PM spells out strategies to make Cambodia high-income by 2050
PM spells out strategies to make Cambodia high-income by 2050
Prime Minister Hun Manet Monday pointed out five recommendations to promote economic and trade development to transform Cambodia into a middle-income country by 2030 and a high-income country by 2050.
He emphasised the diversification of agriculture exports, expansion of overseas market accessibility, development of interconnected infrastructure, implementation of digital transformation and preparation to exit from the least development (LCD) status.
Addressing the 20th Anniversary of Cambodia’s Accession to the World Trade Organization (WTO) organised by the Ministry of Commerce (MoC), Mr Hun Manet said that Cambodia is ready to exit from the LCD status by 2029.
In his hour-long speech, Mr Hun Manet explained the broad contours of the five strategies to rebuild Cambodia into a middle-income country by 2030 and a high-income country by 2050. The first objective is to promote the development of priority sectors while identifying new sources of economic growth aimed at diversifying exports beyond the garments and rice products.
“This includes the enhancement of travel products, electronics, solar panels, bicycles and various agricultural products including rubber, cashew nuts, bananas and mangoes,” the Premier said.
“The Royal Government of Cambodia (RGC) will continue to provide tax incentives to domestic producers and exporters of rice, corn, soybeans, pepper, cassava, cashew nuts, rubber, mangoes, aquaculture, livestock and palm oil products.”
Mr Hun Manet stressed that the initiative is aimed at boosting the consumption of domestic goods and promoting the exports of agricultural products which add more value for the benefit of local farmers and investors in the industry.
According to the Premier, the second focus will be on the implementation of the ‘Strengthening Current Markets and Expanding New Markets’ approach as RGC is actively promoting the implementation and utilisation of the existing bilateral, regional and multilateral free trade agreements (FTAs), including with China, Korea, the UAE and the Regional Comprehensive Economic Partnership (RCEP).”
“Additionally, the Royal Government has introduced guidelines to facilitate access to overseas markets and new potential trading partners by promoting the establishment of new FTA to expand the export markets.”
The third objective is to attract more foreign direct investment (FDI) into priority and green industries as well as promote the development of micro, small, and medium enterprises (MSMEs) by strengthening the agro-processing industries and accessibility to technology, research and development.
The Premier said that the government is constructing interconnected infrastructure to facilitate trade and the economy as a whole. “In fact, we have officially launched the Kampot Multi-Purpose Port and commenced construction of the Funan Techo Canal, which will reduce transportation time, distance and cost. It aimed to establish a commercial zone and logistics centre while developing several new satellite ports,” he added.
“Fourth, to actively implement the digital transformation, business, and e-commerce policies by encouraging the private sector and companies to establish technology nurseries for selling products locally as well as across the border.”
The Royal Government is promoting the use of automation systems and technology platforms to streamline procedures, reduce time and lower transportation costs which significantly improve the business environment and trade activities nationwide to enhance the quality, transparency and efficiency of public services, he stated.
Finally, the government is developing a strategy to facilitate a smooth graduation from the Least Developed Countries (LDC) status to mitigate the negative impacts of losing trade preferences and international measures while ensuring sustainable development after departing in 2029.
Speaking to Khmer Times, Lor Vichet, Vice-President of Cambodia Chinese Commerce Association (CCCA) said that the Kingdom has been highly dependent on garment exports for the past 30 years in boosting the national economy.
“The initiative from the Premier to diversify the exports products is a timely strategy as the country is preparing to graduate from the LDC status aimed at improving the economy resilience and adaptability.”
Vichet said, “Providing attractive tax incentives would make Cambodia a favourable investment destination amid the current geopolitical tension and uncertainty among major powers.”
“Prudent investment in priority infrastructure will make logistics more price-competitive while embarking on digital transformation will align Cambodia with the dynamic and multifaceted trade landscape that drives future growth in the global economy,” the CCCA Vice-President added.
