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A COUNTRY REPORT
THE IMPACT OF AFTA ON CAMBODIAN ECONOMY AND SMALL SCALE PRODUCERS
Published By:
SEACON
SOUTHEAST ASIAN COUNCIL FOR FOOD SECURITY AND FAIR TRADE
CAMBODIAN CENTERFOR STUDY AND DEVELOPMENT IN AGRICULTURE (CEDAC)
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THE IMPACT OF AFTA
ON CAMBODIAN ECONOMY
AND SMALL SCALE PRODUCERS
Prepared by
Prak Sereyvath
and Kea Kimsan
This report was reviewed by Mr Nou Keo Sothea,
Research Associate for Agricultural Development, Rural Development and Poverty at Cambodia Development Resource Institute (CDRI)
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Contents
Executive Summary 5 – 9
I. Introduction and Methodology 10
II. Basic information on Cambodia 12
2.1 Geographical location 12 2.2 Demographic information 12 2.3 Employment trends 13 2.4 Economic trends 14
III. Agriculture and Small Producers’ Situation 21
3.1 The Land Situation in Cambodia 21 3.2 Agricultural Land and Crops 24 3.3 Agricultural Production and Productivity 25 3.4 Competitiveness of Cambodian Agriculture 29 3.5 Small Farmers/Producers’ Incomes and Poverty Situation 35 3.6 Major Problems in Agriculture and Small Farmers/Producers 36 3.7 Strategic Direction of Agriculture and Food Policy 37
IV. AFTA, Trade and Investments 39
4.1 Strategic Direction of Trade and Investments 39 4.2 AFTA Implementation in Cambodia 41 4.3 Patterns of Trade 42 4.4 Patterns of Investments and Official Development Aid 47 4.5 Challenges Facing Cambodia (Contemplating AFTA) 50
V. Conclusions and Recommendations 51
5.1 Conclusions 51 5.2 Recommendations 51
References 54
Appendix 57
Organisational Members of Network of Eco-agricultural Development of Cambodia (NEDC) 58
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Acronyms
ACT Agreement on Clothing and Textiles ADB Asian Development Bank Bn Billion CARDI Cambodia Agriculture Research and Development Institute CBO Community-Based Organisation CC Commune Council CCC Cooperation Committee for Cambodia CDC Council for Development of Cambodia CDRI Cambodia Development Resources Institute CEDAC Centre d’Étude et de Développement Agricole Cambodgien CEPT Common Effective Preferential Tariff CG Consultative Group CSES Cambodia Socio-Economic Survey EPZ Export Processing Zone EIC Economic Institute of Cambodia EU European Union FAO Food and Agriculture Organisation FDI Foreign Direct Investment FREI The Forest Research and Education Institute GDP Gross Domestic Product GTC Green Trade Company IIO International Organisation LDIT Landlessness and Development Tool M Million MAFF Ministry of Agriculture, Forestry and Fisheries MEF Ministry of Economy and Finance MFI Micro-Finance Institution MFN Most Favoured Nations MLMUPC Ministry of Land Management, Urban Planning and ConstructionMOC Ministry of Commerce MOP Ministry of Planning MRD Ministry of Rural Development Mt Metric Tonnes NGO Non-governmental Organisation NIS National Institute of Statistics
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NPFS National Programme on Food Security NPRS National Poverty Reduction Strategy PRSP Poverty Reduction Strategy Paper SEDPII Socio-Economic Development Plan II SRI System of Rice Intensification TEL Temporary Exclusion List UNDP United Nations Development Programme UNICEF United Nations Children's Fund US$ US Dollars WB World Bank WFP World Food Programme WTO World Trade Organisation
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Executive Summary
Cambodia officially joined Association of Southeast Asian Nations (ASEAN) to become the tenth member country on 30 April 1999. As a member, Cambodia agreed to subscribe or accede, as the case may be, to all declarations, treaties, and agreements in ASEAN. Specifically, Cambodia agreed to extend on a reciprocal basis the most favoured nation (MFN) treatment to ASEAN member states; extend the national treatment on products of AESAN member states imported into Cambodia and; ensure transparency in its trade regime on good and services.
Agreement on the Common Effective Preferential Tariff (CEPT) Scheme for
the ASEAN Free Trade Area (AFTA): 10 years implementation time frame starting on Jan 1, 2000; phasing in products in the Temporary Exclusion List (TEL) in five equal installments beginning on Jan 1, 2003 and completing on Jan 1, 2007 and ending the tariff rates of 0-5 per cent by Jan 1, 2010; phasing in agriculture products which are temporarily excluded on Jan 1, 2004 and completing on Jan 1, 2010 at 0-5 per cent; phasing in sensitive agriculture products beginning from Jan 1, 2008 but not later than Jan 1, 2010 and ending on Jan 1, 2017 at 0-5 per cent; maximising the number of its tariff lines with tariffs between 0 and 5 per cent by 2007 and expand the number of tariff lines in the zero per cent category by 2010; and submitting the various products lists for the CEPT scheme to ASEAN by June 30, 1999.
ASEAN framework Agreement on Services: The agreement seeks to: (1) enhance and strengthen cooperation among service suppliers in ASEAN (2) reduce restriction to trade in services; and (3) progressively liberalize trade in services among ASEAN countries. For ASEAN WTO members such as Cambodia, it means commitments that are better than GATS (GATTS plus) or the offer of new services sector not covered under GATS. For non-WTO ASEAN members such as Laos and Vietnam, it must be commitments that are no less favourable than the existing services regime.
Framework Agreement on the ASEAN Investment Area: Having up to five years after its accession to the agreement to main existing measures that are inconsistent with the agreement with regard to opening up of industries and according to nation treatment to ASEAN investors. Phasing out all items on the TEL by 2010 for ASEAN investors.
The core of AFTA is the tariff reduction scheme in accordance with the principles of CEPT. Even though Cambodia’s tariff rates are already low, for the medium term additional reductions in these rates may affect the economy with the immediate impact being felt by the national budget.
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As Cambodia opens its door, goods and services will flow in through the market stream. Presently, the production base and the economic structure of Cambodia are still weak. These are key factors in determining Cambodia competitiveness.
For rice and other main cash crops as well as industrial crops, Cambodian farmers still face problems of lower productivity and higher production cost (bad environment for agricultural production and investment: illegal fee, lack of market structure, bad infrastructure, high cost of input) compared with other AFTA member countries.
Challenges Facing Cambodia
Cambodia faces four major problems in adjusting to the requirement of AFTA:
The loss of tariff revenue: Currently, the Cambodian government’s budget is overly dependent on tariff revenues. This dependency can be broken through centralisation of government receipts and expenditure, and implementation of a more efficient tax collection system. Only then can any significant tariff reduction take place.
Legal infrastructure: Cambodia is in the process of developing a consistent and reliable judiciary. It is also in the process of enacting laws necessary for a stable business environment. AFTA cannot be implemented before this infrastructure is developed.
English language and human resources training: Cambodia faces a shortage of English speaking officials and technical experts, who are needed for effective participation in ASEAN and AFTA. Although Cambodia is currently making tremendous effort in human resources development, it will take some time before the country is sufficiently prepared to deal with the complexities of trade agreements. It is critical that Cambodia develops and nurtures the ability to determine and implement its own policies and national objective.
Information about ASEAN and AFTA: There is a lack of information and data on AFTA and its possible impact on Cambodia. In order to fully understand the implementation of the free trade area and to develop appropriate priorities for development, Cambodians must have access to accurate information about its probable effects (Kao Kim Hourn and Sarah Kanter, 1997).
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To improve the situation in agriculture in view of AFTA:
Cambodia should strengthen its agricultural extension system and capacities building programme for farmers to improve productivity and reduce production cost involving agricultural inputs such as fertilizer and pesticide. With lower input cost and higher yield, Cambodian farmers will be able to get better benefits from AFTA.
Cambodia must improve infrastructure (roads, bridges and small irrigation scheme) that will facilitate farmers to boost agriculture production and trade. Cambodia must rehabilitate and develop all agricultural systems in the agricultural productive areas.
The Cambodia Agriculture Research and Development Institute (CARDI) should cooperate with other government agencies and NGOs working in the rice production areas, to research and classify geo-genetic identification and purification of traditional rice seeds as Malis, Neang Minh, Somali and other potential traditional rice varieties. This is important for small rice farmers as it will prevent big companies from intruding into their rights.
The concerned government agencies under MAFF should facilitate and provide good services to farmers and identify their specific problems and find solutions. They should adopt clear and sound policies and programmes to promote sustainable agriculture.
The government should encourage investors to invest in Cambodia so that rice can be exported directly to demand countries without passing Vietnam or Thailand as brokers. This way, there will be more benefits for Cambodia from rice trading and it will promote independence in the international market.
Ways to improve the situation of small producers
Cambodian rice farmers should adapt the technical innovation of SRI (System of Rice Intensification) along with integrated farming such as MPF (multi purpose farm) using the organic approach as initially introduced by the Cambodian Centre for Study and Development in Agriculture (CEDAC) in 1997. These technical innovations will reduce production cost, get higher yield and can compete with rice imports, and are good for health and the environment. At the same time, the system provides diverse agricultural produces that allow small farmers to cope with market and nutrition problems.
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Farmer organisations must be strengthened for networking and trading as well as policy and social development purposes. By strengthening the farmer movement through farmer exchange and farmer-to-consumer linkages, consumers and producers will have a better understanding of demand and supply. This may help rice farmers to market their produces commercially.
Select and conserve quality local seeds in order to produce and distribute among farmers. It is essential for rice farmers to sustain their farming activities since seeds are the main production input. Buying seeds from companies will make small farmers dependant and increase their production cost.
Set up internal control system and farming community base marketing network through farmer-to-farmer extension and confederation. They can be intra-village, inter-village as well as inter-region exchanges.
The prospects for Cambodian small producers under AFTA
Cambodian producers can participate in free trade area activities in the region. This may allow Cambodia to maximise the economy of scale of its products through increased access to regional and international markets. ASEAN-10 will have about 500 million consumers.
Cambodian producers may use opportunities created by international competition to boost productivity and improve the quality of domestic goods and services in order to succeed in the world arena. One alternative for them is to keep and/or turn to organic agricultural products to add maximum value to local input and potentiality.
Officers of Department ofAgriculture at Prah Vihea visiting
farmer farm at Kampong Cham
province. They learned about SRI
and MPF.
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Cambodia’s competitive advantage in the agricultural sector
The Cambodian agriculture sector has several competitive advantages: cheap labour, low population density, good local plant variety and potential for organic agriculture. However, there is a need to make improvements in infrastructure, production techniques and input and marketing system.
Cambodia’s labour market has the characteristics of a typical developing economy, i.e. dominance of agricultural and rural employment, higher female ration in the population, low literacy rate, high dependency ratio and stability. Cheap labour enables Cambodian products to compete with imported goods because the small producers have low production cost.
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I. INTRODUCTION AND METHODOLOGY
This study reviews the current situation of Cambodian agriculture, economy and trade and assesses the impacts of the implementation of the ASEAN Free Trade Area (AFTA) agreement on small farmers. It is part of the AFTA regional study conducted in six ASEAN countries (Cambodian, Laos, Malaysia, the Philippines, Thailand and Vietnam). Since Cambodia is one of the new ASEAN members, the study in Cambodian relied mostly on desk research method. It reviewed existing studies on Cambodian agriculture and economy and AFTA. The analytical and descriptive text is based on statistical data and other information.
Cambodia became a full member of ASEAN on April 30, 1999. Cambodia’s membership in ASEAN came about after nearly two years of postponement and after a workable coalition government was formed. In the Declaration of Admission document, Cambodia agreed to subscribe or accede, as the case may be, to all declarations, treaties, and agreements in ASEAN. Specifically, Cambodia agreed1 to:
• Extend on a reciprocal basis the most favoured nation (MFN) treatment to ASEAN member states;
• Extend the national treatment on products of ASEAN member states imported into Cambodia; and
• Ensure transparency in its trade regime on good and services.
Cambodia also acceded to 27 ASEAN agreements. The specific conditions in the accession to three major economic cooperation agreements are:
Agreement on the Common Effective Preferential Tariff (CEPT) Scheme for the
ASEAN Free Trade Area (AFTA)
• A 10-year implementation time frame starting on Jan 1, 2000; • Phasing in products into the Temporary Exclusion List (TEL) in five
equal installments from Jan 1, 2003 to Jan 1, 2007, and ending at the tariff rate of 0-5 per cent by Jan 1, 2010;
• Phasing in temporarily excluded agriculture products from Jan 1, 2004 to Jan 1, 2010 at the rate of 0-5 per cent;
• Phasing in sensitive agriculture products beginning from Jan 1, 2008 but not later than Jan 1, 2010 and ending on Jan 1, 2017 at the rate of 0-5 per cent;
1 ASEAN-10 is Born: Commemorating Cambodia's Entry into ASEAN, p. 57, Dr Kao Kim Hourn, 1999 (Cambodia Institute for Cooperation and Peace, CICP).
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• Maximising the number of its tariff lines with tariffs between zero and 5 per cent by 2007 and expanding tariff lines in the zero per cent category by 2010; and
• Submitting the various products lists for the CEPT scheme to ASEAN by June 30, 1999.
ASEAN Framework Agreement on Services (AFAS)
The agreement seeks to: (1) enhance and strengthen cooperation among service suppliers in ASEAN (2) reduce restriction to trade in services; and (3) progressively liberalize trade in services among ASEAN countries. For ASEAN WTO members such as Cambodia, it means commitments that are better than GATS (GATTS plus) or the offer of new services sector not covered under GATS. For non-WTO ASEAN members such as Laos and Vietnam, it must be commitments that are no less favourable than the existing services regime.
Framework Agreement on the ASEAN Investment Area2
Having up to five years after its accession to the agreement to maintain existing measures that are inconsistent with the agreement with regard to opening up of industries and according nation treatment to ASEAN investors. Phasing out all items on the TEL by 2010 for ASEAN investors.
2 ASEAN-10 is Born: Commemorating Cambodia’s Entry into ASEAN, p 59-60, Dr. Kao Kim Hourn, 1999 (Cambodia Institute for Cooperation and Peace, CICP).
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II BASIC INFORMATION ON CAMBODIA
2.1 Geographical location
Cambodia has a land area of 181,035 square kilometers and is located in the southwestern part of the Indochina Peninsula. It lies within the tropics with its southern most point slightly more than 100 above the Equator. The country’s capital city is Phnom Penh. It shares international borders with Thailand and the Laos on the west and north and with Vietnam on the east and southeast. The country is bordered on the southwest by the Gulf of Thailand. Cambodia has a coastline of 440 kilometres, covered with extensive mangrove forests, some of which are relatively undisturbed.
2.2 Demographic information
According to projections based on the General Population Census of Cambodia 1998, the Cambodia had a population of 13.8 million in 2003, of which 52 per cent were females, and growing at a rate of 2.5 per cent per annum. The national average population density is 67 persons per kilometre. About 84 per cent of the population lives in rural areas. Cambodia’s urban population (16 per cent of the total) is principally located in two centres: Phnom Penh and Kampong Cham. Phnom Penh has an estimated population of one million and an annual growth rate of 3.5 per cent.
Regionally, the distribution of the population is highly skewed. About 60 per cent of the total population resides in six provinces in the central plains and around the capital. The provinces of Battambang and Bantey Meanchey bordering Thailand in the west have 10 per cent of the population. Svay Rieng province bordering Vietnam in the southeast has another 5 per cent of the population. In contrast, other provinces, in particular Ratanakiri and Mondolkiri in the northeast, are sparsely populated (about 1 per cent of total population).
The Cambodia population has several features. First, due to the baby boom after 1979, it is a young population with at least half under 18 years of age. Secondly, the proportion of women in the adult population is high. About 56 per cent of those 18 years old or more are females.
The birth rate is estimate at about 35 per 1,000 people, while the death rate is around 11 per 1,000. The infant mortality rate is estimate at 80 deaths per 1,000 births. Life expectancy at for females is 58 years and 54 years for male.
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2.3 Employment Trends3
Total employment in 1993 was 3.9 million. The agriculture sector accounted for 81 per cent of employment, industrial sector for 3 per cent, and services sector for 16 per cent. By 2002, total employment had increased to 6.4 million. The agriculture sector accounted for about 70 per cent of employment, industry sector 10.5 per cent and services sector 19.5 per cent.
Employment by Industry
Approximately 70.8 per cent of employed persons worked in the agriculture sector. Of these, 93 per cent was employed in agriculture, a further 6 per cent in fisheries and 2 per cent in forestry.
The industrial sector accounted for 10.2 per cent of employed persons. The textile, wearing apparel and footwear industries accounted for over 53 per cent of employment in this sector, with other significant contributors being food manufacturing (18 per cent) and construction (14 per cent).
The services sector accounted for the remaining 30 per cent of employment. The largest contributor to employment in this sector was the retail trade industry (31 per cent), followed by public administration (8 per cent) and land transport (6 per cent).
Average Hours Worked
A Cambodian worked an average of 43 hours per week. Paid employees worked longer hours, averaging 51 hours a week, compared to 45 hours for employers, 46 hours for self employed workers, and 37 hours for unpaid family workers. On average, workers in urban areas worked longer hours (46 hours) compared to rural workers (42 hours).
3 The main sources for labour and wage statistics are the 1993/94, 1996, 1997 and 1999 Socio-Economic Surveys and the 2000 and 2002 Labour Force Surveys. Estimates are given for years where survey data are not available. For more detailed statistics, readers could refer to the various labour force and socio-economic survey publication released by NIS.
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Table 1: Distribution of employed persons, 10 years and above by primary
occupation and sex, in Cambodia (November 2001)
Both Sexes Male Female Primary Occupation
Number % Number % Number %
Cambodia-Total 6,175,827 100 2,985,843 100 3,189,985 100
Armed Forces 38,036 0.6 36,641 1.2 1,395 0
Legislators, Senior Officials and Managers
40,857 0.6 35,102 1.2 5,754 0.2
Professionals 67,942 1.1 44,459 1.5 23,483 0.7
Technicians and Association Professionals
114,898 1.9 78,264 2.6 36,634 1.1
Clerks 25,159 0.4 13,760 0.5 11,399 0.4
Service and Shop and Market Sales Workers
619,878 10 183,532 6.1 436,346 13.7
Skilled Agricultural and Fishery Worker
4,176,132 67.6 2,043,189 68.4 2,132,943 66.9
Craft and Related Trades Workers
4,697,112 7.6 176,870 5.9 292,843 9.2
Plant and Machine Operators and Assemblers
201,531 3.3 128,763 4.3 72,768 2.3
Elementary Occupation 421,683 6.8 245,262 8.2 176,421 5.5
Source: Statistic Year Book 2003.
Table 2: Number of 10 years and above who are employed, unemployed or not
in the labour force by sex, in Cambodia (November 2001) In the force Employed Unemployed Not in the labour Force
Sex Population Number Rate Number Rate Number Rate Number Rate
Both Sex 8,488,907 6,206,649 73.1 6,175,827 99.5 30,822 0.5 2,282,258 26.9
Male 4,057,152 3,000,152 73.9 2,985,843 99.5 14,309 0.5 1,057,000 26.1
Female 4,431,755 3,206,497 72.4 3,189,985 99.5 16,513 0.5 1,225,258 27.6
Source: Statistic Year Book 2003.
Earnings and Wages
The average monthly cash wage for paid employees in November 2001 was around 125,000 riels, compared to average monthly earnings in cash or kind for employers and own self-employed workers of about 100,000 riels.
2.4 Economic Trends
The market-oriented shift of Cambodia’s economy started in 1989 and the government has accelerated the switch both qualitatively and quantitatively from 1993. Over the past four years, Cambodia achieved macro-economic stability and steady growth. From 1993 to 1996, Cambodia’s GDP grew about 7 per cent
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annually. Inflation was brought down from 150 per cent in early 1990 to single digit figures in the last year. Per capital income has increased substantially from US$150 to about US$300 in five years. The national currency remained broadly stable against the US dollar under free market conditions. Erratic growth patterns of the past have been replaced by stability. Trade and commerce have boomed. The skills of the Cambodian people were steadily increasing.
Significant achievements were made possible by its clear vision, determination, strict discipline and perseverance assisted fully by generous external support. In mid-1997, Cambodia faced two major shocks. Subsequently, economic growth declined from 7 per cent in 1996 to 2 per cent in 1997, despite the dynamism shown by the agriculture and garment sectors. This slowdown in economic growth reflects, among other things, the reduction of public expenditure, both for current and capital expenditures.4
Consumer prices increased significantly in the second half of 1997, reaching a peak in July. Since July 1997, the acceleration of inflation resulted the 25 per cent depreciation of the riel and affected the prices of imported goods. The impact on inflation was limited by the fact that large economic activities were in dollars. Cambodia's inflation rate averaged 8 per cent for 1997.5
The fiscal situation was difficult in 1997, but due to strict fiscal management, major indicators were not far from the targets. Government revenues for 1997, which were affected by short falls in custom tax collection, reached 9.08 per cent of GDP. Although this present (1997) an increase from 9.08 per cent of GDP achieved in 1996, it was nevertheless 0.6 per cent of GDP below the original budget. Difficulties in the implementation of the 1997 budget once again raised the issue of sustainability of fiscal resources. The ratio of tax revenue to GDP is still around 6 per cent, well below the 20 per cent regional average. Moreover, the structure of the tax system is still heavily dependent on custom taxes although their importance is diminishing (77 per cent of total taxes in 1994, 72 per cent in 1995, 64 per cent in 1996 and 58 per cent in 1997). Taking into consideration Cambodia’s participation in ASEAN, it is foreseen that import duties will be sharply reduced, which may pose a short-term threat to its revenue position. Thus, the sustainability of government revenue requires an increase in the relative weight of non-trade taxes such as taxes on profit and salary, turnover and excise taxes, hotel tax, etc.
4 Kao Kim Hourn and Jeffrey A. Kaplan, Cambodia’s Future in ASEAN Dynamo or Dynamic? 1998, p.52 (CICP). 5 Ibid., p. 53.
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On expenditure, the government maintained tight control on non-wage spending by maintaining overall current expenditures at 93 per cent of the planned budget in order to avoid any recourse to bank borrowing. A small current surplus of 0.32 per cent of GDP was even realised for the first time since 1993. The July events have sharpened the public finance situation given the new pressure of the “non-discretionary” expenditure. However, military expenditure did not exceed 4.5 per cent of GDP in 1997 (which was lower than in 1996), even if in absolute term, spending went up by 9 per cent over the budgeted amount. Capital expenditures were 18 per cent under the lever planned because of the “slowdown” in aid inflows-producing, in conjunction with the compression to current expenditure reduced overall 1997 budget deficit of 5.03 per cent of GDP compared to 8.39 per cent of 1996.
Social services were given priority in budget allocations and despite the difficulties in revenue mobilization, total allotment for health and education current expenditures were increased by 7 and 5 per cent respectively compared to 1996 expenditures. Social services expenditures in the overall public expenditure have improved reaching 18 per cent. As a ratio of GDP, social services expenditure (both current and expenditures) were recorded at 5.3 per cent, showing progressive improvements from the previous year.
The performance of the external sector reflected the slowdown in economic activities in the second half of 1997. However, due to a sharp increase in garment exports, the volume of goods exported was maintained at the same level as 1996, while imports were slightly lower, allowing for an improvement in the trade balance situation. Despite a 12 per cent reduction in tourism revenue, the balance of trade in services showed a significant improvement, helped more by reduction in service payment for items such as travel abroad rather than by increased service receipts. The slowdown in external assistance flows resulted in a reduction of official transfers (for project and commodity grants) by 17 per cent. This usually compensates for the deficit in trade and services, and significantly affected the current account balance, which recorded a higher deficit than before (6.4 per cent of GDP). The volume of capital transfer – although lower in 1997 compared to 1996, especially for budget support loan (reduced by 55 per cent) and foreign direct investment (which experienced a net reduction of 17 per cent – partly compensated for the gap in current payments, recording a surplus of US$34 million. Net foreign reserves increased by about 20 per cent reaching an equivalent 2.5 months of import.
As for investments, 1997 recorded a significant drop reflecting a deceleration of economic activities due to the domestic political situation and the financial turmoil in the region. Total investment reached its lowest level over the last three years. Public investments, mostly funded by external assistance, was reduced by 32 per
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cent and private investment by 7 per cent, the latter affected particularly by a deceleration in the phase of FDI implementation. As a result, economic growth was at its lowest level since 1993, with a rate of 2 per cent of GDP in real terms. In particular, this reflected stagnation in the services sectors, particularly trade and hotel/restaurant and in the non-manufacturing individual sector.
Cambodia’s real Gross Domestic Product (GDP) grew at 4.4 per cent in 2003, down from 5.3 per cent in 2002 and 5.76 per cent on the average from 1998-2003.6
The growth comes from the garment and tourism sectors. The textile and garment industry is the most important sub-sector in the Cambodian economy and employs about 200,000 workers. It also generates Cambodia’s largest export earnings. Tourism is also a vital contributor to its GDP. Cambodia’s tourism revenues amounted to over US$90 million in 1999 from US$64 million in 1998. Its tourism earnings grew by 41 per cent in 1999.7 Agriculture is the most important sector in Cambodia’s economy. It accounts for 35 per cent of GDP at current prices and employs more than 67 per cent of the labour force (Table 1). Rice and rubber are its principal crops and they account for the bulk of Cambodia’s agricultural GDP.
The Economic Institute of Cambodia estimated that the country's economic growth rebounded to 6.5 per cent in 2004, after continuously slowing from 2001 to 2003. As expected, data released by the Ministry of Commerce showed that Cambodia's garment exports were very strong, reaching almost US$2 billion in 2004, and the number of foreign tourists visiting Cambodia reached about 1 million people. These two sectors have contributed more than 80 per cent of total GDP growth. However, unfavourable climatic conditions and weak management of natural resources have significantly impacted the agriculture sector in 2004.
6 CDRI, Cambodia’s Annual Economic Review, December 2004, Asian Development Bank, Asia Economic Monitor 2003 (December 2003). http://www.aric.adb.org7 Cambodia Country Profile. http://www.mekongsources.com/CountryProfiles.asp?Country=Cambodia
Economy. http://www.state.gov/r/pa/ei/bgn/2732/htm
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Table 3: Cambodia's Economic growth (percentage; 2000 prices)
Sources: NIS for 2001-2003, EIC estimate for 2004 and model projection for 2005-2008.
19
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21.0
30.8
10.1
15
5.0
530
.1
5.9
351
.7
79
.5
139
.7
80
.0
21
.8
30
.8
9.6
163
.0
482
.5
6.4
274.2
78.2
88.9
57.3
22.5
27.3
9.4
192.5
411.9
5.7
230.3
72.4
56.3
54.5
20.2
27.0
9.4
166.6
892.4
357.5
73.5
140.7
10.5
43.5
189.7
77.0
863.1
310.4
92.7
156.8
12.7
66.2
145.8
78.4
13
32.0
367.5
244.4
234.2
65.0
121.5
193.2
106.2
1299
.3
371
.4
247
.5
216
.6
57
.3
117
.3
186
.3
102
.9
1230
.9
368.7
222.3
201.4
47.8
109.7
179.7
101.3
114
7.5
37
1.2
19
7.4
18
5.3
38.1
81.8
17
3.9
99.8
108
1.4
37
9.6
17
9.9
16
0.8
31.5
80.0
16
7.9
81.7
101
4.4
37
2.7
12
7.0
14
9.1
30.5
85.1
16
1.8
87.5
992
.5
364
.1
128
.0
150
.3
33
.6
79
.8
155
.7
81
.0
985
.7
333.5
129.1
171.9
32.5
77.1
151.7
90.0
95
3.9
326.4
138.9
160.5
30.5
65.7
150.2
81.8
77.5
0.6
6.7
113.3
1.2
8.0
255.2
15.8
40.6
256
.7
11
.1
45
.3
251.5
8.5
38.3
21
4.5
8.1
33.1
17
3.2
3.0
32.6
11
3.7
3.9
36.7
145
.6
2.0
20
.0
148.1
2.8
23.7
148.1
2.8
29.6
21
24
.922
80
.336
02.3
360
2.3
342
0.3
32
24.7
29
77.4
276
8.8
268
9.3
2587
.524
81.2
Table 4: GDP distribution by major economic sector at Price 2000 (million US$)
20
Sour
ce: C
DR
I, C
ambo
dia’
s A
nnua
l Eco
nom
ic R
evie
w, D
ecem
ber
2004
Table 5: GDP distribution by major economic sector at current price (million, US$)
21
III AGRICULTURE AND SMALL PRODUCERS’
SITUATION
3.1. The Land Situation in Cambodia
The total land area of Cambodia is 181,035 square kilometres (18.1 million hectares). The Forest Research and Education Institute (FREI) implemented a forestry inventory before 1970. It reported that the forest cover was 13.3 million hectares, about 73 per cent of the country land area. The total arable land was estimated 4.5 million hectares. The remaining is uncultivated land.
Based on 1993 landsite data, the total area (18.1 million hectares) includes 3.9 million hectares of diverse agro-ecosystems suited to rice and a wide range of other crops, 11.3 million hectares of designed forestland, and 2.3 million hectares of shrub land. Urban areas, inland water bodies, and abandoned settlements make up the rest of the land area. Table 6 shows the land cover map of Cambodia.
Table 6: Land use and land cover in Cambodia
based on 1993 data (in ‘000 hectares)
Land Use Category Subtotal Total
Agricultural Land 3 914.4
Rice Land 2 639.0 Other Crops 1 275.4
Forest Land 11 824.2
Dry Land 10 568.6 Evergreen 4 763.3
Coniferous 9.8 Deciduous 4 301.2 Mixed 977.3
Secondary 517.0 Edaphic (Flooded) 715.6 Primary 370.7
Secondary 259.8 Mangrove 85.1
Shrub land 2260.6
Urban 4.5
Abandoned land 278.7
Water surface 411.1
GRAND TOTAL 18,153.5
Source: World Bank, UNDP and UNFAO, Forest Policy assessment – Cambodia, 1996.
22
Land Systems and Rights8
Land is the most important productive asset in agrarian societies such as Cambodia. Throughout Cambodia’s history, land ownership rights have varied with changes in government. In the period before French colonisation (pre-1863), when all land belonged to the sovereign, the people were allowed to till unoccupied land and could cultivate as much as they like. With French colonisation, a property rights system was introduced in 1884. After Cambodia gained independence from France in 1953, a Western-style land ownership system continued until 1975, when the Khmer Rouge seized power and eliminated all private property rights. Land ownership rights were reintroduced in 1989, following the failure of the Khmer Rouge regime in 1979 and 10 years of unsuccessful collectivised production.
Within 10 years of the reintroduction of private ownership and land redistribution, land matters have become one of the most sensitive economic, social, and political issues in Cambodia, demanding urgent solution.
Based on the land registration study, it appears that most Cambodians own at least some land, but only a small proportion of the population has official land titles. Over 70 to 80 per cent of the total rural population possesses agriculture land acquired in different ways (government distribution, gifts from relatives/friends, purchase, or clearance of unused land), but only 1 per cent has legal titles to their land.
The average size of agricultural holding in Cambodia is quite small (only about 1 hectare per family) and its distribution is highly unequal. Female-headed households generally have smaller holding than male-headed households. About 40 to 50 per cent of the landless and marginal landholders possess only about 10 to 15 per cent of all agricultural land in rural areas.
8 Meach, Sam-Ell, Socio-Economic Study of the Land Title Registration, June 2002.
JFPR project field coordinator (CEDAC), Mr. Lang Seng Horng
is consulting with the poorest or
landless household at Trapeang
Kor commune, Cheung Prey
district, Kg Cham province.
23
Even though only a very small proportion of the population has official title to their land, people have been actively transferring land (their only productive asset) on the market. Not only has private property changed hands, but also common property, such as forestry and fishery resources (state property), has been actively transferred to private use as concessions or for long-term investment.
In the pre-colonial period, the land belonged to the sovereign, but people could freely cultivate as much land as they wished. With limited means available to the owners, individual land sizes were restricted to no more than three hectares. Since the population was small and there was no land market, farmers could freely move from one area to another and acquire ownership of land. Owners had exclusive right to possess, use or inherit agricultural land without having to fulfill any formalities other than a token feudal tribute.
The French colonists tried to introduce the system of private property and formal ownerships of land but were not entirely successful in their operations. They were only able to make some progress in the rice growing plains but not the vast areas outside the plains (forests and widened lands). The traditional systems partly prevailed in the rice growing areas and fully outside the plains. Independent Cambodia (post-1953 till 1975) promulgated the same land system as the one put in place by French, but again, the success in land codification, privatisation and commercialisation was rather limited. The Khmer Rouge (1975-79) collectivised all land. Privatisation began again in the mid-1980s and was formalised in 1989. Since then, farmers and non-farmers can possess private land as long as they use them. Land that remains unused for more than three years will revert back to the state.
By 1989, the failure of collectivisation and the centrally planned economic system was obvious. Following a massive reduction in support from former Eastern Bloc countries, Cambodia began reforming the entire economy towards a liberal economy and free-market system. In addition to implementing major economic reforms, the government took a further step and reintroduced private property rights in 1989.
According to Political Instruction No 3, all land belongs to the state: “The land of the State of Cambodia is the property of the State”. However, Cambodians have the right to possess and use it: “The Cambodian population has the full right to occupy and use the land and has the right to sell the land provided by the State for domicile and exploitation”. At the same time, the ownership rights in force before 1975 were invalidated: “No one can claim the rights of ownership of land prior to 1979”. The instruction also defined three categories of land.
24
• Land for domicile: the provincial committee or municipality shall provide it for ownership.
• Cultivation land: Agricultural land is for production and exploitation. It is state land allocated for the farmers to manage and use for production and exploitation.
• Concession land: More than five hectares. Concession provides the right to occupy land for large-scale crop production, which will contribute to the national economy.
The size of land distributed to households varied depending on the population density in an area. For example, in some province with low population density (Pursat province), people could get up to three hectares per family; whereas in the high density areas (Takeo province), they were allocated only 0.5 to 1 hectare per household. Only residential and productive land were redistributed to people. The remaining land were retained by the state for future development.
3.2. Agricultural Land and Crops
Of the 3.9 million hectares classified as agricultural land, more than 2.6 million hectares are lowland rice areas. Other areas are planted with annual upland crops, vegetables, fruit trees, commercial crops such as tobacco, rubber, coconut and sugar cane. The rest are idle or used only when conditions such as peace and order permit. In areas dedicated to annual crops, only one crop is usually cultivated each year.
The lowland rice areas are concentrated on the alluvial plains around the Tonle Sap and the Mekong and Bassac rivers and their tributaries. In the 1960s, the total lowland rice area was slightly over 2.5 million hectares. Because of lack of security resulting from continued armed conflict and the presence of land mines and shortages of farm labour in some areas, the cultivated lowland rice area shrunk. In crop year 1996-97, lowland rice cultivation totalled only 2.2 million hectares.
Vegetable garden of Mr. Mey Mon,
farmer in Kg. Cham province. He
commits to be vegetable seed producer.
25
The country currently cultivates about 0.2 million hectares of upland crops including rice, corn, soybean, mungbean, peanut, cassava, sweet potato and vegetables.
Rubber, which has traditionally been Cambodia’s lead export crop, is planted on an estimated 62,000 hectares of which about 41,400 hectares is tapped. The exact area set aside for fruits cultivation is not known. However, it is currently estimated at about 36,000 hectares. Cambodia likewise grows a number of commercially important perennial crops. These include sugar cane, coconut, pepper, coffee and cashew nuts. It has been estimated that there are eight million sugar cane palms currently but the exact area under sugar production is not known.
Land is the most important productive asset for 84 per cent of the Cambodian population, whose main source income is from agricultural activities. Generally, a Cambodian farmer uses land to produce food crop for subsistence, especially rice, and to generate a surplus for sale. In 1997-98, over two million hectares of agricultural land were devoted to rice production, which contributed 11 per cent to the total GDP. In addition, large area of land was allocated to other type of agriculture such as rubber plantation, fisheries, livestock and forestry. They are also important sources of income for the rural population. Since the Forest Law was enacted on Aug 31, 2002 access to land is becoming increasing difficult. About 12-15 per cent of the population in Cambodia was believed to be landless. According to Landlessness and Development Information Tool (LDIT) (2000), the number of landless households rose from 3 per cent in 1984 to 15 per cent in 2001. On average, about 22 per cent of the landless families left their villages.
3.3. Agricultural Production and Productivity
Rice production: Total cultivated area in 2004-2005 was 2.35 million hectares, compared to 2.31 million hectares in 2003-2004. Average yield per hectare decreased from 2.10 tons in 2003-2004 to 1.97 tons in 2004-2005 due to drought, resulting in overall production falling from 4.71 million tones in 2003-2004 to 4.17 million tones in 2004-2005.
Mr. Mao Savuth, farmer in Kampong Ro district, is showing his rice field that applies
SRI
26
Livestock and poultry: Cattle, buffalo, pig and chicken are the most important animal raised for human consumption in Cambodia. The number of buffalos was virtually unchanged at 0.660 million in 2003 and 0.650 in 2004. The number of cattle increased 1.8 per cent from 2.985 million in 2003 to 3.039 million in 2004. The number of pigs increased 5.4 per cent from 2.304 million in 2003 to 2.428 million in 2004. The number of poultry decreased 14.46 per cent from 16.013 million in 2003 to 13.990 million in 2004.
Fish and fish products: Cambodia is the fourth largest producer of freshwater fish in the world, given the combined capacities of the Tonle Sap (Great Lake) and Mekong River. In all, more than one million people depend on the fisheries sector for employment, income and food security. Of the 11.4 million people in Cambodia, 2.1 per cent are professional fishermen and around 80 per cent are involved in both fishing and agricultural production. Fish is a popular food for the Cambodian people. It is estimated that fish comprises 75 per cent of the total protein consumed in Cambodia (Nao and Mong, 1997). The average quantity of fish consumed by each person varies according to geographical area. The highest quantity is 80 kg per person per year for fisher families living along Tonle Sap river and Tonle Sap lake. People living in the southeast of the country consume the least quantity of fish – as low as 13.5 kg per person per year. At the national level, each person consumes 25-30 kg of fish annually on an average (Kim and Hav, 2000). Due to poor infrastructure, nearly 50 per cent of the landings are not suitable for human consumption as fresh fish. Instead, these are processed into lower quality fish sauce and dried fish for the domestic market. Through better management and utilisation of the total allowable catches (TACs), the country should be able to market more fish and fish products for domestic consumption (which provides food security), and also for the export market.
Mr Yong Meth living in Snay Beungvillage of Prey Veng is feeding chicken
that raised base on ecological innovation.
27
During the fishing season of 2003-2004, anecdotal evidence shows that the natural inland fish catch has decreased. Fishers and fish traders blame this phenomenon on bad management of the recently formed community fisheries and the low water level, which is attributed to the construction of dams on the Mekong River in China.
Table 7: Area and Production of Rice, 2004-2005 Province/Town Population Cultivated area Harvested Area Yield Production
(persons) (ha) (ha) (t/ha) (t)
01 Banteay Meanchey 705,441 200,711 187,974 1.813 340,803 02 Battambang 1,009,995 235,730 212,766 2.198 467,635 03 Kampong Cham 1,720,589 214,339 175,793 2.399 421,778 04 Kampong Chhnang 552,726 116,980 108,781 1.667 181,320 05 Kampong Speu 703,405 83,134 44,808 1.572 70,458 06 Kampong Thom 631,222 157,440 124,397 1.322 164,454 07 Kampot 619,514 121,908 108,448 1.589 172,371 08 Kandal 1,250,227 96,603 88,905 3.044 270,589 09 Koh Kong 122,681 8,476 8,326 1.593 13,265 10 Kratie 341,776 39,705 28,831 1.882 54,261 11 Mondolkiri 38,586 13,068 4,191 1.151 4,824 12 Phnom Penh City 1,084,786 6,635 6,118 2.087 12,771 13 Preah Vihear 156,278 24,390 22,740 1.948 44,306 14 Prey Veng 1,052,715 276,899 248,220 2.084 517,350 15 Pursat 473,926 91,488 77,221 1.908 147,359 16 Rattanakiri 104,355 22,452 16,037 1.500 24,056 17 Siem Reap 784,446 187,305 182,840 1.452 265,458 18 Preah Sihanouk Town 194,355 11,721 11,499 2.497 28,715 19 Stung Treng 93,665 21,301 18,351 1.500 27,527 20 Svay Rieng 534,503 165,935 164,776 1.500 27,527 21 Takeo 915,272 233,405 224,433 2.825 633,936 22 Oddar Meanchey 135,102 40,710 39,820 1.260 50,173 23 Kep Town 60,373 2,910 2,910 1.800 5,238 24 Pailin Town 42,048 930 655 3.713 2,432
Total 13,327,94
6
2,374,175 2,108,840 1.978 4,170,284
Source: Reproduced from MAFF Agriculture Statistics 2004-2005, Statistic Office Department of Planning, Statistics, and International Cooperation, pp. 5-6. ha = hectare, t = ton.
Farmers from Kampong Cham arecatching fish from farmer pond
during internship program held in
Svay Reing province
28
Table 8: Average rice production and cultivated area per small household
Average land size Yield Production Unit Price Production
Ha Ton/Ha Ton US$/Tone Value US$
0.8 1.97 1.57 135 212.76
Table 9: Production of vegetables in 24 provinces, 2004-2005 Cultivated Area (ha) Harvested
Wet
Season
Dry Season Total Harvested Area (ha) Yield (t/ha) Production
20,621 11,983 32,604 32,314 5.541 179,050 ha = hectare – t = Ton(s)
Source: Reproduced from MAFF Agriculture Statistics 2004-2005, Statistic Office Department of Planning, Statistics, and International Cooperation, p. 25.
Table 10: Total area of fruits/permanent crops in 24 provinces, 2004-2005 Banana Cashew Palm
Oil
Coconut Longan Mango Milk/Fruit Sapodilla Duran
hectare(s)
29,583 52,809 4,000 28,399 2,263 13,740 1,273 1,536 1,238 Source: Reproduced from MAFF Agriculture Statistics 2004-2005, Statistic Office Department of Planning, Statistics, and International Cooperation, p. 49.
Table 11: Total area of subsidiary crops production, 2004-2005 Cultivated Area (ha) Harvested Area (ha) Yield (tons/ha) Production (tons)
Wet
Season
Dry
Season Total
Wet
Season
Dry
Season Total
Wet
Season
Dry
Season Total
Wet
Season
Dry
Season Total
Subsidiary Crops
Maize 85,043 6,160 91,203 71,380 5,924 77,304 3.432 1.968 5.40 245,007 11,658 256,665
Yellow Maize
67,054 2,635 69,689 54,886 2,532 57,418 3.975 2.164 6.14 218,176 5,480 223,656
Cassava 21,612 1,137 22,749 21,380 1,127 22,507 16.403 10.081 26.48 350,689 11,361 362,050
Sweet Potato
5,331 1,985 7,316 5,166 1,966 7,132 5.237 4.113 9.35 27,052 8,086 35,138
Vegetable 20,621 11,983 32,604 20,361 11,953 32,314 5.490 5.628 11.12 111,774 67,276 179,050
Mung Bean
30,463 8,626 39,089 28,605 8,594 37,199 1.241 1.136 2.38 35,494 9,759 45,253
Total 163,070 29,891 192,961 146,892 29,564 176,456 35.78 25.09 60.87 770,016 108,140 878,156
Source: Reproduced from MAFF Agriculture Statistics 2004-2005, Statistic Office Department of Planning, Statistics, and International Cooperation, p. 4.
29
3.4. Competitiveness of Cambodian Agriculture
Section 3.4 is reproduced from a case study of maize, soybean and cassava and the document9 of the Ministry of Commerce for rice. The case study of maize, soybean and cassava was conducted separately by the Cambodia Development Resource Institute in Cambodia; Centre for Ecological Economics, Faculty of Economics Chulalongkorn University, Bangkok, Thailand; and Can Tho University, School of Economics and Business Administration in Vietnam.
3.4.1 Comparative analysis: Cambodia, Thailand and Vietnam
This section compares production, yield and harvested area of soybean, maize and cashews in Cambodia, Thailand and Vietnam. It also compares production costs and returns, prices, transportation costs and credit use among the countries. The purpose of this section is to identify the relative competitiveness of each crop among and across these countries.
Yields and harvested areas are often used to calculate crop production. Table 9 compares the yields and production of soybean in Cambodia, Vietnam and Thailand in 2003. Thailand produced 230,516 tons of soybean per year, which was
9 Cambodia National Export Strategy 2006-2008, August 2005.
Present Situation of Cambodia’s Fisheries Sector
• Production and Consumption - Inland fish dominates
in the total fish catch - Per capita
consumption is 30 kg per annum
• Employment - Over 3 million people
are dependent on direct and indirect income from fish resources
• Export - Volume of fish
exports is about 50,000 tons per year
• Diversity - Cambodia has a
variety of 500 freshwater & 476 marine species.
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
2000 2001 2002 2003 2004
Inland
Marine
Acquaculture
Export
Total
Fish Production and Export (Tons)
Source: MAFF Statistic Office 2004-2005
30
similar to Vietnam's 225,300 tons in the same year. Cambodia produced 62,918 tons of soybean in 2003, which was far below the total production in Vietnam and Thailand. In addition, the average yield in Cambodia was about 1.22 ton per hectare, lower than the 1.48 tons yield in Vietnam and 1.35 tons per hectare in Thailand.
Table 12: Soybean production at national level
Country Harvested area (ha) Yields
(tons/ha)
Production
(tons)
Cambodia 51,699 1.22 62,918 Vietnam 166,500 1.35 225,300 Thailand 149,706 1.48 230,516
Source: CDRI, 2005.
Table 13 shows that Thailand produced 4,178,017 tons of maize in 2003, followed by Vietnam 2,933,700 tons, and Cambodia only 283,610 tons. However in terms of yield, Cambodia produced 4.45 tons of maize per hectare, which was higher than Thailand’s 3.76 tons and Vietnam’s 3.22 tons per hectare. The highest yield of maize does not mean Cambodia uses more capital intensive methods of cultivation. Rather it suggests that Cambodian farmers use more fertile soil to grow maize.
Table 13: Maize production at national level
Country Harvested area (ha) Yields
(tons/ha)
Production
(tons)
Cambodia 63,777 4.45 283,610 Vietnam 909,800 3.22 2,933,700 Thailand 1,083,844 3.76 4,178,017
Source: CDRI, 2005.
In the case of cassava, Thailand produces far more compared to Vietnam and Cambodia. Thai yields are 19.3 tons per hectare, while Cambodia and Vietnam can produce 13.2 tons and 14.1 tons per hectare respectively (Table 14).
Table 14: Cassava at national level
Country Harvested area (ha) Yields
(tons/ha)
Production
(tons)
Cambodia 25,039 13.20 330,649 Vietnam 371,900 14.06 5,228,500 Thailand 988,220 19.29 19,717,534
Source: CDRI, 2005.
The country studies indicate that land suitable for soybean, maize and cassava cultivation has been exhausted in Thailand and Vietnam. Moreover, Thailand and Vietnam have intensified their crop production by using fertilizers, pesticides, quality seeds and multiple cropping methods. This implies that Cambodia still has
31
a large potential to increase production by expanding the cultivated area as well as by intensifying and investing more capital to raise productivity and to reduce cost.
Production costs and returns
Table 15 shows that the net return of soybean in Vietnam was US$172 per ton, followed by Cambodia and Thailand. The table also shows that soybean production in Vietnam is more capital intensive, which costs US$693.7 per hectare, Thailand US$276.8 per hectare, and Cambodia only US$154 per hectare. The table also shows that the farm gate price of soybean differed in each country. In Vietnam the farm gate price of soybean was US$329 per ton, followed by Cambodia and Thailand.
Table 15: Production costs and returns of soybeans Items Cambodia Vietnam Thailand
Average yield (MT/ha) 1.1 2.63 1.49 Total production costs ($/ha) 154 693.7 276.8 Gross income ($/ha) 288 866 374 Net return ($/ha) 134 172 97 Farm gate price ($/ton) 262 329 251 Costs per unit of output ($/ton) 140.0 263.8 185.8
Net returns per unit of output ($/ton) 121.8 65.4 65.1
Source: CDRI, 2005.
Table 16 shows the net return of maize in Vietnam was US$248 per ton, followed by Thailand and Cambodia. It also shows that the maize production in Vietnam was more capital intensive, which cost US$671 per hectare, in Thailand US$417 per hectare, and in Cambodia it was only US$209 per hectare. It should be noted that the farm gate price of maize in each country varied a lot as in the case of soybean. In Thailand, the farm gate price of maize was US$111 per ton, followed by Vietnam and Cambodia.
Table 16: Maize production costs and returns Items Cambodia Vietnam Thailand
Average yield (MT/ha) 4.8 6.23 3.77 Total production costs ($/ha) 139 422.7 300.4 Gross income ($/ha) 209 671 417 Net return ($/ha) 70 248 117 Farm gate price ($/ton) 44 108 111 Costs per unit of output ($/ton) 29.0 67.8 79.7
Net returns per unit of output ($/ton) 14.6 39.8 31.0
Source: CDRI, 2005.
Table 17 shows the net return from cassava in Thailand was US$124 per ton, followed by Vietnam and Cambodia. Maize production in Vietnam was more
32
capital intensive. It cost US$677 per hectare in Vietnam, US$325 per hectare in Thailand and it was only US$117 per hectare in Cambodia. It should be noted that the farm gate price of cassava was similar in each country. In Vietnam, the farm gate price of cassava was US$26 per ton followed by Cambodia and Thailand. This was because demand for cassava in Vietnam is higher than in Cambodia and Thailand.
Table 17: Cassava production costs and returns Items Cambodia Vietnam Thailand
Average yield (MT/ha) 8.96 30.34 19.29 Total production costs ($/ha) 117 677 325 Gross income ($/ha) 220 787 449 Net return ($/ha) 103 110 124 Farm gate price ($/ton) 25 26 23 Costs per unit of output ($/ton) 13.1 22.3 16.8
Net returns per unit of output ($/ton) 11.5 3.6 6.4
Source: CDRI, 2005.
Vietnam was generally found to employ more capital-intensive production methods followed by Thailand and Cambodia. The net return of soybean and maize production per hectare in Vietnam was higher than in Thailand and Cambodia. Moreover the farm gate prices of soybean, maize and cassava in Vietnam were also higher than in Thailand and Cambodia. So there seems to be a good potential for Cambodia to expand production.
The value chain analysis also suggests that the organic rice sector in Cambodia has the potential to compete with Thailand, a major rice exporter in the world. However, a number of market-based and administrative barriers continue to hinder the development of the sector, particularly in the context of attracting adequate investments in the commercial milling sector. In this context, the critical bottleneck is in the processing rather than production of the organic rice value chain.
33
Table 18: Benchmarking rice production costs between Cambodia and
Thailand
Cambodia Thailand Cost
US$/hectare
Percentage
of total US$/hectare
Percentage
of total Differential
1 Land preparation $26.50 16% $26.09 11% 2%
2 Seed 7.75 5% 6.02 3% 22%
3 Transplanting 37.50 22% 63.36 27% -59%
4 Fertilizer/manure 48.53 29% 15.77 7% 208%
5 Ag chemicals 0% 2.48 1%
6 Harvesting 15.00 9% 61.94 26% -24%
7 Drying 6.25 4% 8.48 4% -74%
8 Milling 22.83 14% 33.04 14% -69%
9 Interest payment 3.84 2% 3.38 1% 12%
10 Rent 0 0% 16.32 7%
TOTAL $168.20 100% $236.87 100%
Yield/hectare (tons) 1.87 2.09
Source: Reproduced from MoC/WB report – Towards a Private Sector-Led Growth Strategy for Cambodia, Volume 1: Value Chain Analysis, by GDS, LLC, June 2003.
Transportation costs
High transaction costs impede trade and discourage production. Cambodia’s transportation costs are higher than in neighbouring countries as a result of weaker institutional and market infrastructure. Some of the key factors that contribute to high transportation costs in Cambodia are poor roads, high fuel costs and high bureaucracy costs.
As mentioend earlier, despite rehabilitation efforts in the past two decades, both the number and the quality of roads and bridges are far from adequate. Road conditions are so poor that products are expensive to transport and it is costly to maintain and repair vehicles. Poor roads discriminate against heavy products with low value, such as cassava.
The high fuel price is the most important component of transport costs. The MoC’s study (2002) on integration and competitiveness clearly pointed out that the petrol tax in Cambodia is the highest in the region. This seriously erodes Cambodia’s
34
competitiveness. Like poor roads, high petrol prices increase transport costs, impede trade, push down farm gate prices and discourage production.
With respect to the bureaucracy, exporters of agricultural products complained about the costs of moving products through authorities such as customs and police. They maintained that such “bureaucracy costs” are a major constraint to competitiveness, and that such costs are passed on to the producers.
Table 19 shows that the transportation cost in Cambodia was about US$10-12 per ton per 100 km by road. It is extremely high compared to Vietnam and Thailand.
Table 19: Transport cost by road (cost of fuel and vehicle fee only) Item Cambodia Vietnam Thailand
Cost of transporting soybean ($/ton/100km) 10-12 4-5 2.5 Cost of transporting maize ($/ton/100km) 10-12 4-5 2.5 Cost of transporting cassava ($/ton/100km) 10-11 4-5 2.5
Source: CDRI, 2005.
Credit
Credit has been identified as one of the main issues facing producers and traders of agricultural products. The rural credit sector in Cambodia has grown considerably in recent years. From 2001 to 2003, rural credit provided grew from US$29 million to more than US$66 million. Although the growth is impressive, it has not been able to fully satisfy current demand, estimated at US$200 million (RDB 2003). The rural population in a third of the provinces still has no alternative to private moneylenders. NGO credit programmes reach only about 21 per cent of rural households. Thus, there is a need to expand rural credit and saving services by encouraging the entry of licensed private micro-finance institutions and commercial banks, and by strengthening the Rural Development Bank (RDB). In its role as a wholesaler, RDB would provide stable and long-term funding to encourage retail institutions to expand and make available long-term loans for increased capital investment.
Table 20 shows that the annual interest rate offered by micro finance institutions and associations in Cambodia is about 36 to 60 per cent. The rate is extremely high, compared to Thailand and Vietnam. Soybean, maize and cassava farmers are reluctant to borrow from moneylenders at interest rates of about 46 to 100 per cent per year. This high interest rate hinders Cambodian farmers from investing in much needed in machinery and puts them at a distinct disadvantage compared to their neighbours.
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Table 20: Interest rate and loan of credit Item Cambodia Vietnam Thailand
Interest rate per year (micro finance institution and associations)
36-60% 12-13.8% 7-8%
Minimum loan (US$) 20 318 750 Maximum loan (US$) 200 637 2,500
Source: CDRI, 2005.
3.5 Small Farmers/Producers’ Incomes and Poverty Situation
Cambodia has a high percentage (40 per cent) of poor people. They are concentrated in the rural areas (Table 21), making poverty largely a rural phenomenon. Some 46 per cent of Cambodian farmers are living in poverty because they do not have sufficient land and other productive assets as well as poor agricultural support and low investments.
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Table 21: Population living below the National Poverty Line in urban
and rural areas (percentage) 1993 (1994) 1997 (1996) Latest Figure
Country Urban Rural Urban Rural Urban Rural
Cambodia - - 21.1 40.1 25.2c 40.0c Indonesia - - 13.6 19.9b 9.8d 25.0d Laos 24.1a 53.0 26.9 41.0 - - Malaysia - - 4.1 6.1 3.8c 13.2c Myanmar - - 23.9 22.4 - - The Philippines 28.0 53.1 21.5 50.7 24.3e 54.0e Thailand 10.2 13.1 - - 1.5e 17.2e Vietnam 25.9 57.2 - - 9.0f 45.0f
Sources: Country Yearbook and websites; and ASEAN in Figures 2003 (ASEAN Statistical Yearbook 2003) Note: c – 1999 figure.
3.6 Major Problems faced by Small Farmers/Producers
Cambodian agricultural produce have limited access to the market. The constraints and problems are:
a. Low quality (related to standard) of agricultural produce. b. Inland transportation of goods is hindered by poor condition of road and
bridges: Although the main national roads are paved in concrete, many portions are heavily damaged and with potholes. This slows the speed of vehicles and makes road transport ineffective during the rainy season. It also cuts down the number of vehicles using the roads. Road shoulders are easily damaged. During the rainy season, canals/borrow pits constructed at the both sides collapse and they pose danger to vehicles. Losses in quality and quantity of rice are high due to damaged roads, higher traffic accidents, and maintenance costs. Generally, cargo lorries are over loaded. Non-licensed vehicles are using roads. High transport fees.
The railway system is slow and inefficient (longer transport time and unreliable time schedules). Inefficiency is attributed to poor maintenance of old railway facilities, bridges, wagons, locomotives, etc. Trains are operated only twice a day and number of wagons and coaches are few.
c. Inadequate information on international trade and marketing. d. Lack of producer associations and farmers’ cooperative. e. Limited credit services.
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f. Export issues. g. Lack of marketing extension services. h. Milling problem for rice: competition is high; traditional milling machine;
milling technologies is poor; lack of funds; heavy tax; lack of market; fluctuation of paddy/rice price; milling cost is high. The export market is small and export volume is not sufficient. Fuel cost is high, paddy quality is low, market information is not enough, and agricultural production and industrial technologies are poor. The problems in the southern region are low income, lack of rice market, lack of paddy storage facilities, milling machine is old, lack of funds and high interest rates.
3.7 Strategic Direction of Agriculture and Food Policy
The Cambodia 2001-2005 Second Socio-Economic Plan (SEDP II) gives priority to rural and agricultural development. Under the SEDP II, the Cambodian government targets a 3.5 per cent agricultural growth and it aims to provide a supportive policy environment for agriculture. The following are some specific policies that support agriculture and small farmers.
Self sufficiency policy
In the national socio-economic and agricultural development plans, attaining food self-sufficiency through domestic production is given highest priority. In response to this, the agricultural production policy also places importance on food self-sufficiency. In other words, Cambodia’s policy is not to import food.
Policy on agricultural inputs
There is no policy of a scale that has a direct impact on increasing production, although there are some irrigation aids and seed grants after a natural disaster. MAFF-affiliated COCMA (Company of Material, Equipment and Transport) handles fertilizer and agricultural chemicals and machinery but it is generally regarded as an object of privatisation as a part of transition into the market economy. Although multiplication and distribution of high quality seeds gets high priority, a real means is not accompanying it. CARDI under MAFF is conducting paddy seed multiplication and distribution under assistance from Australia but its quantity is rather limited. The seed multiplication policy is shifting from increasing production to improving quality after achieving self-sufficiency in 1995. Several NGOs and banks are giving loans to farmers, traders, rice millers, etc. Generally, banking facilities are available. Although general conditions for loans (especially interest rate) are severe due to low agricultural productivity, there is no stable political loan specific to rice marketing. The system where the central bank evaluates NGOs as lender and approves their qualification is being introduced.
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Policy on producer's prices
Rice price is determined by the market mechanism and there is no system of price support or guaranteed minimum price. There are no insurance institutions to protect farmers from natural disaster. The market operation and price comes under the jurisdiction of Green Trade Company (GTC) but in reality it does nothing.
Policy for organising farmers
Depending on the area, some small groups are formed by NGOs. The government is planning to organise farmer's groups but the MAFF is still drafting the agricultural cooperative act.
Cambodia does not provide subsidies to farmers. However, the Cambodian government provides post-disaster assistance like seed support, water pumping machine, fuel, and emergency food supply.
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IV. AFTA, TRADE AND INVESTMENTS
4.1. Strategic Direction of Trade and Investments
The process of liberalising Cambodia’s economy began in the late 1980s. The state monopoly of foreign trade was abolished in 1987 and the foreign investment law was enacted in 1989. These enabled private companies to engage in foreign trade.10
Cambodia has lifted virtually all export controls. It only maintains a ban on log exports and quotas for rice and garments exports. It also has export licensing requirements for health and security reasons. As part of its comprehensive trade reform measures, Cambodia also removed quantitative restrictions (QRs) on imports in 1994. In the context of its AFTA commitments, Cambodia has made its tariff schedule ASEAN-compliant.11
In 1993, the general licensing requirement was removed for most goods traded by registered companies. Furthermore, owing to its low customs duties, Cambodia became a hub for transit trade in the region, especially with Vietnam. Also in 1993, the import tariffs were streamlined after the creation of a four-band system with rate of 7 per cent, 15 per cent, 35 per cent and 50 per cent applying to over 93 per cent of tariff items.12
The ban on rice export was lifted in December 1995 and Cambodia has achieved food self-sufficiency for the first time in 25 years. Export trade diversification and development are the base elements of the government's economic development strategy. This does not mean that the government has no regard for other sources of foreign exchange earnings. Although Cambodia has important sources of material and agriculture products, the government does not want to rely solely on export of commodities because their prices tend to fluctuate in the world market from year to year.13
Cambodia's National Export Strategy 2006-2009 adopts ITC's four-gear model as a basis for its strategic scope, i.e.:
- “Border-In” (supply-side issues): focusing on production capacity, productivity, quality, technology development, management and export marketing competencies, and competency within the trade support network to assist enterprises in supply-side matters;
10Thomas Rumbaugh et al., Cambodia: Selected Issues, IMF, Aug 31, 2000. 11 Ibid. 12 Kao Kim Hourn and Sarah Kanter, ASEAN Free Trade Agreement, 1997. 13 Ibid.
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- “Border” (operational issues): focusing on developing a business environment that is internationally competitive, reducing the costs of trade transactions, streamlining official procedures and documentation and infrastructure;
Source: MoC, National Export Strategy 2006-2008, August 2005.
- “Border-Out” (demand-side issues): focusing on identifying commercial opportunities abroad, provision of in-market support, promotion of the country and its sectors, promoting export-oriented foreign direct investment and technology/know-how transfer; and
- “Development”: focusing on employment generation, poverty reduction and regional development.
Apart from developing strategies to improve the competitiveness of the various products and service sectors, it must also address cross-sectoral issues such as:
- Trade information; - Trade finance; - Quality management; and - Competency development.
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4.2. AFTA Implementation in Cambodia
Cambodia became a full ASEAN on April 30, 1999. Its AFTA commitments are:
Ten-year implementation time frame starting on Jan 1, 2000; Phasing in products the Temporary Exclusion List (TEL) in five equal installments from Jan 1, 2003 to Jan 1, 2007 and ending the tariff rates of 0-5 per cent by Jan 1, 2010; Phasing in agriculture products which are temporarily excluded from Jan 1, 2004 and completing on Jan 1, 2010 at 0-5 per cent; Phasing in sensitive agriculture products beginning from Jan 1, 2008 but not later than Jan 1, 2010 and ending on Jan 1, 2017 at rate of -5 per cent; Maximising the number of its tariff lines with tariffs between zero and 5 per cednt by 2007 and expanding the number of tariff lines in the zero per cent category by 2010; and Submitting the various products lists for the CEPT scheme to ASEAN by June 30, 1999.
Tables 22-27 show Cambodia’s tariff reduction commitments.
Table 22: Cambodia Tariff Reduction Schedule for AFTA14 Year
Rate Track 2000 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10
Fast 7% 5%-0% 7%
Normal 7% 5%-0% Fast 10% 7% 5%-0%
10% Normal 10% 7% 5% 5%-0% Fast 15% 5%-0%
15% Normal 15% 10% 7% 5%-0% Fast 20% 10% 5%-0%
20% Normal 20% 10% 5% 5%-0% Fast 20% 10% 5% 5%-0%
30% Normal 20% 10% 10% 7% 5% 5%-0% Fast 20% 15% 10% 7% 5%-0%
35% Normal 20% 15% 15% 10% 7% 5%-0% Fast 30% 20% 10% 5%-0%
40% Normal 30% 20% 20% 10% 7% 5%-0% Fast 30% 20% 10% 5%-0%
50% Normal 30% 20% 20% 10% 7% 5%-0%
Table 23: Cambodia Customs Tariff
Base Rate 0% 0.3% 7% 10% 15% 20% Tariff Line 290 9 2,731 14 1,861 68
Base Rate 30% 35% 40% 50% 90% 120% Total
Tariff Line 4 1,569 8 256 6 6 6,822
14 Khuy Sitheng and Morm Vannak, First Step of Cambodia into ASEAN, 2000, p. 60(Norton University).
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Table 24: Inclusion List
Base Rate 0% 7% 10% 15% 20% 35% 50% Total Percentage of
total tariff line Tariff Line in NT 141 580 14 997 9 255 7 2003 29.36 Tariff Line in FT 97 767 0 63 0 149 36 1112 16.30 Total 238 1347 14 1060 9 404 43 3115 54.66
Table 25: Temporary Exclusion List
Base Rate
0%
7% 15% 20% 30% 35% 40% 50% 90% 120% Total
% of total tariff line
Tariff Line
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1360 782 50 4 1139 8 124 6 6 3523 51.65
Table 26: General Exclusion List Base Rate 0% 0.3% 7% 15% 20% 35% 50% Total Percentage of total tariff line Tariff Line 8 9 1 4 9 14 89 134 1.96
Table 27: Sensitive List Base Rate
7% 15% 35% Total % of total tariff
line Tariff Line 23 15 12 50 0.73
By 2003, Cambodia has put 45.66 per cent of its tariff lines in the Inclusion List and 51.64 per cent in the Temporary Inclusion List (Table 25).
4.3. Patterns of Trade
The garment industry has been the fastest growing export sector in the past eight years and it dominated the Cambodian economy. Garment exports in 1995 were valued at US$26.5 million and by the year 2000 the corresponding annual figure exceed US$1 billion. In early 2002, Cambodia was ranked 16 among the top suppliers of garment to the US market. According to ITC Trade Performance Index, Cambodia ranked 29 out of 117 garment exporting countries in 2003. The industry employed over 220,000 workers, mostly young women. Only 23 out of 185 factories are Cambodian owned. Almost 90 per cent of the garment manufacturing companies are foreign owned, coming from Hong Kong, China, Singapore, Taiwan, South Korea, Malaysia, Thailand, Indonesia, Bangladesh, United Kingdom, Germany, Australia, Canada, and the United States (MoC, National Export Strategy 2006-2008, August 2005).
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As shown in Table 29, Cambodia’s exports have grown from US$3,595.5 million in 2000 to US$4,591.2 million in 2004. The same trend is observed for imports. The export-import data also reveal that Cambodia has regularly posted a negative balance of trade since the 1990s.
Cambodia’s top merchandise exports are garments, logs and sawn timber, rice, rubber and fish. Its top imports are petroleum products, cigarettes, motorcycles and cloth.
Table 28: Number of Tariff Lines in the Tentative 2003 CEPT Package by
Status
Number of Tariff Lines Percentage Country
IL TEL 1) GEL SL/ HSL Total IL TEL GEL
SL/ HSL Total
Brunei (HS-96) 6,337 - 155 - 6,492 97.61 - 2.39 - 100
Indonesia (HS-02) 7,429 - 92 11 7,532 98.63 - 1.22 0.15 100
Malaysia (HS-96) 10,116 218 53 8 10,395 97.32 2.10 0.51 0.08 100
Philippines (HS-02) 5,832 - 20 11 5,863 99.47 - 0.34 0.19 100
Singapore (AHTN) 10,705 - - - 10,705 100.00 - - - 100
Thailand (HS-02) 9,211 - - - 9,211 100.00 - - - 100
ASEAN-6 49,630 218 320 30 50,198 98.87 0.43 0.64 0.06 100
Cambodia (HS-96) 3,115 3,523 134 50 6,822 45.66 51.64 1.96 0.73 100
Laos (HS-96) 2,962 437 74 78 3,551 83.41 12.31 2.08 2.20 100
Myanmar (HS-96) 4,777 630 48 17 5,472 87.30 11.51 0.88 0.31 100
Vietnam (AHTN) 10,143 33 424 89 10,689 94.89 0.31 3.97 0.83 100
CLMV 20,997 4,623 680 234 26,534 79.13 17.42 2.56 0.88 100
ASEAN 10 70,627 4,841 1,000 264 76,732 92.04 6.31 1.30 0.34 100
Source: ASEAN Secretariat, as of June 2004. Note: 1) The rest of automotive products of Malaysia which have to be phased in 2005.
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Table 29: Cambodia’s Total Foreign Trade with the World, 2000-2004 (in
million, US$) Actual 2000 2001 2002 2003 2004*
GDP 3,595.5 3,713.7 4,004.7 4,299.1 4,591.2 Merchandise exports 1,401.1 1,571.2 1,750.1 2,046.2 2,247.0 Merchandise imports 1,939.3 2,094.0 2,313.5 2,595.6 2,891.0 Total Foreign Trade 3,340.4 3,665.2 4,063.6 4,641.8 5,138.0 Trade Balance (538.2) (522.8) (563.4) (549.4) (644) GDP Growth % 4.3 3.3 7.8 7.4 6.8 Exports as Share of GDP % 39.0 42.3 43.7 47.6 44.5 Imports as Share of GDP % 53.9 56.4 57.8 60.4 58.2 Exports Growth % 24.1 12.1 11.4 16.9 9.8 Imports Growth % 21.9 8.0 10.5 12.2 11.4 US$ / Riel 1 / 3,900 1 / 3,925 1 / 3,919 1 / 3,980 1 / 4,021 Source: Reproduced from World Bank, Poverty Reduction and Economic Management Unit – East Asia and the Pacific Region (2005). *These are only estimates for 2004.
Table 30: Cambodia’s Garment Exports, 2001-2004 (in million US$) 2001 2002 2003 2004*
US 792.6 923.1 1,123.4 953.4 EU 308.8 358.2 428.0 445.2 Other 18.4 27.5 76.1 117.7 Total 1,119.8 1,308.8 1,570.0 1,516.3 % of Total Exports 71.2 74.8 76.7 67.4 Sources: MEF and Customs (2004). * These are only estimates for 2004.
Table 31: Main Trading Partners (supplying/importing), 2000-2004 (in US$) Countries 2000 2001 2002 2003 2004*
France 38,792,599 41,020,635 48,292,838 38,115,271 44,544,818 Germany * 10,530,785 * * 12,381,471 UK 18,932,410 23,022,032 14,015,843 * * Finland * * * * 12,666,793 US 32,546,552 19,255,287 15,282,742 16,838,378 23,065,949 India * * 13,034,111 15,294,321 19,381,622 Thailand 221,240,642 222,514,165 238,118,977 223,247,662 230,612,741
Vietnam 91,540,402 106,685,039 98,351,152 129,350,003 168,438,585
Indonesia 68,402,767 75,934,150 77,497,726 82,597,427 78,500,612 Malaysia 64,147,705 57,443,505 58,125,163 78,123,641 77,190,292 Singapore 105,876,862 118,262,567 120,992,421 126,574,672 142,257,816
China 112,745.403 151,174,164 197,209,553 225,025,300 340,658,905
Hong Kong 254,170,728 293,659,767 370,979,807 412,922,429 409,670,538
South Korea 76,847,429 78,862,543 94,687,856 80,854,578 99,425,359 Japan 58,387,804 60,888,545 63,821,731 78,299,532 83,571,605 Taiwan 174,685,014 174,085,929 189,130,614 188,541,275 242,321,803
Australian * * * * 10,085,334 Sources: CED and MEF (2005). *2004 estimates only. *Less than US$10 million.
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In intra-ASEAN trade, negative trade balances were recorded from 1995 to 1999 but since 2000 Cambodia had positive balances of trade (Table 32).
Table 32: Cambodian Import and Export (ASEAN Countries)
(Value in US$) Year Export Import
1995 299,227,504.26 419,206,621.46 1996 249,297,853.60 444,578,188.64 1997 206,833,171.64 406,487,321.33 1998 261,560,304.36 430,676,620.84 1999 218,755,875.34 478,506,367.16 2000 7,620,9061.59 554,381,341.07 2001 1,496,030,582.44 1,092,775,956.49 2002 1,487,683,583.95 59,818,136.44
In 2002, the top six destinations of Cambodia’s exports were the United States (1), Germany (2), United Kingdom (3), Singapore (4), France (5), the Netherlands (5) and Vietnam (6). Cambodia imports in 2002 came from Thailand (1), Singapore (2), Hong Kong (3), China (4) and Vietnam (5).15
Most of rice exports (small quantity) to ASEAN member countries are shipped through the ports of Phnom Penh and Sihanouk Ville. There are also sizable unauthorised cross-border exports of paddy. Unofficial reports indicate that over the past five years, large quantities of paddy have been illegally exported to Vietnam during and after the main harvest.16 Since Cambodia and Vietnam signed a Trade Agreement on the Commercial Transaction, Exchange of Goods and Services on Nov 26, 2001, Cambodian businessmen can now easily export to Vietnam.
Total trade between Cambodia and Vietnam for the year 2002 was valued at US$130,745,023.71. Vietnam exports, totalling US$36,414,752.74, increased by 72.35 per cent compared to the previous year’s US$130,613,346.08. Vietnam imports from Cambodia, amounting to US$98,351,151.92, dropped by 10.17 per cent. But a comparison of total imports and exports of each year (1995-2002) between Cambodia and Vietnam showed that imports were more than exports, the average value being US$44,225,710.11 per year. Nevertheless, this is a continuation of Cambodia chronic trade deficit with Vietnam, which has reached a total of US$590,129,286.42 in the past eight years (1995-2002).17
15 Asian Development Bank, “Cambodia,” Key Indicators of Developing Asian and Pacific Countries, 2003. 16 Sok hach, Chea Hout and Sik Boreak, Cambodia’s Annual Economic Review 2001,CDRI, p. 38. 17 Foreign Trade Department, Import-Export Office (Ministry of Commerce).
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Table 33: Cambodia-Vietnam Merchandise Trade (in US$) YEAR EXPORT TO
VIETNAM
IMPORT FROM
VIETNAM
TOTAL TRADE BALANCE OF
TRADE
1995 13,589,074.35 100,726,860.89 114,315,935.24 - 3,516,393.46 1996 23,827,340.90 111,561,447.02 135,388,787.92 - 87,734,106.12 1997 28,750,430.57 88,237,349.32 116,987779.89 -59,486,918.75 1998 41,867,564.90 90,564,925.35 132,432,490.25 -48,697,360.45 1999 12,646, 178.27 84,684,635.84 97,330,814.11 72,038,457.57 2000 19,447273.79 91,540,402.35 110,987,676.14 -72,093,128.56 2001 21,127,197.55 109,486,148.53 130,613,346.08 -88,358,950.98 2002 36,414,752.74 98,351,151.92 130,745,023.71 - 65,957,280.13
Table 34: Top ten Cambodia exports to Vietnam (2002)18
Product Value (in US$) % Share
Total Exports to Vietnam 36,414,752.74 100 %
Rubber and articles thereof 20,110,205.53 55.2
Wood and articles of wood, wood charcoal 8,581,797.18 23.5
Beverages, spirits and vinegar 3,899,833.96 10.7
Edible fruit and nuts, peel of citrus fruit or melons 629,656.57 1.7
Man-made staple fibers, wadding, felt and non-woven, special 405,405.79 1.1
Nuclear reactors, boilers, machinery and mechanical appliances, parts thereof.
317,602.97 0.8
Yarns, twine, cordage, ropes and cables and articles thereof 288,958.43 0.7
Man-made filaments 235,131.33 0.6
Tobacco and manufactured tobacco substitutes 196,640.67 0.5
Rolling-stock and part accessories thereof 139,918.53 0.3
Table 35: Top ten Cambodia import from Vietnam (2002)19
Product Value (in US$) % Share
Total Import From Vietnam 98,351,151.92 100 %
Mineral fuels, mineral oils and products 69,351,855.03 70.5%
Knitted or crocheted fabrics 4,549,341.04 4.6%
Irion and Steel 4,329,696.85 4.4%
Man-made staple fibred 3,650,381.71 3.7%
Cereals 2,989,341.17 3%
Fertilizers 2,581,627.75 2.6%
Plastics and articles thereof 1,185,164.37 1.2%
Optical, photographic instruments 1,152,989.21 1.1%
Residues and waste from the food industries 1,133,936.42 1.1%
Aluminum and Articles thereof 1,056,097.75 1%
18 Foreign Trade Department, Export Office (Ministry of Commerce). 19 Foreign Trade Department, Import Office (Ministry of Commerce).
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4.4. Patterns of Investments and Official Development Aid
Foreign direct investments (FDIs) and official development aid (ODA) have played significant roles in the reconstruction of Cambodia. The Cambodian Rehabilitation and Development Board (CRDB) reported that US$2.7 billion has been disbursed from 1992-1998. Bilateral donors provided the bulk of assistance. Japan is the largest donor. The support includes technical assistance, investment project assistance, food aid/emergency and relief assistance and budgetary/balance of payments support. Foreign aid was cut off in the wake of the 1997 coup. It resumed in early 1999. Most of the aid went to infrastructure and/or agricultural projects. Cambodia remains dependent on foreign aid. In 2001, 58 per cent of Cambodia’s central government budget comes from foreign assistance.
Table 36: The Amount of FDI Inflows
Unit: Million US$, (%)Year Cambodia Laos Myanmar Vietnam
1989 109.0 (7.57) 4.0 (0.56) 7.8 (0.29) 100 (1.60) 1990 94.2 (6.58) 6.0 (0.70) 161.1 (6.20) 120 (1.85) 1991 20.0 (1.05) 6.9 (0.68) 238.1 (11.22) 220 (2.88) 1992 33.0 (2.19) 7.8 (0.67) 171.6 (7.30) 260 (2.64) 1993 54.1 (2.81) 35.8 (2.74) 104.7 (3.68) 300 (2.28) 1994 69.0 (2.89) 59.2 (3.90) 126.1 (3.01) 1048 (6.44) 1995 150.7 (5.16) 88.4 (5.11) 277.2 (5.44) 1780 (8.58) 1996 293.7 (9.38) 128.0 (7.00) 310.4 (6.26) 2395 (9.71) 1997 168.1 (5.14) 86.3 (5.04) 387.2 (8.31) 2220 (8.27) 1998 108.0 (3.60) 45.3 (3.58) 314.5 (6.39) 1671 (6.14) 1999 221.2 (6.69) 51.6 (3.57) 253.0 (3.88) 1412 (4.92) 2000 141.9 (3.94) 33.9 (1.97) 254.8 (3.67) 1298 (4.14) 2001 142.1 (3.82) 23.9 (1.38) 210.9 (4.63) 1300 (3.92) 2002 139.1 (3.47) 4.5 (0.24) 151.1 (1.65) 1400 (3.99) 2003 132.3 (3.13) 19.5 (1.01) 128.0 (1.33) 1450 (3.71)
Note: The ratios of FDI inflows to their respective GDPs are listed in parentheses. Source: Asian Development Bank
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Table 37: Major FDI Receiving Industries
Rank Cambodia
(1994-2003)
Laos
(1988-2003)
Myanmar
(1990-2003)
Vietnam
(1988-2003)
1Hotel & Tourism
(38%) Hydro Power
(55%) Oil & Gas
(42%) Heavy Industry
(22%)
2Garment (13%)
Industries- Handicrafts(7.3%)
Manufacturing (27%)
Light Industry (17%)
3Cement (6.7%)
Hotel & Tourism (6.7%)
Hotel & Tourism (15%)
Hotel & Tourism (12%)
4Wood Processing
(5.5%)
Telecommunication & Transportation
(6.6%)
Real Estate Development
(14%)
Oil & Gas (9.1%)
5Agriculture
(5.2%) Wood Industries
(3.6%) Mining (6.7%)
Construction (8.8%)
Note: The ratios of cumulative FDI to the total FDI inflows are indicated in parentheses. Source: ASEAN Promotion Centre, ASEAN-Japan Centre.
Table 38: Cumulative FDI Sources in Each Host Country
Rank Cambodia
(1994-2003)
Laos
(1988-2003)
Myanmar
(1990-2003)
Vietnam
(1988-2003)
1Malaysia
(41%) Thailand (46%)
Singapore (17.2%)
Taiwan (15%)
2Taiwan (9.6%)
United State (19%)
United Kingdom (16.7%)
Singapore (13%)
3Thailand (7.7%))
South Korea (18%)
Malaysia (16.3%)
Japan (9%)
4China (5.4%)
China (6.4%)
Thailand (13%)
Hong Kong (7.7%)
5Singapore
(4.1%) Malaysia (5.4%)
United State (8.1%)
South Korea (7.3%)
Total 67.8% 94.8% 71.3% 51.7%
Note: The ratios of cumulative FDI received from individual home countries to total cumulative FDI inflows into each of the host country are shown in parentheses.
Tables 39-40 show the investment approvals by sector and investors’ country of origin. Bulk of investments went into industries. In 1995, Malaysia was the top most investor, followed by France and Singapore. Investment data from 1995 to 1999 indicate that investments into Cambodia, intra- and extra-ASEAN, had been declining. The National Bank of Cambodia reported that FDI in 2001 amounted to US$150 million but went down to US$54 million in 2002.
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Table 39: Cambodia: Investment Approvals by Sector, 1995-99
(Total fixed assets approved, in millions of US dollars) 1995 1996 1997 1998 1999
Total 2,240 762 744 853 456
Agriculture 5 92 61 50 10
Industries 301 438 516 652 226
Agro Industry 1 26 4 2 30 Building Material 1 16 9 1 0 Cement 136 7 205 54 6 Energy 40 1 80 17 0 Food Processing 38 30 6 9 12 Garment 20 46 97 127 75 Petroleum 25 22 32 1 1 Tobacco 4 22 2 7 0 Wood Processing 5 407 47 179 14 Others 20 61 34 255 87 Services 425 112 125 39 196
Construction 197 28 1 3 18 Education 98 0 0 2 0 Infrastructure 117 0 21 10 0 Telecommunication 6 33 53 0 19 Transportation 4 10 0 11 5 Others 2 42 50 14 154 Tourism 1,510 119 42 112 25
Hotel 140 101 40 106 25 Tourism Centre 1,370 7 1 6 0 Others 0 11 0 0 0
Table 40: Cambodia: Investment Approvals by Investor Country of Origin, 1995-99
(Total fixed assets approved, in millions of US dollars)
1995 1996 1997 1998 1999 Total 2,240 762 744 853 456 Cambodia 332 144 166 296 260 Foreign 1,908 618 578 557 196 America 148 8 97 11 20 United States 109 5 86 5 20 Canada 39 3 11 6 0 Asia 1,560 533 437 534 171
Thailand 19 52 27 33 21 Malaysia 1,411 194 66 124 14 Singapore 104 33 15 21 1 Indonesia 1 13 1 6 1 Vietnam 0 0 0 0 1 Taiwan 6 164 44 144 55 China 3 37 36 108 46 Hong Kong 12 24 69 91 30 Korea 1 5 178 5 0 Japan 1 11 0 1 2 Europe 199 55 8 8 4 United Kingdom 23 39 6 0 2 France 175 10 1 1 1 Switzerland 0 6 0 5 1 Portugal 1 0 1 1 0 Others 2 22 36 4 1 Source: The Ministry of Economy and Finance.
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4.5. Challenges Facing Cambodia (Contemplating AFTA)20
Advancing Cambodia’s economy is a big challenge as it is one of the poorest members of ASEAN. Cambodia faces four problems in adjusting to the requirement of AFTA.
a. Loss of tariff revenue: Currently the Cambodian government budget is overly dependent on tariff revenues. This national dependency can be broken through the centralisation of government receipts and expenditure, and implementation of more efficient tax collection system. Only then can any significant tariff reduction take place.
b. Legal infrastructure: Cambodia is in the process of developing a consistent and reliable judiciary. It is also in the enacting laws necessary for a stable business environment. AFTA cannot be implemented before this infrastructure is developed.
c. English language and human resources training: Cambodia faces a shortage of English speaking officials and technical experts, who are needed for effective participation in ASEAN and AFTA. Although Cambodia is currently making tremendous efforts to develop human resources it will take some time before is is sufficiently prepared to deal with the complexities of trade agreements. It is critical that Cambodia develops and nurtures the ability to determine and implement its own policies and national objective.
d. Information about ASEAN and AFTA: There is a shortage of information and data about AFTA and its possible impact on Cambodia. In order to fully understand the implementation of the free trade area and to develop appropriate priorities for development, Cambodians must have access to accurate information about its probable effects (Kao Kim Hourn and Sarah Kanter, 1997).
20 Kao Kim Hourn and Sarah Kanter : ASEAN Free Trade Agreement: Implications and Future Directions, 1997, pp.33-34 ( CICP).
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V. CONCLUSIONS AND RECOMMENDATIONS
5.1. Conclusions
The core of AFTA is the tariff reduction scheme in accordance with the principles of CEPT. Even though Cambodia’s tariff rates are already low, for the medium term additional reductions in these rates may affect the economy with the immediate impact being on the national budget.
As Cambodia opens its door, goods and services will flow in though the market stream. Currently, the production base and the economic structure of Cambodia are still weak. They are the key factors in determining Cambodia competitiveness.
With regards to rice and other main cash crops as well as industrial crops, Cambodian farmers still face problems of lower productivity and higher production cost (poor environment for agricultural production and investment: illegal fee, lack of market structure, poor infrastructure, high cost of input) compared with other AFTA member countries.
5.2. Recommendations
To improve the situation of agriculture in view of AFTA:
The Cambodia government needs to strengthen agricultural extension system and capacities building programme to farmer to improve agricultural productivity and reduce production cost on inputs such as fertilizer and pesticide. With lower input cost and higher yield, Cambodian farmers will be able to benefit from AFTA.
The government must improve infrastructure (road, bridge and small irrigation scheme) to facilitate farmers and trade. There is a need to rehabilitate and develop all agricultural systems in the agricultural productive areas.
The Cambodia Agriculture Research and Development Institute (CARDI), as the government institute, should cooperate with other government agencies and related NGOs to research and classify geo-genetic identification and purification of traditional rice seeds as Malis, Neang Minh, Somali and other potential traditional rice varieties. This is important for small rice farmers who have their own licences.
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The related government agencies under MAFF should provide good facilities and services to farmers in order to identify their specific problems and find solutions. They should adopt clear and strong policies and programmes on promoting sustainable agriculture.
The government should encourage investors to invest in Cambodia so that rice products can be exported directly to demand countries without passing through Vietnam or Thailand as brokers. Thus, the benefits from rice trading will be better for Cambodia and the international market willbecome more independent.
In order to improve the situation of small producers in Cambodia:
Cambodian rice farmers should practice and adopt SRI along with the organic approach. These will reduce the production cost and boost yield and enable them to compete with other rice imports. These practices are also good for health and the environment.
Farmer organisations must be strengthened to enable them to network in trading as well as for policy and social development purpose.
Farmer field day in Pogna Learng
village Angkoreach commune:
discussion on the result of riceharvesting, comparing rice yield
applying SRI and traditional practices.
General meeting of Farmer Associationorganized at Chan Trea district with
participation of deputy of district
governor as honor
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Strengthen the farmer movement through farmer exchange and farmer-to-consumer linkages. This will enable consumers and producers to know demand and supply situation. Rice farmers will become confident that they can sell their produce at a good price.
Select and conserve quality local seeds in order to produce and distribute among farmers. If they lose the seeds, they will have to buy seeds from companies and incur high production cost.
Set up internal control system and farmers community based marketing network through farmer to farmer extension and confederation.
Farmers to farmers exchanges (intra-village, inter-village as well as inter-region).
Community pond inauguration ceremony organized by the community with participation of local
authority at Preh Sdach district Prey Veng province.
Farmers in Chan Trea district exposed to exchange visit program about SRI at Kampong Ro district
of Svay Rieng province.
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The prospects of Cambodian small producers under the AFTA:
One good point for Cambodian producers is that they can participate in Free Trade Area activities in the region. This may allow Cambodia to maximise its economy of scale through increased access to regional and international markets.
Cambodian producers may use opportunities created by international competition to boost its productivity and improve the quality of domestic goods and services in order to ensure their competitiveness in the world market. One alternative for them is to keep and/or turn to organic agricultural products.
Cambodia has several competitive advantages in the agricultural sector: cheap labour, low population density, good local plant variety and potential for organic agriculture. However, major improvements are needed in terms of infrastructure, production techniques and input and market system.
Cambodia’s labour market has the characteristics of a typical emerging development economy, i.e. dominance of agricultural and rural employment, higher female ratio in the population, low literacy rates, high dependency ratios and high stability. With opportunities through cheap labour, Cambodian products can compete with imported goods.
A Campaign to promote organic agriculture and local products organized by CEDAC, NEDC and NGOF in Takeo province
27 – 28 November 2005
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References
Azarcon, Chulia and Gwendolyn Tecson, Threats and Opportunities in AFTA.
Asian Development Bank, “Cambodia,” (2003). Key Indicators of Developing Asian and Pacific Countries.
Chia Sowyue (1996). ASEAN in the WTO challenges and Responses.
Chia and Tan (1996). ASEAN Economic Co-operation Transition and Transformation.
Choun, Keat (2000). Acceleration of AFTA and its Implications for Cambodia.
Choun, Keat and Aun Porn Moniroth (1998). Strategy for Cambodia's Participation in the AFTA and Its implementation of the Agreement on CEPT.
Choun, Keat and Jeffrery A.Kaplan (1998). Cambodia's Future in ASEAN Dynamo or Dynamite.
DAO Cambodochine, SUON Prasith and al., MoC (August 2005), National Export Strategy 2006-2008,
EIC (April 2005), Cambodia Economic Watch.
Kang Chandararot, Dannet Liv and al., CDRI (December 2004). Cambodia's Annual Economic Review 2003.
KOMA YS. (1997). Sustainable agriculture country profile Cambodia, CEDAC, p. 41.
Kevin, Tony (August 1999). Cambodia and Southeast Asia.
Khuy Sitheng and Morm Vannak, Norton University (2000). First Step of Cambodia into ASEAN.
Kimhourn, Kao (1999). ASEAN-10 is Born "Commemorating Cambodia's Entry into ASEAN".
Kimhourn, Kao (1999). Cambodia's Prospective Membership in ASEAN: Opportunities, Challenges
and Prospects.
Kimhourn, Kao and Sarah Kanter (1997). ASEAN Free Trade Agreement.
Kyoko Kusakabe, Prak Sereyvath and al., May 2005, Women Negotiating Borders:Marketing Routes
and Cross-border Trade of Inland Fish between Thailand and Cambodia.
Mearch, S (2002). Socio-Economic Study of the land title registration.
MAFF (2000 – 2005). Agricultural statistics.
National Accounts of Cambodia 1993-2002.
Nou Keosothea, CDRI (August 2005). Competitiveness of Cambodian Agriculture
(A Case Study of Maize, Soybeans and Cassava in Cambodia, Thailand and Vietnam).
Rasiah, Rajah and Monh Haflah Piei (1998). Understanding The AFTA Progress.
Sitheng, Khuy and Mom Vannak (2000). First step of Cambodia after into ASEAN.
56
Sok hach, Chea Hout and Sik Boreak, CDRI, Cambodia’s Annual Economic Review 2001.
Tan, Nady (1996). AFTA in the Changing International Economy.
Thomas Rumbaugh et al. (2000). Cambodia: Selected Issues, IMF, Aug 31.
57
Appendices
Appendix 1
CAMBODIA AT A GLANCE
PEOPLE
Population: 13.77 million (2003 estimates) Ethnic Groups: Khmer 90%, Chinese and Vietnamese 5% and smaller number of Chams, Burmese and hill tribes Official Languages: Khmer (official), English and French Major Religions: Buddhist 95 %, Christian, Muslim and Others21
GEOGRAPHY
Area: 181,035 sq km Location: Southwestern part of the Indochina peninsula. Neighbours: Thailand, Laos on the west and on the north, and Vietnam on the east and southeast, and the Gulf of Thailand. Capital: Phnom Penh
GOVERNMENT22
Type: Constitutional Monarchy Head of State: King Norodom Sihaknouk Head of Government: Prime Minister Hun Sen Foreign Minister: Hor Namhong
ECONOMY Major Industries: Garment, textiles, manufacturing agriculture and quarrying. Electricity: 4776 billion kWh (2002) Labour Force: 6.2 million (Nov 2001)23
FINANCE
Monetary Unit: Cambodian Riel GDP Growth: 5.5% (2002 estimated)24
GDP per Capita: US$247 (2001)25
Export of Goods: US$1.502 million (2001) Import of Goods: US$1,1841 million (2001) Trade Balance: US$339 million (2001) Current Balance: US$216 million (2001)26
COMMUNICATIONS
Telephone (main line): 023, 011, 012, 092 and 016 (2003) Telephones: 357 040 (mobile phone 321,621)( in 2002)
TRANSPORT
Railways: 601 km Port and Harbors: 6 Airports: 6 (international 2)27
HEALTH Life Expectancy: 56.3 years Birth Rate: 35 per 1,000 population Death Rate: 11 per 1,000 population Infant Mortality Rate: 80 deaths per 1,000 live births (2003)28
EDUCATION
Literacy rate (15 years old and over): 67.3 % (1998)
21 NIS, Kingdom of Cambodia Statistical Year Book 2003, p. 3. 22 Mekong Law Report, Cambodia Investment Guide 2002, p. 123. 23 NIS, Kingdom of Cambodia Statistical Year Book 2003, p. 37. 24 NIS, Kingdom of Cambodia Statistical Year Book 2003, p. 430. 25 Sok Hach and Sarthi Acharya ,2002, Cambodia’s Annual Economic Review 2002, p. 87. 26 Sok Hach and Sarthi Acharya ,2002, Cambodia’s Annual Economic Review 2002, p. 32. 27 NIS, Kingdom of Cambodia Statistical Year Book 2003, p. 276. 28 NIS, Kingdom of Cambodia Statistical Year Book 2003, p. 19.
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Appendix 2: Main Economic Indicator
Source: CDRI, Cambodia's Annual Economic Review, December 2004.
59
Appendix 3
Major agricultural crops and animal production
Food Crops Industrial Crops Animal Raising
• Rice • Maize • Sweet potato • Vegetable • Mungbean • Peanuts
• Soybean • Black and white sesame • Sugar cane • Tobacco • Rubber• Cassava
• Poultry • Cattle • Pig • Cow• Fish • Marine fish
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Appendix 4
Number of Farmers by Major Crops and Areas Major Crops Major Production Areas
RICE
• Number of farmers producing rice/paddy in the country: around 8 million
• Men farmers: 48% • Women farmers: 52% • Total production of
rice/paddy produced by farmers: around four millions tons
Battambang Province
Number of villages: 604 Acreage: 6,679 km2
Amount of production: 357,860 Tons Involving around 288,000 men farmers and 312,000 women farmers
Prey Veng Province
Number of villages: 1,136 Acreage: 4,883 km2
Amount of production: 577,380 tons Involving around 450,000 men farmers and 500,000 women farmers
Takeo Province
Number of villages: 1,116 Acreage: 2290 km2
Amount of production: 554,890 tons Involving around 380,000 men farmers and 411,000 women farmers
SOYA BEAN AND MUNG
BEAN
• Number of farmers producing Soya bean and Mung bean in the country: no data
• Men farmers: 48% • Women farmers: 52% • Total production of Soya
bean and Mung bean produced by farmers: 51 000 Tones
Kampong Cham Province
Number of villages: 1,748* Acreage: 9,799 km2*Amount of production: 40,268 tons Population: 872,583* men and 927,916* women
Battambang Province
Number of villages: 604* Acreage: 6,679 km2* Amount of production: 4,530 tons Population 288,000* men and 312,000* women
l ProvinceNo. of villages: 1,0887*
Acreage: 3,568 km2*
Amount of production: 1500 tons Population: 582,537* men and 622,408* women)
* The total number in the whole province. Only about 30% are related to soya bean and Mung bean
production.
FISH
• Number of farmers producing/catching fish in the country: among 13 millions of Cambodian population, 2.1% are professional fishermen and around 80% are involving both fishing and
Kampong ChhnangNumber of villages: 546*
Acreage: 5,521 km2*
Amount of production: 18,000 tones Population 227,594* men and 248,962* women
Kandal ProvinceNumber of villages: 1,0887* Acreage: 3,568 km2*
Amount of production: 12,344 tones
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agricultural production. Men fisher: 80%; Women fisher: 20%
• Total production of fish produced by farmers: 71,000 Tones (inland caught fish) + 38,000 Tones (marine fish)
Population: 582,537* men and 622,408* women) Siem Reap Province
Number of villages: 875*
Acreage: 10,299 km2*
Amount of production: 7,000 tones Population: 388,106* men and 517,893* women)
* The total number in the whole province. Only around 50%
are concerned with inland caught fish.
Source: Estimates based on data from agricultural statistics of MAFF (2003), general population census (1998) and NIS (2003).
Appendix 5: Implication of Cambodia Membership in ASEAN / AFTA
Cambodia's Joining Asean/AFTA
Structural, Legal and Instructional
Social and Cultural effect
Tariff Reduction and Abolition of NTBs
AFTA plus
Mekong 6
Relations with other Bilateral and Multilateral Partner
Static effect
Dynamic effects Tariff
Revenue
Trade Division Trade Creation
Import Price Decreased Trade with the others partners Decreased
National Budget
Increases Import from ASEAN
Balance of Payment
Price competition and Quality Improvement
Open National Market and Access to Regional Market
Competition among Product Base
Investment Opportunities
Agriculture, Infant Industry and SMEs
Specialization and comparative
Build up Production Base
FDI inflows
Reduction of Inefficient Domestic Producer
Improving of Resource Allocation and Increased Productivity Export-Oriented
Agriculture and
Tourism and Service Sector
Transfer of Information, Technology and Know-How
Employment
Investment and Trade
Psychological Effects Co-operation in other areas:
- Macro-economic , Monetary and FinancePolicies
- Co-operation in Services - Investment Policy (ASEAN Investment
Areas ) - Transportation and Communication - R&D - Environment and Other Non-co-operation
Income Taxes
Source: Keat Choun & Aun Pom Moniroth, 1998
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Organisational Members of Network of Eco-Agriculture Development in
Cambodia (NEDC)
1 Centre d’Etude et de Développement Agricole Cambodgien/ Cambodian Center for Study and Development in Agriculture (CEDAC) # 39, Street 528, S/K Boeung Kak 1, Khan Tuol Kork, Phnom Penh, Cambodia. P.O Box 1118 Tel: 023 880 916/ 012 98 52 72 Email: [email protected]
2 Aphiwat Strey (AS) Kampong Krobey village, Svaypor commune, Battambang district, Battambang province H/P: 012 818 577 Email: [email protected]
3 Banteay Srei (BS) # 36, Street 408, S/K Phsar Doeum Thkov, Khan Chamcarmorn, Phnom Penh, Cambodia Tel: 012 932 357/ 023 216 922 Email: [email protected]
4 Chamroeun Cheat Khmer (CCK) Chambak Em village, Rominh commune, Koh Andet district, Takeo province H/P: 012 241 773/012 791 421
5 Neak Aphiwat Sahakum (NAS) Str. Neary Klahann, Timouy village, Veal Vong commune, Kampong Cham district, Kampong Cham province Tel: 012 255 866/042 942 050 Email: [email protected]
6 Village Support Group (VSG) Str. 675, Kamakor village, Svay Por commune, Battambang district, Battambang province P.O Box: 350 Tel: 012 497 026/053 730 355 Email: [email protected]
7 Rural Development Association (RDA) Chroy Sdao pagoda, Chroy Sdao village, Chroy Sdao commune, Thmor Korl district, Battambang province Tel: 012 601 421 C/o: [email protected]
8 Kunathor (KNT) # 91, Group 6, Damnak Lorng Village, Watkor commune, Battambang district, Battambang province H/P: 012 957 416 C/o: [email protected] [email protected]
9 Krom Aphiwat Phum (KAWP) Kandoeung pagoda, Watkor village, Watkor commune, Battambang district Battambang province HP: 012 969 419/ 012 957 416 Email: [email protected]
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10 National Prosperity Association (NAPA) Trapaing Ampil village, Trapaing Korng commune, Samrong Torng district, Kampong Speu province H/P: 012 499 768 Email: [email protected]
11 Koma Ney Kdey Sangkhem (KNKS) #02, Peal Gnek village, Phteah Prey commune, Sampov Meas district, Pursat province H/P: 012 396 420 Email: [email protected]
12 Ponleu Ney Kdey Sangkhem (PNKS) #41, Str. 476, S/K: Toul Tumpoung I, Khan Chamcarmorn, Phnom Penh Tel: 012 995 449/ 052 951 483 Email: [email protected]
13 Partnership for Development Kampucha (PADEK) #72, street 360, S/K: Toul Svay Prey I, Khan: Chamcarmorn, Phnom Penh Tel: 023 216 224/012 988 568 Email: [email protected]
14 Oxfam Great Britain (OGB) #442, street 193, Sangkat Toul Svay Prey 1, Khan Chamcarmon, Phnom Penh, Cambodia. Tel: 023 212 353-4-5 Fax: 023 211 873 HP: 012 611 758 Email: [email protected]
15 Srer Khmer (SRK) #11B, Street 101, S/K: Boeung Trabek, Khan: Chamcarmorn, Phnom Penh H/P: 012 83 99 40/ 023 210 217 Email: [email protected]
16 Hilfswerk der Evangelischen Kirchen Schweiz Swiss Interchurch Aid (HEKS) Cambodia Programme, P.O.Box 445 PNP House #60, St. 606, Boeng Kak II, Khan Tuol Kok, Phnom Penh Tel : 023 881 879 Fax : 855 023 881 645 Mobile : 855 012 345 222 Email : [email protected] Web site: www.heks.ch
17 Rural Association for the Development and the Economics (RADE) H/P: 012 920 189 Email: [email protected]
18 Farmer Organic Development Association (FODA) Watkor village, Watkor commune, Battambang district, Battambang province H/P: 012 216 593 Email: [email protected]
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19 Federation for Integrated Development of Agriculture in Cambodia (FIDAC) Mondul III village, Sor Kram commune, Siem Reap district, Siem Reap province Tel: 063 965 539 / 012 830 172 Email: [email protected]
20 Chet Thor (CT) Chipeay village, Prey Porn Commune, Kapong Trabek district, Prey Veng province H/P: 016 753 696
21 Mlup Baitang (MB) #37B, Street 113, S/K: Boeung Keng Kang II, Khan Chamcarmorn, Phnom Penh Tel: 023 214 409 Email: [email protected]
22 Buddhist Development Association and Supporting Environment (BDASE) Peal Nhek village, Phteah Trey commune, Sampov Meas district, Pursat province Tel: 012 866 450 / 052 740 072 Email: [email protected]
23 Farmer Livelihood Development (FLD) #93, Street 141, S/K: Boeung Prolit, Khan 7 Makara, Phnom Penh H/P: 012 626 517 Email: [email protected]
24 Farmer Livelihood Improvement (FLI) Toul Sokrom pagoda, Trapain Mdehn village, Trapaing Lpov commune, Romeas Hek district, Svay Rieng province H/P: 012213673 C/o: [email protected]
25 Church Relief Service (CRS) Veal Yun village, Svay Rieng commune, Svay Rieng province Tel: 012 554 299 Email: [email protected]
26 Po Thom Elderly Association (PTEA) Po Thom pagoda, Mnorng village, Mream commune, Romeas Hek district, Svay Rieng province H/P: 012 618 274 C/o: [email protected]
27 Oxfam Australia (OAus) H/P: 012924126 Email: [email protected]
28 Japan International Volunteer Center(JVC) #66, Street 222, S/K: Boeung Raing, Khan Daun Penh, Phom Penh H/P: 12970249 Email: [email protected]
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29 Rachana (RCN) Prey Sandek village, Prey Soeuk Commune, Traing district, Takeo province Mr. Cheng Dara H/P: 012928663 Email: [email protected]
30 Association for Human Resource Development and Health Education (AHRDHE) Thnal Bek village, Svay Teab communce, Chamka Leu district, Kampong Cham province CCC Box: 242 H/P: 012 646 989/011 306 161 Email: [email protected]
31 Cambodia Association for Development of Economy Together (CADET) # 863, Road 5, Group 13, Sangkat Kilometer N° 6, Khan Russey Keo, Phnom Penh H/P: 012 775 997 Email: [email protected]
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[email protected] : www.seacouncil.org
About SEACON
The Southeast Asian Council for Food Security and Fair Trade (SEACON) provides a coordinated approach to food security, agriculture and trade issues. We integrate local initiatives of agrarian reform and agricultural development with trade concerns at the Southeast Asian level. In each of our member countries, we support people centred national based food security councils that enable government, private sector and civil society representatives to meet and dialogue on agriculture and trade issues.
The establishment of the national food council is to ensure that whatever analysis / positions taken on at the regional level, would have the secure backing from the grassroots and vice versa.
SEACON
ISBN 983-42837-8-4
Printed by Syarikat Asas Jaya
Published in 2006
Cambodian Center for Study and Development in Agriculture (CEDAC)#39, Street 528, S/K Boeung Kak 1,Khan Taul Kork, Phnom Penh,Cambodia.Tel : (855)-23-880-916 Fax : (855)-23-885-146Email : [email protected]