Remarks

Samdech Techo HUN SEN

Prime Minister of the Kingdom of Cambodia

At the ACMES CEO FORUM

"Connecting Our Future: Enhancing ACMECS Cooperation and Integration" 

Shangri-La Hotel, Bangkok, June 15, 2018

 

 

Excellency PRAYUT CHAN-O-CHA, Prime Minister of the Kingdom of Thailand and Chairman of the Meeting,

Excellencies Leaders of ACMECS Countries,

Excellencies, Ladies and Gentlemen!

 

First of all, I would like to my express profound thanks to ACMECS Joint Business Council for providing relevant and important recommendations to ACMECS, with the aim to realizing our policy objectives and vision which is strengthening cooperation and closer integration to promote growth and greater development for the whole region. Overall, Cambodia highly appreciates, supports and agrees with the recommendations that have been submitted.

 

In fact, all these recommendations are in line with strategic plans of ACMECS which have been formulated and implemented. More importantly, they are in line with ACMECS Master Plan 2019-2023 which will be adopted by ACMECS leaders tomorrow and in line with the activities that each ACMECS country is implementing. We have also greatly increased our focus on promoting digital connectivity, trade facilitation and investment as well as promoting capacity building in business sector such as SMEs, in order to reduce the development gap and accelerate better connectivity between ACMECS countries, especially to increase their competitiveness and integrate them into the regional value chain.

 

Excellencies, Ladies and Gentlemen!

 

During the last two decades, Cambodia has achieved an average annual growth of 7% and became a lower middle-income country in 2015. In a fast-changing regional environment, in order to maintain high economic growth and ensure the realization of Cambodia Vision to become a higher middle-income country in 2030 and high-income country in 2050, the Royal Government of Cambodia (RGC) have pro-actively designed and laid-out targeted economic policies which directly respond to the needs of the private sector, especially through implementing measures to steadily enhance greater competitiveness of Cambodia.

 

I would like to take this opportunity to share with CEOs and Investors in this forum on a number of sharp, practical and pragmatic measures that have been formulated and implemented by RGC as follows:

 

First. The RGC has been promoting trade facilitation by implementing National Single Window, simplifying and automatizing customs procedures both on valuation and clearance; reducing both formal and informal service fees as well as conducting a study to reform agencies stationing at the international borders checkpoints and international ports in order to facilitate and expedite the export and import activities.

 

Second. On soft connectivity, the RGC is preparing Logistics Master Plan, including digital connectivity, by laying out strategies to start its implementation in the medium term. At the same time, the RGC has focused and increased investments in physical infrastructure by expanding all national roads into four-lane roads, especially national roads connecting to neighboring countries  in order to realize the Connectivity Vision under cooperation framework of ACMECS and the whole ASEAN as well as facilitate domestic transport of goods. In addition, the RGC is expanding and improving a seaport in Sihanoukville to a 14-meter water depth which can accommodate most cargo motherships, as well as constructing Phnom Penh- Sihanoukville Expressway by using Public-Private Partnership, in order to facilitate the transport of goods to this
deep-water seaport. These projects will be completed in the near future.

 

Third. On electricity, the RGC is aware that electricity tariff in Cambodia is higher than in some ACMECS countries which poses a major challenge in attracting investment. To address this issue, the RGC is reviewing the feasibility to gradually lower the tariff from 2019 onwards, and increasing the efforts to further enhance stability and quality of the electricity supply in order to attract investment in industries that have higher-value-added, use modern machineries and be a part of regional value chain.  

 

Fourth. The Royal Government is preparing to establish SME bank and Cambodia Entrepreneurship Development Fund as well as laying out a number of practical measures under the SME Development Framework in order to promote SMEs to become a vibrant and dynamic locomotive in promoting economic growth. Furthermore, in order to respond the new needs of investors, in line with the change in economic structure, the RGC is working on the amendment on Law on Investment (LoI), drafting Law on Special Economic Zone, and modernizing tax system by providing the smart incentives in order to promote skill trainings as well the use of modern machines and technologies. 

 

Firth. Cambodia is preparing herself to seize the potentials and benefits of digital economy which is taking shape right now, and is ubiquitously spreading in the region and the world.  Like other countries in the region, Cambodia is increasing investment on building relevant infrastructure and eco-system to support the development of digital economy, including institutional development, backbone infrastructure building, and human resource development.

 

Finally, I would like to invite all CEOs and investors to Cambodia to first-hand explore investment opportunities and potentials that we have as well as to witness the pro-activeness of the RGC in reform implementation, especially on economic, business, and investment policy improvement as well as soft and hard infrastructure development, with the aim to further improve investment climate and competitiveness of Cambodia.

 

I would like to wish Excellencies, Ladies, and Gentlemen, good health and success in all your endeavors. 

 

Thank You!