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Cambodia Must Find Solutions to Encourage Faster Exports

By: The Mirror Posted: June-07-2010 in
The Mirror

The Mirror, Vol. 14, No. 667

“Phnom Penh: The encouragement for the faster export of Khmer products is still a big challenge, as the legal procedures to process export documentation are time consuming, as all documents have to go across too many desks in the administration, which results in delayed operations and high expenses, making Cambodia unable to compete on international markets with neighboring countries.

“A Royal Government advisor and a member of the Supreme National Economic Council, Mr. Sok Siphana, said early last week at the Phnom Penh Hotel, during a national workshop about the encouragement by the Rectangular Strategy for a better commercial operationalization, in order to improve business procedures for commerce, ‘We must find solutions that encourage faster commercial operations. This workshop will present many key measures, and we will discuss to find out how many stages there are to be passed, when rice is brought by farmers to be sold at a seaport, and then from the seaport to foreign countries, and what difficulties are encountered, so that they can be reduced, to improve and speed up commercial operations. We must know which steps should be eliminated or which steps could be adjusted.’

Note:

From The Mirror of Thursday, 29.4.2010: The 15th Royal Government-Private Sector Forum Was Held

“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 sector 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.”

“Mr. Sok Siphana added that it was a technical workshop, attended mainly by senior customs officials and officials from the Ministry of Commerce, while the Supreme National Economic Council as a researcher, provided the necessary backup. The emphasis was on the export of rice, cashew nuts, soy beans, corn, and cassava; the import items considered were mostly medicines.

“Ms. Shamika Sirimanne, Chief, Socioeconomic Analysis Section at the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP), in Bangkok, said that the workshop will contribute to find key measures to encourage least developed countries to export products faster, in order to cut down time and expenses at different stages of the process. This problem affects exports abroad. She added, ‘According to our research, the export of products from Cambodia takes 50% more time than in other developing countries in this region. This shows that one cannot compete with other countries in the region in exports. Mr. Sok Siphana said, ‘Much rice is being exported. Also, our rice milling technology is advanced. The problem is that much of paddy rice produced by farmers is taken out to neighboring countries. This happens because we do not have trade credits to first buy much rice for storing and milling, and then to export it. As for the provision of credits, if the interest rates from banks are too high, farmers cannot ask for loans. Some banks boast that they have much money, but they do not dare to provide credits to farmers. Some banks do not have experts on agriculture working to provide loans to farmers. A large number of banks agree only to offer loans when clients have land or house titles for the bank’s security. This does not include big investors on agriculture, who can easily pay back the money they borrowed, or who can reduce their debt quickly.

“Mr. Sok Siphana said that about 20,000 tonnes of rice were exported in 2009. – This workshop was supported by UN ESCAP that had sent well-known experts from India and from the World Bank to share their experiences with Khmer officials.” Rasmei Kampuchea, Vol.18, #5216, 6.6.2010

This article was first published by The Mirror, Vol. 14, No. 667 - Saturday, 5.6.2010
Have a look at the last editorial - you can access it directly from the main page of The Mirror.

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

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