Overseas factory audit

1、 Background of Factory Inspection in Cambodia

1.1 What is Cambodian factory inspection

Cambodia Factory Inspection is a comprehensive supply chain compliance audit conducted by third-party audit agencies (SGS, BV, Intertek), European and American brand purchasers, and industry alliances for major foreign trade factories in Cambodia, including textiles, clothing, footwear, bags, and home furnishings. The core audit focuses on five major risks: labor rights, fire safety, environmental protection, production quality, and counter-terrorism security. The manufacturing industry in Cambodia heavily relies on clothing orders from Europe and the United States, and is subject to strong supervision by the International Labour Organization (ILO). The entry threshold for factory inspections is extremely high, and the local exclusive Better Work project factory inspection is a mandatory audit for the textile industry, which is a necessary prerequisite for Cambodian factories to accept orders and maintain cooperation with overseas customers.

Compared to factories in Vietnam, Cambodia has stricter labor regulations, stronger union power, lower pass rates for employee interviews, and most European and American clothing customers require factories to join the Better Work labor improvement project. Simply passing ordinary BSCI/SMATA factory inspections cannot meet the entry requirements of large customers, and the compliance focus differs greatly from other Southeast Asian countries.

1.2 Two core audit criteria for factory inspection in Cambodia

Local laws and regulations in Cambodia include the Cambodian Labor Law, Social Insurance Law, Fire Protection Law, and Environmental Protection Law, while strictly adhering to the four core conventions of the International Labour Organization (ILO). Collective bargaining, employment rest, and wage and hour clauses of trade unions are non-negotiable red lines;

International universal supply chain standards+local exclusive standards: BSCI, SMETA (SEDEX), RBA, C-TPAT, brand customer exclusive standards, as well as Cambodia's unique Better Work (BW) mandatory labor inspection, which takes priority over ordinary third-party social responsibility inspections.

1.3 Mainstream factory inspection types in Cambodia (choose as needed)

Factory inspection type

Applicable scenarios

Core audit direction

Better Work mandatory factory inspection

Cambodian textile, ready to wear, shoe and hat factories (mandatory for European and American clothing customers)

Union management, labor rights, working hours and wages, labor disputes, and on-site safety focus on continuous improvement rather than one-time clearance

Social Responsibility Factory Inspection (BSCI/SMOTA)

Industry wide, applicable to small and medium-sized European and American customers, as well as grocery orders

Child labor forced labor, working hours and attendance, salary and benefits, dormitory and cafeteria, anti discrimination, employee complaint channels

Environmental&Fire Inspection

Industry wide inspection required, Cambodian fire department conducts surprise inspections+customer synchronous audits

Workshop fire escape, emergency drills, hazardous waste disposal, wastewater and exhaust emissions, and building safety in the factory area

Counter Terrorism Supply Chain Inspection (C-TPAT)

Export to the United States, FCL shipping, high-value ready to wear goods

Factory access control, traceability of goods seals, monitoring retention, and management of personnel, vehicles, and goods separation

Brand exclusive factory inspection

Nike, Adidas H&M、 Uniqlo and other top tier clothing brands

Overlay brand specific labor, safety, and low-carbon requirements, and synchronize with Better Work rating data

2、 Cambodia factory inspection complete set of verification project (six core verification modules, including local mandatory special requirements)

The core pain points of factory inspection in Cambodia are focused on strict working hour rules, strong union management, extremely high authenticity of employee interviews, prohibition of false information, and strict prohibition of using Chinese and Vietnamese factory inspection and rectification templates. The following are the mandatory and fully covered verification contents for audit:

Module 1: Legal Qualification and Business Document Verification (First Entry Inspection Item)

The auditor shall verify the local legal business license as soon as possible. All documents must be bilingual in Khmer and English, and pure Chinese documents are directly invalid. The necessary information is as follows:

Enterprise business license, tax registration certificate, import and export filing permit documents

The Cambodian Fire Department issues a fire inspection certificate, annual fire inspection report, and building structure safety inspection report

Environmental Impact Assessment Approval Document, Pollutant Discharge Permit, Monthly Third Party Monitoring Report on Wastewater and Waste Gas

Factory lease agreement, factory layout plan, special equipment annual inspection certificate

Previous rating reports and labor dispute resolution records of Better Work (mandatory for garment factories)

Module 2: Labor and Human Rights Compliance Verification (Cambodia Factory Inspection Maximum Deduction, Core Module)

Strictly following Cambodia's Labor Law and ILO international labor conventions, trade union freedom, working hours and rest are the top red lines, and violations are directly judged as zero points and not passed:

Verification of child labor and underage workers: The legal minimum age for employment is 15 years old, and child labor is strictly prohibited; Young workers aged 15-18 are prohibited from night shifts, sewing/chemical/heavy object handling and other high-risk positions. They must establish separate records and undergo a physical examination every six months. Overtime cannot be arranged;

Labor Contract Verification: Employees must sign a bilingual labor contract in Khmer within 15 days of joining, specifying salary, working hours, and vacation terms; It is strictly prohibited to withhold employees' passports and ID cards, and to collect entry deposits, training fees, and security deposits;

Compliance verification of working hours (Cambodia has the strictest red line, different from Vietnam): standard weekly working hours are 48 hours, the maximum weekly overtime hours are only 10 hours, and the total weekly working hours cannot exceed 58 hours; Overtime shall not exceed 2 hours per day; 24-hour continuous rest is required every week (mandatory single day off), and overtime on weekends is strictly prohibited; Forced overtime is prohibited, and all overtime must be accompanied by a signed confirmation form of voluntary overtime by employees;

Salary and overtime pay verification: Strictly implement the minimum wage standards for Phnom Penh, Xigang, and Siem Reap in Cambodia; Overtime on weekdays is 1.5 times the salary, on weekends it is 2 times the salary, and on statutory holidays it is 3 times the salary; The payday is fixed every month and delayed payment is prohibited; Paper salary slips must be provided, and unjustified fines or performance deductions from wages are strictly prohibited; Salary and attendance data must be completely truthful, and Better Work has zero tolerance for false attendance during factory inspections;

Trade union and freedom of association (mandatory requirement unique to Cambodia): Factories are not allowed to obstruct employees from forming trade unions or dismiss union representatives; Trade unions must be allowed to participate in labor management negotiations and employee welfare negotiations; It is strictly prohibited to suppress employees' rights protection, and there must be a complete closed-loop record of labor disputes;

Welfare leave and anti discrimination verification: lawfully paying local social security in Cambodia; Full payment of paid annual leave, maternity leave, sick leave, and public holidays; Dormitories cannot be locked and the per capita living area meets the standard; Prohibit discrimination based on nationality, gender, religion, or region, and establish independent anonymous complaint boxes and hotlines.

Module 3: Occupational Health and Safety and Fire Protection Verification (Key Point of On site Assault Inspection)

3.1 General Workshop Safety Verification

Sewing equipment and cutting equipment are all equipped with safety protection barriers and emergency stop switches, and monthly equipment maintenance records are complete and traceable;

Regular occupational health checks for dust and noise in the workshop, adequate distribution of labor protection equipment such as masks, earplugs, and protective gloves, and complete use of signed ledgers;

Set up first aid points in the factory area, equipped with certified first aid personnel and compliant first aid drugs, and register and follow up on all work-related accidents one-on-one for rectification.

3.2 Special Fire Protection Verification (Cambodia's audit is much stricter than Vietnam's)

The two-way emergency passages in the workshop, dormitory, and warehouse are unobstructed and unlocked throughout the entire process, and the escape signs are constantly on 24 hours a day; There are many flammable fabrics in the ready to wear workshop, and the fire safety requirements have been fully upgraded;

Fire extinguishers and hydrants are inspected monthly, and pre job fire training is provided for all staff. A factory wide fire drill must be conducted every three months, with photos, attendance sheets, and drill summaries kept;

The factory's electrical circuits are fully explosion-proof, and exposed wiring is prohibited. Flammable materials such as fabrics and cardboard boxes are stored in separate areas for isolation.

3.3 Special verification of hazardous chemicals

Adhesive, ink, cleaning agents and other hazardous chemicals are equipped with bilingual MSDS instructions in Khmer and English;

The hazardous chemical warehouse is independently isolated, ventilated and explosion-proof, and implements a system of two person receiving and sending, and two person storage;

Hazardous waste must be handed over to the official certification agency in Cambodia for recycling, and a complete recycling manifest must be kept. It cannot be transported or discarded without authorization.

Module 4: Environmental Compliance Verification

Environmental supervision in Cambodia has been tightening year by year, with frequent environmental inspections in the industrial zones of Xigang and Phnom Penh. Factory inspections must include the following:

Wastewater: Production cleaning wastewater must be connected to integrated sewage treatment equipment and can only be discharged after meeting standards. Daily operating parameter records must not be left blank, and direct discharge into rivers is strictly prohibited;

Waste gas: Waste gas from printing and coating processes must be collected and purified, with no obvious pungent odor, in compliance with Cambodia's national waste gas emission standards;

Solid waste: household waste, general industrial scraps, and hazardous waste are stored separately, and the ledger can be traced throughout the process;

Energy saving control: Cooperate with customers' low-carbon supply chain requirements, conduct statistics on water and electricity consumption in the factory area, and implement basic energy-saving rectification measures.

Module 5: Production Quality System Validation (QA/QC Full Process Verification)

System documents: equipped with comprehensive production operation manuals, quality control manuals, and adapted to ISO9001 basic quality system requirements;

Incoming material control: complete audit records of fabric and accessory suppliers, full inspection of incoming materials, and identification of defective materials in separate areas;

Process control: The production line is inspected every 2 hours, and defective sewing products and reworked products are separately registered to clarify the rework process;

Finished product control: Full inspection of finished products before leaving the factory, verification of size, process, and appearance item by item, and regular calibration of testing instruments;

Traceability system: The fabric batch, production team, and shipment order are fully bound to meet the requirements of brand product recall traceability.

Module 6: Counter terrorism Security and Business Ethics Verification

6.1 Supply Chain Counter Terrorism Verification (C-TPAT Essential)

The factory area is fully enclosed with walls, and the entrances and exits are fully covered with high-definition surveillance. The surveillance video is retained for no less than 90 days and cannot be automatically covered;

Employees, visitors, and freight vehicles are strictly separated, and all incoming and outgoing personnel and trucks are registered with real names and checked for luggage unpacking;

A dedicated person will supervise the entire process of container loading, using standardized high security seals to prevent the risk of cargo being carried or exchanged.

6.2 Business Ethics Anti Bribery Verification

Establish a formal anti bribery management system, strictly prohibiting bribery and gift giving to auditors, brand owners, and local public officials;

Comprehensively prohibit the forgery of attendance, salary, fire safety and other factory inspection materials. If fraud is found during Better Work's audit, it will be directly included in the industry blacklist;

Upstream and downstream suppliers sign integrity agreements, which are fully archived and retained.

3、 Complete audit process for factory inspection in Cambodia (1-2 days in total, with Better Work conducting annual continuous audits)

First meeting (30 minutes): The audit team will explain the audit standards and scope, with a focus on informing employees of interview rules and the zero tolerance policy for fraud;

Document review (4-6 hours): Verify the complete set of attendance, salary, social security, fire safety, environmental protection, and union records for the past 12 months, and Better Work additionally checks the minutes of labor management communication meetings;

On site inspection of the entire factory: covering workshops, warehouses, dormitories, canteens, hazardous chemical rooms, and sewage treatment stations, taking photos and evidence throughout the process;

Anonymous one-on-one interviews with employees (top priority): 15% -20% of frontline employees are randomly selected for independent interviews, and auditors isolate management personnel throughout the process. Oral results from employees are given much higher priority than written materials, and Cambodian employees generally dare to provide truthful feedback on issues;

Final meeting: Publicize all non conformities, classify them into serious, major, and minor issues, clarify the rectification time limit, and Better Work will simultaneously issue the factory compliance score, which will be synchronized with the cooperative brand.

4、 Classification of audit results and rectification requirements

Satisfactory approval (no/minor non conformities): No need for re examination, valid for 12 months, able to accept all brand orders normally;

Conditional approval (main non conformities): Submit evidence of rectification within 45 days, and the document review can be closed without on-site review;

Unsatisfied and not approved (serious non conformities): There are child labor, forced overtime, suppression of labor unions, major fire safety hazards, and data falsification. The order will be suspended directly and can only be reapplied for review after 3 months;

Better Work Exclusive Rating: Divided into 1-5 star ratings, European and American major clients require factories to achieve a minimum of 3 stars or above before cooperation can be established. Annual re evaluation and continuous improvement are required.

5、 High frequency failure points and pit avoidance tips for factory inspections in Cambodia

Violation of working hours: Overtime on a weekly basis, failure to ensure 24 hours of continuous rest per week, and lack of employee voluntary overtime signature form are the top nonconformities;

Violation of union management regulations: Factory intervention in union elections, refusal to conduct labor management communication meetings, and suppression of employee rights and demands;

Inconsistent interview methods among employees: Employees are unclear about overtime pay standards and vacation policies, and their actual attendance records do not match their paper records;

Fire drills do not meet the standards: insufficient frequency of drills, lack of complete image data, and temporary stacking of materials in emergency passages;

Falsification of data: Cambodian auditors rigorously examine data logic, and if there are logical errors in attendance and salary records, they will be directly judged as serious discrepancies.

6、 Comparison Table of Core Differences in Factory Inspection between Cambodia and Vietnam

Working hour rules: Cambodia has stricter regulations, with a weekly overtime limit of only 10 hours and mandatory 24-hour rest per week; The maximum weekly total working hours in Vietnam is 60 hours, and the monthly overtime limit is 30 hours;

Trade union demands: Cambodia enforces protection of trade union rights, and factories cannot interfere with trade union operations; Vietnam does not have mandatory union audit requirements;

Exclusive audit project: Compulsory Better Work annual rating for Cambodian garment factories; Vietnam does not have any mandatory exclusive factory inspection projects in the country;

Employee interview risks: Cambodian employees have a strong sense of rights protection and a high rate of truthful interviews; Vietnamese employees have higher cooperation and lower interview risks;

Document language: Cambodia requires bilingual Khmer and English; Vietnam requires both Vietnamese and bilingual.