Prospects for Cambodia’s economic transformation: Scoping new activities

Chandarany Ouch

Cambodia Development Resource Institute (CDRI)

26 February 2019

Phnom Penh, Cambodia1

Content

• Cambodia’s key indicators

• Value added by sectors

• Investment

• Employment

• Exports

• Competitiveness

• Areas to focus

2

Value Added by Sector2000 2010 2014 2017

Agriculture, forestry, and fishing, value added (% of GDP)

35.7 33.9 28.9 23.4

Manufacturing,value added (% of GDP)

15.9 14.7 15.4 16.2

Industry (including construction), value added (% of GDP)

21.7 21.9 25.6 30.9

Services,value added (% of GDP)

36.9 38.3 39.7 39.7

GDP per capita (constant 2010 US$)

431.3 785.7 973.0 1137.2

Gross fixed capital formation (% of GDP)

18.2 16.2 21.0 21.9

Source: World Development Indicators 3

Investment by Main Sector

0

2000

4000

6000

8000

10000

12000

199

4

199

5

199

6

199

7

199

8

199

9

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

Agriculture

Industry

Services

Source: CDC

in US$ million

4

Employment by sector

0

20

40

60

80

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Employment in agriculture (% of total employment)

Employment in industry (% of total employment)

Employment in services (% of total employment)

Source: World Development Indicators (modeled ILO estimate)5

Employment by occupation (CSES)

0% 10% 20% 30% 40% 50% 60%

Armed forces

Legislators, senior officials and manager

Professionals

Technicians and associate professionals

Clerks

Service workers and shop and market sales

Skilled agricultural and fishery worker

Craft and related trades workers

Plant and machine operators and assemblers

Elementary occupations

Age>=15 & Age<=65

2017

2014

2009

6

Export diversification

0%

20%

40%

60%

80%

100%

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

Agriculture (HS 1-24)

Light manufacturing (HS84, 85, 87, 73, 94, 95)

Textile & Footwear (HS50-60 & 63-64)

Garment (HS61 & 62)

Source: ITC Trade Map 7

Export diversification

0%

20%

40%

60%

80%

100%

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

Thailand's Exports

Agriculture (HS 1-24)

Light manufacturing (HS84, 85, 87, 73, 94, 95)

Textile & Footwear (HS50-60 & 63-64)

Garment (HS61 & 62)

0%

20%

40%

60%

80%

100%

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

Vietnam's Exports

Agriculture (HS 1-24)

Light manufacturing (HS84, 85, 87, 73, 94, 95)

Textile & Footwear (HS50-60 & 63-64)

Garment (HS61 & 62)

Source: ITC Trade Map 8

Competitiveness

• WEF: “The Global Competitiveness Report 2018”

• Benchmarking Competitiveness in the Fourth Industrial Revolution, called the Global Competitiveness Index 4.0

• 140 countries participated

• Consisting of 12 Pillars

• Enabling environment, Human capital, Markets and Innovation Ecosystem

• 58 companies were surveyed in Cambodia

• Score ranging from 0 to 100, with 100 being the ideal state 9

Cambodia Competitiveness Index 4.0 - 2018

10

Thailand (38th)

Vietnam (77th)

11

Areas to focus

• Highly skilled workforce

• STEM education

• University-Industry linkage

• Technology and innovation

• R&D infrastructure and networks

• Technology adoption

• Policy and regulatory framework

• Policy alignment

• Coordination, implementation and monitoring

• Public Private Partnership12

Thank You

14