This document discusses Cambodia's reactions and future plans regarding the establishment of the ASEAN Economic Community (AEC). It outlines that while the AEC presents opportunities, Cambodia also faces challenges in areas like infrastructure, human resources, and development gaps compared to other ASEAN members. The general public in Cambodia has mixed awareness of the AEC. The government has undertaken reforms in areas like physical infrastructure, education, and business environment to help Cambodia better integrate into the AEC. Both large conglomerates and small, local companies in Cambodia see opportunities in the AEC to expand exports but also challenges around issues like electricity, technology, and financing.

1. Cambodia: Reactions And Future Plans on
The Establishment of ASEAN Community
Sakda Pho

2. Content
I. ASEAN Community Background and Issues
II. Cambodia Background and Issues of ASEAN Economic
Community
 Overview of Cambodia-AEC
 Reactions and Future Plans
1. General Public
2. Companies
3. Government
III. Conclusion

3. I. ASEAN Community Background and
Issues
 The ASEAN Community comprises of three pillars:
ASEAN Political-Security Community (ASPC)
ASEAN Economic Community (AEC) √
ASEAN Socio-Cultural Community (ASCC)

4. II. Cambodia Background and Issues of
ASEAN Economic Community
 Overview of Cambodia-AEC
 Cambodia’s real GDP by 4.4, Exports by 5.3 and Private
Investment by 24.8 % (Hing, 2014).
 Public institutions reforms.
 Hard and soft infrastructure development.
 Poor financial, institutions and human resources Vs the
progress of the country (Pich, 2014).

5. II. Cambodia Background and Issues of
ASEAN Economic Community
 General Public
 Perceptions
 Many, “Less sense of belonging to ASEAN Community”
• Educated people, “More advanced economies” and Elite groups”.
 Case: Development gap between ASEAN 6 & CLMV
Widest development gap (Chheang, 2014)
 Action
 Cambodia-ASEAN Youth Organization
“ASEAN Community-Cambodia”, ASEAN basic knowledge to Cambodian
people, (Khrisna, 2015)

6. II. Cambodia Background and Issues of
ASEAN Economic Community
 Cambodia-ASEAN International Institute
• “Benefits of ASEAN Community for Cambodia and Cambodian
Enterprises' and 'Roles of Youth in ASEAN Community”
Source: https://www.facebook.com/events/965592640178977/

7.  Prestige Companies Case
Studies
Company Name Products/Services Market
1. Mong Rethy
Group Co., Ltd.
Cambodia’s first and
Southeast Asia’s fifth
biggest Agro-industrial
Company
Oil palm, pig farm,
rubber plantation,
rice plantation, fruits,
construction, etc
Southeast and
East Asia
countries and EU
2. ACLEDA Bank
Plc.
Banking and Finance,
Cabodia’s leading
public bank
Loan, exchange,
diposit, transfer
Source: (Khmer
Thmey Thmey News,
Laos, (41
branches) 16/18
provinces with
18/18 targeted ,
Myanmar, 6
branches with
100 ones
targeted.
 Exported products and services.
 Improving productivity and technology.

8.  Little-Known Companies
Company Name Products/Services Market Asset
Ly Ly Food Industry Food Local
Opened since
2002 with 25, but
now more than
100 employees
with an investment
capital of about 100,
000 US Dollar
Eurotech Drinking water Local
Opened since
1993 with 10, but
now more than
200 staffs
The company
revenue in 2008 was
1,740,000 USD

9.  Little-Known Companies
 Ly Ly and Eurotech company’s challenges:
 Electricity and advanced technology
 Business opportunities and partners
 Financial support
 Knowledge and production skill
 Support from the government for international markets.
 High tariff rates on raw material imported
 Providing competitive.
(LENG, SOTHEA and HEANG, 2011)

10. II. Cambodia Background and Issues of
ASEAN Economic Community
 Up to now, what moves has the government done to deal with such
problems and to meet the AEC?
 Government: Under the Rectangular Strategy-Phase II & III, the Royal
Government:
 Physical infrastructure:
• Electricity: from 808Mw in 2009 to nearly 40000Mw
by 2020.
• Roads: almost completed by the end of 2008.
• Railways: there are two railways .
• Ports: three main international ports
• Air transport: three main international airports.
Source: Foreign agricultural Investment Country Profile, Cambodia,
http://www.fao.org/fileadmin/user_upload/tcsp/docs/Cambodia_Profile_Final.pdf

11. II. Cambodia Background and Issues of
ASEAN Economic Community
 Business environment through:
• Developing industrial standards
• Adapting accounting and financial report standards
• Building institutional capacity
• Business online registration
• Trade facilitation
Source: Royal Government of Cambodia http://faolex.fao.org/docs/pdf/cam145560.pdf
 Education Reforms
• Technical, vocational skills
• Quality of learning and teaching
• Policy think-tank for education
• Higher education reform and student job counseling
Source: (Moeys, 2014) http://www.moeys.gov.kh/en/minister-page/education-reform,-
english-language-learning-and-the-asean-community.html#.VqrqKPl97IU

12. III. Conclusion
 All in all, ASEAN Economic Community provides Cambodia with
all opportunities as public institutions, education systems,
economic reforms and infrastructure development will contribute
to the country’s prosperity. However, Cambodia will be faced with
such problems if it is late to meet the AEC needs.

13. References
 Julio, A. and Joycee A, T. (2014). A united region: The ASEAN Community 2015. [online]
Rappler. Available at: http://www.rappler.com/world/specials/southeast-asia/asean-
journey/47239-asean-community-2015-overview [Accessed 22 Jan. 2016].
 Pich, R. (2014). AEC 2015: Benefits and Challenges for Cambodia. [online] Available at:
https://www.moc.gov.kh/tradeswap/userfiles/file/uploadedfiles/Gallery/4.%20Benefits%20and%
20Challenges%20for%20Cambodia%20on%20AEC%2020159_16_2014_10_40_5.pdf [Accessed 25
Jan. 2016].
 Chheang, V., Sothea, O. and Leng Thearith, T. (2010). ‘Constraints on SMEs in Cambodia and
their Participation in Production Networks’, in Vo,T. T., D. Narjoko and S. Oum (eds.),
Integrating Small and Medium Enterprises (SMEs) into the More Integrate East Asia. ERIA
Research Project Report 2009-8, Jakarta: ERIA. Publications. [online] Vannarith Chheang.
Available at: https://vannarithchheang.wordpress.com/publications/ [Accessed 18 Jan. 2016].
 Ky, S. (2016). Businessmen who will promote Cambodia. [online] ThmeyThmey.com. Available
at:
http://www.thmeythmey.com/?page=detail&ctype=article&id=34816&lg=kh#.VpRlM2P3nyI.face
book [Accessed 13 Jan. 2016].
 Chheang, V. (2014). Cambodia and ASEAN: Building an Identity. [online] Khmer Times | News
Portal Cambodia |. Available at: http://www.khmertimeskh.com/news/3877/cambodia-and-
asean--building-an-identity/ [Accessed 26 Jan. 2016].
 Khrisna, M. (2015). ASEAN and Cambodian in the countryside Report – ASEAN Youth
Organization. [online] Aseanyouth.net. Available at: http://aseanyouth.net/ayo/asean-and-
cambodian-in-the-countryside-report/ [Accessed 27 Jan. 2016].
 Hing, V. (2014). Cambodia’s PreParedness for asean eConomiC Community 2015 and beyond.
[online] Available at: http://www.cdri.org.kh/webdata/policybrief/drf/SynthesisReport7.pdf
[Accessed 16 Jan. 2016].