Cambodia Silk Strategy Validation Workshop Darius Kurek Senior Officer Phnom Penh, 2 nd December 2015

Workshop Agenda 2 Day 1 – Wednesday, 2 nd December, :30-09:00Arrival of participants and registration 09:00-09:15 Opening session  Opening remarks by His Excellency Mao Thora, Secretary of State, MoC, Chair of Silk Development Commission 09:15-10:00 Silk strategy validation  Presentation of the Cambodian Silk Strategy and Plan of Action Mr. Darius Kurek and Prince Pheanuroth Sisowath Group work and feedback in plenary 10:00-10:15 Coffee break 10:15-12:30 Silk strategy validation  Validation of the Strategic Orientations (Vision, objectives)  Validation of the Plan of Action Group work and feedback in plenary 12:30-14:00 Lunch break 14:00-15:00 Introduction to strategy implementation management  Presentation of the Silk Development Commission by MoC Mr You Mab, MoC  Recapitulation of concepts and functions related strategy implementation management Mr Darius Kurek Group discussion in plenary 15:00-15:15 Coffee break 15:15-16:45 Strategy process: action planning  Developing implementation activities to build the Plan of Action of the Silk strategy and guide the future work of SDC Mr Darius Kurek Group work and feedback in plenary 16:45-17:00 Wrap-up of the day  Closing remarks by Mr Mao Thora and Prince Pheanuroth Sisowath

Workshop Agenda Day 2 – Thursday, 3 rd December, :30-09:00Arrival of participants 09:00-10:30 Operational planning  Selection of priority activities  Developing of biennial implementation plan ( ) Mr Darius Kurek Group work in 2 groups and feedback in plenary 10:30-10:45Coffee break 10:45-12:30 Operational planning  Selection of priority activities  Developing of biennial implementation plan ( ) Mr Darius Kurek Group work in 2 groups and feedback in plenary 12:30-13:30Lunch break 13:30-15:00 Developing project ideas and proposals  Methodology and tools Mr Darius Kurek Group work in 3 or 4 groups and feedback in plenary 15:00-15:15Coffee break 15:15-16:30 Developing project ideas and proposals  Methodology and tools Mr Darius Kurek Group work in 3 or 4 groups and feedback in plenary 16:30-17:00 Wrap up and next steps  Closing remarks by Mr Mao Thora Prince Pheanuroth Sisowath 3

Sector baseline analysis Value Chain Diagnostic Strategic planning workshop Review and consolidation workshop Finalize Strategy and management framework Endorsement and launch of strategy And then what? The ITC Export Strategy Design “Standard Model” 4 Introduction Workshop focus

Introduction Cambodia silk strategy Key findings and orientations

SWOT analysis 6 StrengthsWeaknesses  Large number of weavers (5,000), mostly women involved in the silk value chain  Area specific silk traditions exist, large variety of silk weaving techniques is in existence  Comparably cheap labor (by international standards)  Cambodian Golden Silk is a brand name for silk professionals  Strong fair trade movement and women entrepreneurship in the silk sector  Coordination body (Silk Development Commission) has been setup  Sericulture close to non-existent, covers less than 1% of silk yarn demand  No modern reeling facilities in use  High dependency on import of raw material  Government is committed to support the sector, but less allocation of resources into the sector  Skills training facilities are not sufficient for the entire country, weaving skills are diminishing  Inefficient production organization resulting in higher final product prices than in Vietnam, China or India

SWOT analysis 7 OpportunitiesThreats  Local demand for traditional silk products exists, utilization of silk is part of the Cambodian culture  Increasing number of tourists  High potential on niche markets in industrialized countries  Improvements in quality, design and supply capacity can open access to higher value markets  Some SMEs plan to invest in sericulture  There are not many countries left with a functioning silk weaving sector  Global silk production is decreasing  Close to no restrictions on silk importation in developed countries  Strong competition from neighboring countries  Increase of prices for raw material  Alternative employment opportunities in the garment industry make home-based silk weaving less attractive for many young women  Risk of loss of skills if the sector declines  Animal protection groups could cause significant problems in future (boiling of pupae)

Vision and strategic goals 8 Strategic objectives (4) 1Revitalize and strengthen integration of sericulture in the silk value chain to increase domestic silk yarn production. 2Develop skills and improve product quality, design and innovation in the silk textiles and garments subsector. 3Facilitate market access and promotion for Cambodia’s high value silk products. 4Enhance the enabling environment and institutional support for the silk sector. Vison "Revitalized sericulture and modernized silk sector producing high value products providing sustainable income for women and men"

How to achieve strategic goals? 9 1.Revitalize and strengthen integration of sericulture in the silk value chain to increase domestic silk yarn production. Promote contract farming in sericulture based on the implementation of Public Private Partnership projects (conduct pilot project, setting up of sericulture centers and reeling centers, production of Cambodian Golden Silk and white silk yarn) Increase know-how of silkworm breeders on silkworm rearing and mulberry tree cultivation (support community development/organization of farmer groups) Support irrigation Introduce production of white silk alongside golden silk

How to achieve strategic goals? 10 2.Develop skills and improve product quality, design and innovation in the silk textiles and garments subsectors; Increase productivity of weavers and SMEs (introduction of semi- automatic looms, use of improved weaving looms reeds, improved dyeing, printing, sewing and embroidery) Improve weavers' skills (conduct weaver training programs) Promote design innovation (short-term training courses of SMEs, university curriculum on textile design art, design center for silk and textile design, scholarships for university exchange programs) Introduce standards (quality marks for local yarn and hand-woven silk, promote organic and fair trade standards)

How to achieve strategic goals? 11 3.Facilitate market access and promotion for Cambodia’s high value silk products; Promote access to international markets (conduct a cost-share trade fair participation program under the MoC Trade & Promotion Department) Promote silk on the national market (branding, annual silk festival, fashion shows, set up of a silk sales outlet center or night market section, implement community association centers for direct sales, link tourism and product promotion) Develop a national silk label and promote the cultural identity of wearing silk Promote Cambodia's silk sector through the ASEAN regional network

How to achieve strategic goals? 12 4.Enhance the enabling environment and institutional support for the silk sector value-chain. Improve policy regulations (silk sector policy, special registrations status of silk companies, framework for PPPs in the silk sector) Create a Silk Development Fund as a financing mechanism to support expansion, modernization and investment in the sector Improve coordination, capacities and services provided by trade support institutions Operational and build the capacities of the Silk Development Committee under the MoC

Cambodia Silk Strategy Plan of Action 13 4 Strategic objectives 32 operational objectives

Cambodia silk strategy Strategy validation

Review and validate the plan of action Please use the plan of action handout and discuss and confirm the following elements: Operational objectives Activities Priority level Beneficiaries Targets Lead implementing agency Supporting agencies Existing program or potential support Each group to consolidate and present the feedback in plenary session 15

Thank You 16