The Mirror, Vol. 14, No. 662
“Phnom Penh: The 15th Royal Government-Private Sector Forum was held in the morning of 27 April 2010 at the seat of the Council of Ministers. The forum was chaired by the Prime Minister of the Kingdom of Cambodia, Samdech Akkak Moha Senapadei Dekchor Hun Sen; other leaders of the Royal Government, from the private sector, and many other development partners, and diplomats attended the forum.
“Like at the previous time, the aim of the meeting, considered to be a kind of open ministerial session, is to jointly monitor the practical progress and improvements achieved, to see how problems, which were raised during the 14th Royal Government-Private Sector Forum had been addressed, and to know what other problems investors face in Cambodia.
“The Minister of Economy and Finance, Mr. Keat Chhon, said during his speech opening the Royal Government-Private Sector Forum that the Royal Government had led the Cambodian economy to get across a most difficult stage of the economic crisis, where the Royal Government managed to ensure financial stability as well as macro-economic and social stability, established a more favorable environment for economic and business activities, and strengthened social safety for the citizens.
“He added that encountering the global economic crisis, the Royal Government had continually intervened in the taxation system for garment and shoe factories as well as for other industries supporting these fields. Reduced tax payments on income of the garment and shoe factories was extended until the end of 2012, resulting in monthly losses for the state of about Riel 4,000,000,000 [approx. US$940,000]. To reduce the Value Added Tax (VAT) rate to 0% during that time resulted in additional losses for the state of about Riel 4,300,000,000 [approx US$1 million] per month in 2008 and it increased to as much as approx. Riel 9,300,000,000 [approx. US$2.2 million] in 2010.
“The Prime Minister of the Kingdom of Cambodia, Samdech Dekchor Hun Sen, chaired the event and waited to address all problems after they had been raised by the eight private sector groups. Then he dealt with the problems of the working teams for agriculture and for industry, relating to the export of agricultural products, even though it is recognized that there has been improvement in the commercial sector. Before the private sectors can export anything, they have to ask for permissions from many places, wasting much money and time. To export more than 200 tonnes of rice is even more difficult and takes even longer time. The private sectors needs to gain permissions from the Green Trade structure, that has the exclusive right to export rice. Then they need to ask for permission from many other ministries and institutions. Also, the working teams mentioned that for the transportation of livestock from Preah Vihear to Phnom Penh this process required to cross up to 37 check points, and companies have to pay both official and unofficial money at all those posts. Therefore, they asked the government to eliminate these activities.
“Regarding these issues, Samdech Dekchor Hun Sen said that such type of unimportant checkpoints should be abolished at all levels, especially when such activities are carried out by institutions which are not authorized for this, and he called to abolish such licenses required by unnecessary institutions, so that export business becomes more competitive exporting agricultural products of Cambodia.
“As for the tourism working team, Mr. Ho Vandy asked the government to reduce the price of plane tickets of Cambodia Angkor Air from Phnom Penh to Bangkok, to allow flights from Bangkok to Siem Reap, and to add another flight from Phnom Penh to Siem Reap, and to begin local flights between Siem Reap and to Sihanoukville.
“In response, Samdech Dekchor Hun Sen said that Cambodia adheres to a free market economy. Thus, the government cannot set prices of flights as it is done in a planned economy. In relation to the request to begin flights between Siem Reap and Sihanoukville, he said that the government does not provide exclusive rights to Cambodia Angkor Air, and other companies can operate direct flights. He encouraged Mr. Ho Vandy – if he could make any airline to start direct flights to Sihanoukville he will request that Mr. Vandy should get a medal for this incentive.
“Samdech Dekchor Hun Sen also addressed issues in other sectors, mostly concentrating on the lowering of tax for the import of raw materials and for means of transport, and the lowering of VAT. At the same time, he addressed also problems relating to trade unions and workers. In addition, he clarified some cases, where the private sector had called to strengthen the competition of the garment sector by considering that the expensive prices of telecommunication, transportation, and electricity are a burden.” Rasmei Kampuchea, Vol.18, #5183-5184, 28-29.4.2010
This article was first published by The Mirror, Vol. 14, No. 662 - Thursday, 29.4.2010
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Norbert Klein is the Editor of The Mirror – The Mirror is a daily comprehensive summary and translation of the major Khmer language press - More about The Mirror