In Preparation

"Terrorists"

Special units of the Kampuchean police were on hand in Phnom Penh, on May first to prevent the "International Workers' Day" protests from becoming larger. "Terrorists or other malefactors" could "cause trouble" was the justification given by a speaker of the Ministry of the Interior for the presence of the repressive forces, on patrol with truncheons, electric "cattleprods" and assault rifles.[1] Earlier, numerous trade unionists had renewed their internationally disseminated appeal demanding that the murders of three Kampuchean trade unionists be solved. In February, a 36 year old militant of the Free Trade Union of Workers (FTU), which is independent of the government, was assassinated. FTU president, Chea Mony says "the assassination was to deter FTU members from organizing strikes and demonstrations against clothing factories."[2] Critics believe that, as in the case of earlier shootings, the attackers were hired by the governing Cambodian People's Party (CPP).[3]

45 Dollars

German clothing manufacturers, for example Adidas, Puma and Deichmann are among those benefiting from the early industrial working conditions in Kampuchean workshops. Germany is the second largest outlet for Kampuchean exports, comprised of up to 80 percent textiles. As advertised by the German Office for Foreign Trade (bfai), the "relatively low tax rates" along with "a possibility of tax exemption for up to nine years" make attractive prospects for setting up production in Kampuchea.[4] And the business yields do not have to be placed at the disposal of this Southeast Asian nation, it is acclaimed. Western investors can "unimpeded, transfer their profits abroad at will." The bfai emphasizes that above all "the cheap and highly adaptive work force (...) [make a] cost effective production" possible. Last fall the FTU, which suffered the assassination of another of its leading cadre, was struggling to have the monthly minimum wage raised from $45 to $55.[5]

Reprisals

Reports of horrifying working conditions and repression come also from Vietnam, another Southeast Asian production location for German textile companies. Of the Vietnamese exports to Germany (valued in 2006 at 1.7 billion Euros), shoes and clothing are predominant (60 percent). Among the companies producing in Vietnam are Deichmann and Adidas (8,500 employees, approx. 650,000 shoes per month). The technical facilities for these German enterprises are imported to Vietnam nearly 100% from western industrial nations, also the industrial feedstock is (to 80%) imported. Whereas German investors are calculating their huge profit margins and estimating about 2 Euros for the production of athletic shoes (market price in Germany: 120 Euros), the added value of the product is almost completely achieved through the radical exploitation of the Vietnamese work force. With an average weekly salary of 11 Euros for a 60 hour work week, Adidas pays best (18 Euros).

Ho Chi Minh

Independent trade unions, that could struggle for better working conditions, are illegal. Just a few weeks ago, one of the leaders of a clandestinely founded protection organization had to flee the country. Because of the growing number of wildcat strikes that are running contrary to western companies' interests, the government in Hanoi is preparing reprisals against the strikers. They are to pay fines of up to three months' salary.[6] Demonstrations in the vicinity of the Ho Chi Minh Mausoleum and in front of the National Assembly are not unusual. Over the past few months these have developed into violent confrontations with the police.

Open

The marginalization of resistance within the enterprises, helps German companies to expand their business activities in Vietnam and Kampuchea. The Kampuchean Vice Prime Minister, Sok An is expected in Berlin for talks with investors during the week of May 7, and in June the German Asia-Pacific Business Association (OAV) has scheduled a "Vietnam Business Congress." Already last year the OAV and the Ministry of Economics had organized a business trip to Kampuchea and Laos.[7] Laos is the third of the former French "Union Indochinoise" colonies that - to the advantage of German Southeast Asian options - is opening up to business contacts with Berlin. Berlin parts from the premise that the decisive foreign policy influence exercised by Vietnam on the neighboring countries of former Indochina, will be also helpful for German interests. In Kampuchea, this presumption is not without cause. Pnom Penh's Prime Minister, Hun Sen in effect administers a field office of Hanoi's Politburo and is always open to any form of financial transactions.

Bombing Adversary

Berlin can expect follow-up business deals to grow from the Vietnamese "Indochina" dominance, also along the northern border to China. The traditional enmity between Hanoi and Beijing, plays into the hands of Western military plans, according to which Vietnam's border with China should be fortified, including the installation of a ring of radar surveillance. A few months ago Vietnam reached a corresponding accord envisaging joint military maneuvers with the predominating western power, its erstwhile bombing adversary, the United States of America.[8] Visits from the German military are in preparation.

Please read also: Der Gegenspieler, "Chinas Hoflieferanten" and Marktzugang.

[1] Clashes erupt at May Day rallies; AFP 01.05.2007
[2] Watchdog condemns third murder of FTU leaders in Cambodia; Xinhua 26.02.2007
[3] Königreich Kambodscha: Mord an dem Gewerkschafter Chea Vichea; amnesty international 2004. T-Shirts aus dem Multifaserland; ver.di publik 04/2007
[4] Kambodscha gewinnt für Investoren an Attraktivität; Bundesagentur für Außenwirtschaft 02.03.2006
[5] T-Shirts aus dem Multifaserland; ver.di publik 04/2007
[6] Đình công bat hop pháp: Đe nghị không đe công nhân phai boi thưong; Tuoi Tre Online 20.04.2007
[7] see also "Chinas Hoflieferanten"
[8] Bush in Hanoi. Victory for Vietnam and US; Christian Science Monitor 17.11.2006