Investment In Cambodia
Economic Trend
1. Gross Domestic Product
The Cambodian economy enjoyed rapid growth with an average of 7.6 percent per annum from 1993 to 2003, and continued to reach the high growth of over 10 percent per annum in between 2004 and 2007. Due to the global financial crisis of 2009, the trends went down from 6.7 percent in 2008 to 0.1 percent in 2009. However, the trend has been managed to return in 2010 with a 5.9 percent to the robust growth of 7.1 percent per annum again until 2014. In October 2014, the World Bank named Cambodia to join the Olympians of Growth in its economic update, noting that “Cambodia has grown at a yearly average growth rate of 7.7 percent for two decades now making it the sixth fastest growing country in the world over that time period”. The Asian Development Bank (ADB) is projecting for Cambodia to enjoy healthy growth at 7.3 percent in 2015 and 7.5 percent in 2016, while maintain the stable trade deficit per GDP at around 13.7 percent in 2015 and manage the inflation for 2016 and 2017 to be within the range of 3 to 5 percent. As envisaged in its Industrial Development Policy 2015-2025, Cambodia has committed to maintain its momentum of growth until 2018 and beyond at the targeted rate, at least 7 percent per annum.
2. Trend of GDP Annual Growth
According to the Ministry of Economy and Finance, the real GDP growth is estimated at 7.4% in 2013 and 7% in 2014. It is projecting for a stable growth of real GDP at 7% in 2015. Nominal GDP at current value has been steadily grown with 61,414 billion Riels in 2013 (approximately US$15.35 billion) and 67,643 billion Riels in 2014 (approximately US$16.91 billion) and is projected to be 74,444 billion Riel in 2015 (approximately US$ 18.61 billion).
GDP per capita has also steadily increased from US$1,043 in 2013 to more than US$1,130 in 2014 and continue to increase in medium term in which per capita GDP is projecting to reach US$1,225 in 2015. Inflation is manageable between 3% to 3.5% from 2013 to 2015, while maintaining the exchange rate at 4,050 Riels per US$ 1 in 2015.
3. Gross composition
The composition of GDP by industrial sectors is reflecting the characteristics of changes took place in between 2012 and 2015 that the ratio of industry increased from 22.9% to 26.2%, while the ratio of Agriculture, Forestry and Fisheries decreased from 33.5% to 29%. As for “Agriculture”, the crops’ Gross Value Added (GVA) dropped to 17.1% in 2015, although it grew at the highest record of 27.6% in 2005. The growth ratio of “Fisheries” gradually dropped from 7.2% in 2012 to 6.9% in 2015.
Among “Industry”, the “Textile, Apparel & Footwear” experienced a slightly dropped to 9.7% in 2013 from 9.8% in 2012 and managed to increase in 2014 and 2015 to 10.1% and 10.5% respectively. “Construction” enjoyed a steadily increase from 6.5% in 2012 to 8.8% in 2015, while maintaining its prospect for growth in coming years. As envisaged in recently adopted Industrial Development Policy, Cambodia is obliged to increase the GDP share of industrial sector to 30% by 2025 with the manufacturing sector growing from 15.5% in 2013 to 20% in 2025, while diversifying the export of goods by increasing the export of non-textile to reach 15% of all exports by 2025 and promoting the export of processed agricultural products to reach 12% of all exports by 2025.
“Services” occupied 39.4% share of GDP in 2015 while trade occupied a relatively increase from 6.2% in 2012 to 8.9% in 2015. Hotel & Restaurant have seen a fluctuate trend that experienced a slightly increase from 5.14% in 2014 to 5.36% in 2015. Likewise, the growth rates of “Real Estate and Business” were also marginally increased from 6.16% in 2014 to 6.26% in 2015.
Trade Trend
As of October 2015, trade volume was recorded at US$ 15.62 billion. The exports reached US$ 6.99 billion. The trading volume from 2012 to 2014 had shown an upward trend with a sharp increase from US$ 14.89 billion in 2012 to US$ 29.72 billion in 2014 marking an increase of 99.60%.
1. Trade balance
As shown in below Figure, the trade performance of Cambodia has been active. The amount of export in 2011 is estimated to have grown by 3.1 times as much as that of 2002. However, since the imports have also kept growing, the balance of trade has remained in the red, quickly widening its gap since 2003. After the exports dropped sharply being affected by the world economic recession, the imports of production and construction materials also drastically decreased. In the last three years, the trade deficit has remained at moderate level.
2. Export Trend
Cambodia’s exports have shown continuous growth throughout the recovery period. According to Ministry of Economic and Finance statistics, exports reached approximately 5.4 billion US dollars in 2011 (below Figure). As shown in below Figure, GSP exports products such as garment and shoes have increase steadily from 2006 until 2008, decreased in 2009 and recovered in 2010 and 2011. Exports of other products also showed the similar trend. On the other hand, re-export products have continuously increased from 2006 until 2011.
3. Import Trend
Growth of Cambodian imports is much higher than growth in Cambodian exports, reaching approximately 7.0 billion US dollars in 2011 (below Table). The imports showed the steady growth from 2006 to 2008, dropped in 2009 and recovered in 2010 and 2011.Main imported products in 2011 were “garment sector” and “petroleum” by occupying the share of 22.6% and 30.2% respectively.
Generalized System of Preferences (GSP)
Cambodia is one of the beneficiaries of the Generalized System of Preferences (GSP) schemes operated by developed countries. Under these schemes, import tariffs on many products from the beneficiaries are exempted or reduced if requirements such as rules of origin are fulfilled. Below Table shows the relations between the beneficiaries in Asia and three major markets: Japan, the US and the EU.
1. Gross Domestic Product
The Cambodian economy enjoyed rapid growth with an average of 7.6 percent per annum from 1993 to 2003, and continued to reach the high growth of over 10 percent per annum in between 2004 and 2007. Due to the global financial crisis of 2009, the trends went down from 6.7 percent in 2008 to 0.1 percent in 2009. However, the trend has been managed to return in 2010 with a 5.9 percent to the robust growth of 7.1 percent per annum again until 2014. In October 2014, the World Bank named Cambodia to join the Olympians of Growth in its economic update, noting that “Cambodia has grown at a yearly average growth rate of 7.7 percent for two decades now making it the sixth fastest growing country in the world over that time period”. The Asian Development Bank (ADB) is projecting for Cambodia to enjoy healthy growth at 7.3 percent in 2015 and 7.5 percent in 2016, while maintain the stable trade deficit per GDP at around 13.7 percent in 2015 and manage the inflation for 2016 and 2017 to be within the range of 3 to 5 percent. As envisaged in its Industrial Development Policy 2015-2025, Cambodia has committed to maintain its momentum of growth until 2018 and beyond at the targeted rate, at least 7 percent per annum.
2. Trend of GDP Annual Growth
According to the Ministry of Economy and Finance, the real GDP growth is estimated at 7.4% in 2013 and 7% in 2014. It is projecting for a stable growth of real GDP at 7% in 2015. Nominal GDP at current value has been steadily grown with 61,414 billion Riels in 2013 (approximately US$15.35 billion) and 67,643 billion Riels in 2014 (approximately US$16.91 billion) and is projected to be 74,444 billion Riel in 2015 (approximately US$ 18.61 billion).
GDP per capita has also steadily increased from US$1,043 in 2013 to more than US$1,130 in 2014 and continue to increase in medium term in which per capita GDP is projecting to reach US$1,225 in 2015. Inflation is manageable between 3% to 3.5% from 2013 to 2015, while maintaining the exchange rate at 4,050 Riels per US$ 1 in 2015.
3. Gross composition
The composition of GDP by industrial sectors is reflecting the characteristics of changes took place in between 2012 and 2015 that the ratio of industry increased from 22.9% to 26.2%, while the ratio of Agriculture, Forestry and Fisheries decreased from 33.5% to 29%. As for “Agriculture”, the crops’ Gross Value Added (GVA) dropped to 17.1% in 2015, although it grew at the highest record of 27.6% in 2005. The growth ratio of “Fisheries” gradually dropped from 7.2% in 2012 to 6.9% in 2015.
Among “Industry”, the “Textile, Apparel & Footwear” experienced a slightly dropped to 9.7% in 2013 from 9.8% in 2012 and managed to increase in 2014 and 2015 to 10.1% and 10.5% respectively. “Construction” enjoyed a steadily increase from 6.5% in 2012 to 8.8% in 2015, while maintaining its prospect for growth in coming years. As envisaged in recently adopted Industrial Development Policy, Cambodia is obliged to increase the GDP share of industrial sector to 30% by 2025 with the manufacturing sector growing from 15.5% in 2013 to 20% in 2025, while diversifying the export of goods by increasing the export of non-textile to reach 15% of all exports by 2025 and promoting the export of processed agricultural products to reach 12% of all exports by 2025.
“Services” occupied 39.4% share of GDP in 2015 while trade occupied a relatively increase from 6.2% in 2012 to 8.9% in 2015. Hotel & Restaurant have seen a fluctuate trend that experienced a slightly increase from 5.14% in 2014 to 5.36% in 2015. Likewise, the growth rates of “Real Estate and Business” were also marginally increased from 6.16% in 2014 to 6.26% in 2015.
Trade Trend
As of October 2015, trade volume was recorded at US$ 15.62 billion. The exports reached US$ 6.99 billion. The trading volume from 2012 to 2014 had shown an upward trend with a sharp increase from US$ 14.89 billion in 2012 to US$ 29.72 billion in 2014 marking an increase of 99.60%.
1. Trade balance
As shown in below Figure, the trade performance of Cambodia has been active. The amount of export in 2011 is estimated to have grown by 3.1 times as much as that of 2002. However, since the imports have also kept growing, the balance of trade has remained in the red, quickly widening its gap since 2003. After the exports dropped sharply being affected by the world economic recession, the imports of production and construction materials also drastically decreased. In the last three years, the trade deficit has remained at moderate level.
2. Export Trend
Cambodia’s exports have shown continuous growth throughout the recovery period. According to Ministry of Economic and Finance statistics, exports reached approximately 5.4 billion US dollars in 2011 (below Figure). As shown in below Figure, GSP exports products such as garment and shoes have increase steadily from 2006 until 2008, decreased in 2009 and recovered in 2010 and 2011. Exports of other products also showed the similar trend. On the other hand, re-export products have continuously increased from 2006 until 2011.
3. Import Trend
Growth of Cambodian imports is much higher than growth in Cambodian exports, reaching approximately 7.0 billion US dollars in 2011 (below Table). The imports showed the steady growth from 2006 to 2008, dropped in 2009 and recovered in 2010 and 2011.Main imported products in 2011 were “garment sector” and “petroleum” by occupying the share of 22.6% and 30.2% respectively.
Generalized System of Preferences (GSP)
Cambodia is one of the beneficiaries of the Generalized System of Preferences (GSP) schemes operated by developed countries. Under these schemes, import tariffs on many products from the beneficiaries are exempted or reduced if requirements such as rules of origin are fulfilled. Below Table shows the relations between the beneficiaries in Asia and three major markets: Japan, the US and the EU.
Comments
Post a Comment