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PROGRAMME FOR COUNTRY PARTNERSHIP

CAMBODIA

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TIMELINE

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Introducing Cambodia

Cambodia has achieved significant development progress over the past two decades. This progress has been largely driven by strong economic growth, averaging at 7.7% from 1995 to 2017, placing Cambodia as the sixth fastest growing economy in the world (World Bank). Poverty rates fell from 52% in 2004 to 13.5% in 2014 and Cambodia attained lower-middle income status in 2015.  

Building on recent progress and its vision to graduate to upper-middle-income status by 2030, the government designed an Industrial Development Policy (IDP) for the period 2015 to 2025. The IDP seeks to transform and modernize Cambodia’s industrial structure from labour-intensive to skills-driven and contribute to sustainable economic growth through increased economic diversification, competitiveness and productivity.

PCP Cambodia

A unique opportunity to boost the economy

In 2017, Cambodia was announced as the first PCP country in the Asia and Pacific region and part of the pilot phase. The Programme for Country Partnership for Cambodia (PCP Cambodia) will support the implementation of the national industrial development policy. It builds on Country Programme signed between the Government of Cambodia and UNIDO in 2016.

PCP Cambodia is structured along two main components: i) Agro value chain development, including linkages to the tourism sector; and ii) Industrial diversification, innovation and the development of special economic zones (SEZs).

This will be supported by several cross-cutting components, namely industrial policy and statistics, quality infrastructure, sustainable energy, circular economy, and women’s empowerment and youth employment.

NATIONAL DEVELOPMENT GOALS

PCP Cambodia supports the following targets from the country’s Industrial Development Policy 2015-2025, inter alia:

  • Increase the GDP share of the industrial sector from 24% to 30%
  • Increase the GDP share of manufacturing from 15.5% to 20%
  • Increase the exports of non-textile goods to 15%
  • Increase the exports of processed agricultural products to 12%
  • Formal registrations of small and medium-enterprises to reach 80-95%

PRIORITY AREAS

The PCP will strengthen forward and backward industrial linkages along the agri-business value chain to promote competitive and inclusive growth of the country’s agro-industrial sector, leading to increased employment and income opportunities. 

This PCP component aims to facilitate business environment reforms, enhance business development infrastructure, promote export diversification, increase the competitiveness of small and medium-sized enterprises, and foster innovation and inclusive and sustainable economic transformation.

CROSS-CUTTING AREAS

The component will support the effective implementation of the national Industrial Development Policy (2015-2025) through capacity-building initiatives, the provision of policy advice and technical expertise, and the review and upgrade of existing policies and strategies.

The component will support the compliance capacity of private sector actors in prioritized value chains. Interventions will raise awareness and build capacity related to standards, technical regulations and quality requirements for domestic and foreign markets.

The goal of this component is to support Cambodia in transitioning towards sustainable energy through the application of renewable energy for productive use, energy efficiency in industry, and the introduction of low-carbon technologies and processes.

The aim of this component is to mainstream circular economy principles and practices in Cambodia’s industry, and contribute to increased productivity and competitiveness while reducing the environmental footprint of enterprises.

Support to women’s economic empowerment and youth employment will be integrated  across all PCP interventions, taking a gender-responsive and youth-oriented approach.

COORDINATION STRUCTURE

  1. A high-level inter-ministerial National Coordination Body will be established as the highest PCP governing body, mandated by the Prime Minister.

OUTLOOK FOR 2020

In 2020, additional technical interventions will be defined as the PCP Cambodia gears up for implementation. A number of projects are already ongoing in the main priorities and cross-cutting interventions of the PCP.