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GLOBAL WORKSHOP ON PUBLIC-PRIVATE DIALOGUE VIENNA, AUSTRIA - 27-30 April 2009

GLOBAL WORKSHOP ON PUBLIC-PRIVATE DIALOGUE VIENNA, AUSTRIA - 27-30 April 2009. CAMBODIA EXPERIENCES. Presented by: Van Sou Ieng Chairman of the Cambodia Garment Manufacturers Association Chairman of the Cambodia Federation of Employers and Business Associations

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GLOBAL WORKSHOP ON PUBLIC-PRIVATE DIALOGUE VIENNA, AUSTRIA - 27-30 April 2009

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  1. GLOBAL WORKSHOP ON PUBLIC-PRIVATE DIALOGUE VIENNA, AUSTRIA - 27-30 April 2009 CAMBODIA EXPERIENCES Presented by: Van SouIeng Chairman of the Cambodia Garment Manufacturers Association Chairman of the Cambodia Federation of Employers and Business Associations Co-Chair of G-PSF Working Group on Export Processing and Trade Facilitation

  2. CONTENT OF THE PRESENTATION I- About Cambodia II- About GMAC and the Cambodian Garment Industry III- GMAC and G-PSF IV- GMAC Experiences - Some Success Stories V- Challenges and Ways Forward

  3. I- About Cambodia • Area: 181, 035 sq km • Population: 14 Million • Religion: 95% are Buddhist • Government: Constitutional monarchy • Borders: Laos, Thailand & VN • Region: ASEAN • Main sectors: agriculture, garments, tourism and construction • 24 provinces and municipalities, Phnom Penh is the capital • Sea port: Sihanoukville

  4. I- About Cambodia Source: Ministry of Economy and Finance

  5. I- About Cambodia (Inflation) Source: Ministry of Economy and Finance

  6. I- About Cambodia: Tourist Arrivals Source: Ministry of Tourism

  7. II-About GMAC and the Cambodian Garment Industry • Established in 1996, GMAC, which represents the garment industry, has become the largest exporters' trade association in Cambodia; • The Cambodian garment industry with over 300 factories, employs around 350,000 workers, most of whom are females from rural provinces; • It is estimated that close to 2 million people are directly and indirectly supported by the industry; • The industry accounts for 80% of Cambodia's total exports and contributes 17% of the country's GDP.

  8. III-GMAC and G-PSF • The Cambodian G-PSF, and 8 Working Groups, improve the business environment, build trust, and encourage private investment; • The WGs are chaired by Ministers from related ministries and co-chaired by private sector representatives; • The Forum is a unique platform which enables the Cambodian private sector to identify business environment problems and seek solutions with Government counterparts; • Given its importance in international trade, GMAC provides the Co-Chair for the 7th Working Group, on Export Processing and Trade Facilitation.

  9. III-GMAC and G-PSF • GMAC also actively participates in other relevant working groups; • Thanks to assistance from IFC, as the secretariat, the 7th WG is able to convene regular meetings with the private sector and the Government; • It is planned that in a year's time, business membership organizations such as GMAC will serve as secretariats for the WGs under the umbrella of the Cambodian Chamber of Commerce.

  10. IV- GMAC’s Experience - Some Success Stories • Two reductions of Export Management Fee has saved GMAC members USD 2,2 millions (2008) • Reduction of bureaucracy and documentation required for import-export procedures; • Certificate of Origin now issued within 48 hrs, with reduced cost and documentation (2 GMAC staff are positioned at MoC to assist factories in C/O applications); • Introduction of the ASYCUDA system which has automated export documentation, saving time and money; • Creation of a handbook on export procedures • Suspension of Advanced Profit Tax (1%) until 2012 The above improvements reduce business costs and time

  11. IV- CAMFEBA’s Experience - Some Success Stories • Reduced the employers’ contribution to the National Social Security • Fund from 1.8% to 0.8% • Established a Task Force on amendments to the Labor Law • Reduced night shift rate from 200% to 130% • A platform to discuss with labor unions (+1000 unions for 300 factories) and to provide direct information to Government on issues faced by employers • Credibility : CAMFEBA is a full member of all tripartite bodies; the NSSF, the National Training Board. The above improvements reduce business costs and improve labor relations

  12. V- Challenges and Ways Forward • The Government’s strong commitment to private sector development is the starting point; • Strengthen inter-ministerial cooperation in order to provide solutions which require commitment from more than one ministry; • Increase active participation of private sector in presenting issues as well as recommending the appropriate solutions;

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