Xinhua | October 11, 2012 13:58
By Agencies |
|
Cambodia
could reap even greater benefits from trade facilitation measures in the
Greater Mekong Subregion (GMS) by removing high logistics costs, delays
and other barriers that hamper the country's connectivity and
competitiveness, according to a new Asian Development Bank (ADB) book
released here on Thursday.
"Cambodia's exporters are
well-positioned within the GMS to grow and expand," said Peter Brimble,
senior country economist and author of one of the book chapters. "Policy
adjustments can help reduce cost and transport times, making Cambodian
exporters more competitive and enhancing their credibility."
Inefficiencies
in export and import processes and export constraints in Cambodia cause
significant delays and additional costs, which make the country less
competitive in regional and global markets, according to the book
entitled "Trade and Trade Facilitation in the Greater Mekong Subregion,"
which used the Southern Economic Corridor as a case study.
Transport
costs in Cambodia are $9 per ton per 100 km from Bangkok to Phnom Penh
and $13 per ton per 100 km from Phnom Penh to Ho Chi Minh City, compared
with $6 in Thailand and $7 in Vietnam, the book said, adding that
logistics costs for the Cambodian section, at $19 to $20 per ton per 100
km, are almost double those for the Thai and Vietnamese sections.
It
said that Cambodia's exports grew by 13.5 percent yearly and its
imports by 12.3 percent. But the share of Cambodia and Laos in the total
trade of the GMS countries, excluding China, remains small. Thailand
accounted for 68.8 percent of the total exports of GMS 5 countries in
2009, Vietnam 25.6 percent, Cambodia 2.2 percent, Laos 0.6 percent, and
the rest came from Myanmar.
The book prioritizes three policy
measures to address logistics challenges, including increasing the
availability of information about agreements, laws, rules, and
regulations; minimizing checkpoints along the corridor; and expediting
the issuance of certificates of origin, which presently take 5-7 days
for the Cambodian sector but are issued almost immediately in Thailand.
At
the sector level, the book looked at garments, rice and wood exporters,
conducting interviews with 120 small and medium enterprises and 39
export companies.
Cambodian firms reported a lack of reliable
energy supply, shortages of labor with sector-specific skills, financing
constraints, and government regulations that slow down their ability to
import inputs and also hamper their ability to export more.
Cambodian
garment exports accounted for about 82 percent of all Cambodian
exports. However, without a stable electricity and water supply,
manufacturers say they aren't able to produce high quality fabrics that
would allow them to move up the value chain, whilst food exporters face
shortages of investment capital, industry- specific infrastructure, and
international familiarity with Cambodian products.
"These constraints not only hold back exports, but also affect foreign direct investment," the book noted.
To
ease the constraints and improve the process of exporting and
importing, the book recommended implementing e-clearance; reducing
processing time for certificates of origin; improving access to capital;
improving water supply by tapping onto additional supply sources;
simplifying documentation processes; increasing access to information
about export requirements, processes, times and costs; and building the
pool of skilled labor.
The Greater Mekong Subregion (GMS)
comprises Cambodia, Laos, Myanmar, Thailand, Vietnam, and Yunnan
Province and Guangxi Zhuang Autonomous Region in China.
