Cambodian logistics providers predicted to face bankruptcy amid COVID-19 hinh anh 1Cambodian logistics providers predicted to face bankruptcy amid COVID-19 (Photo: The Khmer Times)

Phnom Penh (VNA) – The on-going COVID-19 pandemic is seriously damaging Cambodian logistic
providers, with about 10-15 percent heading for bankruptcy in the upcoming
months, according to the Cambodia Freight Forwarders Association (CFFA).

The Khmer Times quoted CFFA President Sin Chanthy as saying that many
providers are struggling to survive, some had already gone bankrupt, and
others will file for bankruptcy within the next two or three months.

The logistics providers have been adversely affected the COVID-19 pandemic, and
it hasn’t seen any sign as to when the situation will recover, he said.

Chanthy added that the traffic of goods and product exports have
dropped about 70-80 percent because there has been a dramatic decrease in
buying orders.

More than 100 member logistics firms of CFFA are struggling to survive as they are
facing financial distress, with an estimated 60 percent decrease in revenue, he
said.

The Cambodian Government decided to cut the 2021 State budget to 4 billion USD due to the impact of COVID-19, 50
percent drop from this year’s State budget. The Southeast Asian nation’s economy
is expected to grow by 3.5 percent next year.

Previously, the Asian Development Bank predicted Cambodia’s economic growth
will expand 2.3 percent  in 2020, while the
International Monetary Fund forecast that Cambodia’s GDP will experience a negative growth of 1.7 percent in 2020./.

VNA





LOGISTICS VIETNAM