Cambodia’s Macroeconomic Performance 2016 and Outlook 2017
December 5 th , 2016
2
Contents
1. Real Sector 2. Fiscal Sector
3. External Sector
4. Financial Sector
5. Challenges and
Opportunities
6. Ways
Forward
Key Development Highlights
- Economic Status: Low Income
- Economic structure: agriculture-based - Nominal GDP: $5.3 Billion
- GDP per capita: $417 - Poverty rate: 53.2%
- Gini Coefficient: 0.38%
- Unemployment rate: 1%
- Total trade volume: $5,857 million - Export: $2,588 million
- Domestic Revenue: 2,220 Billion Riels - Asian financial crisis led to weaker economic growth in 1998.
- Economic Status: Lower Middle Income
- Economic structure: Less agriculture dependent
- Nominal GDP: $19.8 Billion - GDP per capita: $1,300 - Poverty rate: 13.5% (2014) - Gini Coefficient: 0.29 (2014) - Unemployment rate: 0.1% (2014) - Total trade volume: $22,035 million
-
Export: $9,231 million- Domestic Revenue: 14,359 billion Riels - Financial sector: Rapid-growing yet
stable
- Internal and external balance
- IDP: skill-driven industry by 2025
- Vision 2030: Upper middle income economy
- Vision 2050: High income
2 Decades ago
2016
Going forward
2004
1993
- Economic Status: Low Income
- Economic structure: agriculture-based - Nominal GDP: $2.5 Billion
- GDP per capita: $229
- Total trade volume: $769 million - Export: $283 million
- Domestic Revenue: 290 Billion Riels
3
1. Real Sector
4
Source: National Institute of Statistics, Ministry of Planning, 2016 Note: MEF team’s projection for 2016 and 2017
GDP growth and Sectorial Contribution to growth
- Yearly average growth (1996 - 2015): 7.7%
- Nominal GDP:
+ 1996: 3,486 Million USD + 2015: 18,078 Million USD - GDP per capita:
+ 1996: 295 USD + 2015: 1,215 USD
5 5.5%
2.9%
3.0%
3.9%
1.2%
2.8%
3.7%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
2011 2012 2013 2014 2015 2016e 2017p
Inflation Rate
Continued robust economic growth with low inflation rate, favorable for investment…..
13.3%
0.1%
7.4% 7.1% 7.0% 7.0% 7.0%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
Agriculture Industry Services GDP Growth
Cambodia is gradually transforming into an industrialized economy…
Source: National Institute of Statistics, Ministry of Planning, 2016 Note: MEF team’s projection for 2016-2017
Increasing labor share in industry….
Source: Ministry of Planning, 2015
6
57.4%
45.3%
13.3%
24.3%
29.1% 30.4%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
2004 2007 2008 2009 2010 2011 2012 2013 2014
Agriculture (Primary) Industry (Secondary) Services (Tertiary)
Share of Employed Population by Sectors
Share of industry to GDP continues expanding while that of agriculture has been shrinking...
45.3%
26.6% 25.7% 24.6%
12.6%
27.7% 29.1% 30.3%
39.4% 39.8% 39.2% 39.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1993 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e 2017p Agriculture Industry Service
Share of GDP
Source: National Institute of Statistics, Ministry of Planning, 2016 Note: MEF team’s projection for 2016 - 2019
Nominal GDP increased 8 folds from 1993 to 2016…
7
2,480
3,649 3,984 4,280 4,663
5,339
6,293
7,275
8,631
10,337 10,400
11,634
12,965
14,054
15,229
16,796
18,078
19,843
21,983
- 5,000 10,000 15,000 20,000 25,000
1993 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e 2017p
Million USD
Lower middle-income economy with inclusive growth…..
Source: National Institute of Statistics, Ministry of Planning, 2016 Note: MEF team’s projection for 2016 – 2017
0.38
0.41
0.38
0.34
0.34
0.31
0.29 0.27 0.295 53.2%
47.8%
29.9%
22.9% 21.1%
19.8%
18.9%
16.0% 13.50%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45
2004 2007 2008 2009 2010 2011 2012 2013 2014 Gini Coefficient (Left Axis) Poverty Rate (Right Axis)
Cambodia has been world leader in poverty reduction…
Source: Ministry of Planning (for poverty rate and Gini coefficient from 2007 to 2014) World Bank (for poverty rate in 2004)
8
229 288
319 340 367
417 487
558 656
760 753 830
911 973
1,042 1,138
1,215 1,300
1,422
- 200 400 600 800 1,000 1,200 1,400 1,600
1993 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e 2017p
USD
GDP Per Capita increased 5.6 times from 1993 to 2016…
Robust garment export, strong-yet-slower construction growth and slight recovery of agriculture lead to strong growth prospect…
9
Estimated growth of 2016 and 2017:
7%
Robust garment export growth
Continued high growth of import of construction materials, especially steel
According to actual data in the first half of 2016
Growth of domestic production, especially in food, beverages and cement
Slight recovery of agriculture that can offset the slowdown of tourism sector
Continued growth of transportation & domestic business activities
10 Source: National Institute of Statistics, Ministry of Planning, 2016
Note: MEF team’s projection for 2016 - 2017
1 9 .9 6 .5 1 0 .7 6 .6 9 .8 1 0 .3 9 .7
7 .9 1 8 .2 1 3 .7 2 1 .4 1 9 .2 1 5 .9 1 3 .4
6 .2 1 0 .2 8 .4 9 .6 9 .3 9 .4 9 .4
14.5
9.3 10.7 10.1 11.7 11.4
10.5
0.0 5.0 10.0 15.0 20.0 25.0
2011 2012 2013 2014 2015 2016e 2017p
Percent
Growth of Industry Sector
Garment Construction Other industry Industry Sector
Industry sector remains driven by garment sector, however, increased domestic production has been observed
in other sectors, i.e. food and beverages, light manufacturing industry…
Strong performance of garment sector reflected in high growth of garments exports and material imports…
11
19.9
6.5
10.7
6.6
9.8 10.3 9.7
0.0 5.0 10.0 15.0 20.0 25.0
2011 2012 2013 2014 2015 2016e 2017p
percent
Growth of Garment Sector
25.7%
8.5%
16.3%
16.6%
15.1%
9.3%
37.4%
13.9%
18.2%
14.5%
10.8%
10.8%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
2011 2012 2013 2014 2015 2016
Total Garment Export (Q) Total Garment Export (V)
Growth of Garment Export in Quantity and Value in the first 6 months
28.5%
8.2%
10.8%
19.8%
27.3%
-0.2%
14.7%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
2010 2011 2012 2013 2014 2015 2016
Growth of Garment Material Import Quantity (Tax Exemption) in the first 6 months
Source: Ministry of Economy and Finance, 2016
Source: National Institute of Statistics, Ministry of Planning, 2016 Note: MEF team’s projection for 2016 and 2017
16%
22%
18%
8%
18%
12% 10%
19% 21%
5.4%
0%
5%
10%
15%
20%
25%
2011 2012 2013 2014 2015
Total Garment Material Import (V) Total garment material import (Q)
Growth of Garment Material Import (Value and Quantity)
32.1%
7.3%
17.8%
10.7%
14.5%
17.4%
8.7%
14.5%
15.5%
13.1%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
2011 2012 2013 2014 2015
Garment export value Garment export quantity
Growth of Garment Export (Quantity and Value)
Gradually moving away from low value-added to higher value-added segments, as indicated by the contrasting trends between the value and volume of garment exports…
Source: Ministry of Economy and Finance, 2016 12
Continued high growth of import of construction materials with the decline of credit to the sector indicates a strong-yet-moderated growth of construction sector...
7 .9 1 8 .2 1 3 .7 2 1 .4 1 9 .2 1 5 .9 1 3 .4
0.0 5.0 10.0 15.0 20.0 25.0
2011 2012 2013 2014 2015 2016e 2017p
Growth of Construction Sector
Source: National Institute of Statistics, Ministry of Planning, 2016 Note: MEF team’s projection for 2016 and 2017
2011 2012 2013 2014 2015 2016
Construction
Equipment -4.0% 18.5% 26.0% 34.6% 38.7% 22.0%
Cement -7.1% 38.8% 12.4% 42.5% -3.5% -28.7%
Steel -7.7% 237.4% -50.2% 15.3% 15.3% 35.2%
-100.0%
-50.0%
0.0%
50.0%
100.0%
150.0%
200.0%
250.0%
300.0%
Growth of Construction Material Import in the First 6 Months
42.6%
37.9%
33.7%
37.6%
19.0%
15.7%
10.0%
20.0%
30.0%
40.0%
50.0%
2011 2012 2013 2014 2015 Jun-16
Credit to Construction Sector
Source: Ministry of Economy and Finance, 2016
Source: National Bank of Cambodia, 2016 13
14
2011 2012 2013 2014 2015 2016e 2017p
Fisheries 3.10% 6.73% 5.41% 0.12% 0.27% -0.12% -0.50%
Crop 4.25% 4.91% 0.64% 0.53% 0.32% 1.00% 1.73%
Livestock and Poultry 0.19% 0.81% 0.07% 0.22% 0.02% 0.83% 0.29%
Forestry and Logging -0.13% -2.52% -2.88% -1.19% -0.85% -1.64% -1.64%
Agriculture 3.08% 4.31% 1.57% 0.28% 0.20% 0.54% 0.77%
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
Growth of Agriculture Sector
Source: National Institute of Statistics, Ministry of Planning, 2016 Note: MEF team’s projection for 2016 and 2017
A continued decline in fisheries, drop in commodity price coupled with low growth of livestock and poultry remain challenges...
Despite slight recovery, growth of agriculture remains slow due to sluggish commodity prices
and delay in implementing supporting policies…
A recovery of agriculture sector is reflected in high growth of cultivated area, harvested area and rubber production, which helps offset the sluggish growth of tourism sector…
Source: Ministry of Agriculture, Fishery and Forestry, 2016
800,528 868,177 1,040,726
18.83%
8.45%
19.87%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
0 200,000 400,000 600,000 800,000 1,000,000 1,200,000
2014 June 2015 June 2016 June
Hectare
Cultivated Area of Wet Season Rice
Cultivated area of wet season rice Growth (%)
604,522 566,550 698,526
14.35%
-6.28%
23.29%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
0 200,000 400,000 600,000 800,000
2014 June 2015 June 2016 June
Hectare
Cultivated Area of Subsidiary and Indusrial Crop
Cultivated area of subsidiary and indusrial crop Growth (%)
88,660
108,451 113,912
37,186
53,488 55,320
- 20,000 40,000 60,000 80,000 100,000 120,000
2014 June 2015 June 2016 June
Rubber Cultivated Area and Production
Cultivated area of rubber (Hectare) Rubber production (Ton) 15
Service sector growth remains subdued, mainly driven by the slowdown of tourism and real estate sector…
16
The slowdown of tourism sector is offset by growth of domestic trade, coupled with transport and communication...
Source: National Institute of Statistics, Ministry of Planning, 2016 Note: MEF team’s projection for 2016 - 2017
6.6% 4.8% 12.5% 7.5% 13.8% 7.9% 6.1% 9.2% 2.4% 7.8% 2.2% 7.4% 3.0% 7.4%
5.0%
8.1%
8.7% 8.7%
7.1%
6.7% 6.8%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
2011 2012 2013 2014 2015 2016e 2017p
Hotels and Restaurants Other Services Service
13.4%
26.8%
19.1%
5.2%
4.6%
2.6%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
2011 2012 2013 2014 2015 2016
Growth of Tourist Arrivals in the First 6 Months
Source: Ministry of Tourism, 2016
6.6%
12.5%
13.8%
6.1%
2.4% 2.2%
3.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
2011 2012 2013 2014 2015 2016e 2017p
Growth of Tourism Sector
Source: National Institute of Statistics, Ministry of Planning, 2016 Note: MEF team’s projection for 2016 and 2017
Growth of tourism sector is expected to be modest in 2016 due to softer growth of international arrivals in the first half of 2016....
17
2. Fiscal Sector
18
19
The recent success in revenues mobilization has been attributed to strengthening of tax and non-tax administration, increasing taxpayers’ awareness and more incentives
provided to tax officials…
Source: Ministry of Economy and Finance, 2016
13.1 12.9
15.2 15.2 17.0 18.0 17.9 18.7
21.6 21.0 21.9 22.0 21.6 20.9 22.8 23.8
2.0 1.6 2.6 2.8 4.1 4.8
3.0 3.0
-8.5 -8.2 -6.7 -6.8
-4.5 -2.9
-4.9 -5.1
(15.0) (10.0) (5.0)
- 5.0 10.0 15.0 20.0 25.0 30.0
2010 2011 2012 2013 2014 2015e 2016B.L 2017p
Domestic revenue Total expenditure Current surplus Overal deficit
Strengthened revenue as a result of RMS
implementation
Gradual wage increase expected to exert back considerable pressure on surplus
20
Revenue performance is likely to remain strong this year, thanks to continued robust
economic growth, increased domestic production and greater revenue collection efforts...
First Half Revenue
Collection 2016 Budget Law 6 month actual
performance % of Budget Law Growth in the first half of 2016
Domestic Revenue 14,359 Billion Riels 7,629 53.1% 21.8%
Current revenue 14,229 Billion Riels 7,597 53.4% 27.3%
GDCE 6,648 3,551 53.4% 27.3%
GDT 5,685 3,302 58.1% 17.6%
Others 1,896 743 39.2% 18.6%
Source: Ministry of Economy and Finance, 2016
Source: Ministry of Economy and Finance, 2016
More attention towards social affairs…
21
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015e 2016 BL
2017p
2 .0% 1 .7% 1 .8% 1 .8% 1 .4% 1 .3% 1 .4% 1 .6% 1 .8% 1 .8% 1 .6% 2 .3% 2 .0% 1 .8% 1 .9% 1 .9% 2 .0% 2 .2%
3 .2% 2 .7 % 2 .4% 2 .2% 2 .0% 1 .8% 1 .7% 1 .8% 2 .1% 3 .5% 2 .8 % 2 .7% 2 .8% 2 .9% 3 .1% 3 .2 % 3 .5% 3 .7%
2 .6% 2 .9% 3 .5% 3 .3% 3 .1% 2 .8% 2 .9 % 3 .0% 3 .2% 3 .8% 3 .8% 3 .8% 4 .0% 4 .3% 4 .3% 4 .6% 5 .3% 5 .4%
0 .8% 1 .0% 1 .0% 0 .9% 0 .7 % 0 .7 % 0 .7% 0 .7 % 1 .0% 0 .8% 0 .9% 0 .8 % 0 .8% 0 .9% 1 .2% 1 .4% 1 .4% 1 .5%
Administration Sector Defense Sector Social Affairs Economic Sector
Sectorial Spending as a Share of GDP
3. External Sector
22
Cambodia’s overall balance of payment remains stable, with continued compression of trade and current account deficits, thanks to the increased domestic production…
41.9%
17.4%
26.7%
20.0%
13.4%
10.0%
24.5%
12.5%
24.7%
6.8%
21.1%
8.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
2011 2012 2013 2014 2015 2016
Growth of Import and Export Value in the First 6 Months
Total Export Value Total Import Value
Source: Ministry of Economy and Finance, 2016
2011 2012 2013 2014 2015 2016e 2017p
Export 38.9 40.1 42.9 44.1 46.8 46.2 46.2
Import 55.4 57.9 64.0 63.2 66.0 64.1 63.0
FDI 10.4 12.1 12.0 10.0 9.1 10.3 10.5
Trade Balance -14.3 -17.8 -21.1 -19.1 -19.2 -17.9 -16.8 Current Account Balance
(including official transfer) -5.9 -8.2 -13.0 -9.8 -9.6 -9.1 -8.5
-30.0 -20.0 -10.0 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0
% of GDP
Source: National Bank of Cambodia, 2016 Note: MEF team’s projection for 2016 and 2017
Balance of Payment
23
Export Product Diversification: From garment export to rice and others (electronic components, bikes...)
Source: Ministry of Economy and Finance, 2016
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Others (Electronic components, bicycles, etc.) 3.2% 6.1% 3.6% 1.9% 2.6% 2.0% 2.3% 2.4% 9.4% 7.8% 7.4% 12.6% 16.6% 21.5% 21.1%
Rubber 1.8% 0.3% 1.0% 1.8% 1.6% 1.5% 1.3% 1.2% 1.8% 2.5% 4.0% 3.0% 2.5% 1.9% 1.8%
Rice 0.2% 0.3% 0.0% 0.1% 0.1% 0.1% 0.0% 0.1% 0.4% 1.0% 2.2% 2.4% 3.8% 3.1% 3.4%
Garment 94.8% 93.3% 95.3% 96.2% 95.8% 96.4% 96.3% 96.4% 88.4% 88.8% 86.4% 82.0% 77.1% 73.5% 73.7%
Export by Products
24
Source: Ministry of Economy and Finance, 2016
Export Market Diversification : From export to the US to export to EU, Japan,...
25
3.2%
11.1%
25.6%
37.9%
66.5% 23.9%
0.8%
6.8%
4.0%
20.2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Share of Export Value by Countries
ASEAN EU USA JAPAN Others
4. Financial Sector
26
Source: National Bank of Cambodia, 2016
Financial sector has been growing rapidly, reflecting the increased public confidence on the banking system, however, effective monitoring and supervision of financial institutions are required to ensure sustainability of the sector…
28.6% 25.6% 34.4% 41.1% 46.9% 56.4% 61.4% 76.5% 83.5% 77.9% 84.8%
19.8% 26.1% 27.4% 31.8% 38.9% 48.2% 57.2% 69.8% 83.2% 73.3% 81.7%
69.4% 102.2% 79.5% 77.4% 83.0% 85.4% 93.2% 91.2% 99.7% 94.1% 96.3%
74.6%
7.1%
38.2%
30.3%
26.5%
30.9%
17.8%
36.9%
18.8%
28.0%
19.2%
81.6%
57.7%
7.5%
26.8%
35.6%
34.7%
28.6%
34.1%
29.9% 35.8%
22.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 Jun-15 Jun-16
Deposit to GDP Ratio Credit to GDP Ratio Loan to Deposit Ratio Total Deposit Growth Total Credit Growth
Total Credit and Deposit in Financial Sector
27
Source: National Bank of Cambodia, 2016
Financial sector continues expanding….
28
41 845 1,560 2,419 2,541 3,167 4,337 5,890 7,414 9,615 12,032
36 1,393 2,462 2,635 3,566 4,589 5,880 7,651 8,918 11,857 13,78320
24
31
33
35 35
39
44 46
47
0 5 10 15 20 25 30 35 40 45 50
0 2000 4000 6000 8000 10000 12000 14000 16000
1993 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Million USD
Bank Credit Bank Deposit Number of Banks
87 152 278 300 413 636 877 1,307 2,035 3,015
3 5 5 10 40 114 275 442 912 1,305
16 17 18
20
25
30
35 36
39
53
0 10 20 30 40 50 60
0 500 1,000 1,500 2,000 2,500 3,000 3,500
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Million USD
MFI Credit MFI Deposit Number of MFIs
5. Challenges and Opportunities
29
Major Domestic Challenges Major Domestic Opportunities Slow structural reforms and economic
diversification, and weak competitiveness Fast growing middle class
Rapid expansion of financial sector Regional integration policies in concert with open and favorable policies for investment in all sectors
Slow growth of labor productivity/TFP
Strategic location for connecting with ASEAN and Greater Mekong Sub-region in developing infrastructure and strengthening production clusters for regional and international markets
Climate change Demographic dividend
Low completion rate of secondary education and lack of skills
Logistics and transportation system
30
Global Risks Global Opportunities
1. Brexit: causing uncertainty in global recovery Regional integration policies in concert with open and favorable policies for investment in all sectors
2. China’s rebalancing (slowdown)
Strategic location for connecting with ASEAN and Greater Mekong Sub-region in developing
infrastructure and strengthening production clusters for regional and international markets
3. Gradual recovery of international oil prices Factory relocation from China
China’s transitioning from domestic investment led economy to consumption-led economy
Growing middle class, especially in China
31
6. Ways Forward
32
Continue implementing macro-prudential policy
Strengthening economic competitiveness and diversification - Skill development
- Improving logistic and transport system - Trade facilitation
- Reducing cost of doing businesses
Further implementing the New Growth Strategy: IDP 2015-2025
Strengthening education system and research and development
Reviving agriculture: continue investing in the sector, i.e. irrigation system, improving farmers’
access to quality seeds, strengthen agricultural extension and improve farmers’ awareness on agriculture techniques, etc.
Diversifying tourism products and develop tourism infrastructure
33
Ways Forward
Financial resource management
• Improve tax system
• Fiscal sustainability and fiscal space
• Building budget linkage to policy and accountability
• Ensuring efficiency at both levels
• allocative
• operational
• Strengthening financial stability and resiliency
• Development of capital market
Development and promotion of Public Private Partnership (PPP)
Promoting social inclusion and protection
Urbanization and city planning
Environmental protection:
• Climate resilience
• Climate change adaptation
Strengthening governance, institution and public sector reforms: civil service, judiciary,
etc….
34Ways Forward
Thank You!
3536
Vision
Strategies
To transform and modernize Cambodia’s industrial structure from a labor-intensive industry to a skill-driven industry by 2025 through:
• Linking with regional and global value chain
• Integrating into regional production networks and developing interconnected production clusters along with the efforts to strengthen competitiveness and enhance productivity of domestic industries
• Moving towards developing a technology-driven and knowledge-based modern industry
Vision
1. Mobilizing and attracting foreign investments as well as private domestic investments by focusing on large industries, expanding markets and enhancing more technology transfer
2. Developing and modernizing small and medium enterprises (SMEs)
3. Revisiting the regulatory environment so as to strengthen the country competitiveness
4. Coordinating supporting policies (development of human resource, technical training, improvement of industrial relations, development of support infrastructure and ICT)
4 Key Strategies
1. to increase the GDP share of industrial sector to 30% by 2025 (24.1% of GDP in 2013) with the manufacturing sector growing from 15.5% in 2013 to 20% in 2025
2. to diversify the export of goods by increasing the export of non-textile to reach 15% of all exports by 2025 while still promoting the export of processed agricultural products to reach 12% of all exports by 2025
3.to encourage the formal registration of 80% of small enterprises and 95% of medium enterprises and to ensure that 50% of small enterprises and 70% medium enterprises to have proper accounts and balance sheets
3 Targets
Cambodia Industrial Development Policy (IDP) 2015-2025
“New Growth Strategy” that responds to the structural transformation of domestic economy and the
changing regional and global economic architecture…
Priority Investment Opportunities
37
New Industries
• Electronic assembly
• Natural resources processing
• High Valued Added Garment Products
• Industrial equipment assembly
Supporting Industry
• SMEs Supporting Industry
• Light Manufacturing
• Construction materials
• Food and Beverage
• Packaging equipment for export
• Transport and Logistic
Agro-Industrial
• For Export and Domestic Market
Other Sectors