1. Learning Experienced fL i E i d from R id RapidAssessment on Logistic Facilitiesand SME Clusters along the SECCase Study : Trade & Investment Southern CoastalProvinces of Cambodia Koh Kong, Sihanouk Ville, Kampotand Kep. Mr. Chan SereiRatha Cambodian YGMS Professional Mekong Institute, Khon Kaen Kingdom of Thailand Ki d f Th il d 18 June, 2012
2. Contents:1- Overall Background2-2 Overall Objectives3- Overall Expected Outputs3- Route i the coastal part of Cambodia3 R in h l f C b di4- Logistic Facilities of the coastal of Cambodia5- Existing SMEs in the coastal of Cambodia6- Potential Sectors in the coastal of Cambodia7- Challenges and Opportunities in DevelopingTrade and Investment in the coastal of Cambodia8- Recommendations
3. Overall Background Ca Mau
4. Overall Background g- The southern economic corridor of the GMS, adopted by GMScountry in 1998, comprises three subcorridors and oneIntercorridor link, and with the implementing of AEC and TheDawei Development Project, the volume of trade and investmentalong the SEC will be increased and could be developed to be themost outstanding corridor for the GMS.- On 19 December 2011, a meeting on JAIF proposal on PrivateSector Development in SEC was held. From the meeting, MI hasconducted the rapid assessment of logistic facilities and SMEscluster in 15 provinces and 3 cities along the two subcorridors,central sub-corridors and southern coastal sub-corridor, in SECduring the period of 29 January to 23 February 2012.
5. Overall BackgroundThe SEC route connects 3 main cities in theGMS region namely : Bangkok , Phnom Penh andHo Chi Minh. And also SEC cover 4 importantdeep sea ports in Bangkok-Lamchabang in Thailand, pSihanoukville in Cambodia, Phu Quoc and Cai Mep,Vung Tau- Vietnam, 3 international airport –Suvarnabhumi Airport, Thailand , Phnom Penh pInternational Airport, Cambodia and Ho ChiMinh City International Airport ,Vietnam. y p
6. Overall Objectives Identify institutions and p p peoples directly involved in y trade and investment promotion Assess the institutions and human resource capacities in trade and investment promotion Survey SME clusters and assess current and potential p capacity Detailed survey of logistic facilities
7. Overall Expected Outputs Preliminary Assessment y Report and Provincial Profiles Detailed maps of logistics facilities and SMEs sectors Trade and Investment information Draft SEC Capacity Building proposal
8. Route in the Southern Coastal ofCambodia
9. Key information about the SouthernCoastal of CambodiaC l f C b di1-The southern coastal consist of Koh Kong ,gSihanouk Ville, Kampot and Kep provinces.22- The total population in the coastal region is960,487 (NIS2008) and the total land area iscovers 17 237 square kilometers 17,237 kilometers.3- The general recognition of the total lengthof the Cambodian coastal area i 440 K f h C b di l is Kmabout one sixth of the total borders.
10. Logistic Facilities of the coastal ofCambodiaC b diIn general, the southern part of Cambodiacan access by all modes of transportation : b ll d ft t ti- Airport: One local airport in Sihanouk Ville (3 flights/week-SHV to Siem Reap).- Land roads: The total length of the road in the coastal area is around 398 km extent from Had Lem –Chan Yeam (Thailand-Cambodia ) - Xa Xia, Ha Tieng, ( g VIetnam/Prek Chak, Cambodia.- Sea port: One big Sihanouk Ville international sea port and one active private p p port called Okhna Mong Port g and some other local ports for fishing and tourist.- Rail road: The total rail road from PP to SHV is 264 km but it currently active from PP to K-cement company K cement in Kampot ( 90 km).
11. Logistic Facilities of the coastal ofCambodia
12. Existing SMEs in the coastal of CambodiaCurrent Definition of SMEs in CambodiaC D f f SME C b dCountry / Type Small Medium Employees Employees Capital Capital Employees CapitalCambodia 11‐50 50,000‐250,000 51‐100 250,001‐500,000 (USD) (USD) - Koh Kong: Fishery ,Tourism Related Services, SEZ and Agri and Agro-cultures (rice , sugar cane ..) - Sihanouk Ville: Sea Food Processing, Hotel and Processing Restaurants, Resort ,Recreation and others, SEZ and Agri and Agro-cultures (rice , rubber and p g g ( palm oil) ) - Kampot: Industrial Places (cement , mining ) , Agri and Agro-cultures (pepper, rice , cassava) - Kep: Pepper, Salt and Rice
13. Potential Sectors in the coastal of Cambodia1-Currently, there are 22 SEZs in Cambodia,but 11 SEZs (50 %) located in the coastalprovinces.provinces In 2011 , export rise 39.5 % from 2010 39 5-$4.9 B, and industrial export (mainly garment &textile) account for about $4.3 B.So manufacturing or export oriented companieshaving a great potential.2- There are increasing tourists arrival inCambodia from year to year. 2.85 M touristsarrival i 2011 it i 14 % up from 2.5 M in 2010. i l in is f 2 5 i 2010For the tourist arrivals in the coastal area in 2011is over 1 million (both local & international).The Revenue expected to grow up toTh R d$2.1 B in 2012 comparing to $1.9 B in 2011.
14. Potential Sectors in the coastal of Cambodia3- Agri-Processing : Cambodian government haskeen on encourage an investment in these sectors.As the total export in Agricultural sector in 2011was $ 422 M compared to $197 M in 2010. Themain export products are rubber, rice, palm oilcassava and corn. The coastal area are potentialfor most of all of the agricultural products and alsonear the logistic hub as well well.4- Food Processing and Aquaculture: Since theglobal and local demands are increasing on foods.Cambodia can produce 72,000 MT in 2011 and p ,marine capture 91,000 MT. In the coastal area likeKoh Kong and Kampot are great potential for Aquaand SihanoukVille for marine capture.
15. Challenges and Opportunities in Developing Tradeand Investment in the coastal of Cambodia 1- Opportunities : - Access to international market via Sihanoukville port - Inland transport link well within the coastal area via national road and in the Southern corridor link ti l d d i th S th id li k - Cheaper labor among others in the region - Available and affordable land - Rich of natural resources and tourist sites - Agro and Aquaculture sector - Benefit of 11 SEZs around the areas and good connection along supply chain in the region (esp, Thailand d Vietnam) with tax incentive (tax holiday Th il d and Vi ) ih i i ( h lid for 6 to 9 years)
16. 2- Challenges :- L Limited access to finance (esp, SME ) d f ( SMEs)- Lack of skilled and less skilled labor asthe cheap wage nature in the country h h i h- Absence of e-documents at the border ,rules and regulations not well aware among l d l ti t llpublic and local authorities- Overall logistic services in the area are limited- The geographical area ( ex. Koh Kong is high hill road where limited for heavy truck )- Lack of supportive services like school , hospital and centre- High cost of electricity
17. Recommendations :- Strengthening PPP through better policies- Increasing awareness of laws, regulations g , gand agreements- Strengthening in implementing SingleWindow and e-documentWi d d d t- Increasing an investment on public serviceson school , vocational training and hospital g p- Capacity building for local authorities ontrade procedures, rules and regulation andagreement , management skills ..etcetc- Decentralize the works and authorities- Attracting more investment on priority sectors- Higher productivities (human, machinery and technology)