angkor Silk Company, Khmer Golden Silk Village, Island of Silk, and interviewed silk weavers, farmers, silk associations and operators of silk brands.
Somrong Silk Association of Takeo Province is also called silk union or silk community. In a humble countryside residence, Silk Association of Takeo Province temporarily displayed some silk fabric with ethnic characteristics of Cambodia for the investigation delegation to visit. In its neighborhood, the investigation delegation saw some farm women were weaving silk fabric on an extremely simple hand-loom. By saying extremely simple, we mean that it is equipped without any mechanical devices. There are only three to four harness frames and some foot bars on one wooden frame. Farm women can weave complicated pattern only by manipulating hands and feet on it.
Members of investigation delegation know very well about the jacquard bridle, cardboard patterns, and computer jacquard, so they are very curious about how can a farm woman memorize the change of patterns in the warp and weft thread? We learn through repeatedly asking that one family only focus on weaving one type of pattern, so the change of patterns in the warp and weft thread has already precipitated and immersed in the family blood through passing on from generation to generations for months and years.
So the members of investigation delegation said that we were watching the Intangible cultural heritage. As expected, when we entered the biggest workshop in Takeo Province, we saw that six looms were put in order which made it looks like a silk weaving workshop. Owner of the workshop introduced that United Nations Educational Scientific and Cultural Organization (UNESCO) has awarded him as the Intangible cultural successor and given him project funding.
Cambodia silk started since thirteenth century and provided silk products for members of the royal family, which produced one hundred and fifty tons of raw silk per year at the most prosperous period. But during Khmer Rouge regime, the silk industry was destroyed and we can even describe it as being uprooted. From 1992, Cambodia wanted to recover the silk industry, and France had once given it a project funding. But it is very hard to change the current situation owing to lacking of technology, equipment, capital and efficient organization and leadership. Minister of Commerce and Secretary of state are both not afraid to say in their speech that Cambodia silk is very tiny and silk enterprises are very weak.
Presently annual use of raw silk in Cambodia is about four hundred tons per year, but the domestic annual productivity of raw silk is only about two tons each year, so it imports a lot from China and Vietnam every year. All the looms in silk communities such as Artisans Angkor Company, Khmer Golden Silk Village, and Island of Silk that we visited later are purely operated by hand with low efficiency. And it reflects that Cambodia silk is still at the beginning stage of industry development, and the gap between it and modern industry is huge.
2. Two modes i.e. silk community customized sales and three combinations of art school, public welfare and company operating are worth studying.
In visiting, the investigation delegation saw that silk associations of all provinces and levels organize the production of about one thousand simple looms in local silk communities. The biggest advantage of this kind of family workshop is to help those farm women to stay at home because they need to look after children and cannot leave home. It enables them to take care of the family and make money at the same time. It is quoted that the Cambodia Women Entrepreneurs Association also plays a very important role. All the products of silk community are sold to silk brand dealers in Cambodia and all the products of family workshop can be regarded as Intangible products, which deserved to be called as another kind of Haute Couture.
The specialty store of famous Cambodia silk brand SENTOSA SILK is situated just beside the Imperial Palace, which is a golden location. SENTOSA SILK was established in 2004. The founder, Ms. Seng Takakneary is the enterprise representative in Cambodia Silk Sector Promotion and Development Committee. She is also one of the originators of Cambodia Women Entrepreneurs Association. She has one-sixth Chinese bloodline and her grandfather once brought planting mulberry trees and breeding silkworms from China to Cambodia. Besides loving silk, she also devotes herself to helping women to obtain employment and defending women rights.
It is Ms. Seng Takaknear who purchases silk fabric full of ethnic characteristics from silk communities in six provinces, and then processes it into different types of silk finished-products. The silk merchandise in the specialty store of SENTOSA SILK is dazzling and the quality of it has been qualified through the certification of countries such as France and Japan etc. The merchandise is sold abroad to Europe and Japan, and also gains the favor of Cambodia royal family and social upper-class. Thus we think of the social problem led by large quantity of Left-behind children in China. This selling mode of silk community custom-made might as well be studied and used for reference by China.
On the third day of investigation about Cambodia silk industry, we drove for about six hours and reached Siem Reap Province to visit the project named National Silk Centre(CNS). This art school is not alike the art schools which are scrambled for by Chinese youth. It is a charity organization operated by nation to help the poor youth and physically-challenged people to learn a craftsmanship so as to earn one's own living through labor.
The silk industry in Cambodia is purely by hand, so it becomes a kind of craftsmanship and the main content of art school. This school has cultivated more than 4,900 students who all enter and work in Artisans Angkor Company after they obtain the skills. The company has formed an all silk industry chain from planting mulberry trees and breeding silkworms, reeling silk and weaving silk fabric, to printing & dyeing and producing clothing. Its annual revenue is twelve billion US dollars and becomes the largest-scale silk enterprise in Cambodia. The company refunds twenty percent of its profit to the art school. This mode of three combinations of art school, Public welfare and company operating are worth studying worldwide.
3. Attaching high attention from the government can definitely be converted into strong power for the industry development.
On May 2nd, In the meeting room of Angkor Wat and Baron Temple, a high standard business meeting was held for one whole day. Minister of Commerce H.E. Pan Sorasak, each Vice-Minister of Commerce, Vice-Minister of Agriculture, H.E. Prince Pheanuroth Sisowath, and main leading officials in each department of Ministry of Commerce and Ministry of Agriculture all delivered speeches. The speeches made detailed introductions about the history, current situation and already established development strategy from year 2016 to 2020 of Cambodia silk industry. They also hope that Chinese silk enterprises could have in-depth knowledge about Cambodia silk industry, help to resolve the related existing difficulties and problems, and promote the development and cooperation of China-Cambodia silk industry.
In 2015, Ministry of Commerce and Ministry of Agriculture of Cambodia set up the Cambodia Silk Sector Promotion and Development Committee, which has established four development objectives, i.e. to cultivate silk consumption market, train professional talents, improve the level of science and technology, and strengthen management of the industry etc. So many senior officials from Ministry of Commerce and Ministry of Agriculture of Cambodia took part in this whole-day-long business meeting. Secretary of state from Ministry of Commerce, Vice-Minister of Agriculture, and Prince accompanied the investigation delegation of International Silk Union to visit the silk communities of each province and art school all the time for so many days. From these facts we can learn that government has great determination and deep exertion to develop the silk industry. Attaching high attention from the government can definitely be converted into strong power for the industry development.
Part Two. The work can be carried out by International Silk Union.
1. Information transmission and culture communication.
Current world is a new era of internet communication. World Silk Website, the official platform of International Silk Union, is existing right for the Information transmission and culture communication of international silk industry.
During the visit of the investigation delegation of International Silk Union in Cambodia, World Silk Website made Chinese-English bilingual reports for continuous five days titled with “From World Intangible Cultural Heritage Workshop to International Quality Certification Silk Brand”, “China-Cambodia Cooperates to Host High Standard Meeting”, “Professional Silk Center Promotes Employment and Poverty Relief”, “Khmer Golden Silk Village, Magnificent and Beautiful Angkor Wat” and “Exploring Island of Silk, Experiencing Royal Quality”. This information makes the world silk people understand the investigation process and current situation of Cambodia silk line, and the investigation report published thereafter shows the future direction of Cambodia silk industry.
Cambodia silk enterprises can link their websites to World Silk Website to promote their products and cultures to the furthest extent and make the world to know Cambodia silk. Certain departments of Cambodia government can also look for related information and provide reference and basis for government decision-making.
2. To train professional technology talents in planting mulberry trees and breeding silkworms.
The history of planting mulberry trees and breeding silkworms in Cambodia nearly died and the professional technology is lack of inheritance. Both government and folk public realize that they must recover the skills of planting mulberry trees, breeding silkworms and reeling silk. International Silk Union can release timely information about the training organized by Chinese government and scientific research colleges and universities, and assist the contact and execution of trainees from Cambodia. Presently, Ministry of Commerce of Cambodia has confirmed to send two persons to attend the training program of sericulture financed and organized by Ministry of Commerce of China.
International Silk Union will try best to organize Chinese experts of planting mulberry trees and breeding silkworms to teach in the training class held by Cambodia government, so as to reserve the technology talents for development of Cambodia silk. Huzhou Academy of Agricultural Sciences, Zhejiang Province has expressed that they are willing to integrate the various resources to participate the industry of planting mulberry trees and breeding silkworms in Cambodia.
3. Planning to set up the international silk fashion design college jointly.
Ministry of Commerce of Cambodia proposes establishing a designer college to cultivate designers who can design in the track with fashion. The investigation delegation of International Silk Union consider that it can be planned to set up an international silk fashion design college or “Ruban Craftsman School” jointly with a high starting point, which may refer to the mode of National Silk Centre(CNS) and Art School in Siem Reap Province.
It can also refer to the mode of jointly established Hangzhou International Fashion College by Zhejiang Sci-Tech University and Hangzhou Yuhang District Government in China at the beginning of 2017. Government provides the land, campus and dormitory, university is responsible for teachers and training, and enterprises invest and operate and refund part of the profit to the fashion design college. At present, High Fashion International Group, Huzhou Lingjuan Silk Research Institute and Hangzhou Niteer Weave Co.,Ltd in the investigation delegation all show strong interest and cooperation intention for this project.
4. To organize and participate international silk show to explore international market.
Zhejiang Miorante Business Exhibition Co., Ltd., one of the member units of International Silk Union is responsible for China International Silk Expo held in October every year in Hangzhou and global tour exhibitions in ten countries. Suzhou Silk Expo held in April every year also welcomes the Cambodia silk enterprises to take part in the exhibition. International Silk Union will organize member units to participate the world silk forum and exhibition to be held in June this year Hoi An Silk Village in Vietnam. Culture, economic and trade expo will be held in November this year in Lyon, France by INTERSOIE France. Cambodia government and enterprises can choose to attend it so as to walk out to know the global silk industry, and explore the international market for Cambodia silk products as well.
5. Investment and cooperation.
International Silk Union is a public benefit platform and communication platform to provide member units with service. The union itself does not have capital for direct investment, but many large enterprises of Chinese silk industry are members of the union. When the development direction of these enterprises coincides with the demand of Cambodia silk enterprises, the investment and cooperation will happen without extra effort. Now both sides are in the process of initial contact and understanding each other. The silk enterprises in Jiangsu Province and Suzhou City are planning to organize more investigations to Cambodia, thus to promote mutual trade and cooperation.
Part Three. Strategies and proposals to the development of silk industry in Cambodia
1. Precise positioning of the development direction of silk industry.
The silk industry is keeping moving to undeveloped districts as we can tell from the history. The direction is from France to Italy to Japan then to China. Due to the rigid growth of cost in China recent years, the export of real silk products declines, but the total export amount of India and Turkey is close to China. Then, the front end of the industry chain, such as planting mulberry trees and breeding silkworms, reeling silk and weaving silk fabric is sure to move toward South Asia and South-East Asia. So Cambodia should try hard to cut one piece of cake of its own.
Presently, the Cambodia silk still stays in the phase of home workshop with pure hand-operating. It’s undoubtedly necessary to inherit and protect the intangible cultural heritage, but it is just traditional, classical and niche forever. It cannot become a modern industry, and cannot create huge wealth for the government and society. So the development direction of Cambodia silk industry needs precise positioning. Different positioning of industry has different military organization, which is the key of success and failure, gain and loss.
At present, the salary of workers in Cambodia is still in rather low level. It is very competitive compared with Thailand, Vietnam and Burma. So the general direction of both protecting traditional intangible cultural heritage and quickly developing modern silk industry should be chosen. We invite the investigation delegation organized by Ministry of Commerce and Ministry of Agriculture of Cambodia to visit China to investigate the current situation of China silk industry such as planting mulberry trees and breeding silkworms, modern silk industry and inheriting intangible cultural heritage. So that Cambodia government can overall consider the structure of combining planting mulberry trees and breeding silkworms, traditional silk weaving and traditional embroidery with modern industry labor, thus to perfect the development planning of Cambodia silk industry.
2. To strive for project support from Chinese government.
Cambodia and China have deep friendship and strategic partnership. Chinese President Xi Jinping has just visited Cambodia. "The Belt and Road Initiative" strategy proposed by China has also got identification and participation from more and more countries. We suggest that Ministry of Commerce of Cambodia should contact with Ministry of Commerce of China, and strive for "The Belt and Road Initiative" project funding to support the development of Cambodia silk industry. Only large amount of capital can solve big problem and can develop quickly without losing the opportunity and time. If Cambodia can get the project funding from Chinese government, International Silk Union can organize the member units to manage the trusteeship in order to assure the successful completion of the project.
3. To strive for project support from United Nations Educational Scientific and Cultural Organization (UNESCO).
Cambodia always has the project support from United Nations Educational Scientific and Cultural Organization (UNESCO). But previously it is basically the funding to the projects of inheriting intangible cultural heritage. Now Cambodia can also apply for the funding to the upgrading and rebuilding of silk industry which is traditional and backward. This kind of upgrading and rebuilding will greatly push the economic development, social prosperity and improvement of people’s living in Cambodia.
4. Policy support from Cambodia government.
The development of industry cannot do without the support from one’s own country and government. The investigation delegation has noticed that Ministry of Commerce and Ministry of Agriculture of Cambodia attach great importance and pay close attention to the development of silk industry. But in just a few days, we have not known any substantial policy support from government.
We have all experienced the process of advance triumphantly of China silk industry. For example, in the “Moving east mulberry to west strategy” in 2005, all the mulberry saplings in Guangxi and Yunnan Provinces were provided by the government for free, so it expands the planting area of mulberry trees in Guangxi and Yunnan Provinces very soon, and continues the planting mulberry trees, breeding silkworms and reeling silk from South-East coastal districts. Another example, Hangzhou municipal government put forward the “Promoting the Home of Silk Strategy” in 2005. It allocates twenty million RMB every year as the project development funding of silk women’s clothing. In this way, Hangzhou sits the first chair of Chinese silk city in short time.
5. Preferential policies of investment promotion and capital introduction.
Government plays a leading role in the investment promotion and capital introduction of different places in China. It is enterprises to make joint ventures, but government will always come up with preferential policies of Investment promotion and capital introduction, including land prices, tax deduction and exemption, and preferential electricity and water fees etc, so as to promote the Investment promotion and capital introduction. Government can see the employment, industry development and future tax revenue growth, which is also the key of success of investment promotion and capital introduction in China.
6. To formulate the quantitative target of industrial upgrading in the development planning.
We have known that Cambodia Silk Sector Promotion and Development Committee formulates the silk development planning of year 2016 to 2020. It is a strategic and guiding document, and four development objectives are very necessary as well. We only propose formulating periodical and quantitative targets according to the positioning of Cambodia silk industry development, such as Industrial development level, how many ten thousand mu of mulberry field, how many groups of automatic Silk reeling machine, producing how many tons of raw silk, how many units of updated loom, the growth rate of annual revenue, and how many new types of fabric with creative design etc. Then you can decompose and implement the quantitative target to responsibility persons, and examine them annually, thus to carry forward the implementation of objective solidly.
International Silk Union is willing to keep communication and cooperation, and to develop hand in hand together with Cambodia Silk Sector Promotion and Development Committee. We express good wishes that Cambodia silk industry can make more contribution to the economic construction of Cambodia!
International Silk Union
May 12th, 2017
