Transcript Cambodian Federation of Employers and Business Associations

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
Co-Chair of G-PSF Working Group on Export Processing and Trade Facilitation
CONTENT OF THE PRESENTATION
IIIIIIIVV-
About Cambodia
About GMAC and the Cambodian Garment Industry
GMAC and G-PSF
GMAC Experiences - Some Success Stories
Challenges and Ways Forward
I- About Cambodia
 Area: 181, 035 sq km
 Population: 14 Million
 Religion: 95% are Buddhist
 Government: Constitutional
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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
I- About Cambodia
Source: Ministry of Economy and Finance
I- About Cambodia (Inflation)
Source: Ministry of Economy and Finance
I- About Cambodia: Tourist Arrivals
Source: Ministry of Tourism
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.
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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.
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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.
IV- GMAC’s Experience - Some Success Stories
 Two reductions of Export Management Fee
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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
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
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;