Millions of eyes are focused on how Asean is going to realise its goal
in establishing the Asean Economic Community (AEC) by 2015.
Cambodia, one of the poorer members of the 10-country
grouping, is optimistic that the kingdom will be ready to join the economic
community. It sees AEC as an opportunity to boost economic growth even though
there are challenges ahead for its small and medium-sized enterprises (SMEs).
“Even if Cambodia is a young country in the
association, it has been committed to regional integration, especially the
formation of AEC,” said Sok Siphanna, an adviser to the Royal Government of
Cambodia.
As the deadline approaches, he said “Cambodia is
ready".
Siphanna, former secretary of state of Commerce and a
key person in Cambodia’s accession to the World Trade Organisation, noted that
AEC is not the first time Cambodia is integrating to a regional and global
market.
“The country has tried to open itself since 1993, and
now Cambodia is already open for regional and global integration. It has
accumulated experience on how to open the country since it became a member of
Asean in 1999, and the WTO later,” he said.
“The policies are already in place. Therefore,
Cambodia can meet the requirements for AEC.”
He is optimistic that Cambodia will benefit from the
community. “AEC will bring more foreign investors, technology, and knowledge
and expand the country's market share.”
“Before, foreign investors hesitated to come to
Cambodia because of the small market, but now they recognise Cambodia’s
potential thanks to the booming Asean market."
“It no longer only has 15 million people. It will soon
have 600 million people and Cambodia will become one of the 10 gates to this
600-million-population market,” he said.
Concern
Cambodia is the youngest Asean nation to become a full
member of this regional geo-politic and economic organisation in April 1999,
after having been an observer for nearly four years.
Although it’s already a full member, Cambodia still
can’t rival older members in terms of economic strength, trade volume, human
resources, technology, and infrastructure, among others.
The country is faced with the formidable challenge of
accomplishing the objectives of AEC including setting up a single market and
production base to pave the way for a highly competitive economic region.
Most of Cambodia's production chains are dependent on
SMEs, except the garments and textiles industries.
Meng Saktheara, director general of the Ministry of
Industry, Mines and Energy, said: “Skills, technology, capital and marketing
are all concerns of Cambodian companies, especially the SMEs.”
The ministry has launched projects with development
partners, including the Asian Development Bank, Japan International Cooperation
Agency, Korea International Cooperation Agency, United Nations Industrial
Development Organisation and other partners to provide capacity building for
SMEs, Saktheara noted.
Oknha Te Taing Por, president of the Federation of
Association for Small and Medium Enterprises of Cambodia concurred that SMEs
are concerned over how a regional economic community will impact on their
businesses.
There are some 400,000 SMEs in Cambodia, and more than
90 per cent of them are in need of help from the government, he said.
Ly Chheng, director of Ly Chheng Food Production,
meanwhile noted that Cambodia's imported products may have a niche market.
“It’s difficult for Cambodia to compete with Thailand,
Vietnam and China in terms of products, because they have price advantage and
edge in packaging, technology and marketing,” Chheng said.
“For Cambodia, it has to recognise that it’s not
Thailand or Vietnam. It started from zero as Cambodia was completely destroyed
by Khmer Rouge. It started its rehabilitation with an almost empty economy,”
Chheng said.
Siphana, on the other hand, said SMEs need to expand
their production capacity, and develop themselves to become industrial giants.
Progress
Some experts, economists, and politicians earlier
warned that Cambodia would die once it becomes a member of Asean. This is the
same warning that many are issuing today as AEC looms in the horizon.
Siphana, however, said there is no reason for
Cambodians to worry. “Cambodia didn’t die after joining Asean. In fact, it has
progressed well and recognised worldwide for its development, so why worry?”
Siphana asked.
Since Cambodia has opened its economy 15 years ago,
many international hotels, restaurants, fastfood joints and malls have been
operated by locals, he pointed out.
Cambodia’s engineering sector has also taken big
strides and now has capability to undertake big construction projects.
“In addition, more and more foreign companies flock to
the country. For example, Japan has poured hefty investment here,” he
said.
“Don’t worry, it will not die. It will adapt to the
new environment and realise economic growth step by step."
“We just need to find our weak points and fix
them," he said.
Serath Nguon
Asia News Network
Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated
in Singapore since 1994.
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