Remarkable Achievements Made in Cambodian Industry Sector

The Cambodian industry sector has made remarkable achievements over the last year due to implementing a good governance, creating a favorable environment for investments and absorbing foreign assistance.

It is noticed that by the end of 1991, when Cambodia just realized peace and national reconciliation, there were only 69 factories throughout the country, while majority of them were hired by, or sold to, private or foreign owners.

By the end of 2000, 340 factories have registered at the Ministry of Industry, among them 184 were garment factories. In the year 2000 alone, 32 new factories registered at the ministry.

The gross industrial output of the 340 factories valued at US$1.16 billion in 2000, increasing by 47% over the year 1999.

Out of the 340 factories, 198 were specifically producing exported products which earned the revenue amounting to 1.092 billion dollars in 2000. The garment sector, main exporter in the country, gained foreign exchange income of 1.053 billion dollars in the same year, increasing 51 percent compared to 1999.

Currently, there are 861 small industrial enterprises and handicrafts workshops in Cambodia, producing steel, processed steel, chemical rubber, foods, drinks, tobacco, paper, milk and plastic products. The gross output value increased by 33% in 2000 compared to 1999.

In the year 2000, the ministry examined the quality of 800 types of exported products, 600 of them were responded to and accepted by international standard.

Power supply is another sector being controlled and supervised by the Ministry of Industry.

In the period between 1992 and 1995, with foreign assistance from France, Japan, and loans from World Bank(WB) and Asian Development Bank(ADB), the Royal government renovated 3 power plants with capacity of 30 megawatts. But by the end of 2000, the power supply has reached 100.5 megawatts that could supply to a number of factories and meet the needs of consumers living in the capital.

In the Five-Year Plan 2001 to 2004, with the assistance of US$24.17 million loans from WB and ADB, the government-controlled Cambodian Electricity is planning to build a number of power plants in provincial towns of Kampot, Takeo, Banteay Meanchey and Steung Treng.

Meanwhile, WB and Japanese International Cooperation Agency have planned to develop a power transmission line from Cambodia-Vietnam border to Phnom Penh with the total cost of US$82 million.

Also, in the five-year plan, the industry sector is planning to build hydropower stations in Mondulkiri, Kirirom and Kamchay with assistance from Japan, Switzerland, China, Canada and Thailand.

Upon the Completion of the projects, the power supply is expected to increase up to 400 megawatts, which, combined with the power supply to be purchased from Vietnam, will meet the needs of the country for the power supply sufficiently.

The government, meanwhile, is encouraging foreign investors to invest in building solar power, wind power and gas power plants in rural areas.

Insufficiency of power supply and its high price, lack of specialized human resources and international market informations still negatively affect the attraction of foreign investments in the sector.






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