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GLOBAL WORKSHOPON
PUBLIC-PRIVATE DIALOGUE
VIENNA, AUSTRIA - 27-30 April 2009
Presented by: Van Sou IengChairman 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
CAMBODIA EXPERIENCES
CONTENT OF THE PRESENTATION
I- About Cambodia
II- About GMAC and the Cambodian Garment Industry
III- GMAC and G-PSF
IV- GMAC Experiences - Some Success Stories
V- Challenges and Ways Forward
I- About Cambodia Area: 181, 035 sq kmPopulation: 14 MillionReligion: 95% are BuddhistGovernment: Constitutional
monarchyBorders: Laos, Thailand & VNRegion: ASEANMain sectors: agriculture, garments,
tourism and construction24 provinces and municipalities,
Phnom Penh is the capitalSea port: Sihanoukville
II-About GMAC and the Cambodian Garment IndustryEstablished 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-PSFThe 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 StoriesTwo reductions of Export Management Fee
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
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
• 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%
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;
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