Google

ASEANAFFAIRS
Sign up | Log in

    ASEAN PROFILES

  ASEAN KEY DESTINATIONS

Home  >>  Daily News  >>  Cambodia News  >>  Economy >>  ADB urges Cambodia to boost competitiveness in tourism, textiles

NEWS UPDATES 21 April 2010

ADB urges Cambodia to boost competitiveness in tourism, textiles

Related Stories

May 9, 2009
World Bank: Cambodia’s economy to recover in 2010

March 29, 2009
Cambodian garment exports hit hard by global downturn
 

Cambodia is falling behind its competitors in the key garment and tourism sectors, the Phnom Penh Post reported, quoting an economist from the Asian Development Bank (ADB).

ADB analysts gathered at group headquarters in Phnom Penh to discuss their Asian Development Outlook Report 2010, which was released during Khmer New Year and predicted 4.5 percent GDP growth for the country this year.

During the press conference, Senior Country Economist Eric Sidgwick said Cambodia must increase competitiveness in the region as it begins to recover from the global economic crisis in order to move to the “next [economic] level”. ADB estimated the Kingdom’s GDP shrank by 2 percent in 2009.

“Cambodia has had a good start relative to its past performance, but it is still lagging behind its competitors in terms of garments and tourism,” he said, noting that the volume of Cambodia’s garment exports to the US increased by 12 percent in February, compared with the same month last year.

“There are still issues in trade facilitation,” he warned, and declared that both sectors have shown signs of reaching maturity.

Sidgwick advised that the garment industry, which evolved in an environment of international protectionism, needs to become quick, reliable and efficient in order to compete with producers such as Vietnam, and that tourism needs to diversify away from the hub of the Angkor temples.

Cambodia also needs “to get going” on reforms that are already on the table, he said: “If Asia is going to pick up, Cambodia needs to be part of that. It needs to diversify its economic business.”

Sidgwick pointed to agri-business as a key area of development. He recommended the implementation of better product standards, increased irrigation and greater coordination between government departments. Prudence was also a watchword for the ADB.

“It has become boring to state, but the maintenance of macro-economic stability is key,” said Sidgwick. He advised the government to cut back on injecting its deposits to bolster fiscal policy, advising draw downs to reach zero by 2011.

He estimated 25 percent of funds were utilized during the crisis last year. The ADB report warned of the risks associated with such measures, stating: “The government drew down its deposits in the banking system to help fund the budget deficit.

But this large injection of riel liquidity (equivalent to 1.4 percent of GDP) risked undermining macro-economic stability.” Nevertheless, ADB analysts praised the government’s “appropriate response” to the global economic crisis.


 

Comment on this Article. Send them to  your.views@aseanaffairs.com
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
 
or
submit your comment in the box below 

Name

Name


Email

Email



1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand
asean@aseanaffairs.com