Council for the Development of Cambodia ASEAN AWARENESS FORUM II By SOK Chenda Sophea Minister attached to the Prime Minister Secretary General of the Council for the Development of Cambodia 30 th September 2015 Milano, Palazzo Turati

Council for the Development of Cambodia Cambodia within ASEAN within the Mekong Region

Council for the Development of Cambodia Key Indicators Low & Manageable Inflation Population & Labor Force  Population: 15 Million  Literacy: 92.7% (15-24 years old)  Young and dynamic labor force: Median age 24 years old  Population growth rate : 1.54% GDP Growth ( ) Stable Exchange Rate (USD-Riel) GDP Per Capita ( ) USD Land area : 181,035 sq.km. Lao PDR

Council for the Development of Cambodia Council for the Development of Cambodia-CDC H.E. Mr. Keat Chhon Permanent Deputy Prime Minister 1 st Vice Chairman Samdech Akka Moha Sena Padei Techo HUN SEN Prime Minister of the Kingdom of Cambodia Chairman H.E. Mr. Sok Chenda Sophea Minister attached to the Prime Minister Secretary General H.E. Mr. Sok Chenda Sophea Minister attached to the Prime Minister Secretary General H.E. Mr. Sun Chanthol Senior Minister, Minister of Commerce Vice Chairman SEZ FDI ODA CAMBODIAN SEZ BOARD H.E. Mr. Sok Chenda Sophea Minister attached to the Prime Minister Secretary General CAMBODIAN INVESTMENT BOARD H.E. Mr. Chhieng Yanara Minister attached to the Prime Minister Secretary General CAMBODIAN REHAB. & DEV. BOARD

Council for the Development of Cambodia Committed Investments (by country) Year Jan-Jun 2015 Total$5.7 Billion$2.9 Billion$4.9 Billion$3.9 Billion$3.3 Billion RankCountry% % % % % 1Cambodia41.24Cambodia42.08Cambodia66.80Cambodia64.00Cambodia China30.55China20.69China15.68China24.44China7.65 3Vietnam11.99Korea9.89Vietnam6.10Malaysia2.18Vietnam0.86 4U.K4.30Japan9.15Thailand4.37Japan1.72Japan0.77 5Malaysia4.20Malaysia6.04Korea1.76Korea1.66UK0.54 6Korea2.91Thailand4.53Japan1.59Vietnam1.26Malaysia0.53 7U.S.A2.47Vietnam2.89Malaysia1.04UK1.13Thailand0.52 8Japan1.15Singapore2.59Singapore1.03Singapore0.89Canada0.27 9Australia0.43U.K0.51UK0.43Thailand0.88Korea Singapore0.28U.S.A0.42France0.27Australia0.51Singapore Others0.48Others1.21Others0.94Others1.36Others0.04

Council for the Development of Cambodia Committed Investments (by sector) Total5,763.22,965.64,962.33,933.43,315.8 Investment Capital (2011- June 2015) Total of USD billion

Council for the Development of Cambodia Investment Opportunities in Cambodia

Council for the Development of Cambodia 1) Production, Processing and Commercialization of:  Rice, Corn, Cassava, Sugarcane, Rubber, Cashew nut, Pepper and others 2) Livestock Farming and Aquaculture  Animal breeding  Animal feed production  Freshwater and marine aquaculture  Processing and trading TypeCultivated Area (2013)Yield (2013)Cult. Area (2018)Yield (2018) Rubber328,771 ha (P. estate17%, ECL 41%, smallholder 42%) (Mature: 78,493ha) 85,244 tons>420,000 ha400,000 tons Paddy3,052,420 ha9,389,961 tons3,34 million ha10,85 million tons Cassava377,239 ha7,933,381 tonsN/A Corn180,327 ha848,450 tonsN/A Agro-business

Council for the Development of Cambodia  World Heritage Monuments  Open Sky Policy to Siem Reap  Natural beauty - Beach - Islands  Ability to attract “add-on” trips Tourism Angkor Wat Temple World Heritage Site Mekong Dolphins in Kartie Province Song Saa Private Island

Council for the Development of Cambodia Labor Intensive Industries, processing and manufacturing  Competitive labor cost  Tax incentives  Market access  ASEAN Economic Community

Council for the Development of Cambodia Source: Inter-censal Population Survey 2013 Age Pyramid of Cambodian Population

Council for the Development of Cambodia Industrial Development Policy

Council for the Development of Cambodia  To provide policy framework and specific mechanism to develop a competitive industrial sector in Cambodia and to achieve its full integration into regional and global value chain.  To capture regional trends and changes in regional architecture (AEC, RCEP/TPP, China+1 and Thailand+1).  To promote a platform for growth focusing on economic diversification, strengthening national competitiveness, and enhancing productivity. Industrial Development Policy (IDP)

Role of the Council for the Development of Cambodia (CDC)

Role of the Council for the Development of Cambodia in the implementation of the Industrial Development Policy (IDP) The Council for Development of Cambodia is fully mandated and provided with essential functions in terms of policy decision-making, designing and implementing plans, as well as addressing challenges in the industrial sector with the aim at transforming this institution into an effective mechanism to lead, coordinate and push for the implementation of the IDP.

Priority Setting

Priorities Agro- Industry Development SMEs Development Skill Training and HR Development Transport and Logistics Development

Priority Setting “It is not a coincidence, but it is based on the current socio-economic reality, priority of the Royal Government, and ability to quickly generate fruitful results for the people both in rural and urban areas” - H.E. KEAT CHHON, Deputy Prime Minister (Standing), First Vice Chairman of the CDC, during the meeting on Skill Training and HR Development on 13 th August 2015.

Agro-Industry Development Current Situation Weak export capacity with exports being dominated by raw materials and semi-finished products. Limited investment and value addition. Constraints in production, infrastructure, technology, financing and markets, and regulations. Policies First Rectangle of the Rectangular Strategy Phase III: Promotion of Agriculture Sector National Strategic Development Plan Strategic Development Plan of the Ministry of Agriculture, Forestry, and Fisheries IDP Production of agro-industry for export and domestic markets (promote the export of processed agricultural products to reach 12% of all exports by 2025) Other relevant strategies, policies, and action plans Importance 65% of the population employed in agriculture. Large contribution towards economic growth, and reduction of poverty and income gap between people in urban and rural areas. Comparative advantage in agriculture, diversification of crop production. Preferential market access (AEC, RCEP, GSP/MFN, EBA)

Sector Agriculture49%44.5%32.8%31.6%29.0%25%23% Industry19%16.7%22.4%24.1%26.2%28%30% - Manufacturing-12.7%15.3%15.5%16.0%18%20% Service32%34.8%38.8%38.5%39.4%40% Taxes on products less subsidies0%4%6%5.8%5.4%7% Distribution of GDP by Sector

Share of Export Products Sector Export of processed agricultural products10% 7.9%8%10%12% Manufacturing - Garment and Footwear80%70%77%60%55%50% - Non-garment and footwear0.1%0.5%1%5%10%15%

Council for the Development of Cambodia Phnom Penh The Philippines Singapore Indonesia Myanmar Southern China Manila Bangkok Kunming Yangon Brunei Jakarta Begawan Hanoi Laos o Vientiane CAMBODIA Malaysia Kuala Lumpur Thailand Vietnam 1h:30 in average Strategic Location

Council for the Development of Cambodia MFN/GSP Market Access Australia Austria Belarus Belgium Bulgaria Canada China Czech Republic Denmark Finland Poland Portugal ROK Russian Federation Slovakia Spain Sweden Switzerland UK USA EBA (everything but arms initiative for LDCs) France Germany Hungary Ireland Italy N-Korea Luxemburg Japan Netherlands New Zealand Norway … and ASEAN Economic Community (AEC)

Council for the Development of Cambodia THANK YOU!