Presented by H.E. Mr. UNG Rachana Ambassador Extraordinary ...€¦ · H.E. Mr. UNG Rachana...

21 January 2020, ASEAN-Japan Centre

Royal Embassy of Cambodiato Japan

Presented by H.E. Mr. UNG Rachana

Ambassador Extraordinary and PlenipotentiaryOf the Kingdom of Cambodia to Japan

I. Cambodia’s Overview1. Geography

2. Demography

3. Politics

II. Cambodia-Japan Relations1. A brief history of Cambodia-Japan engagement

2. Diplomatic relations

III. Cambodia’s Economy1. Economic situation

2. Cambodia-Japan trade

3. Japan’s Investment in Cambodia

4. Reforms

5. Diversification

IV. Tourism “Kingdom of Wonder”

Content

Points to take away from the presentation:

• Understanding of Cambodia’s current social

development

• Insightful information on political stability and

security

• Useful and current information on Cambodia’s

economy

Expectation

• Borders: Laos, Thailand, Vietnam

• Area: 181 035 km2

• Weather:

Rainy Season: May-October

Dry Season: November-April

• Capital: Phnom Penh

I . Cambodia’s Overview 1- Geography

• Population: 15. 29 million (Last census, March 2019)

Male: 48.52% Female: 51.48%

Annual growth rate: 1.46%

Median age is 26.2 years old.

• About 90% are Khmer, about 10% others.

• Religion: Buddhism is the national religion.

Buddhist followers about 90%, others about 10%

I . Cambodia’s Overview 2- Demography

• Constitutional Monarchy, adopting liberal

democracy and pluralism.

• Separation of Powers: Legislative, Executive

and Judiciary.

• Parliament: bicameral system

I . Cambodia’s Overview 3- Polit ics

• Young democracy:

First democratic election was in 1993 supervised by

the UN.

Full peace since 1998 after the implementation of Win-

Win Policy.

Last election of National Assembly was on 29th July

2018.

• 6,956,900 people, amounting to 83.02%, turned out .

I . Cambodia’s Overview 3- Polit ics

• History said that Kabocha (カボチャ) was brought into

Japan in 16th century by Portuguese sailors.

• Japanese village in Oudong City, former Cambodian

Capital during Edo Era

• Ukondafu Kazufusa-San, Japanese traveler, visited

Angkor Wat in 1632 and left his scripts on Angkor Wat

wall.

II . Cambodia-Japan Relations1- Brief History of Cambodia-Japan Engagement

• Diplomatic relations with Japan were

established in January 1953.

• Cambodia and Japan signed Treaty of

Amity in 1955.

• Cambodia-Japan’s Strategic

partnership since 2013.

I I . Cambodia-Japan Relations2- Diplomatic Relations

Prince Norodom Sihanouk meets Emperor Hirohito, EmpressNagako and Crown Prince Akihito during his visit to Japan inDecember 1955.

• Japan’s full support for democratic development.

PM ABE said : “Japan has always been with Cambodia on its path of democratic development. Japan will continue to extend full support for the pursuit of the even more powerful development of the nation under the unity of its people.” (During an audience with HM King NORODOM Sihamoni in Oct 2019, Tokyo)

• World’s 6th fastest economy with an average growth rate of 7.7% between 1995 and 2018.

• Became the lower middle-income country in 2015.

• Aim for upper middle-income by 2030 and high-income by 2050.

• In 2019, GDP growth hits 7.1%

(Industry: +10.7%; Service: +6.7%, Agriculture: +1.6%)

Exports: garment, textiles, footwear, rice, forestry by-product, agriculture product etc

Imports: vehicles, machinery tools, electronic appliances, steel etc

I I I . Cambodia’s Economy1- Economic Situation


Cambodia 2018 2019

GDP $24.42 billion $26.78 billion

GDP per capita $1,548 (from $ 402 in 2004) $1,679

GDP Growth 7.5 % 7.1 %

Inflation Rate* 2.5 % 2.8 %

Export (% of GDP) 53.5 % 54.8 %

Import (% of GDP) 76.3 % 76.7 %

FDI (% of GDP) 12.8% 13.7%

FDI (in USD) 3.21 Billion 3.58 Billion

* Inflation rate ranges between 1.2% and 3.9% from 2014 to 2019 .

Note: Exchange rate is stable (1USD = 4000 Riels)

Agriculture Industry Service Other

-> Growth by Sectors:

36%

22%

36%

6%

34%

22%

38%

6%

22%

33%

39%

6%

2000: +8.8% 2010: +6.0% 2018: +7.5%


Investment Incentives and Guarantee

Investment Incentives

• Tax Holidays: 0% up to 9 years or special depreciation

• Full Import Duty Exemption• Production equipment• Construction materials• Raw materials for export

processing• Export Tax Exemption

Investment Guarantee

• No discrimination• No nationalization• No requirements of local

equity participation• No price controls on

products or services• No restriction on foreign

exchanges• No capital control



Year 2014 2015 2016 2017 2018

Total $3.9 Billion $4.6 Billion $3.6 Billion $6.3 Billion $6.4 Billion

Rank Country % Country % Country % Country % Country %

1Cambodia 64.00 Cambodia 69.28 China 29.92 Cambodia 50.68 China 53.24

2China 24.44 China 18.62 Cambodia 27.55 China 25.97 Cambodia 29.77

3Malaysia 2.18 U.K 3.00 Japan 22.78 Vietnam 9.20 Japan 13.08

4Japan 1.72 Singapore 2.18 Thailand 4.61 Malaysia 4.37 Thailand 0.76

-> Investment in Cambodia 2014-2018


3,933

4,644

3,610

6,331 6,452

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


2014 20182014-2018

Special Economic Zone (SEZ)

2019: 23 special economic zones, home to 490 factories, employing a combined 130,000 people.

2018: 18 special economic zones, employing a combined 87,234 jobs.

87,234 Jobs in SEZ Inves tment by Sec to rs in SEZ (by

number o f Pro jec ts )

Manhattan, 26,602

PPSEZ, 16,945

SSEZ, 13,558

Taiseng, 9,210

KK, 7,899

Shandong, 6,879

Others, 6,141 Garment

15%

Travelling Goods4%

Packaging6%

Electrics and Electronics

20%

Animal Feeds4%

Metal Processing

9%

Furniture and Decoration

9%

Wood Processing and

Construction Materials

12%

Auto Parts and Assembly

4%

Others17%


2018

Investment Trends 2016-2018 (Mil l ion USD)

Year Total

Non-SEZ SEZ

Volume % Volume %

2016 3,609.50 3,326.3 92.15 283.25 7.85

2017 6,332.00 5,847.00 92.34 485.00 7.66

2018 6,451.52 6,009.46 93.15 442.06 6.85


Year 2016 2017 20182019

(Jan-Sep)

To Cambodia 528.27 583.79 421 652

To Japan 827.22 850.18 1,605 850

Total 1,355.49 1,433.97 2,026 1,502

I I I . Cambodia’s Economy2- Cambodia-Japan trade

Bilateral trade volume in Million USD


Main Products exported from Cambodia 2019 (USD)

320.00

292.00

61.00

59.00

43.00

20.00 18.00

6.00

5.00 5.00

21.00 Apparel & Cloths (knitted)

Apparel & Cloths (others)

Footwear

Electronic parts

Leather goods

Mixed textile

Umbrellas

Plastic tools

Furnitue

Toys

others


Main Products imported to Cambodia 2019 (USD)

442

52

28

21

13

10

86

55

60

Vehicles

Machinery tools

Elect Appliances

Plastic material

Ceremic ware

Staple fibres

Iron Steel

Cloth material

Optical tools

Knitted fabrics

Others

Year Projects Capital in Million USD

1994-2009 15 147.65

2010 5 25.98

2011 19 66.15

2012 19 271.32

2013 21 78.87

2014 14 67.62

2015 12 59.58

2016 16 822.40

2017 9 63.46

2018 7 882.93

2019 (Jan-Oct) 4 6.46

Total 141 2,492.48

I I I . Cambodia’s Economy3- Japan’s investment in Cambodia

Minebea :

• 2010: PPSEZ, first manufacturer of precision

electronic components.

• Currently, employs approximately 7,000 workers.

• 2015, started “Smart City” project, (high-efficiency

LED streetlights in Phnom Penh and Siem Reap)

Aeon Mall:

• Aeon Mall 1 in 2014 ($205 million)

• Aeon Mall 2 in 2018 ($120 million)

• Aeon Mall 3: Construction to begin soon ($289.6 million)


Joint venture:

• LYLY Kameda Co ltd. produces rice cracker for export to Australia and N. Zealand.

Banking:

• JTrust Royal Bank stared in August 2019

• Mizuho

• Sathapana Bank (Maruhan Bank)

• Representative Office of Tokyo Mitsubishi UFJ

• Representative Office of Sumitomo Mitsui Bank Corporation (SMBC)


Two new main laws to be approved this year :

1. “Investment”

2. “Special Economic Zones”

I I I . Cambodia’s Economy4- Reforms

1. New law on Investment:

Modernization and production of domestic

industries

Strengthen links to regional and global supply

chains

Promote competitiveness

Support economic and social policies


2. Law on Special Economic Zone:

promoting hubs for SMEs,

developing industrial corridors and encouraging

competition among SEZs.


Samdech PM HUN Sen’s 17-point measures for business

facilitation and investment promotion include:

• No more "Camcontrol offices” at import-export check

points;

• Reduction of the price of electricity;

• Reduction of price for logistics and service at ports;

• Cutting down of annual holidays

• Promotion of SME…


Industrial Development Strategy 2015-2025:

• Goals: to diversify the economy and transform industrial structure from labor-incentive to skills-based industry by 2025.

• Five priority sectors:1. New industries or manufacturing ventures, with high value-

added products 2. SMEs3. Agro-industrial production for export and domestic markets4. Industries supporting agriculture, tourism and garment

sectors and serving regional production chains linked with global markets or value chains

5. Industries serving regional production lines and of future strategic importance.


National, Technical, Vocational Education and Training Policy

2017-2025:

To bridge the said gap, meaning the existing skills

and the market demand;

To improve the quality of Technical, Vocational

Education and Training, and

To increase equitable access to Technical,

Vocational, Education and Training, among others.


Production Diversification

• China +1

• Thailand +1

• Vietnam +1

I I I . Cambodia’s Economy5- Diversif ication

Market Diversification

• Eurasian Economic Union

• The Regional Comprehensive Economic

Partnership (RCEP)

• Other regional mechanisms

I I I . Cambodia’s Economy5- Diversif ication

• Tourism is one of the main pillars contributing to the economic growth.

• Tourism Policy: Promoting Cultural Tourism and Eco-tourism which benefits to local community.




The number of tourists increased on average 10.5% annually from 2006 to 2019

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Number of Tourists

Number of Tourists

6.7 million

(E)

1,700,041

6,201,077


1. Viet Nam = 7,074,042

2. China = 6,998,918

3. Republic of Korea = 4,382,252

4. Laos = 3,237,894

5. Thailand = 2,829,994

6. USA = 2,367,836

7. Japan = 2,344,815

8. France = 1,622,724

9. Malaysia = 1,587,014

10. UK = 1,584,637

1. China = 2,024,443

2. Viet Nam = 800,128

3. Laos = 426,180

4. Thailand = 382,317

5. Republic of Korea = 301,770

6. USA = 250,813

7. Japan = 210,471

8. Malaysia = 201,116

9. France = 170,844

10. UK = 162,395

Year 2016 2017 2018 2019 (Jan-Sep)

Japanese Tourists 191,577 203,373 210,471 149,470


• Tourists in Cambodia by Air, Land and Sea.


Cambodian Bay


Cambodian Bay


Cambodian Bay


Preah Sihanouk Province



• Cambodia Festival 2020 in Yoyogi Park, Tokyo, on 03-04 May 2020

• This annual event is organized to widely familiarize Japanese people about Cambodia, namely culture, arts, foods and special products.

• Approximately 100 thousand people turned up in Cambodia Festival 2019.

សូមអរគុណ

ご静聴、ありがとうございました！

Thank you

www.cambodianembassy.jp

www.facebook.com/cambodianembassyinjapan

http://www.cambodianembassy.jp/

https://www.facebook.com/cambodianembassyinjapan

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Presented by H.E. Mr. UNG Rachana Ambassador Extraordinary ...€¦ · H.E. Mr. UNG Rachana...

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