Small and Medium Scale Industry in Cambodia Will Be Strengthened for ASEANization

Small and Medium Scale Industry in Cambodia Will Be Strengthened for ASEANization

The Mirror, Vol. 14, No. 653

“Phnom Penh: Starting from 2015, member countries of ASEAN will exchange goods freely. Cambodia is among them, a country that is preparing to develop itself, while small and medium scale industry remains not so strong and needs further development so that it can compete with other ASEAN countries.

“Relating to the development of small and medium scale industry, the secretary of a Cambodian macro-micro industry community, Mr. Ouk Ren, spoke yesterday to Deum Ampil,

saying, ‘The development of small and medium scale industry in Cambodia is speeding up, and its capacity has to be further strengthened for its ASEANization in 6 points: 1. Organization of leadership institutions, 2. Financial supporting systems, 3. Marketing networks, 4. Extensive communication, 5. Information and communication technology, and 6. Promotion of leadership ability in all sectors.’

“He added, ‘Most small and medium scale enterprises are operated as family businesses. Therefore, if we do not organize them, it will be difficult for them to relate to, and to integrate into foreign trade. It requires that public services are coordinated and that improvements happen so that developments are in line with the global commercial situation.’

“He emphasized, ‘Nowadays, there are more than 100 small and medium scale industrial enterprises operating in Cambodia. At present, they are facing a financial crisis, and everyone is trying to improving their operations in order to recover; but they have not prepared themselves to integrate with other ASEAN countries. Anyway, we have this policy direction, but we do not yet have explicit strategies. In the meantime, we need leadership from the Ministries of Industry, of Economy, and of Commerce, as the private sector cannot function without passing through these government institutions.’

“As for Siam [Thailand], the General Director of the Industrial Extension Department of Siam, Mr. Atith Vuthikaro [phonetic], said, ‘A few small and medium scale enterprises have established branches to cooperate in trade with other ASEAN countries.’

“He added, ‘In Cambodia, Vietnam, and Laos labor is cheap, and those countries provide good opportunities for Thai investment abroad, when Thai companies establish trade relations.’

“Mr. Atith went on to say, ‘Ten percent of the leading enterprises, or around 90,000, will concentrate on the expansion into ASEAN countries. Thirty percent of the Thai enterprises have been well developed. And many of those enterprises focus on food processing and the production of beverages.’

“The director general of a Thai industrial development structure, Mr. Manob Chaiwatana Suthorn [phonetic], said, ‘While seeking trading cooperation, we initially concentrate on Cambodia, Burma, Laos, and Vietnam, because these countries have cheap labor and a lot of raw materials for the development of small and medium scale enterprises.’” Deum Ampil, Vol.4, #417, 23.2.2010

This article was first published by The Mirror, [3] Vol. 14, No. 653 - Tuesday, 23.2.2010
Have a look at the last editorial - you can access it directly from the main page of The Mirror. [3]

Norbert Klein is the Editor of The Mirror [4] – The Mirror is a daily comprehensive summary and translation of the major Khmer language press - More about The Mirror [5]