table of contents - ministry of commerce · b. progress towards meeting the intermediate outcomes...
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Table of Contents
Foreword 2 Executive Summary 3 Abbreviations and Acronyms 8
I. Introduction and Program Descriptions 10 A. Introduction 10 B. Program Components 10 C. Trade SWAp Approach 11
II. TDSP Program Achievements and Results 12 A. Progress Towards Meeting the Project Development Objectives 12 B. Progress Towards Meeting the Intermediate Outcomes 16 C. Financial Management Achievements and Results 21 D. Procurement Management Achievements and Results 23 E. Progress Towards Achievements of Key Outcomes and Results 25 F. Progress on Project Key Activities, Milestones, and Outputs 32
III. Issues, Challenges, Lessons Learned, and the Way Forward 47 IV. Conclusions and Recommendations 49
Appendices 1. Disbursement Status of Projects Funded under TDSP 52 2. Global Competitiveness Index Profile of Cambodia 54 3. Doing Business 2014: Cambodia Indicators 55 4. Procurement Packages for February 2014 57 5. Progress with the Implementation of 12-Point Action Plan 59 6. Trade SWAp Roadmap Achievements and Results 63 7. Success Stories of SMEs 99
References 102
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Executive Summary
The Cambodian economy has grown at an average of 8 percent per year from 2004 to 2012, according to the
recently published report of the World Bank. It is expected that the GDP for 2013 will grow by about 7.2 percent
brought about by strong exports, private investment and agriculture, and by a solid macro-economic position.
Although there are many tangible manifestations of the increased confidence of investors and traders in Cambodia,
there are still many challenges that the country needs to face.
(http://www.worldbank.org/en/country/cambodia/overview)
The Annual Progress Report for 2013 of the Trade Development Support Program outlines the achievements and
results made by the Program since its inception and up to the present. Below are the various achievements and
results of the Program:
Achievement Towards Project Development Outcome: The Project Development Objective is on its way of
achieving the project outcome indicators, as reflected by the following:
Trade SWAp has been fully functional and has become a viable mechanism for coordinating technical
assistance from multiple sources.
Trade SWAp Secretariat has been functioning effectively as a National Implementation Unit under the
Department of International Cooperation (D/ICO), Ministry of Commerce, coordinating activities of the
Trade SWAp Roadmap Pillar Working Groups.
A strong M & E Unit has been organized at the Department of International Cooperation of the Ministry of
Commerce, following up all agencies‘ implementation progress to ensure results are achieved.
Trade SWAp roadmaps has been finalized in March 2012, adopted by SSC in April 2012 and has been
managed and monitored by the three pillars of the Trade SWAp, which is currently being updated and
completed in December 2013 and adopted by the Royal Government in February 2014.
The Ministry of Commerce has started the automation process for many of the operational requirements of its
various departments and units.
The development of a national trade portal has started and will be in full swing by end of the program in
March 2015.
The development of a trade repository has already started (that links to the trade portal).
Automation activities for trademarks and certificates of origin have started.
The automation of Customs, using the ASYCUDA World, has been rolled-out in all 21 checkpoints.
Decreased transaction times for imports and exports, with faster port handling and reduced inspections.
Sub-Decree on Non-Tariff Measures (NTM) has been drafted.
The study on National Single Window (NSW) has been started at GDCE, implemented under the World
Bank‘s Executed Trust Fund (BETF)
Key performance indicators for various indicators were formulated thru a Results Based Performance
Monitoring System.
TDSP has achieved some early results:
A results framework that links SWAp Roadmap Indicators and TDSP indicators to project-level performance
has allowed for monitoring and evaluation. This has been enabled by the endorsement of the trade sector-
wide approach (SWAp) roadmaps by the Sub-Steering Committee on Trade Development and Trade Related
Investment (SSC-TD-TRI). An updated Trade SWAp has been finalized and expected for adoption in March
2014.
Trade Policy formulation and implementation has been improved through the ASEAN Chairmanship support,
which produced three major policy contributions to the ASEAN regional work program: the development of
capacity to implement the rules of origin as required by major export partners; draft e-commerce law;
development of trade curriculum at the Royal School of Administration; channels of communication for
private sector into policy making by incorporating private sector into the SWAp.
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Increased transparency and user feedback mechanism on trade related processes through automation and risk
management of key border agencies; development of online trade portal, automated certificates of origin and
statistical databases at the Ministry of Commerce; automation of trademark processes and development of
searchable intellectual property portal.
Strengthened institutional and human capacity in MoC and trade-related agencies through export and SME
training, Market Analysis and Market Mapping Training conducted by ITC, review of core functions at the
Ministry of Commerce, development of training syllabus and course programs for intellectual property in
major universities in Cambodia, awareness training program of Customs procedures, and on-going training in
project supervision, M & E, and project management in all agencies.
Project Outcome Indicator Achievements: In terms of the Project Outcome Indicators, the following are the
achievements:
The Sub-Steering Committee on Trade Development and Trade Related Investment (SSC-TD-TRI), chaired
by the Minister of Commerce, is meeting every 3 months and the Implementing Committee (IC) is meeting
every month.
The Trade SWAp Roadmaps are in use (though SWAp pillar working group meetings need to be made more
regular) and results framework is in place for assessing the contribution of projects to the Trade SWAp
roadmaps.
The Diagnostic Trade Integration Strategy Report has been revised and is expected to be launched on 18
February 2014 by the Prime Minister. The DTIS 2013 Update will contribute to the RGC's 5 Year National
Strategic Development Plan 2014-2018 and the Royal Government of Cambodia‘s Rectangular Strategy.
Contribution from TDSP to the DTIS 2013 update and the NSDP 2014-2018 would be regarded as highly
favorable in meeting the Program Development Objectives (PDOs).
Trade Policy Formulation and Implementation
• On SPS: The Cambodia MDTF for trade-related assistance is addressing SPS issues in one project
implemented through the Fisheries Administration, which is a large-scale intervention in the fisheries value
chain to upgrade the SPS capacity of processors and producers. UNIDO consultants are assisting the FiA of
the Ministry of Agriculture, Forestry and Fisheries (MAFF) in implementing this project. Another project
outside of TDSP and being financed by ADB is "Better Quality and Safety of Fish and Fishery Products for
Improving Fish Trade Development in Cambodia" valued at more than $1 million is underway at Fisheries
(though implementation has been delayed due to the complications of contracting with a UN agency.)
• On TBT: There are two large-scale projects underway to address TBT compliance. These projects are now
showing early results in the form of draft standards issued for public comment by the Institute of Standards of
Cambodia (ISC).
• Rationalization in Institutional Responsibilities for SPS and TBT: Projects to support the improved
compliance with WTO agreements on TBT include: (i) Strengthening the capacity of the Institute of
Standards of Cambodia (ISC); and (ii) Development of Completed Drafts of National Standards for Rice and
Strengthening the Capacity of Conformity Assessment Body – Phase 1.
Progress under 12-Point Action Plan:
Point 1: Establishment of a cross agency trade facilitation/investment climate reform team.
Point 3: "Replace 45 documents with the Single Administrative Document";
Point 4: "Introduce Risk Management to target inspections";
Point 6: "Automated Single Window" (the ASYCUDA automated system in place in Sihanoukville);
Point 7: "Introduce flat fee & service level agreement" (recurring cost of automated customs operations have
been estimated);
Point 8: Streamlining process and reduce cost of commercial registration;
Point 12: Some forms of monitoring and reporting of PSD progress have been reported to the biannual
Government Private Sector Forum.
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Other Achievements:
Logistics Performance Index: Cambodia has jumped 28-rankings in the 2012 Logistics Performance from LPI
of 2.37 and ranking of 129 in 2010 to LPI of 2.56 and ranking of 101 in 2012. (No LPI Report prepared for
2013)
Trade Facilitation: The TDSP is now funding all trade facilitation activities in the World Bank portfolio,
including the installation and ongoing maintenance of ASYCUDA - the customs automation software and a
broad capacity enhancement program, as TFCP has closed (the $10-million IDA grant).
National Single Window: The National Single Window Project for Customs, funded under the Bank-Executed
Trust Fund (BETF) has already started requiring about $875,000 as per World Bank estimate.
Other Programs on Customs and Excise: Other progress in Customs and Excise operations are as follows:
GDCE Capacity Enhancement program ($613,000) comprising (i) A National Customs Intelligence System
developed and implemented. (ii)A Strategic Plan for Customs Marine Enforcement developed. (iii)
Compilation of trade statistics improved. (iv) Business Plan for the Inspection of Petroleum Products
completed. (v) A legal data base of decisions related to Customs laws and regulations developed and staff
trained in its use, resulting in fewer cases brought to court and or lost. Post-clearance audits, investigation,
intelligence gathering, and anti-smuggling capacity improved. (vi) A special training program for staff to
prepare them to the new operating principles and practices implemented; and SYCUDA rollout and ongoing
support ($1.13 million).
Average time for imports/export days: Preliminary indications from the unfinished ICA survey is that import
times have not improved from 5.1 days but that export times have decreased from 4.3 days to 2.4 days. (Source:
2007/2008 and 2012 Investment Climate Surveys).
Proportion of Containers Physically Open (%): 20.6% for imports and 8.3% for exports. % of containers
selected for red-channel inspection at the main ports with risk management system functioning (e.g.
Sihanoukville port, Phnom Penh International Airport and Dry ports).
For the Bank-executed Trust Fund:
Technical Assistance has been provided to the Royal Government Cambodia to support ASEAN Chairmanship
including significant reports on Non- Tariff Measures (currently tabled before ASEAN members states as a
proposal from Cambodia), a Gap Assessment Methodology, and a report on domestic reforms that need to be
undertaken in order to comply with ASEAN and WTO obligations. Several activities will also be undertaken by
the Bank as a result of additional financing to TDSP from EU.
For the Recipient-executed Trust Fund:
The Law on E-Commerce has been drafted and is undergoing review. On the other hand, the commercial law
project is being revived after more than 1 year of being inactive to support the work program resulting from the
WTO TPR and the ASEAN gap assessment. Work Program on Commercial Laws has been adopted and
approved. Both projects are funded by TDSP and will bring Royal Government Cambodia into compliance with
WTO and ASEAN obligations.
There has been a lot of progress and development in the various rules and regulations that have been adopted by
the Royal Government to support the trade facilitation process. Among those policies, rules and regulations
include, but not limited to the following: the new Investment Law, new Customs Law, the Commercial
Enterprises and Company Law, the Insolvency Law, the Commercial Arbitration Law, the Secured Transaction
Law, the Anti-money Laundering and Counter Financing of Terrorism Law, the Civil Code and the Civil
Procedure Code.
The draft commercial leasing law was approved by the Council of Ministers, and the draft concessions law was
submitted to the National Assembly for debate. These are among a number of key laws aimed at fostering trade
and transport facilitation and private sector development.
Four main laws dealing with the protection of intellectual property: (a) the Law on Copyright and Related
Rights; (b) the Law Concerning Marks, Trade Names, and Acts of Unfair Competition; (c) the Law of Patents,
Utility Models and Industrial Designs; and the (d) the Law in Seed Management and Plant Breeders Rights.
Cambodia has also adopted five legal texts implementing the first three of the above laws.
The Council of Ministers has approved a draft law aimed at protecting the patent rights of traditional
Cambodian products, which if violated could be met with a fine of up to $5,000 and a five-year jail term.
According to the statement of the Council of Ministers, the law on geographical indication (G.I.), a status given
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to protect reputable goods that originate from a specific region, aims at maintaining national identity and
―protecting the intellectual property of producers and operators while protecting consumers.‖
The Secretariat of IPR has completed and disseminated the Manual on IPR, including the Lexicon on IPR, and
has been distributed to educational institutions, teachers, and enforcement officers on IPR.
A results framework linking Trade SWAp Roadmap results indicators and TDSP results indicators to project
level indicators has evolved and is regularly being updated. An international and national M&E consultant had
been recruited to improve DICO's and implementing agencies‘ monitoring, evaluation, and learning capacity.
Roadmaps for the three pillars of the trade SWAp have been finalized by the inter‐ministerial Pillar Working
Groups, reviewed and agreed by the inter-ministerial Implementing Committee (IC); and endorsed by the
Sub‐Steering Committee for Trade Development and Trade Related Investment (SSC-TD-TRI).
Value chains analysis were carried for two (2) products: pepper and rubber. Value chain analysis was also
carried out for the fisheries sector by an independent research group.
Monitoring of the KPI of the Pillar Roadmaps has been undertaken based on the Project Results Framework
for each of the projects funded by the TDSP and supported by the Pillar Working Groups and the Monitoring
and Evaluation Unit of D/ICO.
Full engagement of the private sector with Trade SWAP, with the support provided to Government-Private
Sector Forum (G-PSF) thru TDSP.
The MoC currently benefits from several projects of combined value $2.88 million: (i) Rules of Origin:
Operational procedures and training ($110,000); (ii) export training and SME program ($49,000), (iii) capacity
building for Department of Trade Statistics and Information ($110,000) (iv) IP Teaching and Training
($110,000), (v) E-Commerce Law Drafting($124,900), (vi) Institutional risk management at Camcontrol
($105,550), (vii) Strengthening MoC Core HR Functions ($234,540), (viii)Value chain information unit
($240,000), and (ix) MoC ICT Master Plan including Certificate of Origin automation ($1.8 million).
RGC institutions are effectively integrating, coordinating and implementing trade related reforms through the
Trade SWAp Roadmaps.
SSC and IC became well- functioning committees providing on-going strategy and leadership, securing buy-in
for implementation of Trade SWAp Roadmaps from other stakeholders.
Information and educational campaigns, including capacity building for Provincial and Municipal Investment
Sub-Committees (PMIS) on the Investment Laws have been carried out by CIB/CDC at sub-national levels,
business associations, and private sectors.
The Department of International Cooperation has greatly improved and efficiently provided Secretariat services
for the Trade SWAp.
MoC HR Capacity and Development Plan has been fully developed by covering institutional and individual
capacity needs.
Trade Curriculum at the Royal School of Administration are now fully completed with all training materials
and course syllabus.
TDSP has benefitted from the various capacity enhancement programs implemented in various trade related
agencies such as GDCE, ISC, and CAMCONTROL
Conclusions and Recommendations:
Cambodia has already made important gains from the programs and projects on trade. However, the country is still
faced with many issues and challenges. Efforts in developing an international trade landscape for Cambodia will
require coordinated and strategic partnerships with the donor community, private sector, civil society
organizations, the academe, and many other sectors.
Thus, the future interventions and projects of Trade Development Support Program (TDSP) must be aligned and
focused on the following area:
Tariff Liberalization, Non-Tariff Barriers and Legal Reforms: TDSP should continue working on the legal
reform agenda such as finalization of the E-Commerce Law, and the review of various commercial laws,
specifically the Law on Competition, sub-decree on non-tariff measures, the law on anti-dumping, and the law
on trade remedies.
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Technical Barriers to Trade (TBT) and Sanitary and Phyto-Sanitary (SPS): Future TDSP funded projects
must be geared towards review of various policies related with product standards and the related implementing
regulations, including capacity building on food safety, fishery certification procedures, and risk assessment
procedures.
Trade Finance: The issue of SME financing must be addressed in a comprehensive manner: setting up the
appropriate framework which requires the improvement of the availability of information, legal protection of
lenders and investors, as well as the support to the SMEs so they can upgrade and have access to bank loans
and investments by professional investors.
SME Support Strategy: A strategy to support SMEs must include a process to help them in their transition
from informal to formal status and provide them with a management and governance support to better
understand and improve their businesses.
Competition and Consumer Protection: There was a consensus that the introduction of competition laws
could perhaps be done on an incremental evolutionary approach, by introducing key requirements first and then
overtime adding on additional protection and measures.
Connectivity and Logistics Development. As a result of limited availability of logistics related statistical data
and limited exchange of experience, there is a critical need at the national and provincial level to design and
propose more specific logistics development actions. The establishment of an integrated logistics database is
therefore necessary to have a set of common regional logistics indicators.
Capacity Building: A more comprehensive training program must be adopted to improve the individual and
institutional capacity of various people and agencies involved in TDSP and the Trade SWAp Roadmaps,
specifically in the areas of project management, financial management, procurement, monitoring and
evaluation, English training, and computer literacy. If the donor agencies will allow, the Trade Training and
Research Institute (TTRI) based at the Ministry of Commerce must be established quickly and provide the
logistical requirements such as infrastructure, facilities, equipment, and training facilitators to train officials in
trade negotiations, accounting, and other necessary capacity building programs related to trade.
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Kingdom of Cambodia
Fiscal Year
January 1 to December 31
CURRENCY EQUIVALENTS
At Appraisal At End of the Year 2013
(As of 11 April 2005) (As of 31 December 2013) 1 Riel 1.000 $0.000249 $0.000250
US$1.00 4,015 Riel 3,995 Riel
ABBREVIATIONS AND ACRONYMS
ADB Asian Development Bank
APEC Asia Pacific Economic Cooperation
ASEAN Association of Southeast Asian Nations
ASYCUDA Automated System of Customs Data
AUSAID Australian Agency for International Development
AW ASYCUDA World
BETF Bank-Executed Trust Fund
CAMCONTROL Cambodia Import Export Inspection and Fraud Repression Department
CAMTRADENET Cambodia Trade Network
CAS Country Assistance Strategy
CDC Council for the Development of Cambodia
CED Customs and Excise Department
CFAA Country Fiduciary Assessment
CIB Cambodia Investment Board
CMDG Cambodian Millennium Development Goals
CO Certificate of Origin
CTA Chief Technical Adviser
DICO Department of International Cooperation (Ministry of Commerce)
DRS Disaster Recovery System
DTI Direct Trader Input
DTIS Diagnostic Trade Integration Strategy
EATW Export Assistance Technical Window
EDC EMAF Director‘s Committee
EDP Export Development Plan
EIF Enhanced Integrated Framework
EMAF Export Market Access Fund
EMT EMAF Management Team
ESAD Electronic Single Administrative Document
EU European Union
FDA Food and Drug Authority
FDC Fixed Duration Contract
FDI Foreign Direct Investment
FIAS Foreign Investment Advisory Service
FM Financial Management
FMM Financial Management Manual
GDCE General Department of Customs and Excise
GDP Gross Domestic Product
GNP Gross National Product
G-PSF Government-Private Sector Forum
HRM Human Resource Management
IA Implementing Agency
IC Implementing Committee
ICA Investment Climate Assessment
ICT Information and Communication Technology
ICR Implementation Completion Report
IFC International Finance Corporation
IFR Interim Financial Report
ILO International Labor Organization
IMF International Monetary Fund
IMS Information Management System
IOC Incremental Operating Cost
IPEC International Program on the Elimination of Child Labor
ITC International Trade Center (Geneva)
IT Information Technology
JICA Japan International Cooperation Agency
KCA Key Capacity Areas
1 Based on Foreign Exchange Rate at the National Bank of Cambodia on 31 December 2013 (accessed thru the website:
http://www.nbc.org.kh/more-exchange.asp)
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KPI Key Performance Index
LAN Local Area Network
LDC Least Developed Country (a country with GDP per capita is less than $1,000 per annum
LJR Legal and Judicial Reform
LPI Logistics Performance Index
MAFF Ministry of Agriculture, Fisheries and Forestry
MAN Metropolitan Area Network
MBPI Merit-Based Pay Initiative
MDTF Multi Donor Trust Fund
MEF Ministry of Economy and Finance
MFA Multi-Fiber Agreement
MFN Most-Favored Nation
MIME Ministry of Industry Mines and Energy
MOC Ministry of Commerce
MOU Memorandum of Understanding
MPDF Mekong Private Sector Development Facility
MULTRAP Multilateral Trade Assistance Project
NIDA National Information Communications Technology Development Authority
NPT National Project Team
NSDP National Strategic Development Plan
NSW National Single Window
OECD Organization for Economic Cooperation and Development
OSH Occupational Safety and Health
OSS One Stop Service
PAC Project Advisory Committee
PDO Program Development Objectives
PDoC Provincial Department of Commerce
PDS Private Sector Development
PFM Public Financial Management
PPI Private Participation in Infrastructure
PPIAF Public-Private Infrastructure Advisory Facility
PPE Personal Protection Equipment
RGC Royal Government of Cambodia
SAD Single Administrative Document
SEZ Special Economic Zone
SITF Special Inter-Ministerial Task Force
SLA Service-Level Agreement
SMSU Systems Management and Support Unit (ICT)
SPS Sanitary and Phyto-Sanitary
SSC-TD-TRI Sub-Steering Committee on Trade Development and Trade-Related Investment
SWAP Sector Wide Approach
TBT Technical Barriers to Trade
TDSP Trade Development Support Program
TFCP Trade Facilitation and Competitiveness Project
TIW Trade Information Window
TOR Terms of Reference
TPR Trade Policy Review
TRAC Trade Related Assistance in Cambodia (i.e. parent Trust Fund for TDSP and the BETF)
TRIMS Trade Related Investment Measures
TRIPS Trade Related Intellectual Property Rights
TTL Task Team Leader
UDC Unspecified Duration Contracts
UNCTAD United Nations Conference on Trade and Development
UNDP United Nations Development Program
UNIDO United Nations Industrial Development Organization
USDOL United States Department of Labor
WAN Wide Area Network
WB World Bank
WIPO World Intellectual Property Organization
WTO World Trade Organization
XML Extensive Mark-up Language
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I. Program Description
A. Introduction
The recipient executed Multi Donor Trust Fund (MDTF) Trade Development Support Program (TDSP)
[TF093573] was originally envisaged as a five year program in June 2007. However, because of the lengthy delays
in the approval of the financing agreement between EC and the Royal Government of Cambodia (which was
signed on 28 June 2007), the signing of the administration agreement (i.e. November 11, 2008), and the date of
project effectiveness (i.e. March 9, 2009), the first disbursements for the program actually took place in June 2009.
Thus, TDSP has been implemented for already four years, with 2 of those years lost to delayed program
formulation. The closing date for TDSP recipient executed Trust Fund [TF093573] has been extended from
March 31, 2012 to January 31, 2014, while the parent Trust Fund, Multi-Donor Trust Fund for Cambodia Trade-
Related Assistance [TF071046] was extended from September 30, 2012 to July 31, 2014. Further extension of the
Program has been proposed with a new closing date of March 31, 2015 for the Government Executed Trust Fund.
The TDSP’s development objective is to increase RGC’s efficiency in formulating and implementing effective
trade policies. The TDSP‘s focus is on establishing an enabling environment that maximizes the impact of, and
reduces the risk to, other sector- and product-specific trade promotion and development activities. On the other
hand, the Trade SWAp‘s objective is to support the implementation of key recommendations of the Diagnostic
Trade Integration Strategy (DTIS) prepared in 2007 that aims to develop and diversify exports, and maximize the
contribution of trade to growth and poverty reduction.
This Annual Report for 2013 captures the achievements and activities carried out by the Trade Development
Support Program, as well as the Trade SWAp Roadmap. This report also encapsulates the impact of TDSP and the
Trade SWAp Roadmap on overall DTIS implementation, including evaluation and monitoring of the various
projects through key performance indicators (KPIs) capturing evidence of improved policy, planning, and
implementation); broad commitment and ownership of the sector-wide process; and progress in DTIS
implementation.
B. Program Components
The TDSP has four components supporting the implementation of the Trade SWAp. Component 1 mainly supports
the first pillar on cross-cutting reforms. Components 2 and 3 support the third pillar on capacity. All three
components would give priorities to reform and capacity development that would enable growth in the priority
sectors identified in the DTIS and supported by the second pillar of the Trade SWAp. Component 4 seeks to build
implementation capacity for the TDSP and, by extension, the Trade SWAp.
1. Component 1: Trade Policy Formulation and Implementation
1.1 Component 1a: Technical Barriers to Trade (TBT) and Sanitary and Phyto-Sanitary (SPS). This first
sub-component supports activities to accelerate the implementation of Government‘s commitments in the area of
SPS and TBT.
1.2 Component 1b: Trade Facilitation. This second subcomponent supports activities to accelerate the
implementation of the 12-point Action Plan on Trade Facilitation.
1.3 Component 1c: Other Legal Reforms and RGC WTO Obligations. This third sub-component supports
activities to accelerate the implementation of other Government‘s commitments to the WTO, in particular the legal
reform agenda that resulted from WTO accession.
2. Component 2: Performance Monitoring. This second component supports activities to develop a transparent,
consistent, and sustainable performance monitoring system.
3. Component 3: Institutional and Human Capacity. This third component supports the development of
strengthened institutional and human capacity. TDSP builds institutional and human capacity in Cambodia through
equipping RGC staff with appropriate skills and experience to implement RGC trade policies.
4. Component 4: Implementation Support to the TDSP. Finally, a fourth component supports the development
of the Ministry of Commerce‘s (and its Department for International Cooperation, D/ICO) implementation capacity
in acting as a Secretariat for the Trade SWAp and program manager for the TDSP. This includes support to assist it
in meeting its fiduciary responsibilities. This also supports other departments‘ and agencies‘ capacity in
implementing the TDSP.
C. Trade SWAp Approach
The Trade Sector Wide Approach‘s (SWAp‘s) objective is to support the implementation of key recommendations
of the DTIS that aims to develop and diversify exports, and maximize the contribution of trade to growth and
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poverty reduction. DP support provided to the Government for its implementation of the DTIS would aim to follow
common arrangements, set out in Partnership Principles agreed with the RGC. The Development Goals of the
Trade SWAp are as follows:
Pillar 1 Goal: Strengthening competiveness in existing export industries and promoting export
diversification by improving formulation and implementation of trade policies and regulations.
Pillar 2 Goal: Strengthen the supply capacity of the 19 products and service sectors identified in the 2007
Trade Integration Strategy.
Pillar 3 Goal: Strengthening the capacity of the RGC and the Cambodian Trade Stakeholders to
implement, update and manage RGC‘s trade development agenda and to negotiate the country‘s interests
in trade and trade-related investment forums
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II. TDSP Program Achievements and Results
A. Progress Towards Meeting the Project Development Objectives
The Trade Development Support Program (TDSP) became effective in March 2009 and has been operational for
more than five (5) years. In the recent Implementation Support Mission conducted from 28 October to 1st of
November, 2013, TDSP has been rated Moderately Satisfactory for progress in meeting the Project Development
Objectives and implementation progress is rated as Satisfactory. Improvements to major indicators associated
with trade facilitation and the business regulatory environment are only some of the few evidences of the
Program‘s impact.
1. Cambodia’s Global Competitiveness, Investment, and Doing Business
In the recently released ―Global Competitiveness Report for 2013-2014‖ Cambodia was ranked 88th
out of 148
economies, wherein ranking was based on 12 Pillars: (1) Institutions; (2) Infrastructures; (3) Macro-Economic
Environment; (4) Health and Primary Education; (5) Higher Education and Training; (6) Goods Markets
Efficiency; (7) Labor Market Efficiency; (8) Financial Market Development; (9) Technological Readiness; (10)
Market Size; (11) Business Sophistication; and (12) Innovation. (Please see Appendix 2 for details).
Source: World Economic Forum: “The Global Competitiveness Report, 2013-2014”
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The World Investment Report by UNCTAD released in 2013 has noted that despite the mid-global economic
fragility, the foreign direct investment (FDI) in Cambodia grew a whopping 73 per cent in 2012 from the year
before, a huge increase helping to fuel a record-setting amount of money pouring into least developed countries.
FDI in Cambodia reached almost $1.6 billion in 2012, compared with $902 million in 2011, an increase largely
credited to businesses looking to invest in the inexpensive, labor-intensive garment and manufacturing industries,
as well as rising production costs outside of Cambodia. There is no updated report on the level of investment for
2013 as of to date.
However, the performance of Cambodia has faltered in the Doing Business Report 2014 produced by the World
Bank. Cambodia stood at 184 globally in the ranking of 189 economies on the ease of starting a business. The
rankings for comparator economies and the regional average ranking provide other useful information for assessing
how easy it is for an entrepreneur in Cambodia to start a business. (See Appendix 3 for complete Doing Business
Indicators for Cambodia)
Figure 1: Comparison of Ranking for Doing Business
Source: World Bank and IFC: “ Doing Business 2014, Economy Profile: Cambodia”
The Logistics Performance Index for 2012 indicated Cambodia‘s improvement by at least 28 rankings, from LPI of
2.37 (rank 129 in 2010) to LPI of 2.56 (rank 101 in 2012) while the Investment Climate Survey noted the
improvement in customs and cross-border administration over the past 3 years.
2. Progress Towards Meeting the Program Development Objectives
Several external panels have reviewed the performance of TDSP, and have acknowledged the satisfactory
performance of the program. As noted in the recent Implementation Support Mission conducted in October and
November 2013, ―the Trade Development Support Program can now demonstrate a clear set of identifiable and
tangible results. Particularly notable are the improvements in customs, where reform and automation have led to a
jump of 29-places in the World Bank‘s LPI rankings. Using the ASEAN chairmanship, the RGC was able to
leverage TDSP support for a work program that was endorsed and adopted by all ASEAN member states. Results
such as these demonstrate that the program is flexible enough to respond to short-term demands for reform while
also addressing medium-term systemic issues in the trade and competitiveness environment.‖
Progress towards Project Development Objectives (PDOs) is now well advanced, which has allowed the project
team to move the dialogue away from the operational issues that dominated previous missions to discussion of
results and outcomes.
TDSP has developed institutional capacity to support the Trade Sector Wide Approach (or Trade SWAp).
Through the TDSP, a monitoring and evaluation (M&E) framework called the Trade SWAp Roadmap has been
developed, which is used by line ministries as guidance for new projects to be funded by TDSP. The programmatic
nature of TDSP has made the SWAp a credible mechanism by allowing funds to be made available for trade-
related technical assistance projects. The strong commitment of MoC to host regular meetings of the Sub-Steering
Committee (chaired by the Senior Minister of Commerce) and hosting regular Implementing Committee meetings
have aided this process considerably.
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Achievement Towards Project Development Outcome (PDO): The PDOs have been reflected in the following
results achieved and in-progress through TDSP funding:
- Work agenda on Non-Tariff measures; to be implemented in ASEAN Member states
- Automation of Certificates of Origin
- Automation of national business registration
- Development of Trade Information Website
- A functioning Trade SWAp that generates new projects for funding;
- Strong M & E Unit, following up all agencies‘ implementation progress to ensure results are achieved;
- Automation of the Ministry of Commerce by linking departments to the internet and creating databases;
- Development of a trade repository (that links to the trade portal);
- Automation of Trademarks;
- Roll-out of Customs automation to all 21 checkpoints;
- Decreased transaction times for imports and exports, faster port handling and reduced inspections; and
- Sub-decree on Non-Tariff Measures drafted; e-commerce law drafted.
The Summary of Progress Towards Project Development Objectives are provided below in Table 2:
Table 2: Summary of Progress Towards Project Development Objectives
PDO Project Outcome
Indicators
Status of Achievements and Results
Overall PDO: The objective
of the TDSP is
to increase
RGC‘s
efficiency in
formulating and
implementing
effective trade
policies.
Regular practice of a
streamlined, RGC‐led
process for consultation
and financing between
RGC policymakers and
implementing agencies
and between RGC and
donors, and satisfactory
progress in implementing
the Trade SWAp as
evidenced by Annual
Performance Reviews and
third‐party analysis.
The Project Development Objective is on its way of achieving
the project outcome indicators, as reflected in the achievement
of the following:
Trade SWAp Roadmaps has been fully functional and has
become a viable mechanism for coordinating technical
assistance from multiple sources.
Trade SWAp Secretariat has been functioning effectively as
a National Implementation Unit under the Department of
International Cooperation (D/ICO), Ministry of Commerce,
coordinating activities of the Trade SWAp Roadmap Pillar
Working Groups.
A strong M & E Unit has been organized at the Department
of International Cooperation of the Ministry of Commerce,
following up all agencies‘ implementation progress to ensure
results are achieved.
The Trade SWAp roadmaps has been finalized in March
2012 and has been managed and monitored by the three
pillars of the trade SWAp. The updates for the Trade SWAp
has been completed in December 2013 and will be adopted
by the Royal Government on February 18, 2014.
The Ministry of Commerce has started the process of
automation for most of the operational requirements of its
various departments.
The development of a national trade portal has started and
will be in full swing by end of the program in March 2015.
The development of a trade repository has already started
(that links to the trade portal).
Automation activities for trademarks and certificates of
origin have been programmed in one of the projects under
the Secretariat of IPR and will soon take off once consultants
are hired.
The automation of Customs (thru ASYCUDA World
System) has been rolled-out in all 21 checkpoints.
Decreased transaction times for imports and exports, with
faster port handling and reduced inspections.
Sub-Decree on Non-Tariff Measures (NTM) has been
drafted.
15
PDO Project Outcome
Indicators
Status of Achievements and Results
Key performance indicators for various indicators were
formulated thru a Results Based Performance Monitoring
System.
TDSP has achieved some early results that contribute to the
program development objectives:
A results framework that links SWAp Roadmap Indicators
and TDSP indicators to project-level performance has
allowed for monitoring and evaluation. . An updated Trade
SWAp has been drafted and expected for adoption in
February 2014.
Trade Policy formulation and implementation has been
improved through the ASEAN Chairmanship support, which
produced three major policy contributions to the ASEAN
regional work program: the development of capacity to
implement the rules of origin as required by major export
partners; draft e-commerce law; development of trade
curriculum at the Royal School of Administration; channels
of communication for private sector into policy making by
incorporating private sector into the SWAp.
Increased transparency and user feedback mechanism on
trade related processes through automation and risk
management of key border agencies; development of online
trade portal, automated certificates of origin and statistical
databases at the Ministry of Commerce; automation of
trademark processes and development of searchable
intellectual property portal.
Strengthened institutional and human capacity in MoC and
trade-related agencies through export and SME training,
Market Analysis and Market Mapping Training conducted by
ITC, review of core functions at the Ministry of Commerce,
development of training syllabus and course programs for
intellectual property in major universities in Cambodia,
awareness training program of Customs procedures, and on-
going training in project supervision, M & E, and project
management in all agencies.
In terms of the Project Outcome Indicators, the following are
the achievements:
The Sub-Steering Committee on Trade Development and
Trade Related Investment (SSC-TD-TRI) chaired by the
Minister of Commerce is meeting every 3 months and the
Implementing Committee (IC) is meeting every month.
The Trade SWAp Roadmaps are in use (although the SWAp
pillar working group meetings need to be made more regular)
and results framework is in place for assessing the
contribution of projects to the Trade SWAp Roadmaps.
The Diagnostic Trade Integration Strategy Report has been
revised. The DTIS 2013 Update will contribute to the RGC's
5 Year National Strategic Development Plan 2014-2018 and
the Royal Government of Cambodia‘s Rectangular Strategy.
Contribution from TDSP to the DTIS 2013 update and the
NSDP 2014-2018 would be regarded as highly favorable in
meeting the Program Development Objectives (PDOs).
16
B. Progress Towards Meeting Intermediate Outcomes
TDSP has achieved the following results, which have been linked to the overall project indicator in the
following bullet points:
Trade Policy formulation and implementation has been improved through TDSP contribution to Cambodia‘s
Chairmanship of ASEAN, which produced three major policy contributions to the ASEAN regional work
program: (i) the NTM Work Program, (ii) the development of a Needs Assessment Toolkit and (iii)
development of a National Trade Repository. In addition, the program has funded a project to increase the
capacity of MoC to implement rules of origin; drafted an e-commerce law; developed a trade curriculum for
senior RGC officials at the Royal School of Administration and developed channels of communication for
private sector into policy making by incorporating private sector into the SWAp.
The TDSP has funded the automation and risk management of key border agencies; the development of an
online trade portal, created statistical databases at MoC; provided funding for the automation of trademark
processes and the development of a searchable trademarks portal.
The TDSP has enabled institutional and human capacity in MoC and line ministries through a systemic training
program and improvement of internal human resource processes. Market analysis has been carried out to create
value chain reports in the rice, rubber and cashew nut sectors. Awareness training programs for Customs
officials, and on-going training in project supervision, M & E, and project management in all agencies have
also been undertaken.
In the area of sanitary and phyto-sanitary (SPS) measures: TDSP is providing resources for the Fisheries
Administration to upgrade the SPS capacity of processors and producers in the hope of increasing formal
exports in this sector.
In the area of technical barriers to trade (TBT): two large-scale projects underway to address Cambodia‘s
compliance with international standards across 16 products and several varieties of rice by the Institute of
Standards Cambodia.
In the area of Trade Facilitation: The TDSP is now funding all trade facilitation activities in the World Bank
portfolio, including the installation and ongoing maintenance of ASYCUDA - the customs automation software
and a broad capacity enhancement program, as TFCP (which was a $10-million IDA grant that has since
closed.), the development of a national enforcement database, the development of a national valuation system
and a business case and draft law on excise administration.
The trade facilitation portfolio has led to some measurable improvements in the cross-border trade
environment. Preliminary indications from the 2013 ICA survey are that import times have not improved from
5.1 days but that export times have decreased from 4.3 days to 2.4 days. (Source: 2007/2008 and 2012
Investment Climate Surveys). The proportion of containers Physically Open (%): 20.6% for imports and 8.3%
for exports. % of containers selected for red-channel inspection at the main ports with risk management system
functioning (e.g. Sihanoukville port, Phnom Penh International Airport and Dry ports). These improvements
have been partly responsible for an increase in Cambodia‘s Logistics Performance Indicator ranking of 29
places.
The TDSP has encouraged RGC to expand their portfolio of trade related technical assistance. The RGC is
complementing the work of the TDSP by expanding the number of trade projects and expanding the sources of
finance for trade work. Development partners such as JICA, the ADB, the UNDP, the EIF and ITC have all
commenced working with MoC and GDCE (Customs) over the past two years. These projects are contributing to
the goals set out in the Trade SWAp Roadmaps and are well integrated with the work of the TDSP. The portfolio
of work has expanded to include competition law, customs reforms, sector interventions in rice and silk among
others.
Cambodia’s obligations and commitments to the WTO and ASEAN have expanded the trade reform
agenda. The deadline to establish the full ASEAN economic community by 2015, for example, has motivated
GDCE (Customs) to request support for a business case to establish a National Single Window (NSW). The NSW
is designed to bring all border agencies together through a unified, automated system that will allow traders to
seamlessly pass all border inspections in an integrated efficient manner. The NSW would replace the current
system of burdensome paper-based applications across multiple agencies that currently slows down the import and
export of goods. The funding for the NSW is, in fact, coming from the World Bank trust fund that complements the
activities of the TDSP.
In addition, the Cambodia DTIS has uncovered several areas of weakness in national legislation that are out of
compliance with international commitments and that must be remedied within a reasonable period of time. To that
end, the trade remedies law and the safeguards law are now being reviewed and redrafted at MoC using funds
17
supplied by TDSP. The recent signing of the WTO Bali Agreement is likely to prompt additional trade reforms to
ensure Cambodia‘s compliance with international agreements.
TSDP team agreed to explore ways to capture the uptake of TDSP activities/initiatives to increase exports and
reduce the cost of trade including the establishment of customs intelligence databases, rollout of automated
customs software, training on proper application of transit agreements.
The following table summarizes the status and achievements in meeting the intermediate outcome indictors of
TDSP:
Table 3: Progress Towards Meeting the Intermediate Outcome Indicators
Intermediate
Outcomes
Intermediate
Outcome Indicators
Status
1. Trade Policy Formulation and Implementation
1a. Sustained progress
in trade
Policy formulation
and
implementation in the
areas of SPS and TBT
(i) Increased coverage
of sanitary and
phyto‐sanitary (SPS)
regulations and support
services.
(ii) Improved
compliance with WTO
agreement on technical
barriers to trade (TBT).
(iii) Evidence of
increased clarity/
rationalization in
institutional
responsibilities for SPS
and TBT.
On SPS: The Cambodia MDTF for trade-related assistance
is addressing SPS issues in one project implemented
through the Fisheries Administration, which is a large-scale
intervention in the fisheries value chain to upgrade the SPS
capacity of processors and producers. UNIDO consultants
are assisting the FiA of the Ministry of Agriculture,
Forestry and Fisheries in implementing this project.
Another project outside of TDSP and being financed by
ADB is "Better Quality and Safety of Fish and Fishery
Products for Improving Fish Trade Development in
Cambodia" valued at more than $1 million is underway at
Fisheries (though implementation has been delayed due to
the complications of contracting with a UN agency).
Another project, currently being implemented by the
Institute of Standards of Cambodia (ISC) has developed
standards for the various rice varieties.
On TBT: There are two large-scale projects underway to
address TBT compliance. These projects are now showing
early results in the form of draft standards issued for public
comment by the Institute of Standards of Cambodia.
Standards for rice and for various domestically produced
goods have been developed by ISC.
Rationalization in Institutional Responsibilities for SPS
and TBT: Projects to support the improved compliance
with WTO agreements on TBT include: (i) Strengthening
the capacity of the Institute of Standards of Cambodia
(ISC); (ii) Development of Completed Drafts of National
Standards for Rice and Strengthening the Capacity of
Conformity Assessment Body – Phase 1.
1b. Sustained progress
in trade
policy formulation
and
implementation in the
area of
trade facilitation ( ―12
Point Action
Plan‖ and its
successors)
(i) Evidence of
satisfactory
progress in the 12 point
action
plan (and its
successors)
(ii) Proportion of
containers
physically open (%)
(iii) Average time for
imports /exports (days)
A new 12-Point Action Plan has been drafted, agreed
between Ministries but not yet endorsed by the Sub-Steering
Committee on Trade. A request has been received from
GDCE to carry out a National Single Window (NSW)
Business Case. A study tour was conducted to demonstrate
NSW modalities in other countries. ASYCUDA World roll
out is complete.
Progress under the Previous 12-Point Action Plan:
Point 1: Establishment of a cross agency trade
facilitation/investment climate reform team.
Point 3: "Replace 45 documents with the Single
Administrative Document";
Point 4: "Introduce Risk Management to target
inspections";
Point 6: "Automated Single Window" (the ASYCUDA
automated system in place in Sihanoukville);
Point 7: "Introduce flat fee & service level agreement"
(recurring cost of automated customs operations have
18
Intermediate
Outcomes
Intermediate
Outcome Indicators
Status
been estimated);
Point 8: Streamlining process and reduce cost of
commercial registration;
Point 12: Some forms of monitoring and reporting of PSD
progress have been reported to the biannual Government
Private Sector Forum. (Please see Appendix B to see
details on the progress of the 12-Point Action Plan.)
Logistics Performance Index: Cambodia has jumped 28-
rankings in the 2012 Logistics Performance from LPI of 2.37
and ranking of 129 in 2010 to LPI of 2.56 and ranking of 101
in 2012.
Trade Facilitation: The TDSP is now funding all trade
facilitation activities in the World Bank portfolio, including
the installation and ongoing maintenance of ASYCUDA - the
customs automation software and a broad capacity
enhancement program, as TFCP (the $10-million IDA grant
has closed.)
National Single Window: The Royal Government of
Cambodia is considering a National Single Window Project
for Customs that would require about $875,000 as per World
Bank estimate.
Other Programs on Customs and Excise: Other progress in
Customs and Excise operations are as follows:
GDCE Capacity Enhancement program ($613,000)
comprising (i) A National Customs Intelligence System
developed and implemented. (ii)A Strategic Plan for Customs
Marine Enforcement developed. (iii) Compilation of trade
statistics improved. (iv) Business Plan for the Inspection of
Petroleum Products completed. (v) A legal data base of
decisions related to Customs laws and regulations developed
and staff trained in its use, resulting in fewer cases brought to
court and or lost. Post-clearance audits, investigation,
intelligence gathering, and anti-smuggling capacity
improved. (vi) A special training program for staff to prepare
them to the new operating principles and practices
implemented.
ASYCUDA rollout and ongoing support ($1.13 million).
Average time for imports/export days:
Preliminary indications from the unfinished ICA survey is
that import times have not improved from 5.1 days but that
export times have decreased from 4.3 days to 2.4 days.
(Source: 2007/2008 and 2012 Investment Climate Surveys)
Proportion of Containers Physically Open (%):
20.6% for imports and 8.3% for exports. % of containers
selected for red-channel inspection at the main ports with risk
management system functioning (e.g. Sihanoukville port,
Phnom Penh International Airport and Dry ports).
1c. Sustained progress
in trade
policy formulation
and
implementation in the
area of legal reform
and other WTO
obligations
Evidence of higher
compliance of
Cambodia legal
framework with WTO
obligations.
For the Bank-executed Trust Fund:
Technical Assistance has been provided to the Royal
Government Cambodia to support ASEAN Chairmanship
including significant reports on Non- Tariff Measures
(currently tabled before ASEAN members states as a proposal
from Cambodia), a Gap Assessment Methodology, and a report
on domestic reforms that need to be undertaken in order to
comply with ASEAN and WTO obligations.
19
Intermediate
Outcomes
Intermediate
Outcome Indicators
Status
For the Recipient-executed Trust Fund:
The Law on E-Commerce has been drafted and is
undergoing review. On the other hand, the commercial
law project is being revived after more than 1 year of being
inactive to support the work program resulting from the
WTO TPR and the ASEAN gap assessment. Both projects
are funded by TDSP and will bring Royal Government
Cambodia into compliance with WTO and ASEAN
obligations.
There has also been progress on the development of
commercial rules and regulations to support the trade
facilitation process, including the passage of the new
Customs Law, the Commercial Enterprises and Company
Law, the Insolvency Law, the Commercial Arbitration
Law, the Secured Transaction Law, the Anti-money
Laundering and Counter Financing of Terrorism Law, the
Civil Code and the Civil Procedure Code.
The draft commercial leasing law was approved by the
Council of Ministers, and the draft concessions law was
submitted to the National Assembly for debate. These are
among a number of key laws aimed at fostering trade and
transport facilitation and private sector development.
Four main laws dealing with the protection of intellectual
property: (a) the Law on Copyright and Related Rights; (b)
the Law Concerning Marks, Trade Names, and Acts of
Unfair Competition; (c) the Law of Patents, Utility Models
and Industrial Designs; and the (d) the Law in Seed
Management and Plant Breeders Rights. Cambodia has also
adopted five legal texts implementing the first three of the
above laws.
The Secretariat of IPR has completed and disseminated the
Manual on IPR, including the Lexicon on IPR, and has
been distributed to educational institutions, teachers, and
enforcement officers on IPR
A draft sub-decree on NTMs soon to be issued. Prakas on
transparent fees and charges for trade-related agencies has
been issued. Customs Valuation agreement is somewhat
implemented.
2. Increased
transparency and user
feedback mechanisms
on trade-related
processes.
A transparent,
consistent and
sustained trade
monitoring system
grants regular access to
trade information by
stakeholders
A results framework linking SWAp results indicators and
TDSP results indicators to project level indicators has been
evolved and is regularly updated and reported on. An
international and national M&E consultant have been
recruited to upgrade DICO's and implementing agencies‘
capacity.
Roadmaps for the three pillars of the trade SWAp have
been finalized by inter‐ministerial Pillar Working Groups,
reviewed and agreed by the inter-ministerial Implementing
Committee; and endorsed by the Sub‐Steering Committee
for Trade Development and Trade Related Investment.
Value chains analysis were carried for two (2) products:
pepper and rubber. Value chain analysis was also carried
out for the fisheries sector by an independent research
group.
Monitoring of the KPI of the Pillar Roadmaps has been
undertaken based on the Project Results Framework for
each of the projects funded by the TDSP and supported by
the Pillar Working Groups and the Monitoring and
Evaluation Unit of D/ICO.
20
Intermediate
Outcomes
Intermediate
Outcome Indicators
Status
Full engagement of the private sector with Trade SWAP,
with the support provided to Government-Private Sector
Forum (G-PSF) thru TDSP.
National trade portal under construction, including trade
repository. SWAP roadmaps are being revised in line with
the DTIS.
3.Strengthened
institutional and
human capacity in
MoC, and other
trade‐related agencies
Increased efficiency
and effectiveness of
functions performed in
critical MoC
Departments and
targeted agencies.
The MoC currently benefits from several projects of
combined value $2.88 million: (i) Rules of Origin:
Operational procedures and training ($110,000); (ii) export
training and SME program ($49,000), (iii) capacity
building for Department of Trade Statistics and Information
($110,000) (iv) IP Teaching and Training ($110,000), (v)
E-Commerce Law Drafting($124,900), (vi) Institutional
risk management at Camcontrol ($105,550), (vii)
Strengthening MoC Core HR Functions ($234,540),
(viii)Value chain information unit ($240,000), (ix) MoC
ICT Master Plan including Certificate of Origin automation
($1.8 million).
M & E team at DICO has played a key role in targeting
weaknesses for the implementing unit to follow up.
Training in finance and procurement has taken place for
key staff members.
On-going capacity building in all line ministries is taking
place through a project with the Royal School of
Administration.
RGC institutions are effectively integrating, coordinating
and implementing trade related reforms through Trade
SWAp.
SSC and IC became well- functioning committees
providing on-going strategy and leadership, securing buy-in
for implementation of Road Maps from other stakeholders.
Information and educational campaigns, including capacity
building for Provincial and Municipal Investment Sub-
Committees (PMIS) on the Investment Laws have been
carried out by CIB/CDC at sub-national levels, business
associations, and private sectors.
The Department of International Cooperation has greatly
improved and efficiently provided Secretariat services for
the Trade SWAp.
MoC HR Capacity and Development Plan has been fully
developed by covering institutional and individual capacity
needs.
Trade Curriculum at the Royal School of Administration
are now fully completed with all training materials and
course syllabus.
TDSP has benefitted from the various capacity
enhancement programs implemented in various trade
related agencies such as GDCE, ISC, and CAMCONTROL
21
C. TDSP Financial Management Achievements and Results
This part of the Annual Report for 2013 provides information on the financial progress of the Trade Development
Support Program (TDSP) in terms of financial aspects: showing the amount of disbursements against the budget in
the current quarter, year-to-date and cumulative and are produced quarterly to form part of overall program
reporting to the Royal Government of Cambodia and its development partners.
1. Source of Funds: During the year 2013, TDSP received US$ 2,180,578 from the Multi-Donor Trust Fund
(MDTF) managed by the International Development Agency (IDA) of the World Bank. This amount includes
a direct payment by IDA amounting to US$359,862 paid to UNIDO. During the year, IDA also recovered
US$ 100,000 as TDSP‘s closing date is 31st January 2014.
2. Use of Funds: The table below summarizes the actual disbursement from the MDTF Grants as at December
31, 2012, during the year 2013 and cumulative as at December 31, 2013 by:
a) Disbursement Category
Disbursement Category
Amount Disbursed
As at
31/12/2012
January to December
2013
As at
31/12/2013
Goods 1,276,018 292,919 1,568,937
Consultants Services 3,137,354 1,447,025 4,584,379
Training, Workshop and Study Tour 288,000 121,185 409,185
Incremental Operating Costs 381,902 226,441 608,343
Priority Operating Costs 74,971 - 74,971
Total 5,158,245 2,087,570 7,245,815
b) Project Component
Project Component
Amount Disbursed
As at 31/12/2012 Jan. to Dec. 2013 As at 31/12/2013
1: Trade Policy Formulation and Implementation 2,171,259 1,320,824 3,492,083
2: Performance Monitoring 103,587 234,139 337,726
3: Strengthening Institutional and Human Capacity 1,074,008 95,999 1,170,007
4: Implementation Support to TDSP 1,809,391 436,608 2,245,999
Total 5,158,245 2,087,570 7,245,815
3. Accounting and Reporting: In 2013, DICO continued to record its financial transactions in CONICAL HAT
accounting software procured by using TDSP funds. The accounting transactions are recorded on Cash Basis
by project components and disbursement category.
The Finance unit has adopted the internal control procedures in compliance with the TDSP Supplementary
Financial Management Manuals based on the Financial Management Manual approved by the Ministry of
Economy and Finance for the externally assisted projects. A training plan, for all the IA‘s and DICO for the
year 2013, was completed after consulting with the representatives of IA‘s and management of DICO. This
training budget plan was submitted to the World Bank and DICO obtained NOL from the World Bank.
During the year under review, the finance unit refreshed the representatives of IA‘s on the trainings provided
with regard to the accounting and financial management procedures and provided on site assistance to the IAs
on accounting and financial aspects.
On a quarterly basis, Interim Financial Reports were prepared and submitted to MEF and the Task Team of
the World Bank. In addition, on a monthly basis, the finance unit prepared Monthly Cash Flow Statement
showing the receipt and payments of funds by disbursement category for internal management purposes.
4. Auditing: Under the arrangement to bundle the audits of the World Bank financed projects, BDO
(Cambodia) Ltd was recruited by the Ministry of Economy and Finance. The BDO audited the financial
statements of the funds received and used under TDSP and EIF Tier – I for the year 2012 and provided
unqualified opinion, an opinion saying that the financial statements give true and fair view of the financial
22
position. The audit report was submitted to the World Bank well before the deadline of 30 June 2013.
Subsequent to the audit, the weaknesses found during the audit has been rectified.
5. Grant Withdrawal: During 2013, TDSP submitted thirteen withdrawal applications for a total amount of
US$ 3,082,215 including three applications for Direct Payments amounting to US$ 1,162,499. As at 31st
December 2013, there were two applications for direct payment amounting to US$ 801,637 were outstanding.
These were paid by the World Bank during the first week of 2014. Subsequent to the year end, DICO
submitted the replenishment applications for the disbursements made in November and December 2013.
Cumulatively, as of December 31, 2013 the World Bank has disbursed US$ 7,493,747 representing 60.7% of
the total grant of US$ 12,350,000.This comprises of:
i) The Initial and subsequent advances amounting to US$ 700,000,
ii) Replenishments into the designated account amounting to US$ 5,946,580
iii) Direct payments to the suppliers of TDSP amounting to US$ 847,167
6. Management of the Designated Account: As per the World Bank guidelines, on a monthly basis TDSP
monitored the transfers, deposits and withdrawals made through the Designated Account at the National Bank
of Cambodia. All TDSP transactions have been substantiated, recorded and reconciled monthly with the bank
statements.
7. Counterpart Funding: Since the commencement of TDSP, the project has not received any counterpart
funds towards the implementation of TDSP. Should there be any need, the TDSP management would discuss
with the senior management of the Ministry of Commerce and the Ministry of Economy and Finance on the
next steps towards receiving counterpart funds.
8. Budget Performance – 2013: The tables below summarise the budget based on Annual Work Plan, total of
Quarterly Disbursement Projections and the actual disbursements for year 2013 by project components and
disbursement categories. The disbursement projections were made for each quarter based on the actual
implementation timing of the activities from the originally approved Annual Work Plan and Budget, which
can be realistically completed.
a) Project Components
Project Components
Budget based
on approved
AWPB 2013
Total of
Quarterly
Disbursement
Projection
Actual
Disbursement
Variance
a b c d e = c – d
1: Trade Policy Formulation and
Implementation
4,403,023 1,879,911
1,320,824 559,087
2: Performance Monitoring 422,197 233,405 234,139 (734)
3: Strengthening Institutional and
Human Capacity
583,771 109,644 95,999 13,645
4: Implementation Support to TDSP 635,045 403,563 436,608 (33,045)
Total 6,044,036 2,626,523 2,087,570 538,953
b) Disbursement Category
Disbursement Categories
Budget based
on approved
AWPB 2012
Total of
Quarterly
Disbursement
Projection
Actual
Disbursement
Variance
a b c d e = c – d
Goods 1,307,142 665,475 292,919 372,556
Consultant Services 2,796,502 1,508,813 1,447,025 61,788
Training / Workshops 1,267,958 227,566 121,185 106,381
Incremental Operating Costs 672,434 224,669 226,441 (1,772)
Priority Operating Costs 0 0 0 0
Total 6,044,036 2,626,523 2,087,570 538,953
23
For 2013, an Action Plan and Budget was prepared. This led to a situation as demonstrated in the table
above, that TDSP has been experiencing a low level of disbursements against the budget. This was recognised
during the early period of 2013 and a realistic disbursement projection was made as shown in column ―C‖.
On a percentage point, TDSP has disbursed only 65% compared to the original budget and disbursed 79.5%
compared to the subsequent disbursement projection.
The low disbursement level was mainly caused due to:
the delays in recruiting the consultants
the delays in making payments for the procurement of goods packages as some of the suppliers of
goods have delayed in submitting their claims as there were delays in delivering goods
as a consequence of delayed recruitment of consultants, the planned training and workshops also could
not be completed as the inputs of consultants are paramount for the training and workshops
It is now expected that with 17 MoUs being actively implemented including the five strategic proposals
combined with the World Bank‘s decision to allow overseas training, workshops and study tours and the
major procurements have been completed, it is expected that the level of disbursement will increase in 2014.
9. Budget 2014 and 2015: During the Project Support Mission by the World Bank concluded in October 2013,
TDSP was asked to present an action plan with the budget showing how the remaining funds will be utilised
along with the additional funds of US$ 3,100,000. To meet this request, a detailed work plan and budget was
prepared covering the period from January 2014 to March 2015, as TDSP will be extended till March 2015
and realistically some of the projects will not be completed by late 2014. The tables below provide the budget
by Project Component and Disbursement Category for the years 2014 and 2015.
a) By Project Component
Project Components Budget for 2014 & 2015(US$)
Existing
Funds
Additional
Funds
Total
1: Trade Policy Formulation and Implementation 4,475,069 1,100,000 5,575,069
2: Performance Monitoring 159,445 300,000 459,445
3: Strengthening Institutional and Human Capacity 472,703 500,000 972,703
4: Implementation Support to TDSP 23,233 1,200,000 1,223,233
Total 5,130,450 3,100,000 8,230,450
b) By Disbursement Category
Disbursement Categories Budget for 2014 & 2015 (US$)
Existing
Funds
Additional
Funds
Total
1. Goods 1,532,865 390,000 1,922,865
2. Consultant Services 1,773,955 2,375,640 4,149,595
3. Training / Workshops 1,148,746 160,000 1,308,746
4. Incremental Operating Costs 674,884 174,360 849,244
5. Priority Operating Costs - - -
Total 5,130,450 3,100,000 8,230,450
C. Procurement Management Achievements and Results
All procurement relates to Goods and Consultants, and some are subject to prior review by the World Bank, are
described in this report.
Procurement Staffing: During the fourth quarter of 2013, there are two MoC officials assigned to assist
the acting Chief of Procurement Unit to complete the remaining tasks. DICO has commenced the process
to recruit a full time National Procurement Coordinator and an International Procurement Expert to
provide intermittent inputs.
Notable Procurement Arrangements in the quarter under review: During the quarter, six consultancy
contract extensions for a total amount of US$ 43,607.50 were signed. The grand total of contracts signed
24
up to this quarter is US$ 8,742,208.27 equal to 116% as set against the procurement benchmark of US$
7,500,000.
Complaint by bidders, consultants and end users: During the quarter, there were no complaints by
bidders, consultants and end users with regard to the procurement activities.
Contract amendments/Variation orders: There were no other contract amendment or variation orders
during the quarter.
Unsatisfactory performance by contractors/suppliers/consultants: There were no other unsatisfactory
performances by contractors/suppliers/consultants during the quarter.
Disputes (which may lead to claims, cancellations, arbitration or legal remedies): During the quarter or
as the end of the quarter no such disputes noted.
D. Project Key Outcomes, Achievements and Results
This part of the Annual Progress Report for 2013 provides the summary of achievements in terms of potential
results and impact of completed projects, as well as that of on-going projects.
1. Projects Completed and Closed
1.1 Top Ten Products (Trade Promotions Department/MOC)
Project
Outcome
KPI Results Achieved to Date Impact
New business
opportunities
are created for
producers in
provinces
through better
access to
information.
Increased
export
volume for
top ten
products from
Cambodia‘s
24 provinces
Outcomes Achieved: Export
volume for some of the top ten
products has increased
tremendously in 2013 specifically
for rice, rubber, and pepper.
Aside from this, the producers of
the top 10 products have
continuously employed millions
of people in the countryside.
However, this may not be directly
attributable to the information
dissemination campaign
conducted by TPD, but the
following positive results were
achieved by the project:
Information from the booklet
and CD on potential products
and contact of producers/
associations in each province
provided business
opportunities and market
linkage among producers,
traders, and buyers;
Public awareness on Top Ten
products of the 24 provinces
strengthened the interest of
producers to mobilize among
them to be producer
associations.
The Project contributed to the
implementation of DTIS
2007 since the products
provided by the 24 provinces
are the same products
recommended by DTIS.
Through TDSP, the Trade
Promotion Department has
been enabled to implement its
priorities and strategies in
Garments: The exports of apparel earned US$ 5.52
billion for the Southeast Asian nation of Cambodia in
2013, registering a rise of sharp 20 percent over $4.61
billion exports made in 2012. Cambodian garment
exports to the US increased by 7.6 percent year-on-year
to $2.12 billion during the 12-month period, whereas
exports to the EU jumped by 28 percent year-on-year to
$2 billion and to other countries by 32 percent year-on-
year to $1.41 billion. MOC attributed the rise in
garment exports to an increase in buying orders and
inflow of more investment in the clothing sector.
(http://www.fibre2fashion.com/news/garment-apparel-
news/cambodia/newsdetails.aspx?news_id=159290)
Footwear: Footwear exports from Cambodia
rose 17.9% in 2012, with growth in all major export
markets, the latest figures show. Data from the Garment
Manufacturers Association in Cambodia (GMAC),
which covers the country's garment and footwear
industry, shows exports jumped to $311.2m during the
year. Shipments to Japan, its largest export market,
climbed 35.8% over the previous year to $40.1m. This
was followed by the US at $30.8m, representing a year-
on-year rise of 21.9% Likewise, exports to the EU-27
edged up 5.4%, from $146.7m in 2011 to $154.7m in
2012, and Canada was up $43.3% to
$9.7m.(http://www.just-style.com/news/footwear-
exports-rise-179-in-2012_id117995.aspx)
Rubber: The Cambodian rubber latex export to international
markets has increased by 45 percent in the first eight
months of this year, while the cassava export has
dropped sharply. From January to August 2013,
Cambodia has exported about 45,530 tons of rubber
latex, up 45 percent from 31,400 tons if compared with
the same period last year. The main markets for
Cambodian rubber latex are Malaysia, Thailand,
Vietnam, and China.(http://www.akp.gov.kh/?p=36950)
25
generating trade information
and promoting products and
market development for each
province.
Product information and
materials produced by the
Project have been used by
TPD in trade fairs and
product exhibitions at
provincial, national, and
international level.
With exposure in the project,
TPD‘s confidence has been built
up and the capacity of the staff
has improved, specifically in
organizing seminars, workshops,
and trade fairs/product
exhibitions.
Trade Volume: According to report of the Senior
Minister of MEF, Cambodia‘s total trade volume in
2013 is estimated to reach nearly US$16 billion.
Last year, the country‘s total trade with foreign
countries was amounted to nearly US$13.9 billion, up
from 11.9 billion in 2011, and US$9.3 billion in 2010.
(http://www.akp.gov.kh/?p=39954)
1.2 Development of Trade Curriculum (Royal School of Administration/Council of Ministers)
Project
Outcome
KPI Outcomes/Results Impact
Capacity of
RGC and
RSA officers
and staff on
trade-related
knowledge
and skills
improved
through
attendance in
trade-related
courses.
Increase in
number of
Officers and
staff of RGC
and RSA
having
knowledge
and skills on
trade-related
programs and
activities.
The outcome of this Project will
be known once the Trade
Curriculum and Modules
developed by an independent
consultancy group has been used
as a regular course program at the
Royal School of Administration
and other schools of higher
learning in Cambodia. It is
expected that the trained officials
and staff of RGC and RSA on
trade-related courses and
programs will become effective
trade managers and technicians
that will gear the Cambodian trade
economy in the future
Impact: There is no impact generated by the Project as
no training program from the Trade Curriculum Project
has been implemented to date. It was reported by RSA
that IPR course has been included in their course
program, but no course validation has been conducted
to date.
1.3 Value Chain Information Unit (Trade Promotions Department/MOC)
Project
Outcome
KPI Outcome/Results Impact
Current
Value Chain
Unit capacity
strengthened.
Efficiency of
the Value
Chain Unit
greatly
improved.
Looking into the Cambodia
Rubber Sector Profile:
The Cambodian rubber sector
offers opportunities for both
domestic and international
investors.
• The production and demand of
natural rubber will continue to
strongly increase over the next
years. Global natural rubber
consumption is expected to
increase from about 11 million
tons in 2011 to more than 16
million tons in 2020
• Cambodia has favorable
market access conditions in
most important markets for
natural rubber.
• China, the United States,
Japan, Germany, the Republic
of Korea, and Malaysia appear
as the most attractive markets
for Cambodian TSNR.
Rubber: Cambodia has 325,900 hectares of rubber
plantations as of 2013, up 16 percent compared with
280,350 hectares in a year earlier. Some 78,444
hectares of them are old enough to be yielded, adding
that the country collected 90,000 tones of rubber resin
in 2013. The ministry predicted that rubber plantations
would reach 450, 000 hectares by 2020 and could
produce up to 500,000 tones of rubber resin from that
year. Rubber trees have been planted in 18 provinces
out of the country's 25 cities and provinces, it said.
The country has 60 rubber processing factories and
handicrafts. Cambodia sees rubber as "white gold." The
Southeast Asian nation had exported 74,200 tones of
dry rubber in 2013, up 34 percent year-on-year,
according to the figures of the Ministry of Commerce,
adding that the country earned revenue of 170 million
U. S. dollars last year, up 6 percent year-on-year.
(http://news.xinhuanet.com/english/business/2014-
02/03/c_133091294.htm)
Success Story on Pepper: When Him Anna started to
plant pepper crops seven years ago, she would have
never thought that one day it would turn into a
26
• Possibilities to diversify
Cambodia‘s rubber
production: (1) Reorient
towards highly demanded
types, (2) Produce a larger
amount of ―ribbed smoked
sheets‖, (3) Move downstream
and transform the semi-
processed products into final
goods instead of exporting
them.
Looking into Pepper Sector
Profile:
• Cambodia has favorable market
access conditions in most
importing markets for pepper.
Tariffs for Cambodian
peppercorns in most markets are
low, and Cambodia enjoys
preferential access in some
markets.
• The United States, Vietnam,
Germany, the Netherlands and
the Russian Federation appear as
the most attractive markets for
Cambodian peppercorns.
• In Cambodia, pepper production
and export potential is expected
to increase to 6,500 tons in
2012, thanks to the arrival of
new planting.
• Improving the capacity of
transforming black pepper to
white pepper could contribute to
diversified exports and value
addition.
• There are also good market
prospects for organic and fair-
trade pepper.
• There are other potential
products that could add value to
Cambodia‘s pepper industry like
oils, perfume, cookies, sweets,
soap.
Efficiency of Value Chain Unit
at TPD:
At this point, the efficiency of the
Value Chain Unit at TPD has not
yet been measured nor felt as the
Unit has not conducted any
additional Value Chain Study
after completion of the Rubber
and Pepper Sector Profiles.
profitable business. Starting with half a hectare, the 34-
year-old and her family initially planted the famous
Kampot product solely for their own use. Today, Anna
is the chief executive officer of Bright Starling
Holdings Co, which owns Starling Farm Kampot
Pepper. Established in 2010, the company exports
pepper to international markets. When she started, she
hardly saw any companies exporting abroad except for
the Farm Link Company in Kampot, which shipped to
France. Anna was born in Kampong Cham province‘s
Prek Por commune in Srey Santhor district, and is
married to Dutch national Mark Hanna.
―We never had experience in planting pepper, but we
are lucky that we have an uncle who loves his career in
agriculture, so I asked him to help us,‖ she said.
So far, the pepper farm consists of five hectares of land,
but only three hectares are bearing crops, while the
rests will take at least two years to yield.
Anna employs 25 people to work on the farm, while
another 15 work in processing the pepper, such as
packaging. According to Anna, her farm produced
about six tons of pepper this year. But demand is higher
than the output on her farm, and so she bought about
1.5 additional tons from the Kampot Pepper Farmers
Association (KPFA) and an extra 2 tons from other
farmers in the area.
―Now the KPFA is happy to have contracts with many
companies, but they are also upset because they don‘t
have enough pepper for selling,‖ she said, adding, that
―next year, I plan to buy 10 tons from them‖ Buying
one kilogram of black pepper from the KPFA cost her
$11 this year, while her company sold a kilo at $35,
because it required much more work after buying it
from the farmers, such as sorting out the best quality
crops for export.
Anna said that with about seven to eight tons, the
majority of her company‘s pepper is exported to
Germany, Canada, the US, France, UK, Russia and
Australia.
(http://www.phnompenhpost.com/business/kampot%E2
%80%99s-famous-pepper-goes-global?
1.4 Export and SME Training (TPD/MOC)
Project
Outcome
KPI Outcomes/Results Impact
Enhanced
volume of
export
transactions
for SMEs.
Increased
number of
submission of
business and
export
documents
with reduced
Rooting in economic base, AEC
could bring about both
opportunity and challenges to
Cambodian Small and Medium
Enterprises (SMEs). Cambodia
has 505,134 business
establishments.
Cambodia‘s small and medium enterprises (SMEs) are
busily preparing for the ASEAN Economic
Community‘s (AEC) free flow of goods in 2015. They
are probably not that different from the other 10
ASEAN member states‘ own SMEs. Below are some of
the success stories of SMEs in Cambodia:
Ngov Heng Fish Sauce is well known throughout
27
mistakes,
errors or
omissions.
With the regional integrated
market, it could be a good
prospect for local entrepreneurs to
expand their businesses.
Besides, as ASEAN is moving
toward visa-free for regional
travelling, local business can
benefit more on their trades as
well as reduce time in business
transaction. Getting entry to other
Southeast Asian countries would
also mean local entrepreneurs can
access to new business
environment and new knowledge,
which in return inspire them to
innovate their products later in the
home country. Recently, there are
a few franchises coming to
Cambodia, and this trend will
boost in the near future, when
cross-border barriers will be lifted
away.
By this experience, he visualizes
the coming AEC would be
beneficial to those business
starters as they can be joint
venture partners, shareholders,
suppliers given available estate
properties such as lands and
buildings.
(http://cambodianbusinesscorner.
wordpress.com/
2013/02/05/the-impact-of-asean-
integration-on-local-smes/)
the country for producing tasty fish, soy and chili
sauces and is one of those SMEs busy developing
and enlarging its business. Chan Sitha, the owner of
Ngov Heng Fish Sauce, said he has been making
efforts to upgrade his products for almost 10 years.
Soon his fish sauce will be well known not only in
Cambodia, but also in the United States and
throughout Southeast Asia. In 2007, his fish sauce
was first set to be exported to the US but due to the
global economic downturn in 2008, the export of his
products was postponed. ―Other ASEAN member
countries export their products to Cambodia, and so
we will also export our products to them.‖ Ngov
Heng Fish Sauce factory started producing fish
sauce in 1995 but at that time could only produce
about 1,000 litres of it per month and only supplied
Kampot province. Today, Ngov Heng Fish Sauce
produces up to 100,000 litres of fish sauce a month
and ships it to all of the provinces in Cambodia.
Chan Sitha said, ―Before we produced it 100 percent
by hand, but now we use some machines.‖ In
preparation for 2015, he plans to buy a steaming
machine to clean bottles, because currently he uses
wood and charcoal to boil water, and plans to build
a new high-standard production chain that will cost
him about US$100,000.
Keo Mom, chief executive director of Lyly Food
Industry Co Ltd, in Phnom Penh, which is well
known throughout Cambodia for producing tasty
snacks, said that she is ready for 2015. ―I am ready
for 2015 because I have been preparing for the last
few years,‖ she said. ―For my own company, I am
more preparing to defend against as well as to
compete with other ASEAN member countries‘
products,‖ she said. Keo Mom said her company,
established in 2002 with $100,000 in capital, now
produces over 20 kinds of products and employees
over 100 workers, an increase from the original
three products and 25 workers she started with.
SMEs represented around 65 percent of the nation‘s
GDP and employ 85 percent. Yhe ASEAN
Economic Community would be both a positive and
negative influence for SMEs in Cambodia.
Cambodian SMEs provide services in the tourism,
ICT (information and communication technology),
trading and retail sectors, which are already
prepared for the AEC in 2015, he said.
(www.aseannews.net/doubts-anticipation-mix-as-
cambodias-smes-prepare-for-2015/)
Other success stories are provided in Appendix 7
1.5 Capacity Building for DTSI (DTSI/MOC)
Project
Outcome
KPI Outcomes/Results Impact
Enhanced
capacities of
the
Department
of Trade
Statistics and
Information
to collect,
analyze, and
publish trade
statistics and
information.
Reliability and
validity of trade
statistics and
information
increases with
the use
appropriate data
collection
method and
analysis.
Project
management
With capacity of the department
built in terms of different tools
in Trade Statistics such as the
use of the Trade Map and Trade
Analysis (from the International
Trade Center) which provides
users with indicators on export
performance, international
demand, alternative markets and
the role of competitors, the staff
at DTSI will be able to utilize
these new tools in terms of
providing guidance to importers
With more reliable statistics gathered on trade (both
import and export), better decisions are made by
government officials and traders.
28
Project
Outcome
KPI Outcomes/Results Impact
strengthened. and exporters in developing their
strategies for trading. Trade
Map covers 220 countries and
territories and 5300 products of
the Harmonized System. Trade
data of the Department of Trade
Statistics of MOC is linked to
the International Trade Center‘s
database, wherein trade data are
available at the tariff line level
for more than 150 countries and
on a quarterly and monthly basis
for more than 90 countries.
(www.trademap.org).
Moreover, with the completion
of the Trade Statistical
Yearbook for 2011, importers
and exporters are better
informed on the opportunities
related to trade.
1.6 Awareness Program on Customs (GDCE/MEF)
Project
Outcome
KPI Outcome/Results Impact
Enhanced
communication
and
information
exchange
between the
GDCE and the
private sector.
(i) Improved
mechanism of
consultation
between customs
authorities and
the private sector.
(ii) Timely
dissemination of
information on
regulatory and
administrative
frameworks of
GDCE.
Since the project has been
completed more customs
officers and traders are aware
of the various policies and
procedures of customs, thereby
increasing their confidence in
performing their functions and
reduced the confusion in the
overall customs procedures.
Education, raising of public awareness and training
are linked to virtually all areas in Customs and
Excise operation. Education, including formal
education, public awareness and training should be
recognized as a process by which human beings (i.e.
Customs and private sector officials) and societies
can reach their fullest potential. Education is critical
for promoting sustainable trade development and
improving the capacity of the people to address
various issues related to Customs and Excise. Both
formal and non-formal education in the field of
Customs and Excise are indispensable to changing
people's attitudes so that they have the capacity to
assess and address their requirements on Customs
and Excise. With the formal mechanism of
consultation between Cambodian Customs authorizes
and the private sector, it is expected that less
confusion and reduction in corruption will emanate
in every transaction at the GDCE.
2. Projects Under Implementation
2.1 Strengthening MoC Core HR Functions (Department of Personnel/MOC)
Project
Outcome
KPI Outcome/Results
MoC core HR
functions are
strengthened
Improved efficiency in complying with
government-led Public Administration
Reform.
The Capacity Development Plan that has been
developed for the DoP is expected to gain grounds
towards streamlining MoC core HR functions. The
Capacity Development Plan applies to MoC
internally, and is expected to promote efficiency and
effectiveness in the delivery of public outputs and in
the design and implementation of public policies.
The HR Core functions that have been developed are
expected to help advance accountability and
transparency within MoC.
29
2.2 Rules of Origin (DMUL/MOC)
Project Outcomes KPI Outcome/Results
Enabled environment
for growth with equity
in trade, specifically on
rules of origin.
Capacity built for service delivery
enhancement of negotiation skills and
policy advice on trade policies on rules of
origin, including global agreements such as
AFTA and accession for the WTO.
After completion of the Project, it is expected that
services at the Multilateral Department at MoC will
be greatly enhanced once the operational procedures
and training on Rules of Origin have been completed
by UNCTAD, specifically on the Automation of the
Certificates of Origin.
2.3 Drafting of E-Commerce Law (DLAD/MOC)
Project Outcomes KPI Outcome/Results
Cambodian
companies able to
offer e-commerce
opportunities to
local and
international
consumers.
Private organizations offering E-Commerce
activities in their website are better informed
with the adoption of E-Commerce Law in
Cambodia.
Once adopted, the E-Commerce Law of Cambodia
will (i) Improve knowledge and understanding on e-
commerce of key MoC and other line ministries
officials involved in drafting e-commerce law; (ii)
Support the inter-ministerial process of discussions
and negotiations of the draft laws; (iii) Carry out an
awareness raising campaign, in particular targeting
the private sector, on the use of e-commerce in
Cambodia within the proposed legal framework; and
(iv) Define e-commerce law implementation
regulations.
2.4 Strengthening Institutional Risk Management (CamControl/Moc)
Project Outcome KPI Outcomes/Results
Institutional risk
management capacities in
CAMCONTROL
strengthened
Improved efficiency and performance
of CAMCONTROL in institutional
risk management practices.
The Cambodian Government has embarked on a
significant reform process which centers on the
design and implementation of a risk-based system of
cargo inspection across all government agencies with
border management responsibilities. Key elements of
the revised strategy include coordinated agency
activities including joint inspection arrangements;
intervention based on identified risk; and active
facilitation of legitimate, low-risk consignments.
Achievements to date include the passage of enabling
legislative amendments; the establishment of agency
risk management units; development and
implementation of new operational procedures; the
conclusion of inter-agency service level agreements
(under which one agency undertakes certain activities
on behalf of another agency); joint agency
development of risks and selectivity criteria;
introduction of a multi-agency use IT system (which
incorporates the agreed risk profiles); and extensive
training across all relevant agencies.
2.5 Enhancing IP Teaching and Training (DIPR/MOC)
Project Outcome KPI Outcomes/Results Impact
Better quality and
reliability of
information on IP
and IPR available in
Cambodia.
Increased in the
number of consumers
and agencies on
Intellectual Property
and Intellectual
Property Rights in
Cambodia.
As an outcome of the process of WTO
accession, the Royal Government of Cambodia
(RGC) identified in early 2004 an ambitious
―Work Program‖ of trade‐ and business‐related
legal reforms intended to improve the enabling
environment and bring Cambodia‘s trade and
business‐related laws into WTO compliance.
Of the 74 laws, Government sub‐decrees and
Ministerial regulations identified over time to
implement this Program, 50 (two thirds) have
been promulgated and adopted as of early
2011. Many of the reforms adopted already
have had a major, positive impact on business
development, giving rise in particular to a
By 2015, more than
30,000 consumers will be
aware of the mechanics of
Intellectual Property as
well as on Intellectual
Property Rights by just
word of mouth transfer of
knowledge from lecturers,
students, friends, and their
immediate family.
30
significant increase in both domestic and
foreign investment in Cambodia, major
improvements in the area of trade facilitation,
or significant advances in the implementation
and use of Intellectual Property Rights
protections. The IP Manual and other IP
training materials are now being used by
lecturers and instructors from 11 major
universities in Cambodia, translating to over
2,000 students trained and informed on
intellectual property rights, copyright issues,
and trade mark.
2.6 Developing Stronger National System for IP (DIPR/MOC)
Project Outcome KPI Outcomes/Results
Enhanced the capacity of
relevant national
stakeholders (IP
administration, enforcement
bodies, SME) to protect and
enforce IPRs in Cambodia
i. Positive assessment for the
implementation and
enforcement of Intellectual
Property Rights in
Cambodia.
ii. Number of trademark
registered and protected
annually.
iii. Number of national
enterprises/SMEs and
business associations that
have filed a trademark to
protect their business (IP
management).
After completion of the project, it is expected that capacity of
relevant national stakeholders on IP has been enhanced;
greater number of trademarks registered and protected
annually; and several national enterprises and SMEs filed their
trademark annually.
2.7 MOC ICT Master Plan (GDIT/MOC)
Project Outcome KPI Outcomes/Results
The traders, general public,
and staff members of the
MoC will have greater
access to trade information
and other tools for trading.
Increased institutional
capability in terms of
providing trade information
access and other tools of
trading to traders and other
information users.
After completion of the Project, it is expected that the
automation of the Certificates of Origin will facilitate trade
flow, including the establishment of the Trade Information
Window (TIW). Aside from this, there will be central
depository of all information on trade with the linking of all
MOC departments and other trade institutions into just one
website.
2.8 Review of Commercial Laws
Project Outcomes KPIs Outcomes/Results
Problems related to the
implementation of the
Commercial Laws are
addressed using the results of
the WTO Trade Policy
Review.
Cases related to the
implementation of Commercial
Laws are reduced and resolved.
No expected results. The Project needs to be reformulated.
2.9 GDCE Capacity Enhancement Program (GDCE/MEF)
Project Outcomes KPIs Outcomes/Results
(i) Operational efficiency is
improved by the development
and implementation of a
National Intelligence System.
(ii) Enhanced capacity of the
GDCE to adopt practices in
line with international
standards and modern
approaches in customs and
excise administration.
(i) A strategy to offset
potential revenue losses
caused by changing customs
fees implemented.
(ii) Internal inconsistencies in
the Customs Code eliminated
by harmonizing the
Cambodian Customs Code to
WTO standards, and assuring
that the revised Kyoto
Convention standards and
After completion of the Project, it is expected that GDCE will
be more efficient system in solving problems related with
smuggling, corruption, customs valuation, and tax collection.
As of today, there are indications that improved border
procedures in Cambodia would have a considerable positive
effect on trade flows and would redound to a fairly modest
reduction of trade transaction costs that may have positive
impact on trade in and out of the country.
31
Project Outcomes KPIs Outcomes/Results
practices are incorporated.
2.10 Customs Valuation System (GDCE/MEF)
Project Outcomes KPI Outcomes/ Results
Existing IT Systems at
Customs are strengthened
along with associated
infrastructure.
Reduce the average customs
clearance time at the border
and other customs clearance
points.
In the previously implemented project of TFCP, it was
reported that with the use of the ASYCUDA system, the
transaction time from the time the SAD has been lodged until
release of import/export cargoes has been reduced to less than
one hour. These improvements have led to a reduction in the
import transaction time from 30 days to 10.5 days on average
and in the export transaction time from 6.6 days to 20 hours
on average. The average transaction costs for processing
exports decreased from $942 to $732, and the average import
costs fell from $2,477 to $872. Informal fees declined from 5
to 2 per cent of the total consignment value. This success
cannot be attributed to activities being carried out in the
TDSP program, but improvements will be introduced to
surpass present logistics indicators.
2.11 ASYCUDA World System (GDCE/MEF)
Project Outcome KPI Outcome/Results
Enhanced institutional
capacity of GDCE in
continuing and
sustaining the operation
of the ASYCUDA
World System.
Increased competitiveness of
Cambodia in promoting and
strengthening trade by reduced time
and costs to import and export and
made more predictable with the use
of ASYCUDA World System.
Once rolled up, the project is expected to speed up the
preparation of SAD, clearing up of customs documentation,
reduction in terms of time of other procedures in export and
import.
2.12 Strengthening the Capacity of ISC (ISC/MIME)
Project Outcome KPIs Outcomes/Results
Strengthened capacity
of the Institute of
Standards in
Cambodia to develop
national standards and
guidelines to improve
the quality and safety
of products produced
in Cambodia.
Improved accountability of officers
of ISC in the development of new
standards.
After completion of the Project, it is expected that there will
be: (i) Greater confidence of customers on the safety and
quality of products; (ii) Greater understanding on the values
held by entrepreneurs, stakeholders, and consumers on product
standards; and
(iii) Greater access of Cambodian producers to foreign
markets.
2.13 Development of Standards for Rice (ISC/MIME)
Project Outcome KPI Outcome/Results
Alignment of the Cambodian
national standards for rice with
international standards.
(ii Strengthened capacity of the
Institute of Standards in
Cambodia to develop national
standards and guidelines for rice.
Improved accountability
and capacity of officers
of ISC in the
development of new
standards for rice.
After the completion of the Project, the following outcomes are
likely to be achieved: (i) Increased market confidence in the
consumption of rice produced in Cambodia; (ii) Greater
understanding of rice producers and farmers on rice conformity
standards; (iii) Greater access of Cambodian producers of rice
to foreign markets. Once the standards for rice have been
adopted by the Cambodian Government, proper rice grading
will be enforced, and the international community will be more
confident in exporting rice from Cambodia.
2.14 Implementation Agencies Capacity Building (RSA/OCM) Project Outcome KPIs Outcome/Results
Enhanced capacities of officials
in implementing agencies in the
area of project management and
administration.
Improved effectiveness
and efficiency of line
agencies in implementing
projects supported by
TDSP.
Once this Project has been completed, it is expected that
officers and staff of the project implementation agencies will
gain enough knowledge on project management, financial
management, and procurement management that will help
them in efficiently running project development projects in the
future.
32
2.15 Raising Awareness on Law on Investment (CIB/CDC) Project Outcome KPIs Outcome/Results
(i) Improved capacity of
officials in charge of
investments and investments
promotion.
(ii) Increased awareness of the
public on investment laws and
regulations in Cambodia
promoted.
Increase in the level of
Foreign Direct
Investment to
Cambodia.
Increase in the number
of stakeholders that are
aware on the
Investment laws and
regulations in
Cambodia
Once the Project is completed, it is expected that foreign direct
investments will increase as a result of increased level of
awareness foreign and domestic investors on the Law on
Investments and its regulations.
More of the local investors in the province will directly apply
in the Provincial-Municipality Investment Sub-Committees
instead of going to the central office in Phnom Penh.
2.16 Better Quality and Safety of Fish (FiA/MAFF)
Project Outcome KPIs Outcomes/Results
Better quality and safety of fish
and fishery products in the
domestic markets.
Marked increase in the
income generated by
fisher folks and other fish
producers through better
fish processing, handling,
storage, transportation,
and trading.
Improved access to export
market for fish and
fishery products from
Cambodia.
When project is completed, it is expected that Cambodia‘s
access to the export market for fish and fishery products will
increase, thereby improving income potential for fisher folks
and fish product producers and processors.
2.17 Support to G-PSF (CCC)
Project Outcome KPIs Outcomes/Results
Increased effectiveness of the
BMOs in providing
evidenced-based input into the
policy and law-making
process.
BMOs enabled to identify and
prepare high quality
actionable reform
recommendations to G-PSF
Enhanced links between
private sector and the Trade
SWAp in ensuring that
appropriate follow up is taken,
including with the provision
of technical assistance for the
implementation of identified
reforms.
Capacity of BMOs
participating in GPSF
is strengthened .
Studies on the
identified technical
issues are carried out
and reviewed.
Results of dialogues,
surveys and studies are
fed into the Trade
SWAp Pillars to
contribute to the
ongoing updating
process.
Once completed, it is expected that relationship between
government and private sector are strengthened and enhanced.
E. Project Key Activities, Completed Milestones, and Outputs
This part of the report provides us with the achievements on the completed outputs and activities of projects
funded under TDSP.
1. Completed Projects and Officially Closed
# Project Title Output Indicators Achievements Actions
Required/
Way Forward
Code
1 Top Ten
Products
(TPD/MOC)
Budget:
$48,211
Disbursed:
$39,880
(82.72%)
Remaining:
$8,331.00
Information on top ten
products in the 24
provinces of
Cambodia uploaded in
the internet.
Booklets (in English
and Khmer) that
contain information on
top ten products from
24 provinces of
Cambodia are
• 16,800 units of the booklet titled ―Cambodian
Potential Products‖ published and
disseminated.
• 200 copies of the booklets sent to each Trade
Promotion Center Office in Korea and Japan.
• A new domain created
http://www.tpd.gov.kh/cambodiaproduct and
is now linked to Top Ten Products.
• This new portal has attracted 150-200 online
guests to visit the site every day. By 17
September 2012, there were 559,549 hits.
Project
Completed and
Closed:
There is an
urgent need to
sustain the
distribution of
booklets in
various
embassies in
Cambodia as
33
# Project Title Output Indicators Achievements Actions
Required/
Way Forward
Code
developed and printed.
(CDs (in English and
Khmer) that contain
information on top ten
products from 24
provinces of
Cambodia are
developed and
―burned‖/published.
Promotional event for
top ten products of
Cambodia conducted.
• 2,000 copies of Digital-CD of Cambodian Top
Ten Products produced and disseminated in
the seminars and exhibitions held in
Cambodia and foreign countries.
• Three seminars organized to disseminate on
Top Ten Products between Sep 2011 and Jan
2012 in Phnom Penh, Siem Reap, and Preah
Sihanouk with 274 participants.
Project completed and closed in May 2012.
well as in the
universities (to
be used as
teaching
materials in
International
Marketing and
in International
Trade).
Remaining
budget can be
used to print
some more
booklets and
produce CDs.
2 Development
of Trade
Curriculum
(RSA/MOC)
Budget:
$123,650
Disbursed:
$122,356.31
(98.95%)
Existing curricula
reviewed.
Potential partnership
in training delivery
devised.
Develop detailed
course plan and
objectives.
Existing course
materials evaluated.
Course design
validated with
stakeholders.
Training and course
guides developed.
Resources mobilized
for course delivery.
Training to
prospective trainers
completed.
Training to other
stakeholders and
participants completed
TNA conducted and TNA Report completed
with 122 respondents from private firms.
Workshop on the Development of Trade
Curricula conducted on 19 August 2012 with
50 participants.
Course Plan completed and included in the
course catalog.
Workshop for the validating the final
curriculum conducted on 28 June 2012 with
46 participants.
Completed the Trade Curriculum and
Concept Notes on Trade Curriculum Building
and Teaching
Completed the Curriculum Sketch and 20
Individual Modules
Completed the Course Package (manuals,
tests, exercises, audio visual aids, trainer‘s
guides).
Project Completion Report has been
completed by RSA and submitted to DICO.
Some of the training modules proposed are
now included in the courses being offered by
RSA such as the modules on Intellectual
Property Rights.
Implementation Completion Report prepared
by DICO.
Final Review Meeting concluded. Project
Completed and Closed in December 2012.
Project
Completed and
Closed.
There is an
urgent need to
implement
Trade training
programs from
the proposed
Trade
Curriculum
Modules
developed by
the Project.
3 Value Chain
Information
Unit
(TPD/MOC)
Budget:
$263,208
Disbursed:
$202,583
(76.97%)
(i) Training programs on
Market and Value
Chain Analysis at the
Value Chain unit
completed.
(ii)Research and analysis
on the 19 priority
sectors completed.
(iii) Trade information
disseminated to the
general public.
Training and coaching on Value Chain
Research Methodologies for VCIU staff (14
persons) and provincial staff completed.
Two research topics (rubber and pepper)
completed by July 2012. Two Validation
workshops organized in July 2012 with 160
participants.
IC decided to close the project.
Printing of two sector profiles for pepper and
rubber (English and Khmer) was completed
and books were delivered.
Final Review Meeting was conducted in June
2013.
Project Completion Report submitted.
Project
completed and
closed.
4 Export and
SME
Training
(TPD/MOC)
Budget:
(i) Training of Trainers
to provincial officials
and members of
provincial chamber of
commerce on how to
Training Curriculum on Export Procedures
were developed by MoC to promote formal
exporting. New procedures related to export
included in the manual: export license,
certificate of origin, SPS, insurance, border
Project
completed and
closed.
34
# Project Title Output Indicators Achievements Actions
Required/
Way Forward
Code
$54,899
Disbursed:
$53,600.27
(97.63%)
use the ―Handbook of
Export Procedures,‖
completed.
(ii) Export Training
among SMEs in 24
provinces rolled out.
check point procedures, forestry export.
One Pilot Training was conducted among a
group of 60 trained trainers from 24 provinces
for training on Export Procedures. The
Trainers are mostly from provincial
departments of commerce, chambers of
commerce, and university lecturers.
Two pilot training courses facilitated by the
trained trainers organized in Kampong Cham
and Battambang.
One workshop to review the training materials
were conducted with 10 participants
4 training course provided for trainers from 24
provinces with 80 participants
Eight provincial training courses facilitated by
the trained trainers organized in Takeo,
Kampot, Svay Rieng, Pursat, Siem Reap, and
Koh Kong with participants of about 300 from
SME, PDoC, university students, chambers of
commerce.
Final Workshops have been organized.
Final Review Meeting conducted on 20 June
2013.
Project Completion Report completed.
5 Capacity
Building for
DTSI
(DTSI/MoC)
Budget:
$137,540
Disbursed:
$90,343.51
(65.69%)
Remaining:
$47,196.49
(i) Needs Assessment
survey among trade
information users
designed and
completed.
(ii) Training on the
Collection and
Analysis of Trade
Statistics completed.
(iii) Training on the use
of ITC‘s market
analysis tools such as
Trade Map, Market
Access Map, Product
Map, and Investment
Map completed.
(iv) Trade Statistics
published and updated
yearly on the website
of MoC.
1 Survey on Trader Users conducted with
sample of 137 (43 female) who are senior
officers, directors, national and international
business firms staff
Forms for the electronic data format produced
and new website design interface completed.
15 staff were trained for 10 days on statistical
analysis (time series, sampling technique, data
entry), and ITC tools (Market Analysis,
Market Mapping.
An effective template for ITC information is
now included in the MOC website.
On the job training on IT technical system,
database, network, and server management
was partly provided alongside with
management of ICT by a local IT consultant
(hired for 6 months but completed only 5
months). An international consultant was not
hired.
35 participants from each targeted provincial
department of commerce, CCC, associations,
companies, and related stakeholders were
trained on basics understanding on Trade
Analysis Tools of ITC during the study tour
in three provinces: Battambang (rice); Pailin
(cassava); and Ratanakiri (cashew nuts)
235 copies of the Statistical Yearbook for
2011 was already printed.
215 copies was distributed to targeted
Workshop Participants on 23 November 2012
(attended by 179 participants from trade
attaches of embassies, the private sector,
university and PDOC representatives) and
some other targeted stakeholders.
Excerpts from the Trade Statistical Yearbook
for 2011 already published in the MOC
website.
Final Workshop completed on 23 November
2012 attended by 179 participants from trade
Project
completed and
closed.
35
# Project Title Output Indicators Achievements Actions
Required/
Way Forward
Code
attaches of embassies, the private sector,
university, and PDOC representatives.
DTSI submitted the Project Completion
Report officially in May 2013 and Final
Review Meeting conducted in June 2013.
2. Projects Completed But Not Yet Officially Closed
# Project Title Output Indicators Implementation Status Comments on
the Progress of
Activities
Code
6 Awareness
Program on
Customs
(GDCE/MEF)
Budget:
$95,000
Disbursed:
$21,001.79
(22.11%)
Remaining:
$73,998.21
(i) Procedures,
protocols, and
technology to share
relevant data and
information agreed
upon between GDCE
and various border
agencies.
(ii)Number of border
crossing points with
integrated data
sharing system in
place and in use.
(ii) Mechanism of
consultation between
customs authorities
and private sector
improved.
(iv) Appropriate
forums and
consultations with
private sector to
gather inputs for
policy making by
customs authorities
organized.
(v) Joint programs of
capacity building for
customs officers and
economic operators
initiated and
organized.
Training Equipment (Computers, Projector,
Printer, Scanner, Photocopy Machine, and
Teaching Equipment): All requested
equipment had been delivered.
The two training programs were successfully
completed in November 2012.
42 Customs Officers and 42 from the private
sectors were trained on procedures,
protocols and modern customs practices.
Translation of Customs regulations and other
policies was dropped by GDCE due to
stringent procurement procedures, however
translated Customs documents printed under
GDCE‘s own budget.
GDCE submitted draft copy of the PCR in
March 2013 but have not yet submitted
officially to DICO.
Project on pace
to succeed:
Financial and
operational
closure to be
done as soon as
possible.
7 Enhancing IP
Teaching and
Training
(SNCIPR/MOC)
Budget:
$110,000.00
Disbursed:
$110,539.78
(100.49%)
(i) Assessment of
capacities and needs
in the area of IP
training completed.
(ii) IP curricula and
training materials in
Khmer developed.
(iii) Team of experts to
translate IP training
materials to Khmer
organized.
1 IP training need assessment conducted –
one assessment report produced, one
presentation conducted; and IP curricula
completed.
Two Consultation workshops conducted in
07 and 09 February 2012 with 46
participants from universities, Royal School
of Administration, Royal Academy, and
several ministries.
1 IP manual prepared with consultation
among various stakeholders in two
workshops with 46 participants (800 pages
IP manual produced, about 100 copies
distributed).
3 ToTs conducted: 43 Trainers trained (80%
informed that they will apply the knowledge)
One two days training conducted to 52
participants.
1 IP lexicon of 30 pages prepared.
Translation of IP treaty (1,400 pages)
Project on pace
to succeed:
•Financial and
operational
closure to be
done as soon as
possible.
36
completed.
SNCIPR verbally received information from
WIPO that inclusion of extracts on WIPO
rules in the IP Manual is authorized.
IP Handbook, Lexicon, and other training
materials on IP published in the website:
www.cambodiaip.gov.kh
Project Completed.
8 Customs
Valuation
System
(GDCE/MEF)
Budget:
$50,000
Disbursed:
$44,232
Remaining:
$5,768
(i) Feasibility studies
and needs
assessment
(required hardware
and software)
completed.
(ii) CVSS connected
to other automated
system such as
ASYCUDA and
Risk Management.
(iii) Using the risk-
based approach,
reduce the number
of import
declarations and the
number of non-
energy export
declarations
selected for
physical inspection
at designated sites.
(iv) Reduce the
average import
clearance time, as
measured by the
time taken from the
entry of a truck into
the import clearance
terminal to the
release of goods
from Customs
control.
(v) Reduce the
average customs
clearance time, as
measured by the
time taken between
lodging of the
customs declaration
to the issue of the
release note.
Customs Valuation: The preparation for
the Customs Valuation System has been
fully developed and the Database
Structure has been finalized by Mr. Sek
Socheat, National Consultant, who started
work on 06 August 2012 until April 2013.
Systems Manual completed and Systems
server is functioning.
Equipment: All equipment requirements
were procured by D/ICO and delivered to
GDCE, except for two undelivered
equipment: Amer Network Switch
SS2r24G4i and Brother Laser black and
white printer.
Modest delays
per plan, but
acceptable:
Customs
Valuation
System must
be used in all
exit points of
GDCE.
CVSS must be
connected to
other
automated
system such as
ASYCUDA
and Risk
Management.
Completion
Report
completed by
end of
February 2014.
3. Projects Under Implementation
3.1 Projects Under the Ministry of Commerce
# Project Title Output Indicators Implementation Status Comments on
the Progress of
Activities
Code
9 Strengthening
MoC Core
Functions
(DOP/MOC)
Budget:
$234,540
Disbursed:
$166,729.50
(71.09%)
(i) Increased match
between departmental
staff needs and
requirements.
(ii) Career and skills
development of MoC
officials improved.
A draft MOC HR policy was developed in
September 2011 after an Organizational
Review Workshop attended by 49 MoC
officials.
Workshop on Training Needs Assessment
for central departments and provincials
organized in Sept 2011 attended by 72 staff.
The Training Needs Assessment
questionnaire development in the TNA
Workshop in September was distributed and
Modest delays
per plan, but
acceptable:
Usefulness of
the project
output is a
concern,
unless D/PER
will conduct
some modules
37
# Project Title Output Indicators Implementation Status Comments on
the Progress of
Activities
Code
Remaining:
$67,810.50
answered by 449 staff from MoC and 24
PDoCs.
Workshop on Functioning, Capacity
Assessment and Sharing Capacity
Development was completed in Dec 2011
and attended by 94 officials from Moc and
the 24 PDoCs.
A draft of the Capacity Development Plan
for the central departments, provincial
departments and the Ministry of Commerce
(MoC) for 2012 through 2014 was
completed in January 2012.
The Capacity Building Plan was distributed
to 64 officers and staff of Moc and PDoCs
in February 2012 during the Dissemination
Workshop and to share the results of the
Capacity Development Plan.
Workshop to Review the three years
Development Plan and to Review MoC-
wide Training Programs were held in March
2012 and attended by 73 MoC and PDoC
officials and staff.
Capacity Development Plan approved by the
Senior Minister in March 2013.
The Draft Master Plan on MoC Capacity
Development (3-year Plan) in Khmer
completed in June 2013 and will be
translated in English.
Final Workshop completed.
Project Completion Report completed.
of the
proposed
training plan,
there is no
outcome that
will result
from the
Project.
D/PER must
update and
translate in
English the
drafted MoC-3
years Capacity
Development
Plan and must
be approved
by the Senior
Minister of
MoC.
D/PER must
finalize the
Project
Completion
Report by end
of January
2014
If project will
be extended,
training on
English
technical
writing skills
and computer
use must be
conducted.
10 Rule of Origin
(DMUL/MOC)
Budget:
$303,046
Disbursed:
$199,043.05
65.68%
Remaining:
$104,002.95
Workshop and
training for
government officials
and private sector in
Phnom Penh and
provinces completed.
Information
materials on Rules of
Origin will be
prepared and
translated into
Khmer.
Significant increased
capacity to
administer and
deliver services
related to export
requirements and
procedures leads to
more business
friendly and
simplified
arrangements.
Improved staff skills
of Multilateral Trade
Department and
efficiency and
Contract with UNCTAD has been finalized
and signed.
All office equipment procured and
delivered.
Designing and printing of booklets: awaiting
specifications from D/MUL. D/MUL is
waiting from the Consultant the materials to
be printed.
Expert from UNCTAD (Stephano Inama)
arrived on 12 December 2012 and provided
workshops on the European Commission‘s
Everything But Arms Program (EC EBA
Rules of Origin) in Phnom Penh, Svay
Rieng, and Sihanoukville. These workshops
were attended by 346 participants.
Stefano Inama conducted Training on Rules
of Origin to an estimated 180 participants at
Dara Airport Hotel from March 25 to 27,
2013. Additional trainings were conducted
in Koh Kong.
ROO Handbook: Roughly one half of the
Handbook has been drafted in English. The
drafting of the Handbook in English should
be completed by end of January 2014. The
local consultants have been given research
tasks in connection with the preparation of
Modest delays
per plan, but
acceptable:
Remaining1
training
workshop.
Publish Draft
Law on Rules
of Origin by
January 2014.
Extend
UNCTAD and
DICO
agreement,
and the MOU
between
DICO and
DMUL.
DICO should
reimburse the
expenses in
the Inter-
Ministerial
Consultation
Meeting
attended by at
least 30
38
# Project Title Output Indicators Implementation Status Comments on
the Progress of
Activities
Code
improved tools to
analyze and apply
information on ROO
and other export
requirements and
procedures.
the Handbook. When the English text is
completed, it will be translated into Khmer
by outside translators. All of these actions
are to be completed by UNCTAD.
ROO Glossary of Terms: The glossary of
terms will consist of about 30 technical
terms that are commonly used in the
discussion of ROO. The English version
will be completed by 31 January 2014. It
will then be translated into Khmer and
Chinese. All of these actions are to be
completed by UNCTAD.
Workshops: UNCTAD has now completed
the six workshops called for the
UNCTAD/DICO Agreement. Mr. Inama is
nonetheless prepared to conduct another
workshop on his next mission if this is
needed. Five days financing for workshops
remain in the budget of the project,
Legal Text on non-preferential rules of
origin. Mr. Uy Sambath participated
actively in the session devoted to
examination of the draft legal text.
representative
s from MEF,
MOC, SEZs
and other
related
agencies.
Extend MOU
to complete
activities.
11 Drafting of E-
Commerce Law
(DLAD/MOC)
Budget:
$164,923
Disbursed:
$70,937.36
(43.01%)
Remaining:
$93,985.64
Draft of E-
Commerce Law
reviewed with local
lawyers and officials
involved in business
law drafting.
Existing Khmer
translation of the E-
Commerce Law
improved.
Stakeholder
consultative
meetings organized
for the public and
private sector on the
current status of the
Draft E-Commerce
Law in order to
obtain feedbacks,
comments, and
suggestions.
A Cross Analysis of
E-Commerce Law in
other ASEAN
countries is
completed with
benchmarks on best
practices and lessons
learned in drafting of
the Law.
Inception report of E-Commerce Law
completed in January 2012, which includes
review of the E-Commerce Law; best
practice report in E-Commerce Law for
Cambodia; and the recommendations to re-
draft or revise the existing Law.
(International Consultant only completed 4
months out of 12 months contract).
1 high panel meeting to discuss on draft E-
Commerce Law with 15 participants
conducted in 13 February 2012.
Revising of 2008 draft E-Commerce Law
completed, but will require further review
by experts.
Progress is a
concern:
National
consultant
presently
being
recruited.
LAD
requested
cancellation in
the hiring of
international
consultant.
H.E. Sok
Siphana is
assisting MOC
on the aspect
of E-
Commerce
law drafting
on a pro-bono
basis.
12 Strengthening
Institutional
Risk
Management
(Camcontrol
/MOC)
Budget:
$150,386.00
Disbursed:
$140,551.20
(i) Management
structures and
processes at
CAMCONTROL
General Directorate
strengthened.
(ii) Risk Management
Training and English
language training
program completed.
Preliminary Risk Level Report on Food
Imports completed in January 2012.
Regulations Report on Imported Food into
Cambodia completed in March 2012.
Revised Job Description Report completed
in March 2012.
Report on the Options for Management
Structure on Risk Management completed in
March 2012.
Monitoring and Evaluation Indicators for
Modest delays
per plan, but
acceptable:
Final
Workshop on
Standard
Operating
Procedures
and Import
Regulations
39
# Project Title Output Indicators Implementation Status Comments on
the Progress of
Activities
Code
(93.47%) RMU prepared in June 2012.
Standard Operating Procedures and Training
Plan for RMU completed in June 2012.
1 Half-day workshop on Risk Management
has been conducted with 83 participants in
March 2012.
1 term of English class completed; 3 more
terms of English to be continued after
completion of procurement process. 14 staff
joined private English class & 6 staff
attended a ten-hour technical English
(English for laboratories) class.
Camcontrol has already revised the structure
of Risk Management Unit based on
recommendation of consultant but needs
further approval by MOC management.
Final Workshop expected to be
undertaken in March 2014.
(list of
restricted
goods) to be
organized in
March 2014.
Operational
closure to be
made after
completion of
the Final
Workshop.
13 Developing a
Stronger
National System
for IP
(SNCIPR/MOC)
Budget:
$148,491.00
Disbursed:
$60,197.92
(40.54%)
(i) IP Administration
System automated and
upgraded.
(ii) Dynamic IP
website fully developed
and enhanced.
(iii) SME Information
Desk established at the
National Secretariat of
IPR.
(iv) Intellectual
Property Rights
Publications translated
from English to Khmer
and from Khmer to
English.
(v) Enforcement
procedures on
Intellectual Property
Rights compiled.
An international consultant (Guilio C.
Zanetti, Director of Training and Networks
Department, IDLO) for the establishment
and maintenance of an IP Consultation Desk
for SMEs has been recruited and completed
his assignment.
Completed one two-day workshop for 10
DIPR officials on the IP advisory services
for SMEs and produce a report on the
training.
One two-day workshop for approximately
45 SMEs representatives in the
identification and protection of IPRs and
produce a report on the training completed.
Produced a comprehensive report on how to
establish and manage a SME Consultation
Desk, with recommendations on capacity
building initiatives and incentives for SMEs
to protect their IPRs.
IPR website launched in the following
website address: www.cambodiaip.gov.kh
Training conducted on trademark search
procedures completed and attended by 4
people from Business Registration
Department.
Invalidation of Prakas #222 prepared and
submitted to MOC Senior Minister for
approval.
All equipment to support IP admin system
has been delivered.
Enforcement procedures on IPR are being
developed.
Translation of IPR publications is 80%
complete.
Modest delays
per plan, but
acceptable:
IPR
publications
and leaflets to
be completed
ASAP.
Produce Sub-
Decree on
Enforcement
must be
completed
soon,
including the
Manual on
Enforcement.
Recruitment
of Consultants
(international
and national)
must be
completed
soon for IPR
Reinforcement
.
National
Consultant for
website
consultant
need to be re-
selected.
IPR Dept.
requested for
additional
fund for data
validation
(included here
is the purchase
of server).
40
# Project Title Output Indicators Implementation Status Comments on
the Progress of
Activities
Code
14 MOC ICT
Master Plan
(GDIT/MOC)
Budget:
$1,798,200.00
Disbursed:
$492,268.07
(27.38%)
(i) Modern, effective
and scalable
Information,
Communications and
Technology
Infrastructures are
procured.
(ii) Security protocols
in the ICT system are
introduced.
(iii)Trade Information
Window and
processing of the
Certificates of Origin
are fully established
and operating.
(iv)Trainings on ICT
System are conducted
to sustain the ICT
investment.
(v) Policy Guidelines
on the development and
use of ICT system are
completed and
disseminated to ensure
quality delivery and
management.
(vi)Systems Support
and Management Unit
(SMSU) is established
and operating to
support the deployment
and maintenance for all
MOC‘s ICT initiatives.
Project and management arrangements
designed.
The automation of the C/O System and the
Trade Information Website (Lot 3) was to
be financed by TFCP now has been
transferred to TDSP.
National IT manager recruited and onboard.
National IT consultancy firm is working
with MoC Team and other contract.
Training for administration has commenced.
Server infrastructure and Turnkey solution
were reviewed and became part of the
technical specification for procurement.
Interim solution for electronic forms
completed.
Installation of enterprise servers and
networks within MoC has been completed
and tested.
Most procurement packages for ICT Master
Plan concluded and contracts were signed
and ICT office equipment and furniture
delivered
Wide Area Network was deployed for 30
points out of 32. Testing is underway for
most points.
Supply and Installation of Generator and
Electrical Renovation is complete.
Office Renovation and partition installation
completed.
Consulting firm (FPT) to develop
Prototypes of CO processing and a Trade
Information Website (TIW) was terminated.
Revised TOR for re-procurement of IT firm
(replacement of FPT) is being drafted.
Progress is a
concern:
DICO Team
to follow up
the progress of
the project
closely.
New
consultant
firm must be
hired soon.
15 Reviewing of
Commercial
Laws
(DNLC/MOC)
Budget:
$183,420
Revised:
$219,949.00
Disbursed:
$46,437.46
(21.11%)
Remaining:
$173,511.54
(1) Sub-Decree on the
Implementation of
Trade Remedies Law
(2)Capacity Building
on the implementation
of the trade remedies
law.
(3) Procedures Manual
on Anti-Dumping and
Safeguard
Investigations.
No progress to date, although the revised
MOU was already signed (completion is 31
December 2014).
Progress is a
concern:
No progress
since WB has
given a no
objection on
the revised
proposal.
Drafted TOR
must be
reviewed and
expedite
recruitment of
consultants.
3.2 Projects under the Ministry of Economy and Finance
# Project Title Output Indicators Implementation Status Comments on
the Progress of
Activities
Code
16 Capacity
Enhancement
Program
(GDCE/MEF)
Budget:
$613,105.00
Disbursed:
$269,555.08
(i) A National
Customs
Intelligence System
developed and
implemented.
(ii)A Strategic Plan for
Customs Marine
Enforcement
developed.
National Intelligence System: Inception
Report on National Intelligence System
had been completed. Mr. Richard Filmer,
the International Consultant who designed
the System has finished his contract. A
National IT consultant has been on board
since April 2013 to design the National
Intelligence System.
Inception Report for Data compilation
Progress is a
concern:
Monitor the
computerizat
ion of the
National
Intelligence
System.
Implement
41
# Project Title Output Indicators Implementation Status Comments on
the Progress of
Activities
Code
(43.97%)
Remaining:
$333,549.95
(iii) Compilation of
trade statistics
improved.
(iv) Business Plan for
the Inspection of
Petroleum Products
completed.
(v) A legal data base
of decisions related
to Customs laws
and regulations
developed and staff
trained in its use,
resulting in fewer
cases brought to
court and or lost.
(v) Post-clearance
audits,
investigation,
intelligence
gathering, and anti-
smuggling capacity
improved.
(vi)A special training
program for staff to
prepare them to the
new operating
principles and
practices
implemented.
from ASYCUDA to CSS had been
completed and the installation of IT
Infrastructure for data compilation had
been completed, while the user manual
training preparation has been completed.
Strategic Plan and Business Case for
Marine: Inception Report for the Strategic
Plan and Business Case for Marine
preparation has been completed by Mr.
Stuart Millen. No additional activities were
carried out since there are no training
equipment that can be used.
Review of Excise Legislative Framework
Administration had been completed and
new excise law had been proposed in the
study report prepared by Mr. Rob Preece.
Petroleum Products and Excise
Enhancement Study has been revised by
Mr. Rob Preece, International consultant.
Compilation of Trade Statistics:
Compilation of Trade Statistics completed
by National IT Consultant, Mr. Sreng
Anuvath. He started his work on 11 May
2012 and has already submitted his final
report.
Outreach and training for Free Zone: Two training courses were conducted in
April 2012 without submitting funding
request to DICO. All other trainings were
completed in Phnom Penh (26 Nov. 2013
with 44 private sector participants and 8
Customs Officers); In Bavet Manhattan EZ
(8 Customs Officers and 41 private sectors,
27 November 2013); and Sihanoukville (9
Customs Officeres and 42 private sector, 16
December 2013).
Study Tours: The WB has provided NOL
on the study tour. GDCE is planning to
have the study tour in Spain in April 2014.
training
activities in
the work
plan.
Preparation
of the
Strategic
Plan and
Business
Case for
Marine must
be revived.
Payment to
Mr. Richard
Filmer must
be processed
by GDCE
and DICO
immediately.
Mr. Tech
Siek, focal
point, will
communicate
with Mr.
Richard
Filmer on his
claims.
Mr. Tech
Siek Ngorn
will review
the training
equipment
proposed by
International
Consultant
for Marine,
and will
request from
DICO if
needed.
GDCE need
to submit the
proposal for
study tour.
17 ASYCUDA
World
(GDCE/MEF)
Budget:
US$1,129,154.00
Disbursed:
$218,780.32
(19.38%)
(i)Upgraded
ASYCUDA World
Systems software
being used at GDCE
(i.e. latest release of
the AW Software).
(ii) Improved
institutional and
individual capability
of NPT Team at
GDCE.
(iii) Enhanced
reliability and
resiliency of the
ASYCUDA World
System.
Component 1: Extension of contract with
local Cambodian Company Resolvo – The
contract agreement was signed on 21 June
2013. Resolvo staff commenced work
from 01 September 2013 and will expire 31
January 2014.
Component 2: Extension of Contract with
Viettel for the supply and provision of fiber
optic communication. The contract
amendment was made on 02 August 2012
based on the previous contract with TFCP.
Leased fiber optic service is from 01
August to 31 January 2014. The contract
was amended to increase the bandwidth of
the internet connection to 4 mbps ON 21
November 2013.
Component 3: Maintenance of IT
Equipment and Power Generators. For IT
equipment, Campura Triangulum
Progress is a
concern:
DICO should
consider
extending the
contract with
Resolvo and
Viettel.
MOU needs
to be
extended.
GDCE
informed
verbally to
drop
Component 3
and instead
replace it
with a new
42
# Project Title Output Indicators Implementation Status Comments on
the Progress of
Activities
Code
Corporation won the contract, which was
signed on 28 February 2013. The company
commenced work from 28 February 2013.
For Power Generators, Envisioning Co. Ltd
won the contract. The contract was signed
on 29 March 2013, while the term of
service started 01 March 2013.
Component 4: Local IT upgrade and
enhance the GDCE website. The contract
was signed with Mr. Soth Ratana on 26
March 2013. Mr. Soth Ratana commenced
his work from 01 April 2013 until 31
January 2014.
Component 5: Support to GDCE HQs AW
Office. Office supplies were received from
November 2012 and Drivers were
contracted. Mission to check points not yet
started.
Component 6: Securing the support from
UNCTAD to upgrade the version of the
AW. Still under procurement by DICO.
Component 7: Capacity Building for the
National Project Team. Database and
SOClass Middle Training under
procurement by DICO.
Component 8: International consultant
service for collecting fee for sustainable
operation. This component was proposed
by WVB and has not started up to now.
component
that has not
been
identified
yet.
3.3 Projects under the Ministry of Industry, Mines and Energy
# Project Title Output Indicators Implementation Status Comments on
the Progress of
Activities
Code
18 Strengthening
the Capacity
of ISC
(ISC/MIME)
Budget:
$384,264.00
Disbursed:
$289,449.10
(75.33%)
Remaining:
$94,814.90
Number of Standards
drafted and
implemented by ISC.
Number of Technical
Working Committees
created to develop
standards.
Number of local
producers informed
of new sets of
standards developed
by ISC.
TCs and NSC
members enhanced
their knowledge and
experiences about
standards
development process
as well as its
concepts.
TCs members, staff
from line ministries
and provincial
departments, food
industries and service
learned and
One two-day training on practical approach
for TCs and NSC members completed with
118 participants (9-10 Feb, 2012, Sunway
Hotel, Phnom Penh)
One two-day seminar on Standardization
and Conformity Assessment conducted in
Phnom Penh with 100 participants from line
ministries, industries, services and TC
members (23-24 July 2012).
One two-day Seminar on Food Safety and
Hygiene among GMP and HACCP members
(100 participants from line provincial
departments, food industries and services
from 3 provinces such as Battambang,
Banteay Meanchey and Siem reap)
concluded on 25-26 September 2012.
One two-day Awareness Training on ISO
9001 for SMEs conducted in Sihanoukville
with 100 participants from line provincial
departments, industries and services from 4
provinces such as Sihanouk, Koh Kong,
Kampot and Kep (19-20 November 2012).
Ten leaflets in English and Khmer are
developed in which Four of them are printed
in English and Khmer.
Four posters in Khmer developed and
Project is a
Concern:
.
ISC to
accelerate
endorsements
of the draft
standards to
the National
Standards
Council.
Some draft
standards need
to be reviewed
by the
Technical
Committee
and Support
Consultants.
DICO must
undertake
close
monitoring of
the project.
43
# Project Title Output Indicators Implementation Status Comments on
the Progress of
Activities
Code
understood the
concepts and
principles of
standardization,
conformity
assessment, food
safety, GMP,
HACCP and ISO
9001 and benefit of
implementation of
those standards and
principles to improve
the quality and safety
of product as well as
services.
printed.
Six information booklets fully developed in
English and being translated in Khmer.
4 Standards have been adopted and
approved by NSC. These four standards
were adopted from international standards.
12 standards and guidelines were finalized
in English by an International expert and in
the process of review and translation in
Khmer (one standard for hollow brick is in
the process of adoption by the Technical
Committee and will be subjected to tests.
5 Working Groups in standard setting were
established.
Four standards adopted from Codex and
approved by National Standards Council
such as General principle for the use of
food additives in food, General standards for
food additive, General standards for
contaminants and toxins in foods, Guideline
on processing and handling of quick frozen
foods.
Standard Book from ISO were delivered.
All training/workshops completed.
19
Development
of Standards
for Rice
(ISC/MIME)
Budget:
$360,216.00
Disbursed:
$234,173.01
(65.01%)
Remaining:
$126,042.99
(i) Drafted Standards on
rice varieties
completed and
implemented by ISC.
(ii) Number of rice
exporters voluntarily
submits rice samples
for standards
certification at ISC.
Completed the drafting 10 rice standards,
one standard for packaging material, and 2
guidelines for rice producers. (13 out of 17
standards completed).
Completed translation of 10 rice standards
and one standard for packaging materials.
1 Milled Rice standards completed and
approved but not funded by TDSP.
Collected data from 11 provinces: Prey
Veng, Siem Reap, Kampong Thom,
Kampong Cham, Svay Rieng, Takeo,
Kandal, Kampong Speu, Pursat, Battambang
and Banteay Meanchey.
Collected information from CARDI,
CEDAC, Signatures Asia and Loran on rice
standards.
Capacity assessment on the Conformity
Assessment Body for Rice completed.
Ongoing prepare training material on
GMP/GHP and HACCP for rice mailers and
traders
Studied the existing CS 191:2011 against
Codex guideline, SLS 1266:2011 and
HACCP Code:2003 and propose to prepare
Cambodian HACCP (auditable) standards to
SDTC Department.
Single source selection of Accreditation
Body need to be confirm (wait for
conformation from DICO).
Capacity enhancement on the Conformity
Assessment Body for Rice is a waiting for
Accreditation (pending).
Survey questionnaires for farmers and rice
millers completed (June 2012).
Surveys among farmers and rice millers
conducted from June -November 2012.
Translate documents (Rice certification
Scheme Questionnaire – GMP/GHP,
GMP/GHP Criteria for Rice Mills, HACCP
Project is a
Concern:
Procurement
of Rice
Accreditation
Body (under
Single Source
Selection) to
be speeded up.
Close
monitoring
required for
all remaining
activities.
Tripartite
Meeting must
be arranged
between WB,
ADB, and the
Government
(ISC and
DICO) on the
issues
concerning the
procurement
of Rice
Accreditation
Body.
44
# Project Title Output Indicators Implementation Status Comments on
the Progress of
Activities
Code
Guideline for Rice Mills) (wait for editing)
1 leaflets and 6 booklets had been published.
6 booklets are on process (English and
Khmer)
2 leaflets are on process (English and
Khmer)
One two-day Workshop on Result of data
collection for drafting 10 varieties of rice
standards, conducted in Phnom Penh with
130 participants from line ministries and
provincial departments,TC4 members, rice
milling, farmer association, rice inspection,
and relevant non-governmental
organizations (27-28 February 2013) in
Phnom Penh and the second one in
Battambang on 28-29 March 2013.
Completed the drafting of booklets in
English and in process of reviewing 3
English booklets such as booklets for rice
packaging concepts and requirements, rice
production and Technology and rice market
information and condition.
Standards on ISO were delivered.
Rice certification scheme has been
developed.
3.4 Projects under the Office of the Council of Ministers
# Project Title Output Indicators Implementation Status Comments on
the Progress of
Activities
Code
20 Implementation
Agencies
Capacity
Building
(RSA/OCM)
Budget:
$605,125.00
Disbursed:
$192,901.84
(31.88%)
Remaining:
$412,223.16
i) Results of the
Training needs
assessment on project
implementation and
management among
IA officials were
utilized in developing
courses on project
management.
(ii) A number of
Cambodian public
training institutions
are able to offer
quality training
programs on project
management.
(iii) Performances of
public officials
attending the training
program are
monitored and
tracked before and
after the training.
(iv) Training facilities
of MoC used for
TDSP-organized and
sponsored training
programs.
Completed initial skills inventory list and
training needs assessment of implementing
agencies with 44 participants from 11 IAs.
Completed inventory list of training courses
in and out of Cambodia on key course
topics.
A validation workshop on TNA conducted
on June 2012 with 30 participants from
TDSP IA.
Completed review of RSA capacity
assessment to provide key training to
officials
Completed initial list of skills inventories
and capacity assessment of implementing
agencies.
7 Training Institutions were short listed to
conduct the courses; VBNK has been
selected to deliver the course program.
The Course Design has been drafted and
broken down into several other courses, as
per recommendation provided in the
Assessment Report and is now included in
the package for bidding.
Completed institutional assessments among
participating implementing agencies.
Modest delays
per plan, but
acceptable.
Deliver and
monitor the
training for
implementing
agencies.
Consultants
will be
extended to
closely
monitor
implementati
on of training
programs, but
with no
additional
cost.
RSA must
provide the
outcomes and
outputs to be
monitored in
the course
program to be
delivered by
VBNK and
other training
institution.
45
3.5 Projects in Other Organizations/Ministries
# Project Title Output Indicators Implementation Status Comments on
the Progress of
Activities
Code
21 Raising
Awareness on
Law on
Investment
(CIB/CDC)
Budget:
$195,860
Disbursed:
$93,740.22
(47.86%)
Remaining:
$102,119.78
(i) Number of officials
in charge of
investments and
investment
promotion attended
seminars and
workshop on the
Law on Investment
and Regulations, and
Investment
Promotion.
(ii) Percentage increase
in the on-going
financial support to
improve the working
conditions at PMIs.
(iii) Number of
participating
enterprises reporting
change in business
processes brought
about by Investment
Promotion.
Institutional assessments of 6 provincial
Provincial-Municipality Investment Sub-
Committee (PMIS) completed (people
involved in the discussion reached 116):
Kampong Cham, Stung Treng, Rattanakiri,
Banteay Meanchey, Koh Kong, and
Kampot.
Training plan on Investment Promotion
completed. Unit directors will be sharing
their experience on investment promotion
during the training.
National Awareness Workshops on
Investment Promotion completed for 24
provinces on 22 February 2012 conducted
at CDC with 157 participants.
Investment Booklet printed and delivered
(28,333 copies in Khmer and 20,000 copies
in English).
Progress is a
Concern:
CDC to
propose for
further project
revision that
will be
discussed in the
Trilateral
meeting (CDC,
DICO and
WB).
DICO should
monitor the
project
intensively.
By 31 March
2014, if the
project does
not have any
activity, IC
should consider
closing the
Project.
22 Better Quality
and Safety of
Fish
(FIA/MAFF)
Budget:
$1,262,708.00
Disbursed:
$389,883.88
(30.88%)
Remaining:
$872,824.12
(i)Review on fish
processing, handling
and storage practices
documented and
completed.
(ii)Food safety risk
assessment
conducted among
fish products.
(iii)Changes for better
quality and safety
improvement
introduced and
documented.
(iv) Training needs
assessment and
design of training on
quality and safety
issues related to
post-harvest fisheries
completed and
documented.
(v)Regulations for the
establishment of fish
processor
cooperatives
finalized and
adopted.
(vi) Laboratory testing
and certification
services strengthened
to facilitate and
support the fish
processor
cooperatives.
(vii) Basic equipment
purchased to support
activities of the
fisheries
Procurement of UNIDO under Single
Source Selection completed and contract
was signed in January 2013 but
mobilization of UNIDO consultants was
done only in May 2013.
Office furniture and equipment delivered.
Laboratory equipment awaiting technical
specifications from IA.
Office furniture delivery completed.
Testing Specialist from UNIDO has
completed the first assignment in June
2013.
Market Assessment carried out in June
2013 (which is not part of the scope of
work in the current contract), but quality
of report is very poor (a TNA should have
been conducted instead of Market
Assessment).
Assignment on Food Safety Risk
Assessment has been initially carried out
in June 2013.
Briefing Session on Food Safety conducted
on June 14, 2013 at UNIDO.
Workshop on the Formation of Fisherfolk
Cooperatives completed in January in
Sihanoukville.
Progress is a
concern:
UNIDO and
FiA need to
speed up
implementation
and
procurement of
pending
packages,
specifically
laboratory
equipment for
FIA and the
cooperatives.
Inception
Report
prepared by
UNIDO must
be revised in
accordance
with standards,
such as
including Work
Program and
Methodology
in undertaking
the assignment.
Training Needs
Assessment
and training
program must
be carried out
as soon as
possible.
There is a need
to extend MOU
and contract of
46
# Project Title Output Indicators Implementation Status Comments on
the Progress of
Activities
Code
cooperatives and
associations to
improve the hygiene
practices in
compliance with
international
standards (from fish
farm to table).
(viii)Local training and
other technical
support for the
implementation of
pilot intervention.
UNIDO (FIA
need to submit
request for
extension)
DICO should
monitor
progress of the
project
intensively.
23 Support to the
G-PSF
(CCC)
Budget:
$260,338.00
Disbursed:
$76,040.90
(29,21%)
Complete Member
Survey.
BMOs‘
representatives
trained to provide
efficient support to
Public Private
Dialogue
Cooperation with
research and learning
institutions
established
Analytical works (2
studies of at least20
pages each)
identifying policy
measure to be
discussed with
Government based
on the issues
identified in the
member surveys
The GPSF provides
regular inputs into
the Trade SWAp
Pillars updating and
implementation
process
Enhanced capacity of
CCC in project
management,
monitoring &
evaluation, and
communication
Approximately 1,700+ individual
companies/business operators have been
identified/profiled and survey forms have
been sent out through their respective
business associations and PSWG
secretariats. The surveys have been
grouped in 3 main categories: (a) 15
Phnom Penh and Provincial Chambers of
Commerce; (b) 9 PSWGs via lead
associations acted as PSWG secretariats;
(c) 12 non-PSWG business associations.
Two project consultants recruited.
Inception Report completed and submitted.
CCC currently establishing partnership
with training and educational institutions;
MOU are currently being developed,
wherein practical arrangement is under
negotiation with each learning institution
identified.
Face to face meetings with all PSWG co-
chairs and secretariat were conducted to
gather their inputs and suggestions to move
the project forward.
Modest delays
per plan, but
acceptable:
Follow-up
discussions
required to
assess capacity
and capability
for each WG.
Signing
ceremony to be
arranged to
sign MOU with
CCC‘s
president and
five
universities
(i.e. Build
Bright
University,
Cambodia
Mekong
University,
National
University of
Management,
Pannasastra
University of
Cambodia, and
Royal
University of
Phnom Penh.
Completion of
Membership
Assessment
Report as soon
as possible
before the next
G-PSF.
Submission of
TOR to recruit
the Technical
Consultant to
conduct two
topic studies,
identified in the
Assessment
Report.
Note: The disbursement percentages are as of 31 December 2013.
47
*Comments on the Progress of Activities:
Action
Color
Code Meaning/Qualitative Description
Project Completed. All project activities and outputs already completed.
Progress is a Concern: This activity must be carried out as soon as possible. There might be a need for
significant reprogramming required to ensure the project success.
Modest delays per plan, but acceptable: This activity or output must be followed-up as soon as possible. Needs
in the project might have changed since the project was funded, but still mostly appropriate.
On pace to succeed: The activities carried out by the Project are very appropriate for the given context and are
timely accomplished.
III. Key Program Issues, Challenges, and Lessons Learned
As TDSP moves into another year of implementation, various program issues and challenges have been
surmounted, and several lessons were also learned in the process of implementation specifically on the
following areas:
Trade Facilitation and Liberalization: RGC's performance in terms of trade facilitation in the past year
has been mixed. While the single administration document (SAD) was completed in February 2006, the
implementation of ASYCUDA (the automated system for customs data) in Sihanoukville Port, the
international airports, river ports, the SEZ, and the check-points at the border has reportedly been
progressing well. On risk management side, the RGC adopted Sub-Decree No. 21 on Risk Management to
streamline responsibilities and avoid duplication of functions and role of trade agencies, however, its
implementation has been uncertain. Thus, there is a need to review trade facilitation programs and key
initiatives in the light of the specific issues faced by the stakeholders and traders; and consultation must be
made in negotiating future trade liberalization efforts.
Intellectual Property Rights: Intellectual Property Rights in Cambodia ―still has a long journey ahead‖
and ―faces many challenges‖ in meeting its IPR commitments. In Cambodia, books, CDs and VCDs with
copyright simply cannot be afforded because they would be too expensive for the average citizen. Pirated
CDs, VCDs, and DVDs as well as copied books, and unlicensed films are still flooding the Cambodian
market. With the majority of the population earning less than one dollar per day, the enforcement of
copyright law would take away the livelihood of thousands, and cut off many from educational and
entertainment materials. In this light, efforts must be made in preparing a regional policy for IP
registration, the strengthening of institutions to enforce rights, public awareness campaigns and human
resource development in reducing infringement of copyright laws.
Legal Reforms: The hope for lasting legal and judicial reform in Cambodia rests with the next
generation of legal professionals. As part of its accession to the WTO, Cambodia has made a large number
of commitments in legal and judicial system reforms, including the enforcement of the rule of law and the
establishment of a specialized commercial court. According to a government source, forty-seven laws and
regulations are needed to fulfill WTO membership requirements. Fourteen laws and regulations have
already been adopted, while the other thirty-three are to be passed within the next two years. If all trade
related laws will be adopted and implemented very soon, economic reforms will be stimulated thereby
improving investor confidence. Future programs of TDSP on legal reforms must be on improving the
quality of legal education in Cambodian universities and by Cambodian legal professional training
schools.
Trade Finance: Small and medium-size enterprises (SME) are the backbone of the economic
development in Cambodia. In the region, SMEs account for more than 56 per cent of all enterprises and
generate 50 to 98 per cent of employment. Yet, the ability of SMEs to contribute significantly to
economic growth in the region faces one main challenge: the access to formal sector financing. In
Cambodia, the fact that a majority of the population live in rural areas and depend on agriculture and
informal sector activities, combined with a banking sector that has not yet reached a sufficient degree of
sophistication makes access to finance difficult for a majority of the population. Providing finance to
SMEs in Cambodia is generally rated as riskier than finance in more developed countries, wherein the
banking sector in the country faces both high risk and high transaction costs in lending to SMEs. The
informal and family organization of most SMEs in Cambodia constitutes a barrier for potential investors,
where lack of information and professionalism prevail. Thus, TDSP must design activities that will
48
reduce market failures among SMEs, which will require supportive government policies to address the
issues of duplication, lack of coordination and bureaucracy. In this regard, the Government should
benchmark on the strategy used by ACLEDA Bank, which has kept a methodology and focus to address
the SME financing needs. On the other hand, the provision of matching grants, similar to what has been
adopted in TFCP might be another option.
Developing and Implementing Policies: The trade policies adopted by the Royal Government of
Cambodia has been considered as pro-poor but the following issues still emerged: (i) export-led growth
will not necessarily translate into accelerated poverty reduction if the trade policy is not placed in the
context of overall sector and economy-wide poverty reduction strategies; (ii) Foreign Direct Investment
(FDI) and export activity will not provide opportunity for poverty reduction if concerns about types and
conditions of investment, ownership, labor standards and environmental regulations are not adequately
addressed; (iii) Export Processing Zones (EPZs) will export the profits along with the products if they do
not guarantee backward linkages and address the possible intensification of income inequalities between
rural and urban areas; (iv) lowering labor standards without improving productivity will not make
Cambodia more competitive (cheap labor vs. low per unit labor costs) while attracting high-quality FDI
requires a commitment to improving human-capital levels; (v) agricultural export growth will not reduce
poverty without effective targeting of remote areas to improve access to capital, technology, skills and
other productive inputs as well as information on prices and markets. Therefore, the preparation of
various trade policies must carefully consider the effects towards the poor and that agricultural exports
should not be allowed to threaten national food security.
49
IV. Conclusions and Recommendations
Cambodia has already made important gains from the programs and projects on trade. However, the country is still
faced with many issues and challenges. Efforts in developing an international trade landscape for Cambodia will
require coordinated and strategic partnerships with the donor community, private sector, civil society
organizations, the academe, and many other sectors.
The development for trade development strategy will depend on many factors such as: capacity building in the area
of tariff liberalization, non-tariff barriers, SME development, regional cooperation, competition policy, consumer
protection, connectivity and logistics development and sub-regional cooperation. The development of the various
sets of trade and trade related policies will be very crucial and must be implemented with an ―out of the box‖
mentality, which will require greater coherence and coordination. Cambodia‘s regional integration strategies and
policies will contribute most effectively and efficiently to sustainable development if there will be greater support
and cooperation among donor partners, trade agencies and other related stakeholders.
Thus, the future interventions and projects of Trade Development Support Program (TDSP) must be aligned and
focused on the following area:
Tariff Liberalization, Non-Tariff Barriers and Legal Reforms: Cambodia should actively engage itself in
deepening economic integration with ASEAN as well as utilizing ASEAN‘s collective negotiating power
including FTAs with ASEAN‘s dialogue partners. In addition, Cambodia should further liberalize its service
sectors, capital goods, and high-tech sectors and expand its domestic tax revenue base. TDSP should
continue working on the legal reform agenda such as finalization of the E-Commerce Law, and the review of
various commercial laws, specifically the Law on Competition and sub-decree on non-tariff measures.
Technical Barriers to Trade (TBT) and Sanitary and Phyto-Sanitary (SPS): In the current revision of
the Diagnostic Trade Integration Strategy, emphasis was provided on several export products that are SPS and
TBT sensitive. As such, future TDSP funded projects must be geared towards review of various policies
related with product standards and the related implementing regulations, including capacity building on food
safety, fishery certification procedures, and risk assessment procedures.
Trade Finance: The issue of SME financing must be addressed in a comprehensive manner: setting up the
appropriate framework which requires the improvement of the availability of information, legal protection of
lenders and investors, as well as the support to the SMEs so they can upgrade and have access to bank loans
and investments by professional investors. To that extent, the recent creation of a credit bureau providing
information to the lenders on the credit situation of a borrower is a key development with regards to the
development of better information. Also, the initiative towards a reliable system for collateral, land and credit
guarantees in order to provide more security to creditors needs to be continued. It is still a lengthy and
difficult process to recover credit or realize guarantees in Cambodia and this explains why banks remain
cautious when selecting borrowers and continue to have high collateral requirements. Yet a formal legal and
accounting framework can help them gain easier access to funding and can help them do business with bigger
customers. The road to develop access to credit remains challenging but examples in other ASEAN countries
indicate that appropriate reforms towards more accurate information, adequate accounting standards, product
diversification and contract enforcement for collateral recovery are the road to success. As ASEAN integrates,
regional initiatives aiming at facilitating cross-border financing for SMEs will be very important in the future,
and the diversity in economic development of the member countries is a real opportunity. Before the
implementation of regional measures and cross border financing, capacity building, training and information
exchange from more developed ASEAN members to other members should be the first step towards a higher
level of integration, and a better one then addressing land disputes.
SME Support Strategy: A strategy to support SMEs would therefore include a process to help them in their
transition from informal to formal status and provide them with a management and governance support to
better understand and improve their businesses. The use or set up of dedicated companies, as well as
government agencies, to provide that support would definitely be crucial in the development of SMEs.
Competition and Consumer Protection: Introduction of competition laws could perhaps be done on an
evolutionary approach, by introducing key requirements first and then overtime adding on additional
protection and measures. To be effective, any competition agency which will be created should be an
independent authority and its performance as an agency must be regularly evaluated.
Connectivity and Logistics Development. The institutional environment related to logistics is considered
the most challenging area as institutions dealing with logistics are highly complex and uncoordinated.
Logistics service providers in Cambodia have limited service range and lack of institutional network and
competitiveness. As a result of limited availability of logistics related statistical data and limited exchange of
50
experience, there is a critical need at the national and regional level to design and propose more specific
logistics development actions. The establishment of an integrated logistics database is therefore necessary to
have a set of common regional logistics indicators. Thus, future TDSP projects must deal with the preparation
of trade logistics with countries within ASEAN and other neighboring countries to achieve greater
connectivity.
Capacity Building: A more comprehensive training program must be adopted to improve the individual and
institutional capacity of various people and agencies involved in TDSP and the Trade SWAp, specifically in
the areas of project management, financial management, procurement, monitoring and evaluation, English
training, and computer literacy. If the donor agencies will allow, the Trade Training and Research Institute
(TTRI) based at the Ministry of Commerce must be established and provide the logistical requirements such
as infrastructure, facilities, equipment, and training facilitators to train officials in trade negotiations,
accounting, and other necessary capacity building programs related to trade. Collaborative arrangements
should also be made by the TRTI and the Royal School of Administration in the implementation of various
training programs on trade that were identified in the previous project on ―Trade Curriculum Development‖
initiated and completed by RSA.
51
52
Appendix 1
Summary Actual Disbursement by IA against the Budget as of 31 December 2013
Cambodia Trade Development Support Program ( TDSP )
Grant No. : MDTF 093573 - KH
N
o Proposal Title MoU No. IA
Original
Budget
Revised
Budget
Actual Exp.
as at
31/12/2012
Cumulative
To-date
%
Disbursed Balance
%
Balance
0 Department of International Cooperation D/ICO
D/ICO-MOC
-
3,651,971.67
2,817,129.55
3,620,590.34 99.14%
31,381.33
0.86%
1
Rule of Origin: Operational Procedures & Training -
Contract with UNCTAD - US$ 133,402 + Additional
Budget by D/MUL - US$ 169,643.75 TDSP/2010/01 D/MUL-MOC
110,000.00
303,045.75
138,764.06
199,043.05 65.68%
104,002.70 34.32%
2 Information dissemination on Top Ten products from
Cambodia 24 provinces TDSP/2010/02 TPD002-MOC
48,211.00
48,211.00
39,880.00
39,880.00 82.72%
8,331.00 17.28%
3 Export training & SME training: Export training & coaching services
TDSP/2010/03 TPD003-MOC
47,905.00
54,899.00
51,137.67
53,600.27 97.63%
1,298.73
2.37%
4 Strengthening the capacity of Institute of Standard of
Cambodia (ISC) TDSP/2010/04 ISC004-MIME
314,281.00
384,264.00
247,607.60
289,449.10 75.33%
94,814.90 24.67%
5 Study on minimum wages & minimum wages negotiation
in garment sector TDSP/2010/05 CAMFEBA
46,000.00 -
- -
- -
6 Capacity Building for the Dept of Trade & Statistics
TDSP/2010/06 DTSI-MOC
137,540.00
137,540.00
62,181.89
90,343.51 65.69%
47,196.49 34.31%
7 Customs Valuation
TDSP/2010/07 GDCE-MEF
50,000.00
50,000.00
27,905.16
44,232.00 88.46%
5,768.00 11.54%
8 Awareness program on Customs in Cambodia
TDSP/2010/08 GDCE-MEF
95,000.00
95,000.00
21,001.79
21,001.79 22.11%
73,998.21
77.89%
9 Enhancing IP Teaching and Training
TDSP/2010/09 DIPR-MOC
110,000.00
110,000.00
96,583.78
110,539.78 100.49%
(539.78) -0.49%
10
Phase 1: Raising awareness on the law on investment and its regulation and investment promotion to the sub-
committee on Provincial/Municipal investment and
private
TDSP/2010/10 CIB-CDC
195,860.00
195,860.00
89,118.65
93,740.22 47.86%
102,119.78 52.14%
11 Support drafting E-Commerce Law
TDSP/2010/11 LAD-MOC
124,900.00
164,923.00
70,937.36
70,937.36 43.01%
93,985.64 56.99%
12 Strengthening Institutional Risk Management Capacities
in CAMCONTROL General Directorate TDSP/2010/12 CAML-MOC
105,550.00
150,368.23
139,900.40
140,551.20 93.47%
9,817.03 6.53%
13 Reviewing of Commercial Laws
TDSP/2010/13 DNLC-MOC
183,420.00
183,420.00
46,437.40
46,437.40 25.32%
136,982.60
74.68%
14 Strengthening MoC core DR functions through the DoP
Institutional and Individual Capacity TDSP/2010/14 DOP-MOC
234,540.00
234,540.00
163,075.21
166,729.50 71.09%
67,810.50 28.91%
15 Value Chain Information Unit of TPD
TDSP/2010/15 TDPD015-
MOC
263,208.00
263,208.00
201,207.57
202,583.00 76.97%
60,625.00
23.03%
53
N
o Proposal Title MoU No. IA
Original
Budget
Revised
Budget
Actual Exp.
as at
31/12/2012
Cumulative
To-date
%
Disbursed Balance
%
Balance
16 Development of a trade curriculum at the Royal School of Administration
TDSP/2010/18 RSA (018) -
OCM
101,750.00
123,650.00
122,356.31
122,356.31 98.95%
1,293.69
1.05%
17
ICT Master Plan Implementation TDSP/2011/SP0
2 GDIT-MOC
1,798,200.00
1,798,200.00
232,934.56
492,268.07
27.38%
1,305,931.9
3
72.62%
18 Capacity Enhancement Program TDSP/2011/SP0
3 GDCE (SP03)-
MEF
613,105.00
613,105.00
255,473.08
269,555.08 43.97%
343,549.92
56.03%
19 Implementing Agency Capacity Enhancement Program TDSP/2011/SP0
4
RSA (SP04)-
OCM
605,125.00
605,125.00
135,461.25
192,901.84 31.88%
412,223.16 68.12%
20 The development of completed drafts of national standards for rice and strengthening the capacity of
conformity assessment body-Phase I
TDSP/2011/SP0
5 ISC005-MOC
360,216.33
360,216.33
136,556.48
234,173.01 65.01%
126,043.32 34.99%
21 Better Quality and Safety of Fish and Fishery Products for
Improving Fish Trade Development in Cambodia TDSP/2011/SP0
6 FIA-MAFF
965,309.00
1,262,708.00
26,437.67
389,883.88
30.88%
872,824.12 69.12%
22 Strategic Proposal for the Support of ASYCUDA World System
TDSP/2012/SP07
GDCE (SP07)-MEF
1,129,153.50
1,129,153.50
36,157.65
218,780.32
19.38%
910,373.18 80.62%
23 Support to the G-PSF TDSP/2012/SP0
8 CCC
-
260,338.50
-
76,040.90 29.21%
184,297.60 70.79%
24 Development a stronger national system for IP generation,
protection, administration and enforcement TDSP/2012/SP0
9 IPR-MoC
-
148,491.00
-
60,197.92 40.54%
88,293.08 59.46%
Total Amounts of MOUs in US Dollars
7,639,273.83
12,328,237.98
5,158,245.09
7,245,815.85 58.77%
5,082,422.1
3 41.23%
54
Appendix 2:
Global Competitiveness Index Profile of Cambodia
55
Appendix C:
Doing Business 2014: Cambodia
56
57
Appendix 4:
Procurement Packages for February 2014
Package No. Type Description I.A. Review Comments
TDSP/2012/077/1 Goods Technical Textbooks for
ISC ISC Prior
Obtained quotation 18/40 items.
Evaluation stage
TDSP/2010/021/02 Services National E-Commerce
Law Consultant LAD Post
PT sent for NOL on 10 Sep &
receive NOL on 21 Oct and in
evaluation stage
TDSP/2012/077/3 Goods
CD-ROM for Good
Manufacturing Practices
for Food Processing
ISC Prior
PT is preparing the request for
quotation from supplier
following failure the first &
second quotation
TDSP/2012/077/4 Goods HCCP Manager Software ISC Prior
PT is preparing the request for
quotation from supplier
following failure the first &
second quotation
TDSP/2012/078/07/1 Services
International Individual
Consultant for Training on
Oracle Database
Administration
GDCE Post
Received Bank's NOL on 8 Sept
2013 to split into two package
and reaching the contract
TDSP/2012/078/07/2 Services
International Individual
Consultant for Training on
SOClass
GDCE Post
Received Bank's NOL on 8 Sept
2013 to split into two package
and posted in Cambodia Daily
and Reaksmey Kamphuchea on
6th January 2014
TDSP/2013/086 Services International Procurement
Consultant D/ICO Prior
Sent the request for Bank's NOL
on 6 Sept 2013 and receive NOL
on 09 Oct and in evaluating
stage
TDSP/2013/087 Services National Procurement
Consultant D/ICO Prior
Sent the request for Bank's NOL
on 6 Sept 2013 and receive NOL
on 09 Oct and in evaluating
stage
TDSP/2012/080/03 Services
International Consultant
for Compiling IP
Enforcement Procedure
and Conducting Training
D/IPR Post
Revised TOR sent to D/IP for
approval 04 June 2013. D/IPR
accept the TOR and in the adv
stage
TDSP/2012/080/04 Services
National Consultant for
Compiling IP
Enforcement Procedure
and Conducting Training
D/IPR Post
Revised TOR sent to D/IP for
approval 04 June 2013. D/IPR
accept the TOR and in the adv
stage
TDSP/2013/088 Services National Financial
Consultant D/ICO Prior
Receive NOL on 25 Oct on the
TOR and NOL 30 Dec and
Waiting the NOL for contract
signing
TDSP/2012/078/08 Services
Int'l. Consultant to
Develop Long-Term
Sustainability Plan for
ASYCUDA
GDCE Post Awaiting TOR from GDCE
TDSP/2012/078/06 Services
ASYCUDA Support
Mechanism for the Asia
Region (ASMA)
GDCE
Prior Conditional NOL for SSS
received WB. Receuved NOL
from MEF on 26 April. NOL
received 10 Oct and Drafting
Contract stage
TDSP/2012/081/02 Services 2 International Technical
Study Consultants CCC Prior Awaiting TOR from CCC
TDSP/2012/081/04 Services National Website
Consultant CCC Post Awaiting TOR from CCC
TDSP/2014/097 Services
Consulting Firm for
Development of a COs
and TIW
GDIT Prior
Seeking a waiver to shortlist of
consulting
firm (to be submitted by DICO).
TDSP/2014/098 Services
International consultant on
Anti-dumping (Legal
position)
DNLC Prior Awaiting the TOR from DNLC
TDSP/2014/99 Services International consultant on DNLC Prior Awaiting the TOR from DNLC
58
Package No. Type Description I.A. Review Comments
safeguard (Anti dumping -
Legal Position)
TDSP/2014/100 Services
National Technical
consultant Anti Dumping
(Legal Position)
DNLC Prior Awaiting the TOR from DNLC
TDSP/2014/089 Goods Technical booklets
(Disemination) FiA/MAFF Post
Awaiting Specifications from
FiA/MAFF
TDSP/2014/090 Goods Office Equipment NCD Post Awaiting Specifications from
NCD
TDSP/2014/091 Goods Design and Printing NCD Post Awaiting Specifications from
NCD
TDSP/2014/092 Goods Newsletters CCC Post Awaiting Specifications from
CCC
TDSP/2014/093 Goods Publisihing Rule of Origin
Books DMUL Post
Awaiting Specifications from
DMUL
TDSP/2014/094 Goods Translation from English
to Khmer NCD Post
Awaiting Specifications from
from NCD
TDS/2012/084 Goods Designing and Printing
Booklets D/MUL D/IP Post
Awaiting specifications from
D/MUL and D/IP
TDSP/2012/067/2 Goods Lab Testing Equipment
and Installation DFPTQ Post
UNIDO to provide specs under
contract ref TDSP/2011/067/01
commencing Feb 2013
TDSP/2012/080/06 Services Publication of Trademark
Manual D/IPR Post Commence Sept 2013
59
Appendix 5
60
61
62
63
Appendix 6 A TRADE SWAp ROADMAP ACHIEVEMENTS
(Based on the Trade SWAp Roadmap, Revised February 2012)
A. Introduction
The Ministry of Commerce devised a sector-wide approach (SWAp) as a means of clarifying the activities and
objectives of all trade-related technical assistance activities in Cambodia. The objective of the SWAp was to
integrate the activities of the line ministries and development partners to ensure that the various projects underway
pointed towards an agreed set of measurable objectives. The Trade SWAp was structured around three pillars,
each representing a key facet of Cambodia‘s trade environment. Pillar 1 dealt with regulatory issues, linking the
domestic regulatory and institution-building agenda to Cambodia‘s recently signed commitments at the WTO and
ASEAN. Pillar II looked at the individual sectors mentioned in the DTIS such as rice, cassava, mangoes, etc.
Pillar III dealt with the capacity of trade-related officials to formulate and implement effective trade policies.
This part of the report provides the detailed report of achievements in terms of economic targets, pillars 1 to 3
outcomes and building blocks, including challenges and issues faced by each pillar working groups (PWGs).
B. Economic Indicators and Achievements
1. Economic performance
The Gross Domestic Product (GDP) in Cambodia expanded 7.20 percent in 2012 from the previous year, driven by
robust consumption and investment. Cambodia GDP Annual Growth Rate averaged 7.72 Percent from 1994 until
2012, reaching an all time high of 13.40 Percent in December of 2005 and a record low of 0.10 Percent in
December of 2009. Consumption expanded by an estimated 9.5% and made the biggest contribution to GDP
growth from the demand side. Currently, services are the biggest sector in the economy and account for 38 percent
of total GDP. The industry sector accounts for 29 percent of GDP, and agriculture has the lowest share of 26
percent. (ADB, 2013)
Higher inflows of foreign direct investment contributed to Cambodia's strong economic growth in 2012. Outcomes
exceeded expectations in agriculture, construction, and tourism. Inflation subsided in 2012 and is projected to
remain modest through the forecast period. Although poverty has declined, persistently high child malnutrition
remains a critical development challenge. Gross fixed investment increased by 30%, spurred by a surge in foreign
direct investment (FDI) and higher bank lending. However, net exports dragged on GDP growth as they fell, partly
reflecting elevated imports needed for power-generation projects. (ADB, 2013)
The service sector expanded by an estimated 8% and was the main source of GDP growth from the production
side. Strong growth in tourism and resurgence in real estate activity bolstered this sector. Assisted by more direct
flights, tourist arrivals rose by 24.4% to 3.6 million and tourism receipts grew by 15.6% to $2.2 billion. (ADB,
2013)
Growth in the industry sector moderated from the previous year‘s pace was over 9% in 2012. Exports of garments
and footwear to the US, Cambodia‘s top export market, fell by 1.8% to $2.6 billion, though those to the European
Union (EU) rose by 10.8% to $1.8 billion. Industry sector growth was supported by a 5% increase in exports of
milled rice to 187,000 tons, mostly to the EU. Construction accelerated as building project approvals nearly
doubled to $2.1 billion last year. (ADB, 2013)
The overall impact on the industry sector is somewhat mitigated by the strong performance of the construction
sector in the first half of 2012, witnessing a threefold growth (in dollar terms) of new projects approved in Phnom
Penh and 36 percent growth of projects approved nationwide. The industry sector growth (which includes
construction) is, therefore, estimated to slow down to 9.7 percent for 2012 (against 14.5 percent last year). In the
meantime, a stronger than expected service sector cushions the economy and is projected to expand by 6.8 percent
this year (against 5.0 percent in 2011). The strength of the service sector is led by booming tourism and financial
sector. The arrival of international tourists jumped up by 27 percent in the first half of 2012 (against 14 percent of
the same period last year). The country is expected to welcome 3.4 million visitors this year, representing an
increase of 18 percent. At the same time, the financial sector became very vibrant with deposits estimated to
increase by 24 percent to $6.4 billion and lending projected to go up by 34 percent to $5.7 billion by the year-end
2012. (World Bank Country Pages and Key Indicators, 2012)
64
1. Economic prospects
Economic growth is forecast at 7.2% in 2013, picking up to 7.5% in 2014 as recovery in Europe and the United
States takes hold.
Table 2.1: Selected Economic Indicators in Cambodia
Selected Economic Indicators (%) 2013 2014
GDP Growth 7.2 7.5
Inflation 3.0 3.5
Current Account Balance (Share of GDP) -11.1 -10.1
Source: ADB estimates
European demand for Cambodian garments and footwear is expected to maintain good growth, supported by duty-
free access to the European Union. The timing of offshore oil exploitation is unclear. Industry as a whole is
expected to expand by 10.5% in 2013. (ADB, 2013)
The service sector is seen growing by 7%. Growth in tourism is benefiting the hotel, restaurant, retailing, and
transport and communications subsectors. Buoyant property development stimulates growth in finance and real
estate services. Agriculture will likely grow by about 4%, assuming favorable weather. The Government of
Cambodia is supporting paddy production and exports of milled rice. (ADB, 2013) Below are the key economic
indicators of Cambodia as reflected in the report prepared by the World Bank in the early part of 2013:
Table 2.2: Key Economic Indicators of Cambodia (WB)
65
2. Achievements in Trade SWAP Roadmap Economic Indicators
Trade expansion and trade-related investment are critical ingredients to achieving the economic growth objectives
stated in the RGC Rectangular Strategy. The competitiveness of Cambodian exporters can increase only if the
RGC contributes to improving the business environment, by implementing trade reforms and improving
governance in the trade sector. High-level economic indicators have been agreed to monitor progress towards the
SWAP vision, including some strategic indicators under each Pillar. The following are the key achievements on
various Economic Indicators included in the Trade SWAP Roadmap:
3.1 Trade Indicators: Cambodia's foreign trade was up by 20 percent during the period from January to
May of 2013, amounting to $6.25 billion. During the first five months of 2013, the country had exported products
in equivalent to $2.59 billion, up 27 percent from the $2.03 billion from last year. Garment export accounted for 80
percent of the total exports. Besides garments, the country exports rubber latex, rice, corn and cassava. Cambodia
has also seen rise in imports during the first five months of 2013, up 16 percent from the $3.15 billion in 2012 to
$3.66 billion in imports this year. The products imported include raw materials for garment and textile, petroleum,
construction materials, automobiles and motorcycles, food and soft drinks, consuming items, pharmaceutical
products and cosmetics. Cambodia's major trading partners include the United States, European countries, China,
Thailand, Vietnam, Singapore, Japan, and South Korea. Foreign trade has increased as a percentage of GDP from
33% in 2010 to 38.3% in 2012. Non-garments products has increased its contribution to GDP by about 10.5% in
2012 from a level of US$5.2 billion in 2011 to US$5.768 billion in 2012.
3.2 Trade Facilitation: Cambodia has adopted simpler, more transparent, and faster export and import
procedures and processes. The time from lodgment of accepted SAD to release of goods has been reduced from 24
hours in 2009 to 1.5 hours in 2013 through the ASYCUDA World System. However, according to Doing Business
Report 2013 of the World Bank, the cost of import and export across borders per container has increased: (i) import
cost per container has increased from $852 in 2007-2008 to $872 in 2009-2010; and to an all-time high of $900 in
2013; and (ii) export cost per container has also increased from $722 in 2007-2008 to $732 in 2009-2012, and then
to $755 in 2013. Cambodia‘s ranking in Doing Business in 2013 has moved up from 141 rank (49.6 DTF %
points) in 2012 to 133 rank (51.8 DTF % points) in 2013. On the other hand, by the close of 2012, Cambodia
jumped 12 positions in the World Economic Forum‘s Global Competitiveness Index (i.e. from rank of 109, score
of 3.6 in 2010-2011; to 97, score of 3.9 in 2011-2012; to 85, score of 4.0 in 2012-2013), one of the handful to make
a leap of this magnitude in the improvement of economy. In the Logistics Performance Index, Cambodia moved
up from 129 out of 155, with score of 2.37, within 44% of the highest performer in 2010 to 101 out of 155, with
score of 2.56, within 50% of the highest performer in the world in 2012. These are among the many tangible
manifestations of the increased confidence of investors and traders in Cambodia, wherein the momentum of
development can be sustained through continuing partnerships with the private sector, the traders and other
economies of the world.
3.3 Intellectual Property Rights and Trademarks: Products and services in Cambodia are effectively
protected under Cambodian IPR regime. The registration of international trademarks has increased by 25.66%
from 721 in 2011 to 906 in 2012; while domestic trademarks has jumped by 7.31% from 657 in 2011 to 705 in
2012.
3.4 Foreign Direct Investment and Taxation: According to the UNCTAD World Investment Report in
2012, trade related and local investments has increased from a very low $530 million in 2010‘s approved
investment to $902 million in 2011, and further moved to $1.6 billion in 2012, an increase of about 73%. On the
other hand, the target of 10% increase in tax payers (income tax) has been surpassed in 2012 with a total of $740
million tax collected on taxpayers‘ income tax, an increase of 25% from 2011.
Table 2.4: Trade SWAP Economic Indicators and Achievements Objectives and
Strategic Outcomes
Indicators Baseline
2009
Target
2012
Actual Achievements
2012 and 2013
Source
1. Trade Increases as a
percentage of GDP, with
impact on labor generation
and poverty reduction
Trade increases to GDP 33% (2010) 38% 38.3% (2012) NBC (BoP)
2. Export-base expands as a
result of diversification
(Pillar 2)
Non-garment products increase
contribution to GDP
4% (2011) 4% Increased from US$5,220
million in 2011 to
US$5,768 million in 2012
(10.5% increase)
Country pages and key
indicators, World
Bank, Dec. 2012.
3. RGC increases capacity to
articulate, implement and
enforce trade policies and
strategies (Pillar 3)
Benchmarks in Trade-related
Capacity Development Strategy
(TRCDS) are met
TRCDS not
yet available
TRCDS to be
completed
No information. Monitoring reports of
TRCDS
66
Objectives and
Strategic Outcomes
Indicators Baseline
2009
Target
2012
Actual Achievements
2012 and 2013
Source
4. Responsiveness to private
sector increases as a result
of better dialogue
G-PSF takes place regularly with
results considered positive by
both parties
Yes GPSF to
beheld
regularly
GPSF being held regularly. Project reports
5. RGC improves planning,
implementation and
monitoring capacity by
implementing Trade SWAp
AfT provided through Trade
SWAp mechanisms increases
Trade SWAp
not yet
functional
Trade SWAp
is fully
functional
Trade SWAp Pillar
Working Groups hold
meetings regularly.
DICO annual reports
6. Products Quality and
Safety is enhanced in line
with international standards
(SO.1.1)
Percentage of products that were
found to be in accordance with
standards on total of products
tested
TBD
(National
Standards are
still being
drafted)
TBD No information. National
standards are still being
drafted.
Data from (semi)
independent agencies
responsible for quality
testing
Decrease of containers
notified/rejected for non-
compliance with SPS
requirements
TBD
(National
Standards are
still being
drafted)
TBD No information. National
standards are still being
drafted.
Data from (semi)
independent agencies
responsible for quality
testing
7. Products Quality is
enhanced in line with
National Technical
Regulations and
international standards
(SO.1.2)
Percentage of products that were
found to be in accordance with
National Technical Regulation
on total of products tested
National
Technical
Regulations
still being
drafted
TBD No information. National
technical regulations are
still being drafted.
Data from (semi)
independent agencies
responsible for testing
of product quality
Decrease of containers
notified/rejected for non-
compliance with TBT
requirements
TBT
regulations
still being
drafted
TBD No information. TBT
regulations are still being
drafted.
Data from (semi)
independent agencies
responsible for testing
of product quality
8. More simple, transparent
and cheaper import, export
and transit procedures and
processes practiced (SO.1.3)
Cost of import across borders per
container
N/A
10%
decrease by
end 2012
Cost of importation per
container increased from
$852 in 2007-2008 to $872
in 2009-2012 and $900 in
2013.
ICA, Doing Business
Indicators
Cost of export across borders per
container
N/A 10%
decrease by
end 2012
Cost of exportation per
container increased from
$722 in 2007-2008 to $732
in 2009-2012 and $755 in
2013.
ICA, Doing Business
Indicators
Time from lodgment of accepted
SAD to release of goods
24 hours
2 hours
ASYCUDA
System
1.5 hours using ASYCUDA
System (2013)
Timestamp in
Custom‘s automated
MIS
Rating of logistics environment
in Cambodia improves compared
to countries in same income
group and region
Index 2.37,
ranking 129
in 2010 (Lao
118,
Myanmar
133)
Cambodia
gains10
positions in
ranking by
2013
Index of 2.56, rank 101 in
LPI 2013 (moved up 28
ranks from 129 in 2010 to
101 in 2012).
Logistics Performance
Index (LPI)
9. Amount of
Products/Services effectively
protected under Cambodian
IPR regime increases
(SO.1.4)
Increase in the registration of
domestic Trademarks
N/A 5% annual
increase
7.31% increase in 2012
(657 in 2011 to 705 in
2012)
MOC/IPD statistics
10. Identified legal
shortcomings regarding
WTO commitments are
addressed (SO.1.5)
All obligations under WTO
membership are fulfilled
Work
Ongoing
As per
accession
protocol
No information. Most of
the work are being fulfilled
and are on going.
WTO, minutes of
Trade Policy Review
meeting
WTO work program of RGC
implemented
About 1/3 is
completed
and 1/3 is
ongoing
Fulfilled as
WTO
accession
schedule
No information. Work
program are still on going.
WTO, minutes of
Trade Policy Review
meeting
WTO work program of RGC
updated based on the results of
the Trade Policy Review to be
conducted in 2011
TPR drafted
October 2011
Work
program
updated by
June 2012
No information. Work
program still being updated.
WTO, minutes of
Trade Policy Review
meeting
11. Trade related
Investment increase to
support trade growth
(SO.1.6)
FDI and local investment
increase
$530 million
approved
investment
15% increase
annually
73% increase ($902 million
in 2011 to $1.6 billion in
2012)
UN World Investment
Report 2012 and 2013.
Official employment increases TBD 10% increase
in tax payers
(income tax)
$740 million collected in
2012 (increase of 25% from
2011)
CDC/CIB statistics
12. Enhanced compliance
with Cambodian labor law
and core labor standards in
manufacturing industry
(SO.1.7)
Percentage of manufacturing
firms that comply with core labor
standards
TBD
TBD No information. ILO are
still monitoring several
factories.
Buyers Survey (ILO)
13. SMEs, particularly in
agriculture, get easier and
formal credit to scale up
their activities and improve
export performance
(SO.1.8)
Percentage of registered SMEs in
agriculture and agro-processing
with access to formal credit
About
50,000 in
2010
10% annual
increase
No information. Results of
formal survey not yet
released to date.
NBC and Project
Surveys
67
Objectives and
Strategic Outcomes
Indicators Baseline
2009
Target
2012
Actual Achievements
2012 and 2013
Source
14. Quality and quantity of
trade information improves
(SO.2.1)
Increase in exports for selected
products and investment in
selected sectors
TBD
5% annual
increase for
export and
10% for
investment
10.5% increase in export
($5.768 billion)
73% increase in investment.
MoC and CDC/CIB
15. Private sector operators
are assisted by Trade
Support Institutions to
expand and diversify their
exports (SO.2.2)
Number of Trade Support
Institutions increases
NA One
additional
TSI annually
No information. Project
survey ongoing.
Project Surveys
Quality of services provided by
Trade Support Institutions
improves
NA Annual
Improvement
in responses
No information. Project
survey ongoing.
Customers satisfaction
surveys of traders
16. Exports of targeted
products reach new markets
and increase as a result of
value chain integration
(SO.2.3)
Exports of targeted products
penetration
NA 3 new
markets in 2
years
No Information. Market
survey ongoing.
EMAF / Market
Incubator Program
from WB
Exports of targeted products
increase
NA 3 new
products in 2
years
No information. Market
survey ongoing.
EMAF / Market
Incubator Program
from WB
17. RGC institutions can
effectively integrate,
coordinate and implement
trade related reforms
(SO.3.1)
Reform agenda is implemented
according to government strategy
and international commitments
(i.e. WTO, ASEAN, etc.)
Trade SWAp
Road Maps
are
completed in
2011
Road Maps
are updated
and
implemented
DTIS and Trade SWAp
Roadmap currently being
updated. Expected to
complete by October 2013.
Project reports
18. An effective systemic
approach to the
development and
implementation of trade
policies is in place (SO.3.2)
All major National Policies are
rooted in comprehensive research
papers
Most NSDP
trade policies
are
originating
from
research
papers
NSDP currently being
updated to include trade
programs.
NSDP
19. Core institutional
systems and skills ensure the
effective development and
performance of trade-
institutions (SO.3.3)
Reliability on external
consultants decrease as they are
progressively replaced by
officials‘ expertise
NA 10% annual
decrease
No information. No formal
study conducted on the
matter.
Project reports
20. Stakeholders’ awareness
of Trade SWAp
opportunities and results
increases (SO.3.4)
Number of references to Trade
SWAp in other ministries‘
official documents
NA
10% annual
increase
No information. No formal
study conducted on the
matter.
Project reports
21. Designated RGC
institutions can effectively
represent and negotiate
Cambodia’s interests in
trade at the bilateral,
regional and multilateral for
a (SO.3.5)
National program for negotiating
trade reforms is implemented
successfully
A national
program is
not in place
National
program to
be set up by
mid 2012
No information. No formal
study conducted on the
matter.
Project reports
4. Pillar 1 Indicators and Achievements
For Pillar 1, the Goal is to strengthen competitiveness in existing export industries and promoting export
diversification by improving the implementation of trade policies and regulations. Pillar 1‘s goal will be met in the
period ahead, as the Royal Government is striving to deepen and broaden the country's integration into the world
and regional trading systems. At the same time, the economy's exposure to negative shocks transmitted through this
system are being reduced. The main reform areas for Pillar 1 includes: (a) Sanitary and Phyto-Sanitary Standards
(SPS) and Technical Barriers to Trade; (b) Trade Facilitation; (c) Intellectual Property Rights; (d) Legal Reforms;
(e) Investment Promotion; (f) Labor Standards; and (e) Trade Finance. Below are the achievements made in each
of the major reform areas of Pillar 1:
4.1 Sanitary and Phyto-Sanitary Standards (SPS) and Technical Barriers to Trade
SPS and TBT are increasingly important and challenging for Cambodian exporters as they are closely linked to
quality standards expected by the international market. As provided in the Trade SWAp Roadmap, the building
blocks to make improvement in this area are: (a) put in place legal and regulatory framework for SPS and TBT
consistent with WTO‘s SPS and TBT agreements; (b) develop an organizational technical capacities of public and
private sectors dealing with SPS and TBT based on capacity assessment by international bodies (WTO) and
agencies concerned (linked to Pillar 3); (c) enforcement of SPS and TBT Laws and Regulations with the objective
of protecting human, plant and animal health and in compliance with importing countries‘ requirements and (d)
disseminate information and awareness to the private sector.
4.1.1 Sanitary and Phyto-Sanitary Standards (SPS). Cambodia‘s AFF trade is small but growing. Garments,
shoes and textiles account for 91% of Cambodia‘s exports, and agricultural food products and raw materials (which
include rubber and wood products) make up approximately 6% of the country‘s total exports. The main
agricultural commodities exported are rice, fish, and fish products, cashew, maize, and soybeans.
68
Strategic Outcome Achievements: In terms to the achievement of the strategic outcomes, the
information on the ―percentage of products that were found to be in accordance with standards on total of
products tested‖ is not yet available since the National Technical Regulations on standards are still being
drafted. On the other hand, the information on the ―decrease of containers notified/rejected for non-
compliance with SPS requirements‖ is also not available because the TBT regulations are also still being
drafted.
SPS Institutional Framework: With accession to the WTO in 2004, Cambodia agreed to full
implementation of the membership obligations by 2008. An inter-ministerial committee was established to
enhance the coordination of inspection. A Cambodia National Codex Committee (CNCC) was formed in
2001, and eight members have been appointed. The Codex Contact Point is located within Cambodia
Import-Export Inspection and Fraud Repression Department (Camcontrol) of the Ministry of Commerce
(MoC), which also houses the national SPS enquiry point. Animal and plant quarantine measures are
managed by the Department of Animal Health and Production (DAHP), and through the General
Directorate of Agriculture (GDA) of the Ministry of Agriculture, Forestry and Fisheries (MAFF). A
working group was formed (as per Decision 099SSRKSKB) with MAFF to facilitate all affairs related to
WTO membership and SPS issues, with representation from animal health and production, crop
production and crop protection, forestry, fisheries, agro-industry and agricultural legislation.
SPS Regulatory Framework: There are numerous official regulations (i.e. sub-decrees and ministerial
decisions, or prakas) governing SPS activities in Cambodia. The following is the summary list of all
regulations that have impact on SPS measures (arranged in chronological order):
i. Sub-decree No. 4 (February 1992) Management and Quality Control of Industrial Products of
Factories and Handicrafts, provides for the operation and functioning of MIME with regard to
registration and inspection of processing facilities to determine product standards and production
systems.
ii. Sub-decree No. 67 (October 1997) gives MoH the responsibility for controlling food safety and the
management of food, in conjunction with cosmetics and pharmaceuticals.2
iii. Sub-decree No. 69 on Standards for and Management of Agricultural Materials (October 1998)
requires that whoever is dealing with manufacturing, formulation, import, storage and sales or
transactions of agricultural materials (including pesticides and fertilizers) in the country, register their
products with MAFF.
iv. Sub-decree No. 17 (April 2000) The Organization and Functioning of the Ministry of Agriculture,
Forestry and Fisheries has no reference to food safety responsibility, but the subsequent Sub-decree
No.105 (September 2005) mandates MAFF to inspect food safety of all agricultural products from
crop production to the last stage of primary processing.
v. The Law of the Management of Quality and Safety of Products and Services - LMQSPS (June 2000) is
the principal law for product quality and safety.
vi. Sub-decree No. 42 (May 2001) on Industrial Standards of Cambodia mandates MIME in managing
standards and standardization.
vii. Sub-decree No. 64 (June 2001) on Designation and Management of International Points of Entry/Exit
defines entry/exit points for international trade.
viii. MoC Declaration No. 141 (Prakas/ministerial decision) on Formation of SPS Enquiry Office (Point)
under Camcontrol (May 2003), nominates Camcontrol as SPS enquiry point and tasks Camcontrol to
work closely with the National Codex unit and to create SPS awareness within the country.
ix. Sub-decree No. 47 on Hygiene of Food for Human Consumption (June 2003) prescribes general
procedures of hygiene of products destined for human consumption through the supply chain.
x. Sub-decree No. 21 on The Facilitation of Trade through Risk Management, provides for greater inter-
agency cooperation to develop risk-based profiles and procedures for trade facilitation.
2 This was further strengthened citing letters from the Council for the Development of Cambodia (No. 2175/05 KAK dated 4 June 2005
and No. 1788/05 dated 7 June 2005) to the Ministries of Environment and Health assigning them the responsibility “to collaborate in examining the hygiene and environment at restaurants and food stalls to ensure cleanliness to avoid contagious diseases”. 30
69
xi. Sub-decree16 on Sanitation Inspection of Animal and Animal Products (1983) was amended on 16
March 2003 to comply with WTO measures.
xii. Sub-decree 15 on Plant Quarantine (1983) relates to the prevention of entry of plant pest and diseases
into the country through plant health inspection and quarantine facilities and the issuance of phyto-
sanitary certificates, transit arrangements, plant health inspector‟s powers and enforcement penalties.
The sub-decree was amended on 13 March 2003 to comply with WTO measures and there is now a
Plant Quarantine draft law which could be endorsed by 2011
xiii. Law on Cambodia Standards (March 2007) has a Sub-decree No. 12 (11 February 2002), the
Management of Standardization and Technical Regulations which mandates ISC to develop, monitor
and enforce product and process standards.
xiv. Law on Fisheries (March 2006) provides for the Fisheries Administration of MAFF to be the
competent authority, and defines the Administration‟s tasks.
xv. Sub-decree No. 108 regulates Slaughterhouse Management, Sanitary Inspection of Animal, Meat and
Animal Products (August 2007);
xvi. Sub-decree on Organization and Functioning of the Institute of Standards (2008) stipulates that ISC
will consist of four departments: (i) Information Department (ii) Standards Development, (iii) Training
and Advisory Department and (iv) Certification Department and Regulatory and Accreditation
Department;and
xvii. Prakas No. UATH.BRK 868, is an Inter-ministerial Prakas on the Implementation and Institutional
Arrangements of Food Safety Based on the Farm-to-Table Approach, of the Ministers of MEF, MoC,
MIME, MAFF, MOH and MOT, aiming to: (i) improve the implementation of food safety system for
the protection of consumer health and to enhance Cambodian food export competitiveness; and, (ii) set
up institutional mechanisms for facilitating and coordinating activities from different ministries and
competent authorities related to food safety.
In general, there is considerable overlap in the administrative arrangements surrounding SPS measures,
and in particular with those surrounding food safety. For example, the Law on the Management of Quality
and Safety of Food Products and Services (LMQSPS) has wide application, and is the basis for inspection
and regulating quality, safety and standards in the country. However, the law does not determine which
ministry or agency has which role and at what stage of the product and supply chain. Because of the loose
terminology in LMQSPS, the RGC and ministries developed Decisions and Sub-Decrees to widen as
much as possible their respective individual responsibilities, which has caused overlap and duplication.
Prakas 868 was prepared to solve these problems of overlap and coordination in the food safety area, but
its implementation still has to be worked out. Implementation would imply a significant effort to revise
and update the existing legal and regulatory framework. At present, there is no food safety law as yet,
there are important gaps in the overall legal and regulatory framework, and there are needs for sharpening
existing regulations to align with Prakas 868.
SPS Systems Capacity: The underlying capacities of various institutions to manage SPS functions are
still extremely limited in Cambodia:
i. Risk Management and Surveillance Capacity: Camcontrol, MoH, MAFF, and MIME are supposed
to establish clear criteria for commodities, with any decision to inspect a consignment to be justified
based on risk appraisal alone. Although meaningful risk management is still not conducted in
aggregate, some progress in implementing a risk-based approach at the border has recently been made:
(a) a list of prohibited/restricted goods had been agreed; (ii) service-level agreements between relevant
agencies (i.e. GDCE, MAFF, MIME, and MoH) have been concluded; and (iii) some standard
operating procedures have been agreed.
ii. SPS diagnostic capacities: Laboratories related to the analysis of SPS risks are located within
Camcontrol, MIME, MoH, and MAFF. ILCC is the only government laboratory that has ISO/IEC
17025 certification. Most Cambodian food processors do not have their own quality assurance
facilities, and do not use laboratory services; a small minority relies on RGC (or foreign) laboratories
for quality control.
70
Table 2.5: SPS Key Results Framework and Achievements Strategic Outcome
Strategic Indicators Baseline
2009
Achievements
2012 to 2013
Data Collection
Instruments
Str
ateg
ic L
evel
SO.1.1 Products Quality and
Safety is Enhanced in line
with international standards.
KPI.1.1.a Percentage of
products that were found
to be in accordance with standards on total of
products tested
National
Technical
Regulations still being
drafted
No information as the
National Technical
regulations on standards are still being drafted.
Data from (semi)
independent agencies
responsible for testing of product quality
KPI.1.1.b Decrease of
containers notified/rejected for non
compliance with SPS
requirements
TBT
regulations still being
drafted
No information since TBT
regulations are still being drafted.
Data from (semi)
independent agencies responsible for testing
of product quality
Op
erat
ional
lev
el
Building Blocks Key Performance
Indicators
Baseline
2009
Achievements
2012 to 2013
Data Collection
Instruments
BB. 1.1.1 Delineation of RGC Ministries, Agencies and
Departments‘ mandates, tasks
and responsibilities on SPS measures
KPI.1.1.1.a A Sub-Decree on delineation of
mandates is issued
Completed in 2010
Prakas No. UATH.BRK 868 was issued, which is
an Inter-ministerial
Prakas on the Implementation and
Institutional
Arrangements of Food Safety Based on the Farm-
to-Table Approach, of the Ministers of MEF, MoC,
MIME, MAFF, MOH and
MOT, aiming to: (i) improve the
implementation of food
safety system for the protection of consumer
health and to enhance
Cambodian food export competitiveness; and, (ii)
set up institutional
mechanisms for facilitating and
coordinating activities
from different ministries
and competent authorities
related to food safety.
Trade Policy Review
KPI.1.1.1.b Evidence that
the competent agencies act effectively on their
mandate
N/A TBD. Qualitative enquiry
on concerned agency not yet undertaken.
Qualitative enquiry on
key agencies concerned
BB.1.1.2 Review and adaptation / completion of the
legal and regulatory
framework for SPS in line with international standards
KPI.1.1.2.a The Food Safety Law (and the
related Sub Decree or
Circular on safety requirement for specific
food) is drafted, reviewed,
and implemented.
NA
A Royal Decree No. NS/RKM/0600/001 on the
Law on the Management
of Quality and Safety of Products and Services was
approved and issued on
21 June 2000 by the then His Royal Highness King
Norodom Sihanouk. The
Food Safety Law and related Sub-Decree is still
being drafted.
Notifications to WTO
KPI.1.1.2.b The Animal
Health and Production
Law is drafted, reviewed,
and implemented.
Drafted in
2011, under
review.
The legal drafting is still
in process. Legislation of
this complexity could
require up to 90 subordinate implementing
regulations, which could
take many years for the government to complete.
Notifications of the
Law to WTO
KPI.1.1.2.c The Plant
Protection and Quarantine
Law is drafted, reviewed, and implemented.
Sent to the
CoM in 2011
The Plant Protection and
Quarantine Law has been
submitted to Council of Ministers. However, the
Prakas is still under
processing. This Prakas intends to determine
procedures for plant
Notifications of the
Law to WTO
71
Strategic Outcome Strategic Indicators
Baseline
2009
Achievements
2012 to 2013
Data Collection
Instruments
quarantine inspections regarding export-import,
transit and transport
within the Kingdom of Cambodia for all types of
goods which are subject to
plant quarantine inspection for the purpose
of preventing the spread
of the plant quarantine pests and dangerous pests
so as to protect
agricultural production, biodiversity and
facilitation of
international trade activity.
BB. 1.1.3 Capacity
Assessment and Development
of institutions dealing with SPS (Link with Pillar 3)
KPI.1.1.3.a
Comprehensive capacity
assessment is carried out.
NA Comprehensive Capacity
Assessment was carried
out.
Trade Policy Review
KPI.1.1.3.b Capacity
Development Plan on SPS
is implemented.
Endorsed in
2011 by MOC
Capacity Development
Plan on SPS was prepared
by FAO and endorsed by the Ministry of
Commerce, but not yet
fully implemented.
Qualitative enquiry on
key agencies
concerned
BB.1.1.4 Draft and
endorsement of National SPS
Standard in line with international commitments.
KPI.1.1.4.a Number of
National Standards on
SPS measures drafted and implemented.
8 rice
standards and
4 other standards are
being drafted
in 2011
10 standards for 10
kinds of rice, 1 standard
for packaging and 6 guidelines drafted in
English; 1 milled rice
standards was approved.
4 product standards
adopted and approved by NSC, which were
adopted from
international standards.
12 additional product
standards and guidelines
finalized in English.
Notifications to WTO
BB.1.1.5 Design and implementation of a Plant
Pest Risk Assessment (PRA)
Framework for plant product imports.
KPI.1.1.5.a Qualitative
aspects of the PRA
Framework are drafted. NA
The PRA Framework not
yet drafted. Qualitative enquiry on key issues concerned.
KPI.1.1.5.b The PRA
Framework is
implemented. NA
The PRA Framework not
yet drafted. Qualitative enquiry on key issues concerned.
BB.1.1.6 Awareness and information programs on SPS.
KPI1.1.6 Awareness and practice of private sector
stakeholders regarding
SPS issues and compliance with
importing countries‘
requirements.
NA KAP survey not yet conducted on SPS.
KAP survey conducted among
private sector
stakeholders.
4.2 Technical Barriers to Trade
Cambodia has increased trade with the region and the world since its critical economic reforms and accession to
ASEAN in 1999 and the WTO in 2004. The Cambodian government does not basically restrict trade by imposing
tariff or quota. It has taken measures to reduce technical and non-technical trade barriers. Since its admission to the
WTO, Cambodia has been working on trade and trade-related laws and regulations to comply with the WTO
principles. The Cambodian government has so far eliminated most non-tariff barriers to trade. In 2006, a U.S.-
Cambodia Bilateral Trade and Investment Framework Agreement (TIFA) was signed. Several rounds of
discussions have been held to promote trade and investment between the two countries, to help monitor and
support Cambodia‗s efforts to implement its WTO commitments, and to address bilateral trade issues and
coordinate on regional and multilateral issues. In 2009, Cambodia declared the elimination of import duties and
non-trade barriers on Information and Communication Technology (ICT) goods from ASEAN, effective from
2010. Cambodia will benefit from the removal of numerous tariff lines by 2015 under the ASEAN-China Trade
Agreement, ASEAN-Japan, ASEAN-Australia-New Zealand, and ASEAN-Korea.
72
The Ministry of Economy and Finance in February 2009 issued a Prakas on Establishment and Functioning of
Transaction Value Management Unit (TVMU) under the General Department of Customs and Excise (GDCE).
This unit develops national customs valuation policies, implements valuation regulations, provides rulings at the
private sector‗s request, and conducts research on transaction values of imports. Importers and exporters are
advised to contact the Cambodian Customs on customs valuation, valuation procedures and regulations. Under the
newly established Customs-Private Sector Partnership Mechanism, the TVMU works closely with the private
sector to solve issues related to customs valuation based on the PSI value database, market research, and
accounting records of well-established compliance.
For WTO compliance, the Cambodian Customs decentralizes customs valuation allowing Customs Valuation
Officers (CVOs) at the front-line customs stations to evaluate and verify transaction value. If the reported
transaction value of imports are 20% or lower than the standard PSI database values and if importers have
sufficient proof to present to the CVOs, CVOs will release the goods. If the reported transaction value of imports
are over 20% of the standard PSI database values, importers are required to deposit the difference with the CVOs
in order to secure the goods‗ release. The importer can file a request to the GDCE to reclaim the deposits. Since
2005, the valuation of certain imported items, such as construction steel, floor tiles, cements, cigarettes, and food
stuffs, have been decentralized to local customs office.
Achievement of Strategic Outcomes: So far, the National Technical Regulations on TBT is still in the
process of drafting, thus the monitoring of the products that were found to be in accordance with the
National Technical Regulations cannot be monitored yet. On the other hand, information on the number
of containers notified/rejected for non-compliance with TBT requirements are also not yet monitored
since TBT regulations are still being drafted.
Delineation of RGC Ministries, Agencies and Departments’ Mandates, Tasks and Responsibilities
on TBT measures: A sub-decree on the delineation of mandates on institutional TBT is still in the
process of drafting. On the other hand, the qualitative enquiry on key agencies concerned, showing
evidence that agencies act effectively and cooperating to implement their mandates related to TBT, has
not yet be undertaken to date.
Review and adaption/completion of the TBT’s legal and regulatory framework, technical
regulations and standards: The Law on Standards of Cambodia was adopted by the National Assembly
on 25 April 2007, approved by the Senate on 28 May 2007, and promulgated by Royal Decree
NS/RKM/0607/013 dated 24 June 2007. The Law was one of the legal instruments required to be passed
by Cambodia in accordance with the WTO accession. Although amendments are necessary in line with
the WTO/TBT Agreement, no changes were made so far on the Law on Standards. Sixteen (16) standards
and Conformity Assessment procedures have been completed by the Institute of Standards of Cambodia,
however, the Conformity Assessment Body that will review Cambodia‘s ISC has not yet been appointed
so far.
Capacity Assessment and Development for Institutions Dealing with TBT (link with Pillar 3): Comprehensive capacity assessments and development of a Capacity Building Plan on TBT has not yet
been carried out and implemented.
Accreditation of Laboratories and Certification Bodies and establishment of ILCC and ISC CAB as
Special Operating Agencies: ILCC as a Cambodian certification body has been accredited in 2011,
alongside with ISC, thus having been established as Special Operating Agencies for laboratory testing.
Provision of conformity assessment infrastructures (equipment, testing laboratories, etc.). Although
there are several laboratories, both public and private, are operating in Cambodia to test and validate
results on product and food safety testing, their conformance to international standards are not yet being
monitored by an Internal Conformity Assessment body as of this time.
Design and implementation of an integrated risk management framework: Risk assessment
procedures and the qualitative aspects of Risk Management Framework has been drafted in 2012 at
Camcontrol. However, implementation of the complete Risk Management Framework has not yet been
fully implemented as of this date and no qualitative surveys conducted on the matter.
Awareness and information programs on TBT: KAP survey has not yet been conducted among private
stakeholders.
Non-Tariff Barriers3:
3 US Trade Summary of Cambodia, 2013.
73
(i) Import Restrictions and Non-Automatic Licensing: Importers are required to have approval from
relevant government agencies to import certain products including pharmaceutical products, live
animals and meat, precious stones, as well as agricultural inputs such as pesticides, herbicides, seeds,
fertilizers, and animal vaccines. Import of weapons, explosives and ammunitions also require a
license.
(ii) Customs: Cambodia has not yet completed its implementation of the WTO Customs Valuation
Agreement.
(iii) Taxation: Cambodia levies a 10 percent value added tax on goods and services, however this is
imposed only on large companies.
Service Barriers4: Under the WTO Agreement on Trade in Services, Cambodia agreed to allow foreign
lawyers to supply legal services with regard to foreign law and international law. Recent efforts by
domestic law firm to propose a 49 percent equity limitation on foreign firms and restrictions on their
forms of commercial agreement.
Investment Barriers5: Cambodia has one of the most liberal investment laws in the region, but potential
investors say they are often deterred by excessive bureaucracy and red-tape. Cambodia‘s constitution
restricts foreign ownership of land. Foreign investors may use land through concessions and renewable
leases.
Judicial and Legal Framework Barriers6: Cambodia‘s legal framework is incomplete and unevenly
enforced. While numerous trade and investment laws have been passed over the past five years, many
business-related draft laws are still pending.
Smuggling7: Widespread smuggling of commodities such as vehicles, fuel, soft drinks, livestock, crops
and cigarettes has undermined fair competition and legitimate investment. The Cambodian government
has issued numerous orders to suppress smuggling and has created various anti-smuggling units within
government agencies such as the GDCE.
Table 2.5: TBT Results Framework and Achievements Strategic Outcome
Strategic Indicators Baseline
2009
Achievements
2012 to 2013
Data Collection
Instruments
Str
ateg
ic L
evel
SO.1.2 Products Quality
is enhanced in line with
National Technical Regulations and
international standards
KPI.1.2.a Percentage of products
that were found to be in
accordance with National Technical Regulation on total of
products tested
National
Technical
Regulations still being
drafted
No information.
Technical
Regulations on TBT still being drafted.
Data from (semi)
independent agencies
responsible for testing of product quality
KPI.1.2.b Decrease of containers notified/rejected for non
compliance with TBT
requirements
TBT regulations
still being
drafted
No information. Technical
Regulations on TBT
still being drafted.
Data from (semi) independent agencies
responsible for testing of
product quality
Op
erat
ional
lev
el
Building Blocks Key Performance Indicators Baseline
2009
Achievements
2012 to 2013
Data Collection
Instruments
BB. 1.2.1 Delineation of
RGC Ministries, Agencies and
Departments‘ mandates,
tasks and responsibilities on TBT measures
KPI.1.2.1.a A Sub-Decree on
delineation of mandates is issued
N/A Sub-Decree on TBT
not yet issued.
Trade Policy Review
KPI.1.2.1.b Evidence that
agencies act effectively,
cooperating to implement their mandates
N/A Qualitative enquiry
not yet undertaken
since TBT sub-decree not yet
issued.
Qualitative enquiry on
key agencies concerned
BB.1.2.2 Review and
adaptation / completion of the TBT‘s legal and
regulatory framework ,
technical regulations and standards
KPI.1.2.2.a Law on Standards and
related regulations are in line with WTO/TBT Agreement
Amendments
are necessary
Law on Standards
issued and implemented.
Notifications to WTO
KPI.1.2.2.b Standards and conformity assessment procedures
issues by related ministries, in line
12 standards are being
drafted
16 new standards, guidelines and code
of good practices
Notifications to WTO
4 US Trade Summary of Cambodia, 2013.
5 US Trade Summary of Cambodia, 2013.
6 US Trade Summary of Cambodia, 2013.
7 US Trade Summary, 2013.
74
Strategic Outcome Strategic Indicators
Baseline
2009
Achievements
2012 to 2013
Data Collection
Instruments
with the WTO/TBT Agreement completed.
BB.1.2.3 Capacity
Assessment and
Development for institutions dealing with
TBT (link with Pillar 3)
KPI.1.2.3.a Comprehensive
capacity assessment is carried out N/A Comprehensive
capacity
assessments completed by FAO.
Trade SWAp monitoring
reports
KPI.1.2.3.b Capacity
Development Plan on TBT is implemented
N/A Capacity
Development Plan on TBT completed
but not yet
implemented.
Trade SWAp monitoring
reports
BB.1.2.4 Accreditation of Laboratories and
Certification Bodies and establishment of ILCC
and ISC CAB as Special
Operating Agencies (SOAs)
KPI.1.2.4.a Number of Cambodian Certification Bodies
accredited
ILCC accredited in
2011
ISC accredited in 2012.
Trade SWAp monitoring reports
KPI.1.2.4.b ILCC and ISC CAB
become SOAs
ILCC
accredited in
2011
ISC accredited in
2012.
Trade SWAp monitoring
reports
BB.1.2.5 Provision of
conformity assessment
infrastructure (equipment, testing
laboratories, etc.)
KPI.1.5.1 Number of laboratories
functioning to international
standards
1 in 2009 TBD. Not yet
monitored as of this
time.
Trade SWAp monitoring
reports
BB.1.2.6 Design and
implementation of an integrated risk
management framework
KPI.1.2.6.a Qualitative aspects of
the Risk Management Framework are drafted
N/A Surveys not yet
conducted.
Qualitative surveys
KPI.1.2.6.b Implementation of the
Risk Management Framework N/A Risk Management
Framework implemented at
Camcontrol. No
qualitative surveys conducted.
Qualitative surveys
BB.1.2.7 Awareness and
information programs on
TBT
KPI.1.2.7 Stakeholders‘
awareness and practice on TBT
issues and standards concerned
Being
implemented
in 2011
KAP survey not yet
carried out.
KAP survey conducted
amongst private sector
stakeholders
4.2 Trade Facilitation
Cambodia‘s efforts at prioritizing trade facilitation and investment measures are guided by the Strategic
Framework for Action on Trade Facilitation and Investment (SFA-TFI), which was endorsed at the Second GMS
Summit. The SFA-TFI covers four priority areas: customs procedures, inspection and quarantine measures, trade
logistics, and mobility of business people.
Cambodia has transformed its trade sector into a driving force of economic growth. Trade has become a
cornerstone in Cambodia's development agenda, in which the initiatives need to be systematic, coordinated,
integrated, efficient, and consistent with the Rectangular Strategy. In this context, the Government is actively
taking on more ownership and coordination of the trade reform process. With the support of development partners
concerned, the Government has opted for a Trade Sector Wide Approach (Trade SWAp) to encompass all
initiatives, strategies, measures and actions, to strengthen partnerships for consensus-building and coordination
with the all stakeholders.
The Government gives great importance to the trade facilitation as it can promote not only trade exchanges itself
but has more impetus on investment flow and economic development as a whole. Since June 2004 the Government
has adopted and pursued the implementation of a 12-point Action Plan on improving investment climate and
promoting trade facilitation trough risk management. While some trade facilitation measures have been introduced
in Cambodia (including limited electronic data processing), delays, costs and the complexity of customs and other
procedures remain high in comparison to other economies. Mindful of these shortcomings and also in response to
the global financial crisis and economic downturn, the Government has called for rapid action to streamline and
improve trade facilitation processes, with specific attention to any overlaps of information and inspection
requirements carried out by various government agencies.
Strategic Outcome Achievements. The cost to import per container has increased from $872 (2012) to
$900 (2013) by about 3.21%, which is still comparatively lower than that of Asia and the Pacific average
of $958 and OCED high income average of $1,080. On the other hand, the cost to export per container
has also increased from $732 (2012) to $755 (2013) by about 3.14%, which is also comparatively lower
than East Asia and the Pacific average of $923, and the OECD high income average of $1,028. The time
from lodgment of accepted SAD to release the goods has been substantially reduced from 24 hours in
75
2009 to 2 hours in 2012 to just only 1.5 hours in 2013 according to GDCE report. On the other hand,
Cambodia‘s Logistics Performance Index has improved from 2.37 (129 rank) in 2009 to 2.56 (101 rank)
in 2012 by 28 ranks, which is better than Lao PDR‘s 2.50 (109 rank) and Myanmar‘s 2.37 (129 rank).
Simplification of Import, Export, Transit Procedures and Processes. The number of supporting
documents required for SAD has been reduced from 11 documents in 2009 to 9 documents in 2012 to just
only 8 documents in 2013. However the steps involved in getting import permit has increased from 23
steps in 2009 to 26 steps in 2013 which includes: documents preparation (15 days); customs clearance
and technical control (3 days); ports and terminal handling (5 days); and inland transportation (3 days). A
flat fee of 40,000 Riels ($10) for less than 20 footer container has been introduced per SAD as per Prakas
of MEF 989 dated 24 November 2011 (Customs Processing Fee).
Automation of GDCE Functional Areas. The Transit Module of the Customs‘ Automated Management
Information System is still under development, while the percentage of trade covered by Customs
automated Management Information System has reached 95% with the installation of 20 locations in all
ports including SEZ.
Development of a Mechanism to Resolve Customs related issues between GDCE and the private
sector. From a total of 18 problems solved in the period 2009 to 2010, was able to solve 25 problems in
2011 to 2012, as per minutes of meetings of the Customs Private Partnership Meeting.
Traders’ Access to Information on Trade Related Requirements and Processes. Over 4 million hits
and downloads were made by various traders and other stakeholders from July 2009 to May 2013 in the
GDCE web portals. GDCE has eliminated pre-shipment inspection requirement thus reducing the time
and number of documents required for importing and exporting in 2011. However, no further reforms
were introduced in 2012 and 2013 as measured by ―Doing Business in Cambodia 2013 Report.‖
Implementation of Risk Management Strategy at Border Points of Imported Goods. There were
less than 20% of containers physically inspected by GDCE and Camcontrol at the border in 2012 and
2013. There were no irregularities reported over the total containers physically inspected at the border in
2012 and 2013. Risk management plan has been prepared by Camcontrol and GDCE but not yet fully
implemented as of 2013.
Customs Valuation. All or 100% of all customs documents were cleared using Method 1 of WTO
Valuation Agreement to determine value (i.e. price paid or payable).
Table 2.6: Trade Facilitation Results Framework and Achievements Strategic
Outcome Strategic Indicators
Baseline
2009
Achievements
2012 to 2013
Data Collection
Instruments
Str
ateg
ic L
evel
SO.1.3 More
simple,
transparent and cheaper import,
export and transit
procedures and processes
practiced
KPI.1.3.a
A review of all import/export
cost across border per container
Cost to import per
container=US$87
2 in 2009
Cost to Import has increased
from $872 (2012) to $900
(2013); increased by 3.21%
ICA, Doing Business
Indicators (2013)
KPI.1.3.b Cost of export across
borders per container
Cost to export per
container = US$732
In 2009
Cost to export has increase
from $732 (2012) to $755 (2013); increased by 3.14%
ICA, Doing Business
Indicators
KPI.1.3.c Time from lodgment
of accepted SAD to release of goods
24 hours in 2009
Time from lodgment of
accepted SAD to release of goods has been reduced from 2
hours (2012) to 1.50 hours
(2013) because of ASYCUDA World System (UNCTAD)
Timestamp in
Custom‘s automated MIS (GDCE Report,
Trade SWAp Retreat
May 9-10, 2013)
KPI.1.3.d Rating of logistics
environment in Cambodia improves compared to countries
in same income group and region
Index 2.37,
ranking 129 in 2010 (Lao 118,
Myanmar 133)
Cambodia‘s LPI Index in 2012
is 2.56 (rank 101) as against Lao PDR‘s 2.50 (rank 109) and
Myanmar‘s 2.37 (rank 129)
Logistics Performance
Index (LPI) 2012
Op
erat
ional
lev
el
Building Blocks Key Performance Indicators Baseline
2009
Achievements
2012 to 2013
Data Collection
Instruments
BB.1.3.1
Simplification of
import, export,
transit
procedures and
processes
KPI.1.3.1.a Number of
supporting documents required for SAD
11 documents
Reduced from 9 (2012) to 8
(2013)
TRS Study/ GDCE
Report (Trade SWAp Retreat (2013)
KPI.1.3.1.b Number of
documents required for SAD
11 documents
Reduced from 9 (2012) to 8
(2013)
TRS Study; GDCE
Report (Trade SWAp
Retreat (2013)
KPI.1.3.1.c Steps involved to get
import permit
23 steps
Steps has increased from 23 in
2009 to 26 days in
Doing Business in
Cambodia (2013)
76
Strategic
Outcome Strategic Indicators
Baseline
2009
Achievements
2012 to 2013
Data Collection
Instruments
2013:Documents preparation (15 days); Customs clearance
and technical control (3 days);
Ports and terminal handling (5 days); and Inland
transportation and handling
(3)= Total of 26 and cost of $900.
KPI.1.3.1.d A review of all
import / export fees undertaken
and a revenue attribution and distribution model is developed
and agreed by government
Comparative
Study on flat fee
introduction conducted by
MEF in 2010
A flat fee of 40,000 Riels for
less than 20‘ container per
SAD is charged.
Prakas MEF 989 dated
24 November 2011 on
Customs Processing Fee (CPF)
BB.1.3.2 Automation of
GDCE functional
areas
KPI.1.3.2.a Implementation of export, warehousing, manifest
and transit software modules in
GDCE‘s automated MIS
N/A
Transit module was under feasibility study in 2012; In
2013 it is still under
development.
Custom‘s automated Management
Information System
(ASYCUDA)
KPI.1.3.2.b Percentage of Trade
covered by Custom‘s automated
Information Management System
60% in Sihanouk
Ville (2008) and
70% in PP Airport
and Dry Port
(2010)
Installed in 20 locations in
2012 in all ports including
SEZ, with an average of 95%
coverage.
Custom‘s automated
Management
Information System
(ASYCUDA)
BB.1.3.3 Development of a
mechanism to
resolve custom related issues
between GDCE
and the private sector
KPI.1.3.3.c Number and kind of custom related issues resolved
through the Custom Private
Sector Partnership
18 problems solved in 2009-
2010
25 problems solved in 2011-12
Minutes of the meetings of the CPPM
BB.1.3.4 Traders
are better informed on trade
related
requirements and processes
KPI.1.3.4.a Number of RGC
Agencies with web portal containing regulatory
requirements
MoC, GDCE
The target is Full
implementation of MOC automation by end 2012; but
no report generated to date.
Review of Tracking
Logs
KPI.1.3.4.b Number of hits and
downloads from RGC Agencies web portals on regulatory
information
TBD
Over 4 million hits from July
2009 to May 2013.
Review of Tracking
Logs of GDCE web portal.
KPI.1.3.4.c Private sector feedback on transparency of
trade related requirements and
procedures
0% of respondent answering often
or nearly often to:
―Transparency of customs
clearance‖ and
―Provision of adequate and
timely
information on regulatory
changes‖
Eliminated pre-shipment inspection requirement thus
reducing the time and number
of documents required for importing and exporting in
2011. No further reform was
made in 2012 and 2013 as measured by Doing Business.
Doing Business in Cambodia 2013.
BB.1.3.5 Implementation
of Risk
Management Strategy at border
points for
imported goods
KPI.1.3.5.a Percentage of containers physically inspected
20% Below 20% in 2012 and 2013. Custom‘s automated MIS; GDCE Report
(Trade SWAp Retreat
2013)
KPI.1.3.5.b Ratio of containers with irregularities over the total
of containers physically
inspected
TBD No report made so far.
GDCE/ CAMCONTROL
Statistics ASYCUDA
KPI.1.3.5.c Additional revenue
collected as a result of post
clearance audit action
TBD No report made so far on
additional revenue collected.
Only desk reviews are undertaken at present.
GDCE/
CAMCONTROL
Statistics
KPI.1.3.5.d Preparation and
implementation of an annual
risk-based national audit plan
N/A Risk management plan
prepared by Camcontrol and
GDCE but not yet fully implemented.
GDCE/
CAMCONTROL
Statistics
BB.1.3.6 Customs
Valuation
KPI.1.3.6 Percentage of customs
documents cleared using method 1 of the WTO Valuation
Agreement to determine value
(i.e. price paid or payable)
87% 100 % cleared in 2012 and
2013.
GDCE/
CAMCONTROL Statistics
77
4.3 Intellectual Property Rights
Intellectual property is a vital asset for many firms doing business in Cambodia. Whether it be to distinguish goods
from those of a competitor, protecting the fruits of research investment, or maintaining the confidentiality of
financial plans, IP considerations surface in virtually all industries. Cambodia‘s 2004 accession to the World Trade
Organization prompted the adoption of several laws regulating intellectual property rights. While it will be a
number of years before Cambodia comes into full WTO compliance, investors can take advantage of this
developing regulatory framework and seek out protection for their inventions, trademarks, industrial designs, and
other creative products. Although the laws are still in the early stages of development, relatively efficient
procedures for registering and enforcing important IP rights are in place. Ignoring or postponing registering IP
assets can be very costly in the long run.
Strategic Outcome Achievements. The amount of products and services effectively protected under
Cambodian IPR regime has increased. From 806 registered domestic trademarks in 2009, trademark
registration has increased by 4.22% in 2010 to 12.41% in 2012.
Completion of the Legal Framework for IPRs. In compliance with the WTO TRIPS Agreement,
Madrid Protocol, Patent Cooperation Treaty, and other forms of agreement, Cambodia has partially
complied with all the systems of laws and regulations for IPR.
Strengthening of enforcement institutions. Although seizures have been made on counterfeited goods in
Cambodia, there was no database established so far on counterfeit practices and enforcement activities.
From 623 cases, bottles, and pieces of goods confiscated in 2011, it has increased to 83,682 cases, bottles,
and pieces of goods confiscated in 2012.
Capacity Development of IPR officials and professionals. Six educational institutions adopted the IPR
curriculum developed by D/IPR of MoC. The number of police, Customs Officers, Camcontrol Officers,
judges, prosecutors, court clerks and IP officials trained on IPR has increased from 288 in 2009 to 420 in
2011 and 492 in 2012.
Strengthening of Trademarks and Geographical Indicators (GIs) Regime. There was an increase of
trademarks and GIS registered and protected annually: 3,036 trademarks and 2 GIs in 2010; 3,659
trademarks in 2011 and 3,490 trademarks in 2012.
Strengthening Patent Utility Model, Industrial Design and PVP. There were no patents and PVP
registered from 2010 to 2012. For industrial designs there are 40 registered in 2010; 40 registered in 2011
and 47 registered in 2012.
Outreach to the Public on IPR, and support to GI producers and copyright issues. There were 498
trademarks filed in 2011; 5 industrial designs in 2011 and 8 industrial designs in 2012. On awareness
program conducted among enterprises, SMEs and business associations on IP related issues, there were 3
awareness workshops conducted in 2010 and 2011, and 4 awareness workshop in 2012. To increase
awareness among the wider public on IP related issues, there were 26 copies of books distributed to
trainers of universities by D/IPR of MoC.
Table 2.7: Intellectual Property Rights Results Framework and Achievements.
Strategic Outcome Strategic Indicators
Baseline
2009
Achievements
2010 to 2012
Data
Collection
Instruments
Str
ateg
ic
Lev
el
SO.1.4 Amount of
Products /Services
effectively protected under
Cambodian IPR regime
increases
KPI .1.4 Proportion of
registered Domestic
Trademarks compared to
previous year in Cambodia
806
registered
domestic
trademarks
From 806 domestic trademarks
registered in 2010 it has increased
by 4.22% in 2010 to 12.41% in
2012.
D/IPR
Statistics
Op
erat
ional
lev
el
Building Blocks Key Performance
Indicators
Baseline
2009
Achievements
2010 to 2012
Data
Collection
Instruments
BB.1.4.1 Completion of the Legal Framework for
IPRs in compliance with
WTO TRIPS Agreement, Madrid Protocol, Patent
Cooperation Treaty, and
Compulsory License for Public Health
KPI .1.4.1.a System of Laws and Regulations in place for
IPR in compliance with
WTO requirements
Not fully complied with.
Partly complied from 2010 to 2012. Trade Policy Review;
D/IPR
information.
78
Strategic Outcome Strategic Indicators
Baseline
2009
Achievements
2010 to 2012
Data
Collection
Instruments
BB.1.4.2 Strengthening of
enforcement institutions
KPI.1.4.2.a Database
established on counterfeit
practice and enforcement activities and results
N/A
No database established so far on
counterfeit practice and enforcement
activities and results.
Trade SWAp
monitoring
report
KPI.1.4.2.b Percentage of change in the amount of
seized pirated and
counterfeited goods
None From 623 (cases, bottles, pieces) confiscated in 2011, it has increased
to 83,682 (cases, bottles, pieces)
-Economic Police Report
-NCIPR
Reporting
BB.1.4.3 Capacity Development of IPR
officials and professionals
(link to Pillar 3)
KPI.1.4.3.a Curricula are developed and introduced in
education institutions/IP
office
None 6 educational institutions adopt the curriculum on IP.
NCIPR Reporting
KPI.1.4.3.b Number of
Police, Customs,
CamControl, Judges, Prosecutors, Court Clerks,
and related IP officials
288 The number of police, Customs
Officers, Camcontrol Officers,
judges,prosecutors, court clerks and IP officials trained on IPR has
increased from 288 in 2009 to 420 in
2011 and 492 in 2012.
NCIPR
Reporting
BB.1.4.4 Strengthen
Trademarks and
Geographical Indications (GI) regimes
KPI.1.4.4 Number and kind
of trademark and GIs
registered and protected annually
TM=3,116
GIs=0
There was an increase of
trademarks and GIS registered and
protected annually: 3,036 trademarks and 2 GIs in 2010; 3,659
trademarks in 2011 and 3,490
trademarks in 2012.
D/IPR
Statistics
BB.1.4.5 Strengthen Patent Utility Model, Industrial
Design, PVP
KPI.1.4.5 Number and kind of Patent Utility Model,
Industrial Design, PVP
registered and protected annually
Patent & Utility Model
= 0
ID=24 PVP=0
There were no patents and PVP registered from 2010 to 2012. For
industrial designs there are 40
registered in 2010; 40 registered in 2011 and 47 registered in 2012.
DIPR & MIME
BB.1.4.6 Outreach to the
public on IPRs (Trademark, Patent,
Industrial Design, Layout
Design, PVP, and Copyrights) and support to
GI producers and copyright
issues
KPI.1.4.6.a Number of
national enterprises/SMEs, business associations,
universities that have filed IP
to protect their business (IP management)
None There were 498 trademarks filed in
2011; 5 industrial designs in 2011 and 8 industrial designs in 2012.
D/IPR &
MIME
KPI.1.4.6.b awareness in
enterprises/SMEs and
business associations on IP
related issues
None There were 3 workshops conducted
in 2010 and 2011 and 4 workshops
in 2012.
DIPR
KPI.1.4.6.c Awareness
amongst the wider public on IP related issue
N/A 26 copies of books distributed to
trainers of universities
DIPR
4.4 Legal Reforms
The challenges facing Cambodia in the area of Legal Reforms are twofold: enacting all necessary reform
legislation for membership in time and carrying it out. As part of its accession to the WTO, Cambodia has made a
large number of commitments in legal and judicial system reforms, including the enforcement of the rule of law
and the establishment of a specialized commercial court. According to a government source, forty-seven laws and
regulations are needed to fulfill WTO membership requirements. Fourteen laws and regulations have already been
adopted, while the other thirty-three are to be passed within future years. Effectively, the schedule imposes the
passing of more than two laws and sets of regulations per legislative working month. On past experience, however,
the Cambodian parliament is not likely to meet the deadline; it has, on average, taken three months to adopt a piece
of legislation. If carried out properly, these commitments would stimulate other related economic reforms that will
be conducive to improving investor confidence. Cambodia has committed itself to drastic institutional reforms that
will supposedly take place during a transitional period of five years, under the Doha Agreement on a least
developed country accession.
Strategic Outcome Achievements: Obligations under WTO membership have been partially fulfilled as
per accession protocol, alongside with the implementation of the WTO work program which has been
partially fulfilled as per WTO accession schedule. The WTO work program is currently being updated,
together with the updating of DTIS 2013.
Drafting of law on commercial contract, law on commercial court, and implementation of the
arbitration law: The laws on commercial contracts, commercial court and arbitration have been drafted
and are now being circulated to various stakeholders for review. However, the laws on Commercial
Arbitration has been passed in 2006, while the Laws on Commercial Enterprises and Laws on Negotiable
79
Instruments and Payment Transactions approved on 2005. (See Appendix 1 for the List of other Laws and
circulars related to business transactions).
Arbitration Council Establishment. The Arbitration Council has been established since May 2003 by a
Ministerial decree (Prakas). The Council is not a court, but pursuant to Cambodian statutes it is endowed
with legal and equitable decision making authority with regard to labor dispute cases. On the other hand,
the organization and functioning of a National Center of Commercial Arbitration has been approved thru
Sub-Decree #124 issued in 2009.
Reform of Legal Framework for Financial Sector: Most of the legal reforms for the financial sector
has been undertaken including the enactment of the Law on Secured Transactions (National Assembly, 24
May 2007, 6th
Session of the Third Legislature); a Bankruptcy Law or Insolvency Law has been passed
since 2007. NBC Prakas on Licensing of Financial Lease Companies (BN-011-242 Prokor) was signed
on 27 December 2011. An Insurance Law was promulgated on July 25, 2000 as per Preah Reach Kram
No. Ns/RKM/700/02. (See Appendix 1 for the complete list of Laws and other legal framework on
financial sector).
Reform of Legal Framework for International Trade: There are several laws, sub-decrees and prakas
that have been issued related to international trade, among them include: (a) Prakas 734 issued by MEF
on Special Customs Procedures for implementing Special Economic Zones (2008); (b) Prakas 116 on
Customs Bonded Warehouse (2008); (c) Law on Customs (2007); (d) Instructional Circular No. 007
issued by MEF on the Implementation of Policy on the Facilitation of Trade through Risk Management
(2006); (e) Ministerial Order No. 607 of MEF on the establishment and putting into operation the Office
of Risk Management and Audit of Customs and Excise (2006); (f) Sub-Decre No. 21 on Risk
Management (2006); Law on WTO Accession (2004). (See Appendix 1 for the complete Laws and other
legal framework on trade).
Reform of Legal Framework on Competition: The Ministry of Commerce‘s Department of Legal
Affairs has drafted the Law on Competition on 27 July 2012 and is now on circulation for comments.
Setting up of a Competition Agency and implementation of Competition Policy will be undertaken once
the Competition Law has been approved.
Reform of Legal Framework on Services: The Law on Telecommunications prepared by the Ministry
of Post and Telecommunications is still underway, together with the preparation of separate regulations
and operational guidelines on telecommunications services. The Law on Bar Association is also being
drafted.
Related laws and legal documents under other laws: The Law on Notary has been approved as a Law
No. 910 and Sub-decree No. 505 has been issued. No survey has been undertaken at present on the
implementation of the Law on Notary. For the other legal documents and other laws, please See
Appendix 1.
Table 2.8 Legal Reforms Results Framework Achievements Strategic Outcome Strategic Indicators Baseline
2009
Achievements
2012 to 2013
Data Collection
Instruments
Str
ateg
ic L
evel
SO.1.5 Identified legal
shortcomings regarding
WTO commitments are addressed
KPI .1.5.a All obligations
under WTO membership are
fulfilled
Work
Ongoing
Obligations partially
fulfilled, as per accession
protocol
WTO, minutes of
Trade Policy Review
meeting
KPI .1.5.b WTO work
program of RGC implemented
About 1/3 is
completed
and 1/3 is underway
WTO work program
partially implemented and
fulfilled as WTO accession schedule
WTO, minutes of
Trade Policy Review
meeting
KPI.1.5.c WTO work
program of RGC updated
based on the results of the Trade Policy Review to be
conducted in 2011
TPR drafted
October 2011
Work program updated by
October 2013 alongside
with updating of DTIS 2013.
WTO, minutes of
Trade Policy Review
meeting
Op
erat
ional
lev
el
Building Blocks Key Performance Indicators Baseline
2009
Achievements
2012 to 2013
Data Collection
Instruments
BB.1.5.1 Reform of legal
framework for contracts and disputes
KPI.1.5.1.a Promote drafting
law on commercial contract and law on commercial court
and implement arbitration law
None
The Laws on Commercial
Contract, Commercial Court, and Arbitration are
still under preparation and
now being circulated for review.
WTO TPR / MoC
80
Strategic Outcome Strategic Indicators Baseline
2009
Achievements
2012 to 2013
Data Collection
Instruments
KPI.1. 5.1.b An Arbitration Council is established and
functioning
None The Council was established by Prakas
(Ministerial decree) in
May 2003, and has been fully functioning since
then.The Council is not a
court but, pursuant to Cambodian statutes, is
endowed with legal and
equitable decision-making authority with regard to
labor dispute cases.
WTO TPR / MoC
BB.1.5.2 Reform of legal
framework for financial sector
KPI.1.5.2 Approval and
implementation of: secured transaction law (MoC);
bankruptcy law (MoJ);
financial leasing law (National Bank of Cambodia);
insurance law (MEF)
Secured
transaction, bankruptcy,
financial
leasing in place
Law on Secured Transactions by enacted
by the National
Assembly on 24th of May 2007 at its 6th
Session of the Third
Legislature.
A Bankruptcy or
Insolvency Law has
been passed in 2007.
NBC Prakas on
Licensing of Financial Lease Companies (BN-
011-242 Prokor) was
signed on 27 December 2011.
An Insurance Law was promulgated on July
25, 2000 as per Preah
Reach Kram No. Ns/RKM/700/02.
WTO TPR /
MoC / MoJ /
NBC /
MEF
BB.1.5.3 Reform of legal
framework for international trade
KPI.1.5.3.a Approval and
implementation of trade remedies law
Being drafted Still under preparation. WTO TPR
KPI.1.5.3.b Investigative
body established and located
in RGC (in line with ASEAN
commitments)
TBD
Still under formation. WTO TPR
KPI.1.5.3.c Approval and
implementation of E-Commerce Law
Being drafted Drafted and being
finalized.
WTO TPR
BB.1.5.4 Reform of legal
framework on competition
KPI.1.5.4.a Approval and
implementation of law on
competition (MoC)
Being drafted
Drafted and circulated by
MoC‘s Department of
Legal Affairs on 27 July 2012.
WTO TPR
KPI.1.5.4.b Set-up of a
competition Agency (MoC)
N/A To be set up once the Law
on Competition has been approved.
WTO TPR
KPI .1.5.4.c Development and
implementation of competition policy (MoC)
Being drafted
To be undertaken once the
Compeition Law has been approved.
WTO TPR
BB.1.5.5 Reform of legal framework on services
KPI.1.5.5.a Approval and implementation of
telecommunication law
(Ministry of Post / Telecommunications)
Draft ready but not yet
passed
Still under preparation.
WTO TPR
KPI.1.5.5.b Separation of
regulatory and operational telecommunication services is
enshrined in
telecommunication law and implemented in practice
Accomplished
through Prakas issued
in 2010
Still under preparation. WTO TPR
KPI.1.5.5.c Draft co status
Law on Bar Association
Being drafted
in 2010-11
Still under preparation. WTO TPR
BB.1.5.6 Related laws and
legal document under other laws
KPI.1.5.6 Approval and
implementation of Notary
Being drafted The Law on Notary has
been adopted as Law No. 910 and a Sub-Decree No.
505 was issued thereafter.
However, no report or survey conducted on its
Survey
81
Strategic Outcome Strategic Indicators Baseline
2009
Achievements
2012 to 2013
Data Collection
Instruments
implementation.
4.5 Investment Promotion
Amidst global economic frailty, foreign direct investment in Cambodia grew by an impressive 73% in 2012 as
reported by the United Nations‘ World Investment Report. For 2012, Cambodia‘s FDI reached US$1.6 billion,
compared with US$902 million in 2011. The influx in investment is credited to businesses looking to cut costs in
labor intensive industries, particularly the garment sector. Along with Myanmar and Vietnam, Cambodia is touted
as a ―bright spot‖ in Southeast Asia, where overall FDI increased by only 2%. The Report also stresses
Cambodia‘s strength in greenfield projects in retail banking. Over the past decade, Cambodia‘s banking sector
attracted the most capital, US$2.3 billion, of any least developed country, and the second highest number of
projects, at 56.
Economic diversification is attracting substantial sums of FDI from China and beyond. Rich in history and culture
and blessed with wonderful natural and human resources that are driving its impressive economic growth and
attracting record sums of foreign direct investment (FDI), the Kingdom of Cambodia offers investors a modern,
friendly and welcoming business climate. … A similar positive trend is seen in the rapidly-growing levels of FDI
that is flooding into the ambitious country at a record rate thanks to the forward-thinking policies of the
government of Prime Minister Hun Sen. FDI surged 73 percent to $1.6 billion in 2012 from $902 million in 2011.
…
This success, which has been driven by rising exports, private investment, agriculture, diversification, and a robust
macroeconomic position, has not gone unnoticed, with the United Nations Conference on Trade and Development
describing Cambodia in June 2013 as an ―emerging bright spot‖. Cham Prasidh, senior minister and minister of
Commerce, has played a key role in Cambodia‘s emergence as leading FDI destination and in the creation of more
than 20 strategically-located Special Economic Zones (SEZs) around the country, including SEZs near the borders
with Thailand and Vietnam. (http://www.opendevelopmentcambodia.net/tag/fdi/ Cambodia Herald, July 19, 2013)
Strategic Outcome Achievements: Foreign direct investment has increased from $902 million in 2011 it
went up to $1.6 billion in 2012 for a marked 73% increase. On the other hand, domestic investment has
reached $1.658 billion, which account to about 25.56% of total investments in Cambodia from August
1994 to November 2012, amounting to a total of $6.486 billion. As a result of the approval of Investment
projects:
2012- CDC approved 176 projects with investment capital of $2.512 billion creating employment of
217,265. In the economic zones, 42 projects were approved amounting to $453.774 million, creating
jobs to 17,681 people.
2011- CDC approved 161 projects with investment capital of $7.312 billion creating employment of
272,896;
2010- CDC approved 188 projects with investment capital of $2.935 billion, creating employment of
161,855.
Setting up of an Investment Promotion Agency: To date, there is no information on the setting up of an
Investment Promotion Agency in Cambodia. Thus, information on improvement in terms of the score on
investment promotion intermediary, and conversion rate of investor inquiries to investment decision
cannot be reported as yet. Legislation on Investment has not yet been modified to improve Investor
Aftercare, Retention and Expansion of RGC functions. Investor satisfaction ratings on services has also
not been gathered.
Setting up of Effective Special Economic Zones: CDC approved 42 projects amounting to $453.774
million in 2012 for SEZs; while in 2011 it has approved 39 projects amounting to $672.693 million. In
terms of its establishment, Sub-Decree 148 was issued on December 29, 2005 on the Establishment and
Management of Special Economic Zone; and Sub-Decree No. 33 was issued in 2001 on the Creation of
Development Zones. No amendments has been issued so far. In terms of incentives, import of
equipment and construction materials to be used for infrastructure construction in the zone are exempted
from import duties and other taxes.
Facilitation of Business Entry: The number of working days to register a business has remained 85 days
since 2009 up to present, which is lower than Lao PDR‘s 92 days, but higher than some countries in the
82
region such as Indonesia, 47 days, Malaysia, 6 days, Philippines, 36 days, and Thailand, 29 days. Cost to
register a business has been reduced from 151.7% of per capita income in 2009 to 109.7% in 2012 and
went down further to 100.5% in 2013. In terms of the number of steps in business registration, it has
remained 9 since 2009 to present, which is better than China‘s 13 steps and Philippines‘ 16 procedures.
Table 2.9 Investment Promotion Results Framework Achievements
Strategic Outcome Strategic Indicators Baseline
2009
Achievements
2012 and 2013
Data Collection
Instruments
Str
ateg
ic L
evel
SO.1.6 Trade related Investment increase to
support the growth of
trade
KPI.1.6.a FDI and local investment increase
$530 million approved
investment
-FDI has increased from $902 million in 2011 to $1.6 billion in
2012 (a marked increase of 73%).
-Domestic Investment has reached $1.658 billion comprising about
25.56% of total investments in
Cambodia from August 1994 to November 2012, amounting to
US$6.486 billion.
CDC/CIB statistics
KPI.1.6.b Formal
employment increases
CDC
approved 105 projects with
investment
capital of $6.036
billion and
creating jobs to 146,018
people.
As a result of the approval of
Investment projects:
2012- CDC approved 176
projects with investment capital
of $2.512 billion creating
employment of 217,265. In the
economic zones, 42 projects were approved amounting to
$453.774 million, creating jobs
to 17,681 people.
2011- CDC approved 161
projects with investment capital of $7.312 billion creating
employment of 272,896;
2010- CDC approved 188 projects with investment capital
of $2.935 billion, creating employment of 161,855.
CDC/CIB
statistics
Op
erat
ional
lev
el
Building Blocks Key Performance
Indicators
Baseline
2009
Achievements
2012 and 2013
Data Collection
Instruments
BB.1.6.1 An effective Investment Promotion
Agency is set up and
operates
KPI.1.6.1.a Score on investment promotion
intermediary on IP
performance improves
41-60% in 2008/9
No information. Client Relationship
Management
System / IFC
KPI.1.6.1.b Conversion rate of investor inquires to
investment decision
improves
N/A No information. Investor Tracking System (ITS)
KPI.1.6.1.c Legislation is
modified to improve
Investor Aftercare, Retention and Expansion RGC
functions
N/A No information. Government
Prakas
KPI.1.6.1.d Amount of
capital investment and number of jobs attracted or
retained through investor aftercare intervention
increases
CDC
approved 105 projects with
investment capital of
$6.036
billion and created jobs
to 146,018
people.
CDC approved 176 projects with
invested capital of $2.511 billion in 2012 and created jobs to 217,265
people; while in 2011, total projects approved reached 161 with
investment capital of $7.312 billion
and created jobs to 272,896 people.
ITS and FIPS
KPI.1.6.1.e Investor satisfaction ratings on
services provided improves
About 70% of the
respondents
would be willing to
repeat their
initial investment in
Cambodia
(2010)
No information. Investment Climate
Perception
(World Bank)
83
Strategic Outcome Strategic Indicators
Baseline
2009
Achievements
2012 and 2013
Data Collection
Instruments
BB.1.6.2 Effective Special Economic Zones
are set up and operate
KPI.1.6.2.a New Trade Related Investment is
approved and implemented
in SEZs
TBD CDC approved 42 projects amounting to $453.774 million in
2012 for SEZs; while in 2011 it has
approved 39 projects amounting to $672.693 million.
CDC/SEZB
KPI.1.6.2.b New SEZs
Draft Law N/A Sub-Decree 148 was issued on
December 29, 2005 on the
Establishment and Management of Special Economic Zone. Sub-
Decree No. 33 was issued in 2001
on the Creation of Development Zones. No amendments has been
issued so far.
KPI.1.6.2.c Tokyo Treaty is signed and custom territories
for SEZs are separated
N/A No information to date. IFC
KPI.1.6.2.d Exemption of
custom tax is implemented in selected zones
N/A Import of equipment and
construction materials to be used for infrastructure construction in the
zone are exempted from import
duties and other taxes.
Sub-Decree No.
148-Establishment
and Management
of SEZ
BB.1.6.3 Business entry
is facilitated
KPI.1.6.3.a The number of
working days that it takes to
register a business is reduced
85 days in
2009
85 days in 2012 and 2013. Doing Business
in Cambodia
2013.
KPI.1.6.3.b Costs to register
a business are reduced
151.7% of
per capita
income
109.7% in 2012 and 100.5% in
2013 (cost to register business
which is % of income per capita.
Doing Business
Indicators 2013.
KPI.1.6.3.c Procedures for the registration of a new
business are reduced
9 procedures in 2009
9 procedures in 2012 and 2013. Doing Business Indicators 2013
4.6 Labor Standards
According to the 2008 General Population Census of Cambodia, the country‘s annual population growth rate is
1.54 percent. Over 70 percent of the population is under the age of 30. Approximately 65 - 70 percent of the labor
force is engaged in subsistence agriculture. Around 300,000 people, the majority of whom are women, are
employed in the garment sector. An additional 300,000 Cambodians are employed in the tourism sector, and a
further 50,000 people in construction. The economy is not able to generate enough jobs in the formal sector to
handle the large number of new entrants to the job market every year. This dilemma is likely to become more
pronounced over the next decade since Cambodia suffers from a large demographic imbalance As a result, over the
next decade at least 275,000 new job seekers will enter the labor market each year. Given the severe disruption to
the Cambodian education system and loss of skilled Cambodians during the 1975-79 Khmer Rouge period,
workers with higher education or specialized skills are few and in high demand. The Cambodia Socio-Economic
Survey conducted in 2011 found that about 27.3 percent of the labor force had completed an elementary education.
Only 2.5 percent of the labor force had completed post-secondary education. The 2012-2013 Global
Competitiveness Report of the World Economic Forum identified an inadequately educated workforce as one of
the most serious problems in doing business in Cambodia.
Cambodia's 1997 Labor Code protects the right of association and the right to organize and bargain collectively.
The code prohibits forced or compulsory labor, establishes 15 as the minimum allowable age for paid work, and 18
as the minimum age for anyone engaged in work that is hazardous, unhealthy, or unsafe. The statute also
guarantees an eight-hour workday and 48-hour work week, and provides for time-and-a-half pay for overtime or
work on an employee's day off. As of October 2010, the minimum wage for garment and footwear workers was
officially set at US$61 per month. In November 2011, to help workers meet basic needs like health care, the
government awarded a US$5 per month pay raise starting in January 2012, thus bringing the minimum monthly
wage up to US$66. There is no minimum wage for any other industry. To increase competitiveness of garment
manufacturers, the labor code was amended in 2007 to establish a night shift wage of 130 percent of daytime
wages.
Enforcement of many aspects of the labor code is poor but it is improving. Labor disputes can be problematic and
may involve workers simply demanding conditions to which they are legally entitled. Collective labor disputes
between employers and employees may be resolved through conciliation and arbitration by the arbitration council,
which is an independent, national institution with quasi-judicial authority derived from Cambodian labor law. The
U.S. government, the ILO, and others are working closely with Cambodia to improve enforcement of the labor
code and workers' rights in general. The U.S.-Cambodia Bilateral Textile Agreement linked Cambodian
84
compliance with internationally recognized core labor standards with the level of textile quota the United States
granted to Cambodia. While the quota regime ended on January 1, 2005, a ―Better Factories‖ program continues to
work towards improving existing labor standards.
Strategic Outcome Achievements: According to the International Labor Organization, the working
conditions in Cambodia‘s garment industry have worsened, but some manufacturers claimed that the
entire industry should not be blamed for the problems of a few factories. Despite improvements until two
to three years ago, the country‘s third largest currency earning industry has suffered setbacks in the areas
of worker safety and child labor, according to ILO‘s Better Factories Cambodia Program‘s Synthesis
Report for the period 1 November 2012 to 30 April 2013. The ILO report said that its assessment of 152
garment and three footwear factories between November and April ―demonstrates that improvements are
not being made in many areas including fire safety, child labor, and worker safety and health.‖ It said
working conditions in the industry with a total of about 300 factories had declined despite global garment
and footwear buyers increasingly seeking factories and business partners that show workers more
consideration. ILO identified 15 percent of garment factories surveyed as having kept emergency exit
doors locked during working hours, putting workers at risk of death in the event of a fire, while 45 percent
failed to conduct emergency fire drills every six months and 53 percent had obstructed access paths. More
than half of garment factories failed to comply with labor laws on issues related to worker health and
safety including required long hours of overtime, excessive heat levels in factories, no onsite health and
safety committee, and a lack of access to clean drinking water. Other health and safety issues disregarded
by more than 50 percent of garment factories included providing masks to workers, labels in Khmer for
chemical containers, proper equipment for handling chemicals, soap and water near toilets and keeping
access paths unobstructed. ILO also confirmed that children under the legal working age of 15 were
employed in at least three garment factories it gained access to out of a group of 13 facilities it suspected
of hiring underage labor. It said that the three footwear factories it reviewed ―evidenced many of the same
issues seen in the garment sector.‖
Enhanced Ownership and Sustainability of Better Factories in Cambodia Program: According to
report from ILO Better Factories in Cambodia, 54% cost recovery was achieved in 2010 and 55% cost
recovery in 2011. There were 62 factories monitored in 2010, 69 factories in 2011, and 155 in August
2012 to April 2013.
Strengthen Industrial Relations Through Collective Bargaining and Better Dialogue: Under the
shade of Angkor‘s canopies and twisted Banyan trees, more than 100 restoration workers watched as
union delegates signed their first collective bargaining agreement last 30 August 2012, in what union
advocates say should set a precedent for Cambodia‘s construction industry. Over the past two years, the
workers had campaigned for insurance that would cover injury and illness, union rights, wages and other
benefits. Dave Welsh, country director of the American Center for International Labor Solidarity, said the
workers had formed the independent Angkor Preservation Workers Union in 2010 and had waited a long
time to collectively bargain with employer the World Monuments Fund. …Van Thol, vice president of the
Building and Wood Workers Trade Union Federation of Cambodia, of which the APWU is part, said
wages would increase from $79 to $90 per month. (Phnom Penh Post, 31 August 2012:
http://www.opendevelopmentcambodia.net/tag/construction-industry/)
Support to Dispute Resolution and the National Arbitration Center (NAC): More than two years after
being formally established by the Ministry of Commerce, the National Arbitration Center (NAC) has
voted in a board of directors and has elected its first chairman in January 2013. The NAC—a commercial-
dispute resolution body designed to offer businesses an alternative to Cambodia‘s corrupt court system—
was established in August 2010 in the hope that the institution would attract more foreign investors to the
country. On January 9, 2013, the NAC‘s general assembly selected seven individuals to sit on the body‘s
executive board. The board has also elect three more officers, at which point the body will become
independent of the Ministry of Commerce and able to accept cases. (Cambodia Daily, 13 January 2013:
http://www.cambodiadaily.com/archive/arbitration-center-elects-board-members-8188/)
85
Table 2.10: Labor Standards Results Framework Achievements
Strategic Outcome Strategic Indicators Baseline
2009
Achievements
2010 to 2013
Data Collection
Instruments
Str
ateg
ic L
evel
SO.1.7 Enhanced
compliance with
Cambodian labor law
and core labor standards in manufacturing
industry
KPI.1.7 Percentage
of manufacturing
firms that comply with
core labor standards
TBD More than half of garment factories
failed to comply with labor laws on
issues related to worker health and
safety including required long hours of overtime, excessive heat levels in
factories, no onsite health and safety
committee, and a lack of access to clean drinking water.
Buyers‘ Survey (ILO)
Better Factories
Cambodia Synthesis
Report of 155 Factories Monitored
(Nov. 2012 to April
2013
Op
erat
ional
lev
el
Building Blocks Key Performance
Indicators
Baseline
2009
Achievements
2010 to 2013
Data Collection
Instruments
BB.1.7.1 Enhanced
ownership and
sustainability of the BFC program
KPI.1.7.1.a Operational costs of
BFC program recovered from RGC
and/or industry
About 60%
recovered
through value chain (2010)
54% recovery of expenses in 2010
and 55% recovery of expenses for
2011.
BFC reports
(From 2011 int‘l
report available allowing comparison
across countries)
KPI.1.7.1.b Core labor standards
monitoring process
institutionalized
System implemented
through BFC
62 factories were monitored in 2010 and 69 factories were signed off in
2011. There were 155 factories
monitored for the period August 2012 to April 2013.
BFC reports (From 2011 int‘l
report available
allowing comparison across countries)
BB.1.7.2 Strengthen
industrial relations
through collective bargain and better
dialogue
KPI.1.7.2.a Number
of collective
bargaining agreements
N/A One collective bargaining agreement
signed in 2012 between World
Monument‘s Fund and Building and Wood Workers Trade Union
Federation of Cambodia
ILO reports
KPI.1.7.2.b Percentage of annual
collective bargains
that include a clause on following binding
solutions in case of
arbitration
N/A No information. ILO reports
KPI.1.7.2.c Percentage of labor
unions with Most
Representative Status compared to total
amount of unions
N/A No information. ILO reports
BB.1.7.3 Support dispute resolutions and
National Arbitration
Center.
KPI.1.7.3.a Functional
independent center
established for arbitration of
commercial disputes
No yet established,
but 56
arbitrators are being trained
National Arbitration Center was established by MOC in 2011 and has
elected its officers in January 2013.
ILO reports
KPI.1.7.3.b Percentage of labor
disputes that are
settled successfully through arbitration
(award issued and
complied with; distinguishing
between binding and
non-binding decisions)
180 cases; 166 cases
followed up;
117 cases resolved; %
of labor
dispute resolved
=70.48%
2010: 145 cases received; 152 followed up; 115 resolved; 75.66%(%
of labor dispute resolved.
2011: 191 cases received; 160 followed up, 117 resolved, 73.13%
2012: 255 cases registered; 73%
resolved.
ILO reports
4.7 Trade Finance
A lack of trade financing – the loans and guarantees needed to support import and export transactions – for
international deals within developing Asian countries such as Cambodia is restricting opportunities for growth, a
survey by the Asia Development Bank (ADB) has found. Of 106 banks surveyed, those within developing Asian
economies had rejected $425 billion of a potential $2.1 trillion requested in trade finance in 2011. Additionally,
138 companies who were users of trade finance said that a 10 per cent increase in trade finance would enhance
both their production and staff numbers by five per cent. (Phnom Penh Post, 13 March 2013: accessed thru:
http://www.phnompenhpost.com/business/more-trade-finance-needed)
Strategic Outcome Achievements: Lack of formal service and credit infrastructure remains a binding
constraint to many farmers and small and medium enterprise (SME) operators, though there have been
86
major advances in this regard. The microfinance sector in Cambodia has played a leading role in
expanding the reach of formal financial services to the rural poor. The sector has experienced rapid
growth over the last five years, reaching 1.3 million borrowers and 1.1 million savers in 24 provinces.
Deposits increased by 32 percent to USD1.26 billion in 2011 from USD952 million in 2010. (CDRI,
Cambodia Development Review, Jan.-March, 2012). In total, over a million poorer Cambodians have
borrowed from micro finance providers amounting to more than $500 million to finance their farms and
micro businesses, and 99% repaid their loans. (IFC: Microfinance in Cambodia) IFC also loaned
ACLEDA $6 million in 2004 and $5 million in 2006 to support lending to SMEs and licensed
microfinance institutions. IFC provided with trade financing in 2007 that helped more Cambodian SMEs
to enter the global market. (IFC: International Finance Corporation in Cambodia)
Development of SMEs capacity to Draft Bankable Business Plans: In 2012 ACLEDA Bank posted a
record profit which resulted from high margin loans to small businesses and low and medium Enterprise
loans as well as growth in the micro business loan sector. In 2011,ACLEDA had 146,479 micro business
loans; by the end of December 2012, the bank had 208,920 micro business loans. (ACLEDA Bank Annual
Report 2012: President and CEO Report)
Strengthening Commercial Banks’ capacity to carry out risk assessment and improving lending
activities to SMEs: The ACLEDA Bank continued its cost reductions and risk control to maximize
income. Non-performing loans in 2012 were maintained below 0.3% while the Bank‘s operating
efficiency ratio improved from 44.6% to 42.6%. (ACLEDA Bank Annual Report 2012: CEO and
President‘s Report)
Subsidize lending operation to SMEs by introducing Risk Guarantee Schemes: High risk lending
environment in Cambodia is significantly linked with the absence of a formal credit information sharing
system, inducing banks to use collateral to reduce the risk of asymmetric information. An improved
system is expected to encourage all banks to join the voluntary credit information system. In Cambodia,
Oum et al. (2011) argue that the absence of a guarantee scheme and mechanism to reduce risk to banks
has led to approximately 96 percent of applications for bank and micro-finance (MFI) loans being
collateral-based. This confirms that banks use collateral requirements to ration credit to SMEs; just over
one quarter of the firms surveyed in the study (ibid.) reported that they could not expand their business
due to insufficient financing. It is clear then that despite efforts made by government, access to finance
remains a key constraint to SME development. (CDRI: Cambodia Development Review, January to
March 2012)
Table 2.11: Trade Finance Results Framework Achievements
Strategic Outcome Strategic Indicators Baseline
2009
Achievements
2012 and 2013
Data Collection
Instruments
Str
ateg
ic L
evel
SO.1.8 SMEs, particularly in agriculture, get easier and
formal credit to scale up their
activities and improve export performance
KPI.1.8 Percentage of registered SMEs in agriculture
and agro-processing with
access to formal credit
About 50,000 in
2010
IFC also loaned ACLEDA $6 million in 2004 and $5
million in 2006 to support
lending to SMEs and licensed microfinance
institutions. IFC provided
with trade financing in 2007 that helped more
Cambodian SMEs to enter
the global market.
NBC and project surveys
Op
erat
ional
lev
el
Building Blocks Key Performance Indicators Baseline
2009
Achievements
2012 and 2013
Data Collection
Instruments
BB.1.8.1 Develop SMEs
financial and managerial capacity to draft bankable
business plans
KPI.1.8.1 Percentage of credit
requests submitted by SMEs to commercial banks that include
bankable business plans
N/A In 2012 ACLEDA Bank
posted a record profit which resulted from high margin
loans to small businesses
and low and medium Enterprise loans as well as
growth in the micro
business loan sector. In 2011,
ACLEDA had 146,479
micro business loans; by the end of
December 2012, the bank had 208,920 micro business
loans.
ACLEDA Bank
Annual Report 2012
87
BB.1.8.2 Strengthen
commercial banks' capacity
to carry out risk assessment and improve lending
activities to SMEs
KPI.1.8.2 Percentage of
unpaid loans by SMEs in
agriculture and agro-processing in rural areas
N/A The ACLEDA Bank
continued its cost
reductions and risk control to maximize
income. Non-performing
loans in 2012 were maintained below 0.3%
while the Bank‘s operating
efficiency ratio improved from 44.6% to 42.6%.
ACLEDA Bank
Annual Report 2012
BB.1.8.3 Subsidize lending
operation to SMEs by introducing risk guarantee
schemes
KPI.1.8.3 Percentage of risk
guarantee schemes
N/A Absence of a guarantee
scheme and mechanism to reduce risk to banks has led
to approximately 96 percent
of applications for bank and micro-finance (MFI) loans
being collateral-based
CDRI: Cambodia
Development Review, January to March
2012.
5. Pillar 2 Indicators and Achievements
Pillar 2 Goal is to strengthen supply capacity of the 19 product and service sectors identified in the 2007 Trade
Integration Strategy. The main reform areas identified in the RGC Trade Integration Strategy include: (a) Trade
Information; (b) Trade Support Institutions and (c) Value Chain Integration.
5.1 Trade Information
Quality Value Chain and Trade Information is a critical input to a country‘s effort to expand its export and identify
opportunities and niches for producers to move up their value chain. In Cambodia, there is a need to supply
information to policymakers, business associations, producers, exporters, and other private sector support
organizations for them to make use, understand, and value such information. Such information is also used to
enhance export-oriented policies, to monitor progress of the Trade SWAp, and identify possible areas in need of
TRTA and AfT.
Strategic Outcome Achievements: Export volume has continued to increase from a volume of $3.884 in
2010, it went up to $5.220 billion in 2011, with a marked increase of 34.4%; and went up further to
$5.768 billion in 2012 for an increase of 10.5%. On the other hand, the inward FDI stock has increased
rapidly, from $2.471 billion in 2005, to $4.637 billion in 2008; and $6.850 billion in 2011, with an
increase of 47.72%. Out of the total inward FDI stock, the manufacturing sector represents one third of
the stock, while the garments and footwear industry makes up more than two-thirds. For FDI inflows
amounted to $381 million in 2006 and rose to $783 million in 2010, which then went up further to $1.6
billion in 2013.
Setting Up and Operation of the Value Chain Information Unit: The Value Chain Information Unit
of the Trade Promotions Department of the Ministry of Commerce has been established and fully staffed
to complement the requirements on various studies related with Value Chain Analysis on the top 10
products of Cambodia and other potential products and services. Standardized methodologies have been
adopted and used by TPD in conducting various research.
Dissemination of Trade Information: Studies conducted by the Value Chain Unit of TPD are printed
and distributed to various stakeholders during various conferences, workshops, trainings, trade
exhibitions, trade fairs, and thru embassies.
Table 5.1 Trade Information Results Framework Achievements
Strategic
Outcome Strategic Indicators
Baseline
2009
Achievements
2011 to 2013
Data
Collection
Instruments
Str
ateg
ic L
evel
SO.2.1 Quality and quantity of
trade information
improves
KPI.2.1.a Exports of selected products increase
US$2.996 million
Exports went up from $3.884 billion (2010) to $5.220 billion (2011) with a marked
increase of 34.4%; and went up further to
$5.768 billion (2012) for an increase of 10.5%
MoC statistics Country Pages
and Indicators,
World Bank, Dec. 2012
KPI.2.1.b Investment in selected
sectors increase
Inward FDI stock has increased rapidly,
from $2.471 billion in 2005, to $4.637 billion in 2008; and $6.850 billion in 2011,
with an increase of 47.72%. For FDI inflows
amounted to $381 million in 2006 and rose to $783 million in 2010, which then went up
further to $1.6 billion in 2013.
CDC/CIB
88
Strategic
Outcome Strategic Indicators
Baseline
2009
Achievements
2011 to 2013
Data
Collection
Instruments
Op
erat
ional
lev
el
Building Blocks Key Performance Indicators Baseline
2009
Achievements
2011 to 2013
Data
Collection
Instruments
BB.2.1.1 A Value Chain Unit is set
up and operates in
conjunction with other Departments
and line Ministries
KPI.2.1.1.a The Value Chain Unit is strengthened with skilled
staff and sufficient financial
resources and technical support from other ministries
N/A The Value Chain Information Unit of TPD has been established and strengthened with
assistance from various sources such as
UNDP, WB, etc.
Project monitoring
report
KPI.2.1.1.b A standardized
methodology is finalized to carry out Value Chain Studies
N/A Standardized methodologies has been used
in preparing various Value Chain Studies.
Project
monitoring report
KPI.2.1.1.c The Value Chain
Studies on Rice, Cassava and
Cashew are disseminated to the main stakeholders
N/A Value Chain studies on rice, cassava, and
cashew nuts fully disseminated to various
stakeholders.
Project
monitoring
report
KPI.2.1.1.d Existing studies are
updated and improved regularly
with inputs from line ministries and private sector operators
N/A Existing studies are updated regularly and
improved with regular inputs from other
ministries and other stakeholders.
Project
monitoring
report
KPI.2.1.1.e New Value Chain
Studies are published including
on garment, tourism, footwear, fish
N/A Fish, rubber, and pepper value chain studies
have been completed but not yet published.
Reports.
KPI.2.1.1.f New Trade
Information Tools are developed
and published by the Value Chain Unit
N/A Various Training materials on trade
information tools were developed and
published by the Value Chain Unit.
Project
monitoring
report
BB.2.1.2 A
Strategy for the dissemination of
Trade Information
is developed and implemented
KPI.2.1.2.a A Strategy for the
dissemination of Trade Information is developed
covering product associations,
chambers of commerce, other business organizations, PDoCs,
producers and exporters at the
local and provincial level
N/A Completed studies and other information
are disseminated thru various stakeholders thru TPD website, exhibits, workshops,
trade shows, and embassies .
Project monitoring
report
KPI.2.1.2.b Prototype trade data series are developed and posted
on MoC website together with
other existing studies (with initial focus on 19 priority sectors)
N/A Various publications on the Top Ten products were printed and made available in
CD format, and uploaded in the TPD
website.
Project monitoring
report
5.2 Trade Support Institutions
The Strategic Outcome in this area relates to strengthening Trade Support Institutions (TSIs) that can assist
Cambodian producers, processors, and traders to expand and diversify their exports including strengthening the
Provincial Department of Commerce (PDoCs), Chambers of Commerce, product associations, Government
extension services and the Government-Private Sector Forum. TSIs can be instrumental to support efforts of
Cambodian producers and exporters to explore business opportunities overseas, to develop export contracts, to
adapt their production to the demand of importing markets, to move up the value chain, to meet SPS standards, and
to find cost effective ways to ship their goods.
Strategic Outcome Achievements: Aside from the Ministry of Commerce, the sole trade support
institution recognized by the International Trade Center, the other trade support institutions includes the
Cambodian Chamber of Commerce (CCC), General Department of Customs and Excise, the Department
of Trade Statistics and Information, Trade Promotions Department, Cambodia Development Resource
Institute, CDC/CIB, Risk Knowledge Bank, GMAC, Cambodia National Resource Data Bank, Mekong
Private Sector Development Facility, etc.
Support Provided to RGC to develop Capacity in Trade Negotiations: EIF and TDSP has provided a
lot of support to develop capacity in trade negotiations by sending officers and staff of the Ministry of
Commerce and other support institutions in various training programs, conferences, workshops, and study
tours in various countries such as Italy, Zambia, the Philippines. A delegation from Bangladesh and
Zambia, working on the area of trade, visited Cambodia to exchange information and knowledge on how
to improve trade monitoring and other activities.
89
Institutional Capacity Assessments of Cambodian TSIs and Capacity Development Plan for TSIs:
At present, no assessment has been made on the capacity of trade support institutions in Cambodia.
Development of a Capacity Development Plan for TSIs has also not been made.
Public-Private Policy Dialogue: The Government-Private Sector Forum (G-PSF) improves the business
environment, builds trust, and encourages private investment through a demand driven process with the
private sector identifying issues and recommending solutions. By fostering capacity and a strong
relationship between the government and private sector, the G-PSF is considered a key pillar in improving
the investment climate in Cambodia. The Government Private Sector Forum (G-PSF), was established in
1999 at the initiative of the Prime Minister of the Royal Government of Cambodia to provide a reliable
dialogue mechanism for consultation between the government and the private sector on investment
climate issues ranging from long range policy to day-to-day operations to encourage private sector
initiatives. The G-PSF provides a reliable platform for the business community to raise and resolve
problems with the Government of Cambodia. The Council of Development of Cambodia (CDC) acts as
the secretariat of the G-PSF. CDC facilitates dialogue within and among the joint government/private
sector Working Groups, and broadly between the Government and the business community. Since the
establishment of the G-PSF, the Business Membership Organization has strengthened its capacity of
delivering the various requirements of the public and private sector dialogues and has provided regular
inputs into the Trade SWAp Pillar Working Groups in updating and implementing various processes.
Table 5.2 Trade Support Institutions Results Framework Achievements Strategic Outcome Strategic Indicators Baseline
2009
Achievements
2011 to 2013
Data Collection
Instruments
Str
ateg
ic L
evel
SO.2.2 Private sector
operators are assisted
by Trade Support Institutions to expand
and diversify their
exports
KPI.2.2.a Number of Trade Support
Institutions increases
N/A Aside from the Ministry of
Commerce, the sole trade support
institution recognized by the International Trade Center, the
other trade support institutions
includes the Cambodian Chamber of Commerce (CCC), General
Department of Customs and
Excise, the Department of Trade Statistics and Information, Trade
Promotions Department,
Cambodia Development Resource Institute, CDC/CIB, Risk
Knowledge Bank, GMAC,
Cambodia National Resource Data Bank, Mekong Private
Sector Development Facility, etc.
Project reports
& International
Trade Center
KPI.2.2.b Quality of services provided by Trade Support
Institutions improves
N/A No information available so far on the quality of services of trade
support institutions.
Customers satisfaction
surveys of
traders
Op
erat
ional
lev
el
Building Blocks Key Performance Indicators Baseline
2009
Achievements
2011 to 2013
Data Collection
Instruments
BB. 2.2.1 Support is
provided to the RGC to develop its capacity to
identify, develop and
implement trade policy objectives during trade
negotiations
KPI.2.2.1 RGC officials are
exposed to similar institutions in other ASEAN countries, including
through study tours and seminars
TBD Delegation from Bangladesh and
Zambia has been visited Cambodia; RGC officials have
visited several countries to
observe trade situations and attend trainings/workshops such as
China, Zambia, the Philippines,
Italy, etc.
Project
monitoring report
BB.2.2.2 An
Institutional Capacity
Assessment of Cambodian TSIs is
conducted
KPI.2.2.2 An Assessment is
completed covering Provincial
Chambers of Commerce, Agro-Business Service Centers and other
local SME-related support
institutions whose mission is networking businesses, promoting
local commerce, industry, services
and access to international markets
N/A No assessments made so far. Assessment
Report
BB.2.2.3 A Capacity Development Plan for
TSIs is developed and
implemented gradually
KPI.2.2.3 Capacity of TSIs improves, increasing the use by
SMEs of their services
N/A Capacity Development Plan for TSIs not yet prepared.
SMEs surveys
90
Strategic Outcome Strategic Indicators Baseline
2009
Achievements
2011 to 2013
Data Collection
Instruments
BB.2.2.4 The Public-Private policy dialogue
on the business
environment improves
KPI.2.2.4.a The capacity of the Business Membership
Organizations participating in the
Government-Private Sector Forum is strengthened
N/A The Business Membership Organizations of G-PSF has
improved and are able to deliver
most of the requirements of the public-private sector dialogues.
The Survey among BMOs are
currently being conducted.
Project monitoring
report
KPI.2.2.4.b The GPSF provides regular inputs into the Trade SWAp
Pillars updating and implementation
process
N/A The GPSF provides regular inputs into the Trade SWAp Pillar
Working Groups.
GPSF reports
5.3 Value Chain Integration
The Strategic Objective in this area is to expand and diversify exports, including the targeting of new markets and
moving up the value chains for the target products identified by the RGC. In order to achieve progress in this area,
it is crucial to prioritize areas in which the Government can play a leadership role by designing policies and
strategies in the area of top 10 products and other potential products in Cambodia.
Strategic Outcome Achievements: Cambodia exported a total of $8.698 billion worth of goods for 2012,
with 20% growth from previous years. At present, Cambodia is exporting to 100 countries, as per
information gathered from ITC website, and is expected to penetrate 3 more countries in 2013. Cambodia
has made waves in exporting the top ten products for several period and could possibly target other
products such as cocoa, umbrella, nickel, zinc, and tin in future trading.
Integration of Rice Value Chain: Rice sector profile and rice sector policy paper were developed by the
Cambodian government. Rice traders have participated in trade missions, trade fairs, and buyers-sellers
meetings and missions. At present, Cambodians can earn a lot more foreign exchange by developing an
efficient rice export supply chain, compared to the garment sector for example, says an organizer of the
head of the Cambodia Rice Forum, a private sector initiative. Right now, a lot of Cambodian rice farmers
are selling their paddy rice to Thai and Viet rice sellers who then add value by milling, transporting, and
marketing the rice. Cambodia is trying to promote 10 rice varieties but it‘s confusing the marketing
process according to international rice buyers. Cambodia also has a low production yield, about 2.5 tons
of paddies per hectare due to low use of fertilizer and a lack of modern farming techniques. Cambodia is
currently the fifth-largest world rice exporter at about one million tons annually, though it exports much
more than that through unofficial cross border paddy trade with Thai and Viet traders. It‘s estimated that
via unofficial cross border trade, Cambodia exported about one million tons of paddy rice to Thailand and
more to Vietnam. Farm gate paddy prices are about $140 per ton or 40% – 60% less than milled rice
prices so Cambodia misses out on that added value. The rice industry also needs increased access to
funding to build and maintain milling and storage facilities that can compete with those of neighboring
Thailand and Vietnam. (http://www.oryza.com/content/cambodian-rice-industry-need-overhaul-hopes-its-
rice-sells-hot-cakes#sthash.TLjCvNct.dpuf)
Integration of Garments Value Chain: Despite criticisms over safety, outbreaks of sometimes violent
industrial action and a raise in the minimum wage that it was warned would scare off manufacturers,
Cambodia‘s garment sector is booming, according to government figures. A report on state newswire
Agence Kampuchea Presse (AKP) stated that exports of garments and textiles, which make up the bulk of
Cambodia‘s output in the global economy, were up by almost a third in terms of value in the first six
months of 2013. Garment and textile exports were worth $1.558 billion, up 32 percent on the same period
last year. Exports to the E.U. were worth $532 million, some 45 percent higher than the period in the
previous year. Exports to the U.S. rose by 17 percent to $660 million in the period, it said.
Integration of Tourism Value Chain: Cambodia‘s diverse landscape offers tourists a range of attractions
and experiences, many of which are culture based and rely heavily on the country‘s historical monuments
and rural livelihoods. In 2010 the Ministry of Tourism of the Royal Government of Cambodia registered a
total of over 2.5 million arrivals to their country, 75.64% of which account for leisure travellers, others
came for the purpose of business or official travel (16.75%) or to visit friends and relatives (2.9%).
Among the leisure travellers visiting Cambodia, 60.54% came as free independent travellers (FIT) and
39.46% toured as group inclusive travellers (GIT)1. Around 1 million of these travellers visited
Cambodia‘s main attraction, the historical temples of Angkor. Interestingly, approximately 50% of these
visitors visited the temples exclusively without travelling to other destinations in the country. Selected
forms of alternative tourism have been initiated in Cambodia by the Government, NGO‘s and the private
91
sector, such as ecotourism, community-based tourism and volunteer tourism. However, in practice these
forms of tourism are limited and involve very specific niche destinations and markets. In addition,
Cambodia‘s private sector tourism companies generally focus on short term economic benefits, without
attention to business planning or marketing. With such a business approach, these companies tend to
overlook longer term sociocultural, environmental and even economic impacts.
Integration of Cassava Value Chain: Cambodia‘s cassava exports reached 245,438 tons in the first
quarter this year, a 47 per cent decline quarter-on-quarter, from 465,640 tons in the final quarter of last
year. While most exports went to Thailand, Vietnam and China, where processing takes place, Thailand
also is a major market for Cambodian cassava. Officials in border provinces and traders said Thailand‘s
restriction on cassava imports early this year and informal exports that have not been recorded are the
reasons for the decline. During the first three months, the total value of Cambodia‘s cassava exports
reached $11.7 million, about 30 per cent of the total export value last year.
Integration of Cashew Nuts Value Chain: Cambodia's cashew-nut exports increased sharply from 443
tonnes in 2011 to 4,453 tonnes last year. But observers say these figures do not reflect reality, as a large
percentage of exports had not been recorded. Cambodian cashew nut traders believe the market price for
cashew nuts will increase, as demand from Vietnamese markets increases along with international
demand. Early in the season, the price of cashew nuts was US$1,300 a ton, but it had dropped to $1,100..
According to export data from the Ministry of Commerce, Cambodian raw cashew nut exports increased
more than 10-fold to 4,231 tonnes in the first half of this year compared with the corresponding period in
2011, when Cambodia exported 392 tons. The price of cashew nuts dropped about $450 from $1,137 a
ton in 2011 to $685 a tonne this year. This year‘s revenue was $2,898,806, compared with last year‘s
$444,669. (Phnom Penh Post)
Integration of Fisheries Value Chain: Exports of Cambodian fish and shellfish products reached 1,618
tons last year, worth $3.5 million, a 16 per cent increase from 1,391 tons in 2011, according to figures
from the Ministry of Commerce. In January and February last year Cambodia exported 591 tons of fish
products, about 36 per cent of the total sold overseas. Exports slowed after March until they rose again in
July and August, reaching 722 tons. In the first 11 months of last year, Cambodia caught 381,200 tons of
freshwater fish, nearly a 29 per cent increase from the 296,000 tonnes caught in the same period in 2011.
(Phnom Penh Post, July 2013)
Integration of Silk Value Chain. A national silk board (NSB) under the Ministry of Commerce is being
planned to weave tighter regulations into the Kingdom‘s silk industry, the lack of which has deterred
investors and hurt its export potential. The NSB hopes to look into areas such as creating a certification
process to boost the quality of silk produced, coordinating public-private partnerships, and collating
information related to the industry. According to an ITC report in 2012, Cambodia has about 20,000 silk
weavers, with the majority of whom are women, contributing $25 million annually to the Kingdom‘s
GDP. According to an ITC report in 2012, Cambodia has about 20,000 silk weavers, with the majority of
whom are women, contributing $25 million annually to the Kingdom‘s GDP.
Table 5.3: Value Chain Integration Results Framework Achievements
Strategic Outcome Strategic Indicators Baseline
2009
Achievements
2011 to 2013
Data Source
Str
ateg
ic L
evel
SO.2.3 Exports of
targeted products reach new markets and
increase as a result of
value chain integration
KPI.2.3.a Exports of targeted
products penetrate
N/A Cambodia exported a total of
$8.698 billion worth of goods for 2012, with 20% growth from
previous years. At present,
Cambodia is exporting to 100 countries and is expected to
penetrate 3 more countries in 2013.
International
Trade Center website:
www.intracen.org
Trade Map
KPI.2.3.b Exports of targeted products increase
N/A Cambodia has made waves in exporting the top ten products for
several period and could possibly
target other products such as cocoa, umbrella, nickel, zinc, and tin.
International Trade Center
website:
www.intracen.org Trade Map
Op
erat
ional
lev
el
Building Blocks Key Performance Indicators Baseline
2009
Achievements
2011 to 2013 Data Source
BB. 2.3.1 Integration of Rice Value Chain
KPI.2.3.1.a The Rice Sector Profile and Strategy developed by
the Value Chain Unit is fully
validated by the Rice Task Team, which support to MoC and MAFF
that have been tasked to prepare
and Action Plan in support of the Rice Sector Policy
Achieved
Achieved. A Rice Value Chain study was prepared by Agrifood
Consulting Co. for the World Bank
in Sept. 2002.
WB Rice Value Chain Study
(2002)
92
Strategic Outcome Strategic Indicators
Baseline
2009
Achievements
2011 to 2013
Data Source
KPI.2.3.1.b Two new and large-scale distribution channels to
overseas markets are identified
Achieved Achieved
Task Force Reports
KPI.2.3.1.c Rice Traders
participated in trade missions, trade fairs, buyer-seller meetings
Ongoing Achieved. Rice traders and TPD
representatives attended trade missions and trade fairs in
Thailand, China, and Europe.
Task Force
Reports
KPI.2.3.1.d Technical support is provided to rice millers to meet
quality specifications and SPS
requirements
Ongoing ISC provided technical support to rice millers in meeting quality
specifications and SPS
requirements.
ISC
KPI.2.3.1.e Training is provided to rice millers on export
procedures, including access to
GSP schemes
Ongoing Achieved. Several trainings were conducted by ISC and MAFF to
rice millers on export procedures,
etc.
ISC
KPI.2.3.1.f Rice GIs are
developed, registered and used as
marketing tools
N/A Rice GIs developed by ISC. ISC
BB.2.3.2 Integration of Garment Value Chain
KPI.2.3.2.a A Value Chain Study for Garment is developed by the
Value Chain Unit
N/A Achieved. Garment Value Chain Study was already developed.
Task Force Reports
KPI.2.3.2.b A Garment Strategy is drafted focusing on market
diversification and deepening of
the value chain, covering issues related to training, industry
extension service, garment
innovation centre, capacity development of government
institutions and trade associations
N/A Garment Industry Strategy developed.
Task Force Reports
KPI.2.3.2.c The garment strategy is validated by all stakeholders
and it is implemented gradually
N/A This activity has been cancelled. SSC meeting
BB.2.3.3 Integration of
Tourism Value Chain
KPI.2.3.3.a The Tourism
Development Strategic Plan for 2011 – 2020 is fully consulted
with all involved agencies and
adopted
N/A No development plan prepared so
far.
Task Force
reports
KPI.2.3.3.b A Master plan for the
Siem Reap Area (including the
Tonle Sap Biosphere Reserve) is developed and implemented
N/A A Tourism Development Plan in
Siem Reap has been developed.
Task Force
reports
KPI.2.3.3.c A Master Plan for the
Phnom Penh area is developed and
implemented
N/A No information. Task Force
reports
KPI.2.3.3.d A Master Plan for the
Southwest Coastal zone is
developed and implemented
N/A No information. Task Force
reports
KPI.2.3.3.e A Master Olan for the Northeast Zone is developed and
implemented
N/A No information. Task Force reports
KPI.2.3.3.f The National Institute for Tourism and Hospitality and
the National University of
Tourism and Hospitality are set up
N/A No information. Task Force reports
BB.2.3.4 Integration of
Cassava Value Chain
KPI.2.3.4.a The Cassava Sector
Profile developed by the Value
Chain Unit is fully validated by
relevant line ministries and
Development Partners
N/A Cassava Sector profile developed.
KPI.2.3.4.b A Cassava Task
Team, including Government, DPs and private sector is set up to
develop recommendations for a
cassava sector policy
N/A No Information. Task Force
reports
KPI.2.3.4.c Two new potential export markets are identified,
including with exploratory trade missions of cassava processor
N/A China and Korea have been selected as potential export market
for cassava.
Task Force reports
93
Strategic Outcome Strategic Indicators
Baseline
2009
Achievements
2011 to 2013
Data Source
KPI.2.3.4.d Technical support is provided to cassava processors to
meet demand market requirements
and SPS issues and to improve trade facilitation
N/A No information. Task Force reports
BB.2.3.5 Integration of
Cashew Nuts Value
Chain
KPI.2.3.5.a The Cashew Nut
Sector Profile and Strategy
developed by the Value Chain Unit is fully validated by the
Cashew Nut Task Team together
with the relevant line ministries
N/A Cashew Nuts Sector Profile
developed.
KPI.2.3.5.b The Cashew Nut
Task Team works with relevant
policy makers in Government to develop possible recommendation
for a cashew nut sector policy (a
particular focus might be on how to attract investment for
processing)
N/A Cashew Nut Task Force not yet
formed.
KPI.2.3.5.c Two new potential export markets for current
production of unprocessed
cashews are identified, including with exploratory trade missions
N/A No information.
BB.2.3.6 Integration of
Fisheries Value Chain
KPI.2.3.6.a The 10-Year Strategic
Planning Framework for the
fishery sector is finalized
N/A No Framework for Fisheries Value
Chain developed to date.
KPI.2.3.6.b Together with relevant ministries and
stakeholders, the Value Chain
Unit with the Fish Task Team develops a Sector Profile and
Action Plan consistent with the 10-Year Strategic Planning
Framework to operationalize the
Framework
N/A No information.
KPI.2.3.6.c Fish processors are trained to improve quality and
safety of fishery products
N/A No information.
KPI.2.3.6.d Quality infrastructure for fish exporting is developed in
line with international guidelines
and standards
N/A Several sector profiles were developed for fisheries.
KPI.2.3.6.e Responsible government agencies are capable
of implementing national
legislation, including by carrying out market surveillance and
issuing licenses and certification
N/A No information.
KPI.2.3.6.f New markets are identified and soft/hard
infrastructure is put in place to
comply with SPS and quality requirements
N/A No information.
BB.2.3.7 Integration of
Silk Value Chain
KPI.2.3.7.a The Silk Sector
Profile and Strategy is used as
guidance by all stakeholders for
developing the sector
N/A No information. ITC developed its
own Silk Sector Profile for
Cambodia.
KPI.2.3.7.b A Silk Board is
created with the aim of: a) Fostering a public-private
partnership; b) Allowing a voice
for all stakeholders; c) Securing permanent funding from national
resources; and d) Allowing for
institutional flexibility by creating an autonomous public body
N/A Silk Board will be created soon.
94
Strategic Outcome Strategic Indicators
Baseline
2009
Achievements
2011 to 2013
Data Source
KPI.2.3.7.c Actions at the macro level are completed, including:
a)Consultations among private
stakeholders, Development Partners and the public Institutions
about Silk Board creation; b)
Updating the Silk Development Strategy
N/A No information.
KPI.2.3.7.d Actions at the meso
level are completed, including: a)
Promoting an intensive sericulture on both chains of white and
golden silk yarn; b)Encouraging
Financial Institutions to back up the sector; c) Integrating silk
products within the tourism sector
N/A No information.
KPI.2.3.7.e Action at the micro level are completed, including:
a)Continuing capacity building
among weavers / producers and silk exporters; b) Addressing the
problem of silk yarn supply
N/A No Information.
6. Pillar 3 Indicators and Achievements
The goad of Pillar 3 is to strengthen the capacity of the RGC and Cambodian Trade Stakeholders to
implement, update and manage RGC’s trade development agenda and to negotiate the country’s interests in
trade and trade-related investment forums. The Road Map presents a results chain in which intermediate and
strategic outcomes contribute to the achievement of the strategic objectives and the pillar goal. Key performance
indicators (KPIs) for each strategic and intermediate outcome serve as an M&E framework that allows for results-
based monitoring and evaluation of the achievements of the pillar as part of the Trade SWAp. The five strategic
objectives indicate five key areas in which effective capacity is required for the effective performance of the Trade
SWAp. Each of these five ―key capacity areas‖ (KCAs) are directly linked to a strategic objective.
6.1 Leading and Managing Change
Providing leadership to the Trade SWAp and to the overall change process required to implement the SWAp,
including the vision, political will and coalitions; managing the day to day aspects of implementation of the Trade
SWAp and its constituent projects and programmes under the three pillars concerned; and coordinating amongst
the various parties involved and across the pillars of the Trade SWAp in order to achieve the outcomes and goals of
the SWAp and enhance development outcomes.
Strategic Outcome Achievements: Trade Swap Roadmaps was completed in 2011 and was adopted in
2011. While the current roadmap is being implemented, a diagnostic review of the trade strategy is being
carried out alongside with the updated of the Trade SWAp Roadmap. SSC and IC have been established
and are currently functioning as separate committees, providing leadership support to trade policies
development, strategies formulation, and leadership. Since the adoption of the Trade SWAp Roadmap,
MoC has played an effective and efficient role in managing and coordinating the Trade SWAp. Line
ministries are also actively contributing to trade development thru various projects that they are
implementing.
Table 6.1: Leading and Managing Change Results Framework Achievements
Strategic Outcome Strategic Indicators Baseline
2009
Achievements
2011 to 2013
Source
Str
ateg
ic
Lev
el
SO.3.1 RGC institutions
can effectively integrate, coordinate and implement
trade related reforms
KPI.3.1 Reform agenda is
implemented according to government strategy and
international commitments (i.e.
WTO, ASEAN, etc.)
Trade SWAp Road
Maps are completed in 2011
The DTIS is being
updated, together with the Trade SWAp
Roadmap. Finalization
of DTIS 2013 is expected by October 2013.
Project reports
Op
erat
ion
al l
evel
Building Blocks Key Performance Indicators Baseline
2009
Achievements 2011 to
2013
Source
BB.3.1.1 Support to SSC and IC to become
functioning committees
KPI.3.1.1.a Number of Ministries/Agencies represented
during the SSC and IC, according
About 40% in 2011
More than 70% of ministries and agencies
are represented in SSC
DICO
95
Strategic Outcome Strategic Indicators
Baseline
2009
Achievements
2011 to 2013
Source
providing on-going strategy and leadership,
securing buy-in for
implementation of Road Maps from other
stakeholders and ensuring
that directions from Trade SWAp are integrated into
national development
plans
to the Sub-decree on composition and IC meetings.
KPI.3.1.1.b Number of meetings
with pre-defined agenda held by
SSC, IC, Pillar Working Groups
(combined inter-ministerial meetings)
4 SSCs
12 ICs
4 PWGs
Same number of
meetings as in the
baseline has been
achieved to date.
DICO
KPI.3.1.1.c Road Maps for each
Pillar are approved and updated annually
N/A Road Maps approved in
2012. DTIS 2013 and Road Maps are currently
being updated.
Pillar Working
Group, DICO
KPI.3.1.1.d Number of eligible
project proposed by line Ministries and other stakeholders linked to
the implementation of the Road
Maps
12 projects in 2009;
3 projects in 2010 and 6 in 2011
3 projects were approved
in 2012. More projects are expected to be
approved in 2013.
DICO
KPI.3.1.1.e Number of Line
Ministries‘ strategies referring to
the Trade SWAp Road maps
No reference in
2009
No monitoring has been
done at present on this
matter.
Line
Ministries‘
strategies
KPI.3.1.1.f Capacity of PDoCs is developed to collect Trade SWAp
monitoring data
Data started to be collected in 2011
No information on this matter and no training
provided
Line Ministries‘
strategies
KPI.3.1.1.g Trade SWAp Road Map priorities are mainstreamed
into National Strategic
Development Plan
Not yet, as of 2011 MoC Inputs for NSD/RS sent to MoP/SNEC
(2013)
Line Ministries‘
strategies
BB.3.1.2 MoC ensures an
effective and efficient
management and coordination of the Trade
SWAp, championing the
use of trade to increase economic development
and social welfare in
Cambodia
KPI.3.1.2.a MoC recognized as a
change agent / champion in terms
of developing Trade SWAp and mainstreaming trade in Cambodia
MoC is perceived as
champion
MoC maintains the
position of being a
change agent in mainstreaming trade in
Cambodia.
Newspapers,
newsletters,
project reports
KPI.3.1.2.b D/ICO functional
areas improved sustainably
2,407 working days
provided by consultants in 2011
Inputs of international
consultants decreased in 2012.
DICO reports
KPI.3.1.2.c Donor community
demonstrates improved coordination around trade
priorities identified in the Road
Maps.
TDSP trust fund:
US$ 12.3 million was channeled
through SWAp in
2009 and EIF channeled US$ 1.5
million in 2010
Additional funds to be
provided soon to TDSP and EIF.
DICO reports
BB.3.1.3 Line Ministries
contribute to trade development
KPI.3.1.3.a Line Ministries in
Trade SWAp implement project successfully
No projects
completed up to 2011
1 project completed in
December 2012 and 5 projects in March 2013.
Project reports
6.2 Developing and Implementing Policies
Identifying policy area needs and the requirements for applied policy research on trade development issues;
making use of the results of such research for as part of policy formulation; establishing processes and systems to
formally implement policies.
Strategic Outcome Achievements: MoC currently makes use of trade policy research to enhance
international trade. The research studies conducted include among others the value chain studies on rice,
cassava, corn, pepper, rubber and fisheries, including the preparation of the WTO Trade Policy Review.
MoC, together with the assistance from UNDP, is currently conducting the Second DTIS Update 2013 to
define new trade strategies. The future intervention would include: clear link of implementation and
monitoring of trade policies at provincial level; line ministries and partners are able to deliver the required
high quality trade policy research; and strengthened Value Chain Information Unit.
Table 6.2: Developing and Implementing Policies Results Framework Achievements
Strategic Outcome Strategic Indicators
Baseline
2009
Target Actual Data
Collection
Instruments
Str
ateg
ic L
evel
SO.3.2 An
effective systemic approach to the
development and
implementation of trade policies is in
place
KPI.3.2 All major
National Trade Policies are rooted in
comprehensive research
papers
Most NSDP trade
policies are originating from
research papers
All trade policies are
originating from research papers in
new NSDP (2012)
All trade policies
are originating from research
papers in new
NSDP
NSDP
O p er at io n al
le v el
Building Blocks Key Performance
Indicators
Baseline
2009
Target Actual Data
Collection
96
Strategic Outcome Strategic Indicators
Baseline
2009
Target Actual Data
Collection
Instruments
Instruments
BB.3.2.1 MoC makes use of Trade
Policy Research to
enhance trade, improving the
systemic approach
to implement trade policies and
strategies through
formal structures
KPI.3.2.1.a MoC commissions applied
trade policy research
based on perceived needs
3 value chain studies
At least 2 additional studies yearly (2012)
At least 2 studies done (pepper and
rubber)
Project reports
KPI.3.2.1.b MoC
making use of research
results to shape trade policy making and
implementation
Findings of Rice
study
mainstreamed in national strategies
50% of research
papers mainstreamed
in national strategies (2012)
No information. Project
reports
KPI.3.1.2.c Transparent and predictable
management structures
for trade policy implementation are
established and utilized
A national value chain unit was set
up in 2011
The value chain unit operates regularly
issuing at least two
studies yearly
2 studies by VCIU Project reports
BB.3.2.2 Policies are implemented at
functional level
within the Provinces
KPI.3.2.2.a Implementation strategy
adhered to on provincial
level with PDoCs implementing policies
and monitoring
functions
System is in place but it does not
cover Trade
SWAp issues comprehensively
A system is put in place to cover all
Trade SWAp issues
by 2012
By 2012, System is in place but it
does not cover
Trade SWAp issues
comprehensively
Project reports
BB.3.2.3 Policies
are implemented at
functional level with support from
Line Ministries
and/or within Line Ministries
KPI.3.2.3 Results of
trade development
policy implementation monitored and fed back
to MoC
A monitoring
system was set up
in 2011
Line Min. participate
fully in Trade SWAp
annual monit. reports by 2012
Line Min. not yet
fully participate.
Project
reports
BB.3.2.4 Partner
agencies are able to deliver required
high quality trade
policy research
KPI.3.2.4 Number and
quality of research reports produced
Three value chain
reports were completed in 2010
At least two reports
are produced annually with inputs from Line
Ministries
1 on fishery Project
reports
6.3 Establishing Country Systems
Establishing core management systems and processes to enable the effective operation of institutions involved in
the Trade SWAp, including planning, monitoring and evaluation, finance and procurement, human resources
development and management.
Strategic Outcome Achievements: The capacity of MoC has been enhanced in financial management,
procurement and M & E. Ongoing efforts are made by TDSP and EIF on building capacity of officials
based at MoC and other line ministries. Future intervention will be on the following: (i) the PDOCs‘
capacity to fully participate in the wider Trade SWAp M & E system and to support human resource
management and development in support of the Trade SWAp; (ii) line ministries capacity in SWAp M &
E and human resource management and development; (iii) civil servants to receive a level of knowledge
on trade and trade related issues appropriate to their position and role played.
Table 6.3: Establishing Country Systems Results Framework Achievements
Strategic Outcome Strategic Indicators Baseline
2009
Achievements
2011 to 2013
Source
Str
ateg
ic
Lev
el
SO.3.3 Core institutional
systems and skills ensure the effective development and
performance of trade-related institutions
KPI.3.3 Reliability on
external consultants decrease
as they are progressively replaced by officials‘ expertise
90 working days
provided by consultants in 2009
and 1,130 in 2010 and 1,315 in 2011
Decrease (2012) D/ICO
Op
erat
ional
lev
el
Building Blocks Key Performance Indicators Baseline
2009
Achievements
2011 to 2013
Data
Collection
Instruments
BB.3.3.1 MoC capacity is
enhanced to manage financial
aspects of the Trade SWAp in a
KPI.3.3.1.a Timely financial
data used in management of
the Trade SWAp
Available for TDSP
and EIF in 2011
Available for TDSP
and EIF
Project reports
97
Strategic Outcome Strategic Indicators
Baseline
2009
Achievements
2011 to 2013
Source
timely and efficient manner, to support human resource
management and development
in support of the Trade SWAp, to set up an effective Trade
SWAp development planning
system and a functioning M&E system
KPI.3.3.1.b Good governance framework from TDSP put
into practice
In place Updated regularly DICO
KPI.3.3.1.c Availability of
up-to-date Pillar Road Maps
Road Maps were
approved in Oct 2011
To be updated in
2013
Pillar reports
KPI.3.3.1.d Consensus and
commitment to Road Maps
amongst key stakeholders
Unrecorded adhoc
meetings organized)
Increased of recorded
regular meetings
(2013)
Pillar reports
KPI.3.3.1.e Timely available monitoring and evaluation
information informs
management decision-making on project and program levels
A monitoring system for the Trade SWAp
was started to be put
in place in 2011
Monitoring system at project level.
BB.3.3.2 The PDoCs capacity
to fully participate in the wider Trade SWAp M&E system and
to support human resource
management and development in support of the Trade SWAp
is enhanced
KPI.3.3.2.a Provinces adopt
M&E methodology used by MoC to report on results in
trade development
Committee PRAKAS
for Implementation issued in late 2011
No progress (2013) Project reports
KPI.3.3.2. b PDOCS support
M&E activities from D/ICO and Dept of Trade Information
and Statistics within their
Province
Not in place in 2011 Not in place (2013) DICO
KPI.3.3.2.c Monitoring data is
made available by PDoCs to
D/ICO in a timely manner
Not available in 2011 Not available DICO
KPI.3.3.2.d Staff have the
required knowledge and skills to fulfill their role in the Trade
SWAp
Training not yet
provided as of 2011
No training in 2012 DICO
BB.3.3.3 The capacity of Line
Ministries to fully participate in the Trade SWAp M&E system
and to support human resource
management and development in support of the Trade SWAp
is enhanced
KPI.3.3.3.a Line Ministries
adopt M&E methodology used by MoC to report on results in
trade development
Not yet in place Not yet Project reports
KPI.3.3.3.b Line Ministries
support M&E activities
coordinated by D/ICO
Not yet in place Partially DICO
KPI.3.3.3.c Monitoring data is
made available by Line
Ministries to D/ICO in a timely manner
Not yet in place Not yet DICO
KPI.3.3.3.d Staff have the required knowledge and skills
to fulfill their role in the Trade
SWAp
Not yet in place Partially DICO
BB.3.3.4 Civil servants have a level of knowledge on trade and
trade related issues appropriate to their position and role played
KPI.3.3.4 RSA provides high quality awareness training on
trade for all civil servants and specialist training courses for
special positions
Training not yet
provided by RSA
Not yet Project reports
6.4 Communicating Trade SWAp
Communicating Trade SWAp and its opportunities to key stakeholders; communicating results and lessons learnt
during Trade SWAp implementation to internal and external audiences.
Strategic Outcome Achievements: There has been increased awareness of Trade SWAp opportunities
and results in line ministries, private sector, and provincial officials, including international fora.
Cambodian experience on Trade SWAp shared with other LDCs such as Bangladesh and Zambia. The
future intervention in this area will include: (i) develop documentation on good practices, experiences, and
learning; (ii) engagement of CCC and other BMOs in Trade SWAp.
98
Table 6.4: Communicating Trade SWAp Results Framework Achievements
Strategic Outcome Strategic Indicators Baseline
2009
Achievements
2012 to 2013
Source
Str
ateg
ic
Lev
el
SO.3.4 Stakeholders‘
awareness of Trade SWAp opportunities and results
increases
KPI.3.4 Number of references to
Trade SWAp in other ministries‘ official documents
References made in 5
line ministries (MEF, MIME, OCM, CDC,
MAFF) including MOC
departments in 2011
MEF, MIME,
OCM, CDC, MAFF
Reports from
Line Ministries
Op
erat
ional
lev
el
Building Blocks Key Performance Indicators Baseline
2009
Achievements
2012 to 2013
Data
Collection
Instruments
BB.3.4.1 Increased awareness on Trade SWAp opportunities
and results in Line Ministries,
private sector and other stakeholders
KPI.3.4.1.a Presence of private sector representatives in Pillars‘
meetings and SSCs
Not regular up to 2011 Regular presence in SSC
DICO
KPI.3.4.1.b Best practices shared
with other key stakeholders concerned
Best practices not yet in
place
Not yet DICO
BB.3.4.2 Opportunities for
supporting and participating in the Trade SWAp and good
practices, experiences and
results achieved are disseminated within and by
PDoCs
KPI.3.4.2.a Good practices,
experiences and learning communicated and shared with
other key stakeholders
Not yet available Not yet Project
reports
KPI.3.4.3.b Level of support requested through Trade SWAp by
private sector in the provinces
Not in place in 2011 Not in place (2012)
DICO
BB.3.4.3 Opportunities for
supporting and participating in the Trade SWAp and
results achieved are
disseminated within and by Line Ministries
KPI.3.4.3.a Good practices,
experiences and learning communicated and shared with
other key stakeholders concerned
within and outside Cambodia
One report published in
2011
No report in 2012 DICO
6.5 Negotiating Trade Reforms
Representing Cambodia in relevant trade forums; consulting with Cambodian stakeholders and use of information
to develop negotiating positions.
Strategic Outcome Achievements: The capacity of RGC institutions in negotiating for Trade has
generally improved, specifically in negotiating for Cambodia‘s trade interests: (i) Bilateral: China and US;
(ii) Regional: AFTA; AEC 2015; GMS; ASEAN Plus; and (iii) Multilateral: EU. Future intervention will
be in the area of a national program for negotiating trade reforms.
Table 6.5: Negotiating Trade Reforms Results Framework Achievements
Strategic Outcome Strategic Indicators Baseline
2009
Achievements
2011 to 2013
Source
Str
ateg
ic
Lev
el
SO.3.5 Designated RGC institutions can
effectively represent and negotiate Cambodia‘s interests in trade at the
bilateral, regional and multilateral fora
KPI.3.5 National program for
negotiating trade reforms is implemented successfully
A national
program is not in place
Not yet Project reports
Op
erat
ional
lev
el
Building Blocks Key Performance Indicators Baseline
2009
Achievements
2011 to 2013 Source
BB.3.5.1 Capacity of MoC and Line Ministries to negotiate Cambodia‘s
interest in trade at the bilateral, regional
and multilateral level enhanced
KPI.3.5.1 Line Ministries
contribute to the preparation of
the negotiation process
Not in place Not yet Project reports
99
Appendix 7
Success Stories of SME Participants in Export Training of TPD
SUCCESS STORY/CASE STUDY # 1
OF DAR MEMOT PEPPER AGRICULTURE DEVELOPMENT COOPERATIVE
1. Introduction
For centuries Cambodian pepper was famous for its splendid flavor and taste. Pepper cultivation in Cambodia has a
more then 700 years tradition.
Due to excellent soil and climate conditions the Memot District in Kampong Cham Province is the most important
Cambodian pepper plantation area. Around 90 % of Cambodian pepper is cultivated in this area. The quality of
black pepper is rated as one of the best in the world savored by high international recognition.
The success of the increasing pepper production in Memot District, Kampong Cham Province, Cambodia, is
connected to establishing a pepper farmers‘ cooperative. With new knowledge gained from TDSP‘s SME Export
Training Program conducted by Trade Promotions Department, Dar Memot Pepper Agriculture Development
Cooperative, located in Dar Phsar Village, Dar Commune, Memot, Kampong Cham will soon expand its operation
in the export market.
2. The Cooperative
The Dar Memot Pepper Agriculture Development Cooperative was established in March 2010 with technical
assistance and support by the German Organisation DGRV (Deutscher Genossenschafts- und Raiffeisen Verband),
an umbrella organisation supporting cooperatives in developing countries worldwide.
In past times pepper farmers were isolated lacking export market access, technical know how, information about
market development and depended on one monopolistic trader.
Now the cooperative is acting as a trader for pepper, buying from farmers and selling to national and international
traders.
Some of the cooperatives activities:
The Cooperatives equity capital, brought in by selling 1570 shares $25 is used to give credits to poor
pepper farmers.
Cooperative runs a supply shop for organic fertilizer
Tasks are shared in working groups for credit, trade, marketing, training and supply
Field trips to share information with pepper farmers from other Cambodian provinces
Training on producing organic fertilizer and combating pests and diseases
Sharing information about daily pepper price development
Annual survey to gain exact figures on the number of farmers, cultivation areas and yields
The members understand the cooperative as the farmers company, as it improves farmers business and individual
economic situation significantly. The enthusiasm and initiative is admirable.
Despite the cooperatives achievements there are still plans for the future:
Renting or building a cooperatives warehouse
Export by the cooperative mainly to international markets on a Fair Trade level
Improvement of pepper cultivation and pepper quality by establishing a test field researching different
plants and new cultivation methods
Processing of black pepper
Product diversification producing white and green pepper
And last but not least the Memot pepper farmers‘ cooperative will support and assist to new pepper cooperatives
which will be established in other Cambodian provinces like Kratie, Mondulkiri and Ratanakiri.
100
3. The Pepper Farmer
In Memot district now 2174 farmers produce pepper, mainly in Dar Commune, the center of Cambodian pepper
production. In this ―pepper commune‖ 1745 farmers proudly produce pepper. On the average one farmer / family
cultivates 0.5 hectare. During the season from March to May more than 6500 people are involved in harvesting.
The pepper farmers are proud on their product and are eager to maintain the pepper fields with high diligence.
4. The Quality of Pepper
Black pepper produced in Memot is from highest quality. The unique flavor of this aromatic and spicy pepper
delivers a delicious taste.According to international standards the density of Dar-Memot black pepper range > 550
GL and a moisture < 12.5 %. According to the quality and the importance for Cambodian economic development
the pepper is selected by the Government as one of the Cambodian Top-Ten Products.
5. Plantation Area
The Memot District, Kampong Cham Province, is the center of Cambodian pepper production located in the
northeast of Cambodia closed to Vietnamese border.
Almost 90 % of Cambodian pepper is grown here as the soil and weather conditions are excellent. The red soil is
called the ―golden soil‖ by the pepper farmers.
Due to excellent yields the pepper plantation area increased in recent years:
2009: 519 ha
2010: 635 ha
2011: 885 ha
2012: > 1,050 ha
As the farmers produced around 5,500 MT of black pepper in 2011 the expectation for the future is a yield of
15,000 MT in 2015.
6. Recent Activities
In recent months, the following were the activities carried out by the Cooperative:
November 2012: IPC (International Pepper Community) annual congress in Colombo, Sri Lanka.
From 30 October to 03 November delegates from the Dar-Memot pepper farmers‘ cooperative
accompanied by delegates from Ministry of Agriculture attend the annual IPC congress and represent
Cambodian pepper. This is an excellent opportunity to improve business connections and to learn from
other pepper producing countries from all over the world.
October 2012: Study trips to pepper farmers in Cambodian provinces. End of October a delegation of
the cooperative will visit the neighbouring provinces Kratie, Mondulkiri, Ratanakiri and Stung Treng in
the North-East of Cambodia. The success of the pepper production in Kampong Cham Province
encouraged farmers in other provinces as well to plant pepper. Till now there were different requests from
these provinces for assistance and technical know how. In order to organize support and assistance for the
farmer in these provinces it will be discussed to establish pepper farmers‘ cooperatives as well aiming a
network of pepper cooperatives in the North-East of Cambodia. These efforts are supported by German
organization DGRV.
October 2012: Survey on pepper farmers and production. From end of September till mid of October
members of the cooperative visited all communes and villages in Memot district to find out how many
farmers are cultivating pepper, the size of the fields and the yields. The result of this years‘ survey showed
that pepper production is increasing significantly in this district:
Pepper farmers
2010: 750 in Memot District, 600 in Dar Commune
2011: 1539 in Memot District, 1319 in Dar Commune
2012: 2174 in Memot District, 1745 in Dar Commune
The pepper plantation area increased from 2011 with 885 hectare to more than 1050 hectare in 2012.
August 2012: IPC workshop on pest and diseases in Vietnam. The International Pepper Community
organized a ―Workshop cum demonstration on controlling pest and diseases on black pepper‖ from 6 to 9
101
August in Ho Chi Minh City, Vietnam. Participants came from pepper producing countries and IPC
member like India, Sri Lanka, Indonesia, Malaysia and Vietnam. Cambodia was invited as well even if
not yet a IPC member. From Cambodian site the Executive Director of the Memot pepper farmers‘
cooperative, two participants from General Department of Agriculture and the cooperative‘s DGRV
advisor joined workshops.
Success Story and Case study# 2 on Bou Sokha Rice Miller
After Cambodian rice has won consecutively as the Best Rice in the World (in 2012 and 2013), export of rice has
increased and the number of millers for rice has increased. One participant of the SME Training was Bou Sokha,
who owns several rice milling businesses in Kampong Cham.
Background of Bou Sokha Rice Miller
Mr. Bou Sokha is the owner of Bou Sokha Rice Miller is located in Chang Va village, Ampel commune, Oraing
Ov district, Kampong Cham province. The 53-year old rice miller, established his rice mill as a family business for
more than 10 years now. He currently employees 20 people in his organization.
Training on the Export and SME Procedure
Mr. Bou Sokha participated in two trainings on Export and SME procedures: first training conducted in Kampong
Cham and the second training in Phnom Penh. He was able to utilize the knowledge gained from the training in
setting up and establishing 4 rice milling organizations in Kampong Cham province. In 2013, Mr. Bou Sokha
was able to sell his rice domestically (99% of total produce) and internationally (1% of total produce. Despite the
difficulties in exporting rice, his company was able to export 120 tons of jasmine rice to several countries in
Europe with a price of $420 per ton for US and Chinese market; and $850 per ton for countries in Europe. In 2013,
total export of rice was about 300 tons.
Although his company wanted to export more rice, he does not have enough capital to finance the buying of more
rice to mill and export. Although Mr. Bou Sokha is operating 4 rice mills at present, he is able to produce only 25
to 30 tons per day, with the assistance of 20 employees.
In the future, he with an estimated capital of US$2 million, Mr. Bou Sokha can expand his business by buying mor
rice stocks, buy additional machineries for milling and drying, operate packaging centers in some districts, and
building a storage facilities for rice. With increased capitalization, he expects to produce rice from 150 to 200 tons
per day, and increase the proportion of export target to 60 to 70%, and domestic target to just 40% to 30%.
102
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