Why does Nike locate its factories in Cambodia?

Cambodia has one of the lowest minimum wages in the world, making it an attractive location for companies looking to reduce labor costs. The minimum wage in Cambodia is currently set at $190 per month, which is significantly lower than the minimum wage in many other countries in the region.

Favorable Government Policies

Cambodia's government has been actively courting foreign investment, and has put in place a number of policies to make the country more attractive to businesses. These policies include tax incentives, infrastructure development, and a simplified regulatory environment.

Access to Raw Materials

Cambodia has a number of natural resources that can be used in the production of footwear and apparel, including rubber, cotton, and leather. This allows Nike to source materials locally, which can reduce transportation costs and improve production efficiency.

Skilled Workforce

Cambodia has a large and growing workforce that is skilled in the garment and footwear industries. This is due in part to the country's history as a major textile exporter.

Strong Infrastructure

Cambodia's infrastructure has improved significantly in recent years, making it easier for companies to operate in the country. This includes improvements to roads, ports, and airports.