cambodian group presentation mekong institute khon kaen, thailand 06-10 september, 2010
TRANSCRIPT
Cambodian Group Cambodian Group Presentation Presentation
Mekong Institute Mekong Institute Khon Kaen, ThailandKhon Kaen, Thailand06-10 September, 201006-10 September, 2010
Outline
•Country Profile and Background
•SME Situation
•Solution to Promote SME
Country Profile and Country Profile and BackgroundBackground
Location: Southeast Asia and bordering with Location: Southeast Asia and bordering with Thailand to the North and West, Lao PDR to Thailand to the North and West, Lao PDR to the Northeast, and Vietnam to the East and the Northeast, and Vietnam to the East and Southeast. Southeast.
Total land area: 181,035 square kilometerTotal land area: 181,035 square kilometer Total population: 14,494,293 (in 2008)Total population: 14,494,293 (in 2008) The Capital: Phnom Penh The Capital: Phnom Penh The language: KhmerThe language: Khmer Climate: Two seasons ( Rainy and Dry season Climate: Two seasons ( Rainy and Dry season
)) The temperature range from 21°to 35 °CThe temperature range from 21°to 35 °C
3
•Major Exports: Garments, Fisheries Products, Rubber
•Major Export Trading Countries: United States, Germany, UK, Singapore, Japan
•Major Imports: petroleum products, construction materials, vehicles and motorcycles, clothing
•Major Import Trading Countries: Thailand, Singapore, Hong Kong, China, South Korea
GDP Shared by sectorsGDP Shared by sectors
GDP by Sectors
29% 30%
41%
0%
10%
20%
30%
40%
50%
Agriculture Industry Services
Economy ReformEconomy Reform The country has completed the transition from a centrally The country has completed the transition from a centrally
planned to a market economyplanned to a market economy The government has improved investment climate including The government has improved investment climate including
improvement of laws, regulations and administrative improvement of laws, regulations and administrative procedures. procedures.
Cambodia membership in Cambodia membership in ASEANASEAN, WTO, AFTA, Trade , WTO, AFTA, Trade Agreement with China, EU and the US as well as other Agreement with China, EU and the US as well as other development initiatives in the region have provided investors development initiatives in the region have provided investors with market accesses to most countries around the world.with market accesses to most countries around the world.
Fast garment industry growth,Fast garment industry growth,
In order to improve long term development, government try In order to improve long term development, government try to promote private sector in term of SME.to promote private sector in term of SME.
7
Definition of SMEDefinition of SME Micro:Micro:
Labor: less than 10 Labor: less than 10 Investment: Less than 50.000 USD Investment: Less than 50.000 USD
Small:Small: Labor: 10-50Labor: 10-50 Investment: 50.000-250.000 USD Investment: 50.000-250.000 USD
Medium:Medium: Labor: 51-100 Labor: 51-100 Investment: 250.000-500.000 USD Investment: 250.000-500.000 USD
Large:Large: Labor: more than 100Labor: more than 100 Investment: More than 500.000 USD Investment: More than 500.000 USD
StrengthsStrengths Good coordination between industry, university, Good coordination between industry, university,
research and development instituteresearch and development institute Adopt the globalization technology Adopt the globalization technology Develop Science and technology policyDevelop Science and technology policy Develop social science from R and DDevelop social science from R and D Innovation system and management with SME Innovation system and management with SME
orientedoriented Technology and entrepreneurship Technology and entrepreneurship Develop main industrial clusterDevelop main industrial cluster Develop strategic and expertise Develop strategic and expertise Develop business partnershipDevelop business partnership Integrate new technology to develop export Integrate new technology to develop export
market market
WeaknessesWeaknesses
Lack of knowledge, skills on entrepreneurship Lack of knowledge, skills on entrepreneurship Poor infrastructure due to lack of government’s Poor infrastructure due to lack of government’s
resource allocationresource allocation Lack of Standardization program for training Lack of Standardization program for training
institutionsinstitutions Lack of application oriented technology Lack of application oriented technology
development for SMEdevelopment for SME Unawareness of importance of innovation systemUnawareness of importance of innovation system Weak relationship between government and Weak relationship between government and
businessbusiness Unable to introduce R and D program due to no R Unable to introduce R and D program due to no R
and D Centersand D Centers Small scale of technical training institutions. Small scale of technical training institutions.
OpportunitiesOpportunities Access to ASEAN Development FundAccess to ASEAN Development Fund Integrate/export product to the Integrate/export product to the
regional and international market regional and international market Non-tariff for export and import Non-tariff for export and import
(Asean countries)(Asean countries) Access to Most Favored Nation (MFN)Access to Most Favored Nation (MFN) Cooperate social responsibilityCooperate social responsibility Labor forceLabor force
ThreatsThreats
High High transactiontransaction cost cost Limited access to financeLimited access to finance Inadequate legal and regulation Inadequate legal and regulation
frameworkframework Poor infrastructurePoor infrastructure High energy cost-high production High energy cost-high production
costcost
1313
RECTANGULAR STRATEGY 2004-2013
1
ENHANCEMENT OF AGRICULTURAL SECTOR
Improving productivity
And diversifyingAgricultural
sector
Land Reform and mines clearance
Fisheries reform
Forestry reform
2
Furt
her
Reh
abili
tati
on &
Con
stru
ctio
n o
f In
frast
ruct
ure
Furt
her
const
ruct
ion o
f Tra
nsp
ort
infr
ast
ruct
ureM
anagem
ent
of
Wate
r re
sourc
es
&ir
rigati
on
Delo
pm
ent
of
the
energ
y s
ect
or
&
ele
ctri
city
netw
ork
Develo
pm
ent
of
info
rmati
on &
co
mm
unic
ati
on
tech
nolo
gy
3
PR
IVA
TE S
EC
TO
R D
EV
ELO
PM
EN
T &
EM
PLO
YM
EN
T G
EN
ER
ATIO
N
Stre
ngth
enin
g p
rivate
se
ctor &
attra
cting
investm
ent
Cre
atin
g jo
b &
Ensu
ring im
pro
ved
work co
nditio
n
Pro
motin
gSM
Es
Ensu
ring so
cial
safe
ty n
ets
4
CAPACITY BUILDING & HUMAN RESOURCE DEVELOPMENT
Enhancing quality
of education
Improving health services
Fostering genderequity
Implementing Population
policy
Peace, political stabilityAnd social order
Inte
gra
tion o
f C
am
bodia
Into
the r
egio
n a
nd t
he
worl
d
Partn
ersh
ip in
develo
pm
ent
Favorable macroeconomic andFinancial environment
GOOD GOVERNANCE
Fightingcorruption
Legal and judicialreform
Public Administrative
reform
Armed forces reform
And demobilization
How to enhance SMEHow to enhance SME
Reduce the barriers and build the Reduce the barriers and build the necessary system for effective registrationnecessary system for effective registration
Reduce regulatory compliance costs by Reduce regulatory compliance costs by enhancing governance and responsibilities enhancing governance and responsibilities of the relevant state agenciesof the relevant state agencies
Develop basic legal infrastructure needed Develop basic legal infrastructure needed for business and strengthen the rule of for business and strengthen the rule of lawlaw
Improve trade facilitation to make it low Improve trade facilitation to make it low cost, efficient and transparent cost, efficient and transparent
How to enhance SME (Cont.)How to enhance SME (Cont.)
Access to finance: Access to finance: Collateral and Land titling: Establish secure Collateral and Land titling: Establish secure
titling to improve collateral based, and titling to improve collateral based, and effective mechanism of enforcement of the effective mechanism of enforcement of the land law. land law.
Leasing: Create and enabling framework for Leasing: Create and enabling framework for banks to provide finance leasingbanks to provide finance leasing
Credit information sharing: reduce the risks Credit information sharing: reduce the risks associated with limited information on associated with limited information on potential borrowerpotential borrower
Simplified accounting and taxation systems for Simplified accounting and taxation systems for SMEs: reduce the risks related to the lack of SMEs: reduce the risks related to the lack of appropriate financial informationappropriate financial information
How to enhance SME (Cont.)How to enhance SME (Cont.)
SME SupportSME Support Business development services: Create a dynamic Business development services: Create a dynamic
market for BDS as private goods and offering a range market for BDS as private goods and offering a range of services development by SMEsof services development by SMEs
Access to markets: improve SME access to domestic Access to markets: improve SME access to domestic and export markets through better information, and export markets through better information, market research, product development and market research, product development and promotional activities. promotional activities.
Technology and human resources upgrading: improve Technology and human resources upgrading: improve availability and awareness among SMEs of technology availability and awareness among SMEs of technology and technical and managerial training. and technical and managerial training.
Linkages: assist SMEs to work together and cooperate Linkages: assist SMEs to work together and cooperate in integrated networks to improve their in integrated networks to improve their competitiveness and access to local and international competitiveness and access to local and international markets. markets.
Thank you!Thank you!