National Project Director, TDSP Director, EIF-NIU. Pich... · Automation of SPS Certificate (GDA-MAFF), Trade Training and Research Institute (TTRI-MoC), ... P3 : Strengthening Key

By CHHIENG Pich,Director, DICO

National Project Director, TDSPDirector, EIF-NIU

1. Part I

1.TDSP

2.EIF Tier 1 and Tier 2

2. Part II

Medium Term Plan development

3.Part III

Study on Cambodia’s graduation from LDC

1. Project Development Objectives (PDOs): TDSP will contribute to increase the Royal Government of Cambodia's efficiency in formulating and implementing effective trade policies.

2. Multi-Donor Trust Fund : EU, DANIDA & UNIDO3. Trust Fund Manager : World Bank4. Executing Agency : DICO/MoC5. Board approval date : 07 Jan 20096. Effective date : 09 Mar 20097. Duration : 5 years (until 31 Mar 2012)8. Original budget : US$12,350,0009. Additional budget : US$3,100,00010. First extension : 31 Jan 2014 (22 months)11. Second extension : 31 Mar 2015 (14 months)12. Third extension : 14 Aug 2016 (17 months)13. EU-ROM & WB Implementation Support Mission: 22 Sep – 02 Oct 2015

14. Last WB Implementation Support Mission : 02-12 May 2016

TDSP Funds PositionAs of 31st March 2016

(Unaudited - Expressed in Percentage of the Total Grant Amount of US$ 15.450 million)

• We have $ 2,740,647 to spend in the next 5 months,

• We need to spend $ 548,130 each month till the end of TDSP including the grace period.

TDSP FundDisbursement by Year, As of 31st March 2016

(Expressed in Percentage of the Total Grant Amount of US$ 15.450 million)

4%

0.75 %

10.8%

17.8%

13.5%

NOTE: *. Cumulative Disbursement = USD 12,709,353**. Cumulative Disbursement as a Percentage of Total Grant = 82.3%

No Identified Projects # Projects

1. Total project under TDSP 29

2. Projects completed and closed 20

3. Ongoing projects 9

• Projects will be completed and closed by Aug 2016 ASYCUDA World System (GDCE-MEF), ICT Master Plan – Automation of Certificate of Origin (MoC), Automation of Business Registration (BRD), Automation of SPS Certificate (GDA-MAFF), Trade Training and Research Institute (TTRI-MoC), Drafts of Rice Standards – Certification Schemes for Rice (Accreditation System) (ISC-MIH), Development of a stronger National system for IP generation, protection, administration and

enforcement (DIPR), Support for the Arbitration Council and Dispute Resolution in Cambodia Strengthening the Operational Capacity of the National Commercial Arbitration Centre

9

No Date Proposal IA Pillar Focus (P) Component focus (C) Budget

1 01 Jul 2010(18 months)

Rule of Origin: Operational Procedures & Training

D/MUL MoC

P1: Legal Reform C1-C: Other legal reforms & RGC WTO obligations

$303,046

2 14 Jul 2010 (4 months)

Information dissemination on Top Ten products from Cambodia 24 provinces

TPD MoC

P2: Various C1-A: Technical Barrier to Trade, Sanitary & Phyto-

Sanitary

$48,211

3 14 Jul 2010 (9 months)

Export training & SME training: Export training & coaching services

TPD MoC

P1: Trade Facilitation C1-B: Trade Facilitation $54,899

4 14 Jul 2010 (18 months)

Strengthening the capacity of Institute of Standard of Cambodia (ISC)

ISCMIME

P1: TBT, SPS, & Trade Facilitation

C1-A: TBT & SPS $384,264

5 26 Jul 2010(3 months)

Study on minimum wages & minimum wages negotiation in garment sector

CANFEBA P1: Legal Reform C1-C: Other legal reforms & RGC WTO obligations

$46,000

6 06 Aug 2010(18 months)

Capacity Building for the Dept of Trade & Statistics

DTSIMoC

P3: Strengthening key MoC Depts & key Moc functions

C3: Human & Institutional Capacity Building

$137,540

7 17 Sep 2010(12 months)

Customs Valuation GDCEMEF


8 17 Sep 2010(12 months)

Awareness program on Customs in Cambodia

GDCEMEF


9 23 Sep 2010(14 months)

Development of a trade curriculum at the Royal School of Administration

RSAOCM

P3: Strengthening trade-related capacities of RSA


$123,650

10 28 Sep 2010(20 months)

Enhancing IP Teaching and Training DIPRMoC

P1: Legal Reform C1-C: Other legal reforms & RGC WTO obligations

$110,000

11 15 Oct 2010(24 months)

Support drafting E-Commerce Law LADMoC

P1: Legal Reforms and Cross-cutting Issues &

P3 : Strengthening Key MOC Depts & Key MOC Functions


$164,923

TDSP Summary of MoU – 1/3


12 29 Dec 2010(15 months)

Reviewing of Commercial Laws D/N&CMoC

P1: Legal Reforms and Cross Cutting Issues

C1 : Trade Policy Formulation and Implementation

$219,949

13 29 Dec 2010(18 months)

Strengthening MoC core DR functions through the DoP Institutional and

Individual Capacity

DoPMoC

P3: Capacity Development for Trade

C3: Strengthening institutional and human capacity

$234,540

14 30 Dec 2010(12 months)

Strengthening Institutional Risk Management Capacities in

CAMCONTROL General Directorate

CAMCONTROL

MoCP3: Capacity

Development for TradeC3: Strengthening institutional

and human capacity$150,386

15 30 Dec 2010(12 months)

Value Chain Information Unit TPDMoC


C3: Human and Institutional Capacity Building

$263,208

16 31 Dec 2010(12 months)

Phase 1: Raising awareness on the law on investment and its regulation and

investment promotion to the sub-committee on Provincial/Municipal

investment and private

CIBCDC


C3: Strengthening institutional and human capacity

$195,860

17 30 May 2011(14 Months)

Capacity Enhancement Program GDCEMEF

P1 & P3 C1-B: Trade Facilitation $613,105

18 09 Jun 2011(9 months)

ICT Master Plan Implementation GDITMoC

P1 & P3 C1-B: Trade Facilitation $2,608,876

19 11 Jul 2011(10 months)

Implementing Agency Capacity Enhancement Program

RSAOCM

P1 & P3 C1-B: Trade Facilitation $605,125

20 11 Jul 2011(8 months)

The development of completed drafts of national standards for rice and

strengthening the capacity of conformity assessment body-Phase I

ISCMIME

P1 C1-C: Policy Formulation and Implementation in the area of

SPS and TBT

$360,216



21 30 Sep 2011(6 months)

Better Quality and Safety of Fish and Fishery Products for Improving Fish

Trade Development in Cambodia

FiAMAFF

P2 C1-C: Policy Formulation and Implementation in the area of

SPS and TBT

$1,262,708

22 16 Aug 2012(15months)

Development of a stronger National system for IP generation, protection,

administration and enforcement.

DIPR/MoC P1 C1-C: Trade Policy Formulation $148,491

23 28 Sep 2012(15 months)

Support to G-PSF CCC P2 B. Trade Support Institution

C2. Increase transparency & user feedback mechanism on

trade-related processes.

$260,338

24 12 Jul 2012(18 months)

GDCE ASYCUDA World System Project GDCE P1 C1-B: Trade Facilitation $1,398,753

25 20 Jun 2014(11 months)

Streamlining and Automation of Business Registration

DBR P1 C1-B: Trade Facilitation $399,398

26 20 Jun 2014(11 months)

Automation of Phyto-Sanitary Certificates

GDA/MAFF P1 C1-B: Trade Facilitation $392,800

27 Jul 2014(11 months)

Trade Training & Research Institute(TTRI)

TTRI/MoC P3: Capacity development for trade

C3: Strengthening institutional & human capacity

$500,000

28 Jun 2015(14 months)

Support to the Arbitration Council and Dispute Resolution in Cambodia

ACF P2 B. Trade Support Institution

C2. Contribute to export competitiveness and private

sector development

$135,055

29 Jun 2015(14 months)

Strengthening the Operational Capacity of the National Commercial Arbitration

Center

NCAC P3: Capacity development for trade

C3: Strengthening institutional & human capacity

$99,640

TOTAL $11,365,981


Project Objective: The project aims at strengthening the in-country arrangements of the Enhanced Integrated Framework in order to increase Cambodia’s ownership of trade-related technical assistance (TRTA) and maximizing the benefits that the country, in particular the private sector, can derive from the Enhanced Integrated Framework.

1. Donors : EIF Multi Donor Trust Fund, managed by UNOPS2. Implementing Entity : DICO/MOC (NIU)3. Board Approval : Date: September 29, 20094. Effective kick-off date : February 3, 20105. Duration : 5 years (until February 2, 2015)6. Original budget : US$1,293,9007. Additional budget (CTIS) : US$200,0008. Phase 1 no-cost extension : July 31, 2013 (6 months)9. Current end date : July 31, 201510.Last Supervision missions : July 2014 (UNOPS)

: February 2014 (EIF ES)12.Next Supervision missions : Week 4 of Mar 2016

1. Title: Cambodia Export Diversification and Expansion Program (CEDEP). 2. Multi-Donor Trust Fund: 23 donors3. Trust Fund Manager: UNOPS4. Executing Agency: DICO/MoC

CEDEP I CEDEP II

5. PDO CEDEP I: to strengthen and diversify export supply capacity in Milled Rice, High-Value Silk sectors and enhance the capacity of DICO/MoC to monitor and evaluate substantive progress of Cambodia’s Trade Sector Wide Approach (Trade SWAp).

7. PDO CEDEP II: to strengthen and diversify export supply capacity in cassava, marine fishery products, academy of culinary arts of Cambodia and enhance the capacity of DICO/MoC to monitor and evaluate substantive progress of Cambodia’s Trade Sector Wide Approach (Trade SWAp).

6. Implementing Agency for CEDEP I• Milled Rice by IFC• High-Value Silk by ITC• M&E function by DICO/MoC• Starting date: 25 Oct 2012• Closing date: 25 Oct 2015

8. Implementing Agency for CEDEP II• Cassava by UNDP• Marine Fisheries by UNIDO• ACAC (Academy of Culinary Arts of

Cambodia) by Shift360• M&E function by DICO/MoC• Starting date: 11 Aug 2014• Closing date: 11 Aug 2017

Program Objective: is to strengthen and diversify export supply capacity in selected pillar 2 sectors that have been identified as priority sectors by Government.

1.Donors : EIF Multi Donor Trust Fund, managed by UNOPS2.Main Implementing Entities : IFC, ITC & DICO/MOC (NIU)3.Board Approval Date : August 6, 20124.Effective kick-off date : July 1st, 20125.Duration : 3 years (until June 30th, 2014) (*)6.Original EIF budget : US$2,407,7147.Total Program Cost : US$3,383,4298.Last Supervision mission : May 2015 (UNOPS and EIF ES)9.Next Supervision missions : Week 4 of Mar 2016

(*) depends on actual MoU signature date

Components Budget

Request from

EIF Tier 2

Government

contribution

Private

Sector

contribution

In-Kind

Contribution

from MIEs

Total Program

Cost

Milled Rice $1,112,847 $408,000 $159,725 $1,680,572

High Value

Silk

$1,004,347 $167,400 $40,000 $178,150 $1,389,897

Evaluation

Function +

Core Teams

$290,520 $22,440 $312,960

Total $2,407,714 $189,840 $448,000 $337,875 $3,383,429

Budget from EIF Tier 2

Year 1: $802,571

Year 2: $802,571

Year 3: $802,572

Program Objective: The program aims at strengthening and diversifying export supply capacity in three of the nine (out of 9) Pillar 2 sectors that have been identified by the Government as export sectors requiring immediate, priority action including Cassava, Marine Fisheries Products and Tourism.

1.Donors : EIF Multi Donor Trust Fund, managed by UNOPS2.Main Implementing Entities : UNDP, UNIDO, Shift 360 & DICO/MOC (NIU)3.Board Approval Date : January 13, 20144.Effective kick-off date : February 21, 20145.Duration : 3 years (until 2017) (*)6.Original EIF budget : US$3,283,5897.Total Program Cost : US$6,382,9448.Last Supervision mission : May 2015 (UNOPS and EIF ES)9.Next Supervision missions : Week 4 of Mar 2016

(*) depends on actual MoU signature date

Budget from EIF Tier 2

Year 1: $1,204,499

Year 2: $1,039,545

Year 3: $1,039,545

Components Request from

EIF Tier 2

Government

contribution

Private

Sector

contribution

In-Kind

Contribution

from MIEs

Contribution

from other

Donors

Total

Program

Cost

Cassava $997,026 $40,885 $128,000 $137,574 na $1,303,485

Marine

Fisheries

Products

$988,953 $71,000 $188,000 $55,989 na $1,303,942

RACA $950,000 $144,000 $270,767 $140,400 $1,900,000 $3,405,167

Evaluation

Function +

Core Teams

$347,610 na na $22,740 na $370,350

Total $3,283,589 $255,885 $586,767 $356,703 $1,900,000 $6,382,944

Other DPs Contribution

to be confirmed)

World Bank Rating on TDSP Towards Achieving the PDO

2010

2011, 2012, 2013, 2014

2015Satisfactory

Moderately Satisfactory

Moderately Unsatisfactory

Unsatisfactory

Highly Satisfactory

World Bank Rating on TDSP’s Overall Implementation Progress

2010

2011, 2012, 2013, 2014,

2015Satisfactory

Moderately Satisfactory

Moderately Unsatisfactory

Unsatisfactory

Highly Satisfactory

# of Actions % of Total

Status of Work

No work 56 42%

Work under way 74 55%

Completed 4 3%

Total: 134 100%

Status of TA

Not needed 31 23%

Ongoing 62 46%

TA needed 41 31%

Total: 134 100%

1. Trade Policy, Sector Policy, Legal and Regulatory Reform: Formulate Trade Policy in view of AEC, RCEP, TPP and erosion of preferences including RoOs; develop sector policies (e.g. cassava, fish, rubber, others); identify sector-specific NTMs; implement the Government’s 2012-2015 Work Program on Legal Reform, including key reforms identified in the Trade SWAp Road Map 2014-2018.

2. Trade Facilitation and Transport Logistics: Establish the NSW including automation of trade related documents; respond to the Bali Agreement on Trade Facilitation; develop, adopt, implement a national transportation logistics plan; improve cross-border transit agreements; improve and enforce road transport regulations; encourage modernization of road transport fleet.

3. SPS and Other Quality Systems for Trade: Complete key legal reforms in SPS; develop capacity of key agencies not only in Phnom Penh but in field offices as well especially in areas of surveillance and inspections; promote a culture of SPS including through encouraging agro exporters to adopt SPS standards required by importing markets, develop various quality systems to support export sectors (e.g. rubber, silk.)

4. Private Sector Structuring: Strengthen sector associations and private sector in rice, cassava, fisheries, rubber, and hospitality including ability of sectors to articulate positions and engage government through G-PSF or other venues; strengthen and promote branding through sector-specific collective marks, GIs, Quality Seals, other means as well as through “Made in Cambodia” branding; strengthen export promotion capacity including through capacity building in sector associations.

5. Development of Inclusive Value Chains: Build capacity of priority export sectors identified by Government in the Trade SWAp Road Map 2014, including in light manufacturing, agro-processing, rubber and tourism.

6. Trade Mainstreaming and Management of Aid for Trade: Continue to build capacity for monitoring and communicating Trade SWAp as a program instead of a collection of projects; continue to mobilize and coordinate AFT support; strengthen capacity of MoC and other line ministries to participate in SWAp; improve fiduciary management of AFT projects using different disbursement modalities. Deepen trade build trade-related training and research capacity in Government;

7. Skills for Exports: Address the lack of skilled technical personnel as a result of the absence of a robust TVET structure is a serious bottleneck in Cambodia’s ability to move up value chains; address the lack of well-trained engineers (mechanical, structural, agricultural, chemical, biologist, etc.); strengthen collective bargaining environment and dispute resolution mechanisms.

8. Investment Environment, Integration in Regional Value Chains, Backward Linkages: Complete supportive legal framework including encouraging development/deepening of backward linkages in garment, bicycles, footwear, hospitality (horticulture); diversify investment in regional and global value chains beyond garment, footwear and bicycles; develop investment promotion capacity including at provincial level.

9. Rural Development for Exports including Extension Services, Cooperatives Development, Surveillance Services: Develop structured value chains between farmers and semi-agro-processors or agro-processors through farmers groups, cooperatives, contract farming arrangements, etc; strengthen quality of seeds, seedling, and other plantings;

10. Access to Finance: Address the lack of access to working capital and trade finance especially for SMEs and other small producers/exporters as it is a significant constraint to export development.

Cluster 1: Trade policy, sector policy and legal and regulatory reform

Cluster strategic objectives Trade SWAp Roadmap Outcomes

1. Complete trade-related key legal and regulatory reforms

Outcome 1: Trade policy, legal reform and trade negotiations

2. Strengthening implementation of trade-related laws and regulations through strengthening of implementation and enforcement capacity of relevant line ministries and agencies

Outcome 6: Establishing a trade-supportive framework forintellectual property rights

3. Formulate a trade policy 2015-2025 to guide Cambodian negotiators

Outcome 1: Trade policy, legal reform and trade negotiations

4. Develop sector policies based on value chain analytical work

Outcome 18: Mainstreaming trade

Start-up projects (Low-hanging fruits)

1) Accelerate implementation of the work program on legal reform 2012-2015

2) Analyze non-tariff measures included in the National Trade Repository

3) Strengthen enforcement of geographical indications

4) Formulate a trade policy

Estimated resource needs (2016-2020) USD 4-5 million

Cluster 2: Trade facilitation and Transport logistics


1. Implement Cambodia National Single Window (NSW)

Outcome 2: Trade facilitation

2. Formulate and Implement National Trade Logistics Plan

Outcome 3: Trade logistics

3. Implement ATIGA and the WTO Trade Facilitation Agreement (“Bali Package”)

Outcome 2: Trade facilitationOutcome 1: Trade policy, legal reform and trade negotiations

Start-up projects

1) Review Arrangements among Cambodian Border Agencies and with Vietnamese and ThaiCounterparts Agencies to Create Shared Border Point Offices/Facilities at Key Crossings

2) Assessment of Other Trade-Facilitation-related Documents not yet Computerized

3) Support Initial Work on National Trade Logistics Plan

4) Institutional Arrangements and Assistance Modalities for TFA Implementation in Cambodia

Estimated resource needs (2016-2020) USD 5 million

Cluster 3: SPS and other Quality Systems for Trade


1. Establish a coherent WTO- and ASEAN-

compatible legal and regulatory framework for

SPS and other quality systems

Outcome 4: Strengthened capacity of exporters to

meet technical standards and SPS requirements.

2. Enhance systems and structures to develop

adoption of SPS standards and practices

throughout the entire food value chain from

“farm-to-fork”, including strengthening SPS

practices at farm, producer, and retailer levels



3. Achieve international accreditation of

Cambodian laboratories for relevant

parameters



Outcome 17: Bridging the skill gap for exports.

Start-up projects

1. Amend and adopt a WTO-compliant Law on Standards

2. Complete drafting of Food law and assemble group of experts to eliminate contradictions and lack of

coherence in current SPS framework.

3. Adopt 250 or ASEAN harmonized standards not yet adopted by Cambodia


Cluster 4: Private Sector structuring


1. Private sector Associations are able to

articulate positions and dialogue with

Government through the G-PSF or other

venues

Outcome 10: Processed food.

Outcome 12: Milled rice.

Outcome 13: Cassava.

Outcome 14: Rubber.

Outcome 16: High value silk.

2. The private sector and Government develop

PPP arrangements to narrow the labor skill

gap, invest in common facilities, or support

other investment in “public goods”

Outcome 7: Garments.

Outcome 9A: SEZ.

Outcome 15: Tourism.

3. The private sector increases capacity in

marketing, promotion and branding for

exports


Outcome 8: Footwear.



4. The private sector is able to meet

international SPS and other quality standardsOutcome 4: Strengthened capacity of exporters to meet

technical standards and SPS requirements.


Outcome 14: Rubber.

Outcome 17: Skill gap

Start-up projects

1. Develop culture of professions in Tourism

2. Develop/strengthen collective branding in High-value fragrant rice, garments, and high-value silk.


Cluster 5: Development of inclusive export value chains


1. Develop export capacity in priority sectors

identified by the Government, beginning with

the priority sectors identified in CTIS 2014-

2018 and the 2015 Industrial Development

Policy

Outcome 9B: Light manufacturing assembly.



Outcome 13: Cassava.

Outcome 16: High value silk products

2. Develop a business and investment

environment supportive of the development

of Inclusive Value Chains including through

deepening backward linkages

Outcome 5: Investment environment for exports.

Outcome 9A: SEZ.

Start-up projects

1. Prepare Draft Project Document(s) for Submission to EIF or Other Interested Development Partners.

2. Support Implementation of Laws on Investment and SEZ once adopted.

3. Develop Relevant Investment Promotion Tools to Attract New Investment in Key Priority Export Value

Chains


1. Trade Policy, Sector Policy, Legal and Regulatory Reform:

2. Trade Facilitation and Transport Logistics:

3. SPS and Other Quality Systems for Trade:

4. Private Sector Structuring:5. Development of Inclusive Value Chains: 6. Trade Mainstreaming and

Management of Aid for Trade: 7. Skills for Exports: 8. Investment Environment, Integration in

Regional Value Chains, Backward Linkages:

9. Rural Development for Exports including Extension Services, Cooperatives Development, Surveillance Services:

10.Access to Finance:

1. EU, GIZ

2. EU, WB, USAid

3. EU, UNIDO

4. ADB5. EU, ESCAP, IFAD6. EIF, EU

7. SIDA, AFD, CBI8. JICA, EU, GIZ

9. IFAD

10. ADB

1. MOC

2. WB/GDCE

3. MAFF/MOC

4. MIH5. MOC/MAFF6. MOC

7. MOLVT/MOC8. CDC

9. MAFF

10.MEF

EU Funding Program (MIP)

Multi-Annual Indicative Program 2014-2020

Fund for Bilateral: EUR 410 million Fund for Regional: EUR 50 million

• Focus sectors:• Agriculture/national resources management: 144m• Education/skill: 140m• Governance and Administration: 120m• Support measure: 6m

• Three expected results:Improved business enabling environment for the agriculture and

NRM related sectors, through the improvement of existing national capacities, policies and regulations which support the development of sustainable agricultural and forestry use and commercialisation, stimulate innovation and private sector investment, and ensure protection of natural resources.

Strengthened value chains, including increased productivity, processing efficiency, improved product quality and increased market competitiveness in domestic and export markets that result in increased rural incomes and employment creation.

Empowered local communities to participate in the conservation and management of agriculture and natural resources including sustainable forest management (FLEGT) through the improvement of national and sub-national capacities, regulations and law enforcement.

• Identification mission: May-Jun 2015• Formulation mission: Q4 2015• Programs to start by early 2017

• Focus Areas: support the ASEAN Economic Integration beyond

2015:

Support improvements in customs, transit, standards, services,

investment, food safety, IPR.

Narrowing the development gaps in the public administrations

of CMLVs

Further integration into the global economy of ASEAN Member

States

Euro 35 million for ASEAN Secretariat

Euro 15 million for Cambodia, Laos PDR and Myanmar

Will include regional programs (ECAP IV, ARISE) and national

envelopes (Cambodia)

• Identification mission: finalised in January 2015

• Evaluation and Formulation mission: 22-26th June 2015

• Programs to start: Q4 2016

• Exploring new modalities for implementation, building on what

has been achieved, more RGC ownership.

• Any project must be based on Rectangular Strategy, NSDP, CTIS, IDP

• This program will approve by EU Parliament in Sep 2015

Timetable for SSC-TD-TRI Meeting in 2016

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

SSC Thu 25

SSC Mon 30

SSC Wed 31

SSC Tue 29

Timetable for IC Meeting in 2016

ICMon 11

IC Thu 11

IC Tue 15

IC Thu 21

IC Wed 11

IC Tue 14

IC Tue 12

IC Thu 11

IC Tue 13

IC Wed 12

IC Thu 10

IC Tue 13

Timetable for DICO and IAs Meeting in 2016

Mod 07 Tue 05 Wed 04

Timetable for D/ICO and Line Ministries Meeting in 2016 (Under EIF)

Wed 06 Tue 10 Mon 05 Thu 08

Report of Any Wrongdoing under EIF Programs

By email [email protected]

By telephone +45 3546 7654 (fraud hotline voicemail worldwide system

By mail UNOPSInternal Audit and Investigations GroupMarmovej 512100 Copenhagen, Denmark

34

Cambodia’s graduation out of the LDC status

Complete in June 2016

Where we stand now?

Cambodia will soon become a lower middle income country according to the World Bank

This is an important achievement BUT….

It is only the first step towards achieving graduation from the LDC status

LDC Graduation – how far are we?

• GNI per capita: 853 USD – Graduation Threshold is 1,242 USD– At 7% to 8% growth per year we will reach the threshold by 2021

• HAI: Graduation threshold is 66 or above. We now qualify for graduation under this indicator with a score of 67.2 in 2015

• EVI: Graduation threshold is 32 or below – we score 38.3 in 2015– We scored 55.6 in 2009 / 50.5 in 2012– We are getting there but there is a high risk to graduate with a high

EVI

HAI = Human Assets IndexEVI = Economic Vulnerability Index

The road to graduation – what should we focus on?

• With a sustained economic growth over the next 5 years at the level of the average growth of the Cambodian economy, we will reach GNI eligibility in 2021

• We need to monitor HAI to ensure we stay over the graduation threshold. New index will be added such as maternity mortality ration. The undernourishment is expected to be measured by levels of stunting. We need to monitor this.

• Most of the work to be done to ensure a smooth transition is about the Economic Vulnerability Index

The road to graduation – what should we focus on? (Cont’)

• Cambodia EVI index is mostly hampered by 3 sub-indexes – “remoteness”, – “share of agriculture, forestry and fishing in GDP” and the – “victims of natural disasters”

• This is the visible part of the iceberg as it has to be noted that the “merchandise export concentration” index would jump in the case all EU importing countries were aggregated into a single EU market destination

ONE KEY SUCCESS FACTOR LIES WITH THE DIVERSIFICATION OF OUR ECONOMY

Graduation Impact

• Besides all the various issues our Government must consider to ensure a smooth path to graduation (tax revenues, productivity, economic diversification, labor market, infrastructures, health and education etc…) we must understand how graduation will impact us as such.

GRADUATION = LOSS IN PREFERENTIAL TREATMENTS PROVIDED TO LDCs by bilateral

and multilateral partners, both from an ODA and a trading perspective

Graduation Impact (Cont’)

• The major impact of graduation as such lies with our partners:– World Bank and ADB (middle income status)– UN (LDC status)– WTO (LDC status)– Bilateral and multilateral ODA providers (share of ODA tight to

LDC status)– Bilateral and multilateral trading partners (preferential market

access)

TO DATE THERE IS NO RECOGNIZED METHODOLOGY TO ASSESS THE IMPACT OF GRADUATION ACCORDING TO ALL THOSE

FACTORS – IT MOSTLY DEPENDS ON OUR CAPACITY TO PROACTIVELY PREPARE THE GROUND WITH EACH PARTNERS

Graduation Impact – Risk mitigation

To mitigate the risks linked to graduation, we need to define a clear strategy:

1.From now towards graduation to ensure we lower our risk exposure (EVI)

2.After we are recommended for graduation to implement our “smooth transition strategy” (3 years period granted to graduating countries before graduation becomes effective)

How can the EiF helps usFrom now towards graduation:1/ Support our efforts in economic diversification•sector based intervention in identified priority sectors•competency development through targeted vocational curriculum development•Investment promotion programs and sector based policy development

2/ Further build our capacity to better negotiate with partners- WTO compliance post graduation- bilateral and multilateral trade agreements

3/ Develop our “smooth transition strategy” and support the consultation and coordination process with all key partners at strategic level

How can the EiF helps us (Cont’)

After graduation during the smooth transition period:

1.Coordinate with all partners to ensure commitment made in the smooth transition strategy are being implemented

2.Trade negotiation and capacity building for better advocacy when Cambodia becomes a member of the Developing Country Group (at the WTO and UN levels)

ក្រសួងពាណិជ្ជរម្មនាយរដ្ឋា នសហក្រតិបតតិការអនតរជាតិ

អាស័យដ្ឋា ន: ឡូត៌លេខ ១៩-៦១ វថីិក្រសួងពាណិជ្ជរម្ម (១១៣លេ), ភូមិ្ទឹរថ្លា , សង្កា ត់ទឹរថ្លា , ខ័ណស ែសនសខខ,

រាជ្ធានីភនំលេញ ១២១០២ទូរស័េទ/ទូរសារៈ ០២៣-៨៦៦-០៧៤

Email: [email protected]

www.moc.gov.kh | www.moc.gov.kh/tradeswap

Ministry of CommerceDepartment of International Cooperation

Lot 19-61, MoC Road (113B)Phum Teuk Thla, Sangkat Teuk ThlaKhan Sen Sok, Phnom Penh 12102

Cambodia

Tel/Fax: 023-866-074

Email: [email protected]

www.moc.gov.kh | www.moc.gov.kh/tradeswap

http://www.moc.gov.kh/

http://www.moc.gov.kh/tradeswap

http://www.moc.gov.kh/

http://www.moc.gov.kh/tradeswap

១). េរខណៈទូលៅរេស់គលក្ោងនានា លក្ោម្អភិក្រម្ក្គេដណត េ់វស័ិយពាណិជ្ជរម្ម, េទធផេ និងផេេ ៉ះពាេ់រយៈលេេែវងរេស់គលក្ោង៖

TDSP EIF Tier 1 EIF Tier 2

• CEDEP I: Milled Rice, High Value Silk and M&E Function• CEDEP II: Cassava, Marine Fisheries, ACAC and M&E Function

២). េរខណៈទូលៅននជំ្នួយសក្ោេ់ពាណិជ្ជរម្ម AfT (Aid for Trade)• ជំ្នួយអភិវឌ្ឍន៍ផាូវោរ ODA (Official Development Assistance)• ជំ្នួយសក្ោេ់ពាណិជ្ជរម្ម• ជំ្នួយសក្ោេ់ពាណិជ្ជរម្មលៅរនខងអាសខីប សខីហ្វិរ• ជំ្នួយពាណិជ្រម្មនីរម្ពខជា• ជំ្នួយពាណិជ្រម្មរនខង Trade SWAp

៣). ោរវាយតនម្ាពារ់រណ្តត េអាណតត (Mid-Term Evaluation) រេស់ CEDEP I and CEDEP II•វធីិសាស្រសតននោររស្រសាវក្ជាវ

េិនិតយឯរសារ (Desk Review) លធវើសោា សជាមួ្យែផនរពារ់េ័នធ (Stakeholders)៖ អនរទទួេផេ សោជិ្ក្រុម្សនូេ ែផនរឯរជ្ន

•សាវតាគលក្ោងៈ សាា េ័នអនខវតតន៍គលក្ោង (MIEs)៖ IFC (Milled Rice), ITC (High Value Silk) and DICO/MoC (M&E) រយៈលេេអនខវតតគលក្ោង៖ ៣ ឆ្ន ំ

•រេរគំលហ្ើញo ភាេពារ់េ័នធ៖ ោនោរលេញចិតតយ ងខ្ា ំងo ក្េសិទធិភាេ៖ ោនោរលេញចិតតរក្មិ្តម្ធយម្o ក្េសិទធផេ៖ ោនោរលេញចិតតរក្មិ្តម្ធយម្o ផេេ ៉ះពាេ់៖ ោនោរលេញចិតតរក្មិ្តម្ធយម្o និរនតភាេ៖ មិ្នលេញចិតត

•េញ្ហា ក្េឈម្ និរនតភាេ៖ រងវ៉ះខ្តលេើក្រេខណស ែផនរសាា េ័ន ផេេ ៉ះពាេ់៖ ោរោត់េនាយភាេក្រីក្រ និងោរេលងាើតោរង្ករ លៅមិ្នអាចវាស់ែវងបន

•អានខសាសន៍នានា MIEs, វស័ិយឯរជ្ន និង សាា េ័នរដា គួរលធវើោរសហ្ោរគ្នន លអាយបនជិ្ទសនិទសក្ោេ់ក្គេ់ដំណ្តរ់

ោេននោរអនខវតតគលក្ោង

៤). ោរអនខវតត, េទធផេ, សមិ្ទធផេ, និងផេេ ៉ះពាេ់ លក្ោម្គលក្ោង EIF

• រម្មវធីិេក្ងឹងក្រេខ័ណស សោហ្រណរម្ម• រម្មវធីិ Tier 1• រម្មវធីិ Tier 2 – CEDEP I (ស្រសូវ/អងា, សូក្តក្េណិត , និងម្ខខង្កវាយតនម្ា)• រម្មវធីិ Tier 2 – CEDEP II (ដំឡូងមី្, ផេិតផេជ្េផេ, សាលាេណតខ ៉ះ

េណ្តត េវជិាជ ជី្វៈលធវើម្ាូេ និងម្ខខង្ករវាយតនម្ា)

៥). េទេិលសាធេី Milled Rise Core Team ទទួេបនឪោសចូេរមួ្ជាមួ្យសរម្មភាេគលក្ោងដូចជា: សិោខ សាលា

វគគេណតខ ៉ះេណ្តត េ ទសសនរិចចសិរា និង ោរ តំាងេិេរណ៍អនតរជាតិ េលងាើនចំលណ៉ះដឹងែផនរស្រសូវអងារ និង ោរនំាលចញ េលងាើនទំនារ់ទំនងរវាងសោជិ្រក្រុម្សនូេ និង ក្រសួងពារ់េនធ័ ទទួេបន information ចាស់លាស់អំេី ោរអនខវឍន៍ ដំលណើ ោរ និង េិទធផេ

រេស់គលក្ោង ទទួេបនេទេិលសាធន៍េអេីោរអនខវឍន៍គលក្ោង និង ោរេក្ងឹងសម្ាភាេេែនាម្

រនខងោរអនខវឍន៍គលក្ោង

៦). េទេិលសាធេី High Value Silk Core Team ទទួេបនឪោសចូេរមួ្ជាមួ្យសរម្មភាេគលក្ោងដូចជា: សិោខ សាលា វគគ

េណតខ ៉ះេណ្តត េ ទសសនរិចចសិរា និង ោរ តំាងេិេរណ៍អនតរជាតិ េលងាើនចំលណ៉ះដឹងែផនរសង្កវ រ់ផេិតរម្មសូក្ត និង ោរនំាលចញ េលងាើនទំនារ់ទំនងរវាងសោជិ្រក្រុម្សនូេ និង ក្រសួងពារ់េនធ័ ទទួេបន information ចាស់លាស់អំេី ោរអនខវឍន៍ ដំលណើ ោរ និង េិទធផេ

រេស់គលក្ោង ទទួេបនេទេិលសាធន៍េអេីោរអនខវឍន៍គលក្ោង និង ោរេក្ងឹងសម្ាភាេេែនាម្

រនខងោរអនខវឍន៍គលក្ោង យេ់ដឹងេីអភិក្រម្ក្គេដណត េ់វស័ិយពាណិជ្ជរម្ម Trade SWAps យខទធសាស្រសតសោហ្រណរម្មពាណិជ្ជរម្ម២០១៤-២០១៨ និងែផនទីេង្កា ញផាូវ រម្មវធីិគំ្នក្ទោរអភិវឌ្ឍពាណិជ្ជរម្ម TDSP រម្មវធីិេក្ងឹងសោហ្រណរម្ម EIF Tier 1 and Tier 2

៧). តួនាទី និងភាររិចចរេស់ម្នទីរលខតត៖

• ែចររែំេរេទេិលសាធន៍ននោរអនខវតតគលក្ោង លៅរនខងលខតត• គំ្នក្ទោរង្កររេស់ក្រសួងពាណិជ្ជរម្ម រនខងោរេលងាើតសោគម្ន៍នានា• ចូេរមួ្រនខងលេសររម្មនានា លៅរនខងលខតត• ែណនំាអនរវនិិលយគឲ្យជួ្េនដគូរែដេពារ់េ័នធ• ផតេ់េត៌ោន, សាិតិ ឬ ទិននន័យ ដូចជានផទដីដំ្ឋដខ៉ះ េរោិណ, ចំនួនរសិររ,

ចំនួនអនរែរនចន, និង ចំនួនអនរនំាលចញ • ជ្ក្មុ្ញោរលធវើពាណិជ្ជរម្មនផទរនខង រវាងលខតត និងលខតត• ជ្ក្មុ្ញោរលធវើលទសចរណ៍នផទរនខង រវាងលខតត និងលខតត