1 / 25

Preliminary Study on SMEs in Cambodia

Preliminary Study on SMEs in Cambodia. Sokh Sophal SAING YGMS Professional Mekong Institute, Khon Kaen. Content. Importance and Situation of SMEs in GMS Countries SME Situation in Cambodia What is SME Cluster? What is Export Consortium? Identifying SME Clusters in Cambodia

abrial
Télécharger la présentation

Preliminary Study on SMEs in Cambodia

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Preliminary Study on SMEsin Cambodia SokhSophalSAING YGMS Professional Mekong Institute, KhonKaen

  2. Content • Importance and Situation of SMEs in GMS Countries • SME Situation in Cambodia • What is SME Cluster? • What is Export Consortium? • Identifying SME Clusters in Cambodia • Details of Prospective SME Clusters in Cambodia

  3. 1. Importance and Situation of SMEs in GMS Countries • SMEs are integral to the economic develop-mentand growth of the ASEAN Member States. SME plays important role to promote national economy through employment generation and incomes. • Although there has been economic growth in ASEAN community, at the same time there is a big gap between the old ASEAN member states and the new ones – Cambodia, Lao PDR, Myanmar and Vietnam (CLMV countries).

  4. 1. Importance and Situation of SMEs in GMS Countries (Cont’d) • Major issues faced by CLMV countries: • (i) underdeveloped public human resource capacities and institutional support systems to develop and implement trade and investment policy and regulatory framework, and • (ii) lack of industry clusters and facilities that can provide SMEs access to regional and global value chains.

  5. 1. Importance and Situation of SMEs in GMS Countries (Cont’d) • It is, therefore, essential to build the capacities of SMEs in the region in order to ensure that they are highly competitive, innovative and be able to utilize the regional economic initiatives and incentives for their long-term survival and growth. At country level, increasing exports by SMEs is an important mean to drive the national economic performance and growth.

  6. 2. SME Situation in Cambodia2.1. Overview • The SME sector dominates Cambodia’s real sector economy in number of firms (99%) and employment (45%). • SMEs operate almost entirely in the informal sector and are typically not registered at Ministry of Commerce (MOC). • According to National Institute of Statistic‘s census in year 2009, there are 376,761 enterprises established in Cambodia as below:

  7. 2. SME Situation in Cambodia2.1. Overview (Cont’d) • Less than 5 persons engaged        :    316,607 • 5 persons engaged and over         :    46,233 • 10 persons engaged and over       :    13,123 • 100 persons engaged and over     :    692 • 1000 persons engaged and over   :   106

  8. 2. SME Situation in Cambodia2.1. Overview (Cont’d) • The female representative of the enterprise is 50.1 % which mean the women are play important rule in the private sector development especially in the Small and Medium size of enterprises. There are 1,469,712 persons engage which males absorb 626,783 and female are 842,929. The enterprises were based up 68.8% at rural area and the urban area is 31.2 %.

  9. 2. SME Situation in Cambodia2.1. Overview (Cont’d) • There are two type of SMEs classification:

  10. 2. SME Situation in Cambodia2.2. Challenges/Barriers

  11. 2.3. Policies for SME Develop-mentand Promotion • In July 2004 the RGC produced the Rectangular Strategy, with 13 approaches to encouraging Cambodian commercial development. The Strategy was intended to promote economic growth, generate employment, and encourage efficiency through competition. One of the main focuses of the Strategy was to promote the development of Cambodian SMEs. (See the Table below)

  12. 2.3. Policies for SME Develop-mentand Promotion (Cont’d)

  13. 2.4. Organizations Working on SMEDevelopment and Promotion • They are 1) Ministry of Commerce; 2) Ministry of Industry, Mines and Energy; 3) Ministry of Land Management, Urban Planning and Construction; 4) Ministry of Tourism; 5) Ministry of Environment; 6) Ministry of Public Works and Transport; 7) Ministry of Agriculture, Forestry and Fisheries; 8) Ministry of Education, Youth and Sports; and 9) Council for the Development of Cambodia (CDC); etc.

  14. 2.4. Organizations Working on SMEDevelopment and Promotion (Cont’d) MIME’s main roles are to grant and approve: • Prakas on the Establishment of Factory and Handicraft • Certificate on Operating of Factory and Handicraft • Objectives and criteria for certification of Target and Standard for Chemical Use

  15. 2.4. Organizations Working on SMEDevelopment and Promotion (Cont’d) • Investments in power transmission and distribution, permission for Investing in generating, Transmitting and/or distributing electricity • Minerals registration certificate (Certificate of Mineral Resources Registration) • Mineral extraction, quarry permits (License for Open Mining Hole and Quarry, and others)

  16. 3. What is SME Cluster? Clusters are groups of independent companies and associated institutions that are: • Collaborating and competing; • Geographically concentrated in one or several regions, even though the cluster may have global extensions; • Specialized in a particular field, linked by common technologies and skills; • Either science-based or traditional; • Clusters can be either institutionalized or non-institutionalized.

  17. 4. What is Export Consortia? • An export consortium is a voluntary alliance of firms with the objective of promoting the export of goods and services of its members through joint actions. • Most consortia are non-profit entities, and members retain their financial, legal, managerial, and commercial autonomy. So, despite their participation in the export consortia, member firms do not give up any control over their business to others.

  18. 5. Identifying SME Clusters in Cambodia (What & Where?) • Milled Rice are available throughout the country especially in Battambang province; • Palm Sugar in Kampong Speu province (Registered as a Geographical Identification); • Pepper in Kampot province ((Registered as a Geographical Identification); • Rubber in Kampong Cham and Kampong Thom provinces;

  19. 5. Identifying SME Clusters in Cambodia (What & Where?) • Garments and Footwear in Phnom Penh capital city; • Silk in Kandal, Takeo and Kampong Cham provinces; • Seafood in coastal provinces (Koh Kong, Sihanoukville, Kep, and Kampot); and • Fruits, Vegetables, and Livestock throughout the country.

  20. 6. Details of SME Cluster in Cam6.1. Challenges/Prospects A. Issues affecting paddy rice production The surplus of paddy rice for export remains limited. If Cambodia wishes to export milled rice from 3 to 4 million tons per year, we have to produce paddy rice at least 10 to 11 million tons. This requires us to address a number of challenges constraining productivity such as land manage-ment, irrigation system, research and extension services, intensification, and organization of farmers etc.

  21. 6. Details of SME Cluster in Cam6.1. Challenges/Prospects B. Issues affecting rice processing and trade The paddy rice prices that Cambodian farmers receive is 35%-40% lower than the prices that Thai and Vietnamese farmers have enjoyed, which is the main competitiveness of export but it is lost as soon as soon as milled rice reach the ports due to informal fees, high transport and processing costs.

  22. 6. Details of SME Cluster in Cam6.1. Challenges/Prospects C. Issues affecting milled rice export facilitation Export facilitation, both hard and soft, has not been smooth and consistent, that is the major obstacle to the promotion of Cambodian milled rice export, in which the hard system includes transport infrastructure, seaports, warehouses and the soft system includes trade facilitation, supporting institutions, quality standards, Sanitation, etc.

  23. 6. Details of SME Cluster in Cam6.1. Challenges/Prospects D. Issues related to market opportunity Milled rice is a protected market with complicated mechanisms according to different terms and requirements by each importing country. At the same time, milled rice export is new for Cambodia and the experience and knowledge is still limited, that requires us to strengthen Cambodia’s ability to access those markets.

  24. 6. Details of SME Cluster in Cam6.2. Mapping the Cluster The SME cluster of milled rice in Cambodia is under development. The Federation of Association for Small and Medium Enterprises of Cambodia (FASMEC) has already held “Cambodia Rice Forum” for two times, the 1st on October 17, 2011 and the 2nd on October 1-2, 2012 to establish this cluster.

  25. Thanks for your attention!

More Related