Cambodian logistics providers predicted to face bankruptcy amid COVID-19

June 30, 2020 | 16:05

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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).

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

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

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