Cambodian government Friday announced a grant of a two-year profit tax free to garment factories to encourage investment.
Under the decision made during Friday's cabinet meeting, factories applied the licenses before March 14, 2005, will enjoy the preference.
The aim of the decision is "to maintain the country's political and socio-economic stability, and the sustainability of the jobs got by 300,000 workers as well as their families," according to a government statement.
Up to 2 million Cambodians have benefited from the wages earned by garment workers, mainly female. There are more than 300 garment factories operating in Cambodia.
Garment industry is Cambodia's first largest foreign exchange earner. In 2005, Cambodia exported garments worth 2.17 billion U.S. dollars, almost 10 percent growth compared to 2004.
In the first four months of 2006, the value of garments exported from Cambodia reached 689 million U.S. dollars, up 26.4 percent year-on-year, according to the figure of the Commerce Ministry.
