Council for the Development of Cambodia17

CAMBODIA-JAPAN COOPERATION

Council for the Development of Cambodia

Cambodia-Japan Bilateral Trade (in million USD)

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YEAR 2014 2015 2016 2017 2018

EXPORT 345 572 827 850 1,605

IMPORT 264 423 528 584 421

TOTAL 609 995 1,355 1,434 2,026

Council for the Development of Cambodia

Japanese Tourist Arrival in Cambodia

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YEAR TOTAL JAPANESE RANKING

2014 4,502,775 215,788 6

2015 4,775,231 193,330 7

2016 5,011,712 191,577 7

2017 5,602,271 203,373 7

2018 6,201,077 210,471 7

Council for the Development of Cambodia20

Japanese ODA

• Accumulated ODA: 2.8 Billion USD (15% of total ODA)• ODA Sectors: Infrastructure, health, education, institutional reform,

agriculture, and private sector development

MAJOR JAPANESE ODA PROJECTS

Infrastructure (Logistics Improvement, Road Project, Improving Investment Environment)1. National Road No.5 Improvement Project, widening road to 4 lanes (2 lanes on each side)

through 369km2. Data Collection Survey on Development of Roads and Related Facilities in National Road No.1

and Around Boarder of Cambodia and Viet Nam3. Sihanoukville Port Multipurpose Terminal Development Project was completed in June 20184. Sihanoukville Port New Container Terminal Development Project

Improvement of Logistics Legal Framework (Dispatch of Experts)1. The Project for Improving the Logistics System of Cambodia2. Customs Policy and Administration, Dispatching expert at General Department of Customs and

Excise (GDCE)

Council for the Development of Cambodia21

MAJOR JAPANESE ODA PROJECTS

Industrial Human Resources Development

1. Project for Institutional Capacity Development of CJCC for a Center of Development and Networking for Business Human Resources

2. The Project for Strengthening Engineering Education and Research for Industrial Development in Cambodia, This project will launch in April this year.

3. JICA Project for Improving TVET Quality to Meet the Needs of Industries, The project implements a trial training course based on the developed curricula at the 3 pilot TVET institutes (NPIC, PPI, NTTI).

Agriculture

1. Establishing Business-oriented Agricultural Cooperative Models Project

Council for the Development of Cambodia22

2030Upper Middle Income

2050High Income

1993First Election

Japan was a key player in bringing peace to Cambodia

Before 1993Peace Building

Rehabilitation and Development

2015Lower Middle Income

Infrastructure and institutional Development

Industrialization Industrialization

Private Investment Private Investment

Cambodia needs more Japanese investments

Japan has been playing important role in every step of Cambodia’s development

Council for the Development of Cambodia23

67.1 58.9

820.1

63.4

882.9

0

1000

2000

3000

4000

5000

6000

7000

2014 2015 2016 2017 2018

Total Japan

Japanese Investment in Cambodia (in million USD)

Council for the Development of Cambodia24

The Pioneers

Council for the Development of Cambodia

INDUSTRIAL DEVELOPMENT POLICY (IDP)2015-2025

25

Council for the Development of Cambodia26

New growth strategy A transformation and modernization of

Cambodia’s industrial structure from a labor-intensive industry to a skill-based industry by 2025

Improving electricity supply to key industrial areas/estates (price, stability, coverage): reduce theelectricity tariff from 18.8 cents/kwh in 2014 to 12 cents/kwh

Preparing a master plan for the development of multi-modal transport and logistic system focusingon connection of 3 key industrial corridors (Phnom Penh- Sihanoukville, Phnom Penh- Bavet, andPhnom Penh- Poi Pet).

Improving Industrial Relations and Building modern institutions for vocational and technical training/human resources development needed by industries.

Developing and transforming Sihanouk Province into a multi-purpose SEZ.

Connecting to regional and global value chain Integrating into regional production networks

and developing clusters Strengthening competitiveness and improving

productivity of domestic industries Marching toward developing a modern

technology and knowledge-based industry

VISION

4 KEY PRIORITIES TO BE ACHIEVED BY 2018

BY

Council for the Development of Cambodia27

PRIORITY SECTORS

New industries with the capability of breaking into new markets, with high value-added products, creative and highly competitive such as machinery assembly,

mechanic/electronic/electric equipment assembly, means of transport assembly and natural resource processing

SMEs in all sectors especially those involved in drugs and medical equipment production, construction materials, packaging equipment for export, furniture manufacturing and

industrial equipment, etc.

Agro-industrial production for export and domestic markets

Various types of supporting industries for the agriculture, tourism and textile sectors as well as for industries serving regional production chains with either global markets or

global value chains

Industries serving regional production lines and those of future strategic importance such in ICT, energy, heavy industries, cultural/historical/traditional handicraft, and green

technology.

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RECENT REFORM MEASURES TO IMPROVE BUSINESS ENVIRONMENT

AND COMPETITIVENESS

5 approaches under 2 mottos

Council for the Development of Cambodia29

The 5 Approaches

Scrubbing

Showering

Treatment

Self-reflection

4

3

2

1

5 Surgery

Reform

Council for the Development of Cambodia30

The 2 Mottos

Increasing

friends

internationally

while

preserving independence

Reforming

internally

Council for the Development of Cambodia31

RECENT REFORM MEASURES

Reduce the electricity cost by 2 cents/Kwh from 2019

Reduce the container scanning fees on import and export of garments

Cancel the issuance of CO (Certificate of Origin) for goods exported to countries that do not require CO

Withdraw CAMCONTROL agents from all the ports of entry

Terminate the mandate of Kampuchea Shipping Agency and Brokers (KAMSAB)

Prepare the online procedure on VAT Refund and VAT Credit by General Department of Taxation (GDT)

Implement the Prakas on Public Services of General Department of Customs and Excise (GDCE)

Council for the Development of Cambodia

Ways forward

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• Lower the terminal handling fees for exporting and importing containers from major shipping companies.

• Reduce the fees and enhance the efficiency of both ports - Sihanoukville Autonomous Port and Phnom Penh Autonomous Port.

• Finalize drafting the New Law on Investment and Law on Special Economic Zones.

• Review and schedule the inter-ministerial inspection at factories.

• Review and study the feasibility of merging and facilitating the business registration processes within and between relevant institutions, such as MoC, GDT, and MoLVT.

• Study and determine the pension contribution rates.

• Study the possibility of further reducing the electricity cost and utilizing the solar technologies in factories.

• Review the public holidays.

投資家をサポートし、より多くの投資をカンボジアに呼び込みたい。

先ごろカンボジア政府は、貿易促進とカンボジアの競争力を強化する為、輸出入検査機関の改革を行いました。この改革により、投資家や貿易業者は、より多くのメリットを享受することができます。

改革の内容は以下の通り:

商業省管轄のカンボジア独自の輸出入検査業務（カムコントロール）を国境や経済特別地区など各チェックポイントから撤廃すること。

通関における輸出入検査業務を実施する権限を与えられた唯一の機関は経済財務省のカンボジア関税総局とする。

カンボジアはあらゆる投資家を歓迎します!

カンボジアのフン・セン首相は、国内外の投資家は差別を受けることなく投資ができると述べた。あらゆる投資家に是非カンボジアへ来て欲しいと呼びかけた。

カンボジアでは外資100%出資による法人設立が可能であることや、企業が獲得した利益も配当も自由に国外送金できる。現在の経済政策はフン・セノミクス政策、または常に輝いているという意味の「スターシリウス政策」です。

フン・セン首相はカンボジアすべての省庁、機関、関係当局に向け、手続きや法律文書を丁寧に説明、紹介し、円滑に進める手助けをすることで、投資家が安心して、温かい気持ちをもって、積極的に投資してもらえるよう努めてほしいと呼びかけた。

Title Goes Here

Thank Youどうもありがとうございました

SOK Chenda SopheaMinister attached to the Prime Minister/Secretary General Council for the Development of Cambodia Email: sokchenda@online.com.kh