Cambodia’s economy is still healthy with GDP growth recorded 6.9 in 2017 as it has climbed to another level of economy status. This has been contributed by three sectors, namely tourism, construction and export. The increase in tourists by 10.4 percent in 2017 is attributed to direct regional flight and government’s policy. Also, the construction sector has reached a robust growth by going up 27 percent and number of machinery factories triples while export of textile contracts due to global market and local hurdles. Nevertheless, Cambodia is ranked 94 out of 137 in competiveness and this is caused by poor human resources, infrastructure and so on. This has indicated that Cambodia can no longer rely on old momentum for growth like garment and current export base like US and Europe, which is fragile to price and country shock.
Cambodia can diversify its economy by producing goods with market potential such as sugar, palm oil and so on. Also, it can divert tourists to other potential destination like northeast provinces, which is ecotourism destination. In addition to that, Cambodia can improve its infrastructure by facilitating ways of transportation, reduce electricity cost and improve human resources by prioritizing science, math and soft skills in its education system. Furthermore, reforming regulatory framework for tax and corporations can be an opportunity while corruption, policy stability and logistics cost are still concerns for business.
Source: Khmer Times, 28th February 2018
