Embed Size (px)
Citation preview
Presentation by SM Cham Prasidh at the MIH Annual Conference
1 – 3 February 2016 Phnom Penh, PPWSA
Establishments in Cambodia and the share of manufacturing
in the Cambodian economy
Number of Establishments except street businesses by year of starting the business (1990-2014)
30,544 31,454
49,653
72,410
32,516
50,963 47,480
96,834
83,891
16,015
0
20,000
40,000
60,000
80,000
100,000
120,000
Establishments
Number of Establishments except street businesses by province and by year of starting the business (2010-2014)
0
5,000
10,000
15,000
20,000
25,0002010
2011
2012
2013
2014
Source: Ministry of Planning /National Institute of Statistics
Number of establishments by province and by year of starting of business (2010-2014) 1/4
1,8
79
3,3
77
6,1
47
3,1
12
2,3
89
1,4
07
1,5
96
2,1
88
5,9
83
2,2
76
1,0
28
2,3
02
5,0
28
6,6
22
10
,43
5
4,4
22
2,4
55
4,4
66
1,9
47
5,1
84
9,1
67
3,3
46
3,6
60
3,9
95
43
2
1,3
13
1,2
35
51
8 1
,02
1
1,2
28
0
2,000
4,000
6,000
8,000
10,000
12,000
01 BanteayMeanchey
02 Battambang 03 Kampong Cham 04 KampongChhnang
05 Kampong Speu 06 Kampong Thom
2010
2011
2012
2013
2014
Source: Ministry of Planning /National Institute of Statistics
Number of establishments by province and by year of starting of business (2010-2014) 2/4
1,9
97
4,4
42
56
5 1,5
01
24
1
12
,10
8
1,2
61
3,5
95
31
3
83
9
31
3
13
,42
6
1,4
49
5,8
30
78
3 2
,09
7
46
9
20
,70
7
2,6
36
4,1
07
94
6
3,2
41
74
1
15
,55
3
36
6 1,3
57
10
2
62
3
22
0
2,5
47
0
5,000
10,000
15,000
20,000
25,000
07 Kampot 08 Kandal 09 Koh Kong 10 Kratie 11 Mondul Kiri 12 Phnom Penh
2010
2011
2012
2013
2014
Source: Ministry of Planning /National Institute of Statistics
Number of establishments by province and by year of starting of business (2010-2014) 3/4
35
5
2,4
35
1,0
50
52
9
2,5
60
1,2
57
75
3
2,7
95
56
4
66
0
1,5
45
1,1
02
1,2
19
8,4
26
2,6
05
1,5
38
9,1
93
1,6
59
1,3
77
5,2
25
2,7
12
1,3
07
7,4
65
1,1
13
48
3
1,0
63
37
3
26
4
83
8
12
9
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
13 Preah Vihear 14 Prey Veng 15 Pursat 16 Ratanak Kiri 17 Siem Reap 18 Preah Sihanouk
2010
2011
2012
2013
2014
Source: Ministry of Planning /National Institute of Statistics
Number of establishments by province and by year of starting of business (2010-2014) 4/4
31
5
95
6
1,3
34
50
3
17
3
32
9
48
3
1,1
93
2,1
34
76
8
14
7
21
7
81
2
2,2
50
4,9
37
67
3
21
6 5
43
1,0
58
2,1
09
5,1
72
87
3
28
2
67
7
26
1 5
43
64
8
18
7
63
18
3
0
1000
2000
3000
4000
5000
6000
19 Stung Treng 20 Svay Rieng 21 Takeo 22 Otdar Meanchey 23 Kep 24 Pailin
2010
2011
2012
2013
2014
Source: Ministry of Planning /National Institute of Statistics
Number of registered establishments by ministry in 2014
10,565
3,234
1,426
5,725
540 431
1,762
69 2
1,260
70
2,786
1,342
6
720
4,349
1,365
9,303
196 98 - 147 166
1,740
-
2,000
4,000
6,000
8,000
10,000
12,000
MO
C
MEF
MIN
T
MO
H
MLV
T
MP
TC
MO
T
MSA
VY
MO
WA
NB
C
CD
C
MIH
MM
E
MO
WR
AM
MP
WT
MC
RA
MO
E
MO
EYS
MC
FA
MIN
F
MO
J
MLM
UP
C
SCA
Oth
ers
Total Registered Establishments: 47,299
Source: Ministry of Planning /National Institute of Statistics
Number of registered establishments by province in 2014
4,019
2,936
2,262
3,068
2,441
841
1,166
822 720
355
7,539
742
2,382 2,093
906
7,050
740 534
1,169
1,921
392 229
434
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,0000
2 B
atta
mb
ang
03
Kam
po
mg
Ch
am
04
Kam
po
ng
Ch
hn
ang
06
Kam
po
ng
Spe
u
06
Kam
po
ng
Tho
m
07
Kam
po
t
08
Kan
dal
09
Ko
h K
on
g
10
Kra
tie
11
Mo
nd
ul K
iri
12
Ph
no
m P
enh
13
Pre
ah V
ihea
r
14
Pre
y V
eng
15
Pu
rsat
16
Rat
anak
Kir
i
17
Sie
m R
eap
18
Pre
ah S
ihan
ou
k
19
Stu
ng
Tre
ng
20
Sva
y R
ien
g
21
Tak
eo
22
Otd
ar M
ean
chey
23
Kep
24
Pai
lin
Total Registered Establishments: 47,299 Source: Ministry of Planning /National Institute of Statistics
Number of establishments (Total / Registered) by province in 2014
22
,26
9 32
,51
9
54
,23
1
22
,72
7
22
,25
8
21
,00
6
16
,46
1
38
,67
9
5,4
52
12
,15
7
2,5
94
97
,20
0
6,1
36
29
,52
1
14
,27
0
6,0
95
37
,62
2
10
,87
9
4,6
08
14
,17
3
32
,78
0
5,4
71
1,6
07
2,9
45
2,5
38
4,0
19
2,9
36
2,2
62
3,0
68
2,4
41
84
1
1,1
66
82
2
72
0
35
5 7
,53
9
74
2
2,3
82
2,0
93
90
6 7
,05
0
74
0
53
4
1,1
69
1,9
21
39
2
22
9
43
4
-
20,000
40,000
60,000
80,000
100,000
120,000
01 B
ante
ay M
ean
chey
02 B
atta
mb
ang
03
Kam
po
ng
Ch
am
04
Kam
po
ng
Ch
hn
ang
06
Kam
po
ng
Speu
06 K
amp
on
g Th
om
07 K
amp
ot
08
Kan
dal
09 K
oh
Ko
ng
10 K
rati
e
11
Mo
nd
ul K
iri
12 P
hn
om
Pen
h
13
Pre
ah V
ihea
r
14 P
rey
Ven
g
15
Pu
rsat
16
Rat
anak
Kir
i
17 S
iem
Rea
p
18 P
reah
Sih
ano
uk
19
Stu
ng
Tren
g
20 S
vay
Rie
ng
21
Tak
eo
22
Otd
ar M
ean
chey
23
Kep
24 P
ailin
Total
Registered
513,659
47,299
Source: Ministry of Planning /National Institute of Statistics
Still a lot of unregistered enterprises Capital/Provinces Total Registered Un-registered
01 Banteay Meanchey 22,269 2,538 19,731
02 Battambang 32,519 4,019 28,500
03 Kampong Cham 54,231 2,936 51,295
04 Kampong Chhnang 22,727 2,262 20,465
06 Kampong Speu 22,258 3,068 19,190
06 Kampong Thom 21,006 2,441 18,565
07 Kampot 16,461 841 15,620
08 Kandal 38,679 1,166 37,513
09 Koh Kong 5,452 822 4,630
10 Kratie 12,157 720 11,437
11 Mondul Kiri 2,594 355 2,239
12 Phnom Penh 97,200 7,539 89,661
13 Preah Vihear 6,136 742 5,394
14 Prey Veng 29,521 2,382 27,139
15 Pursat 14,270 2,093 12,177
16 Ratanak Kiri 6,095 906 5,189
17 Siem Reap 37,622 7,050 30,572
18 Preah Sihanouk 10,879 740 10,139
19 Stung Treng 4,608 534 4,074
20 Svay Rieng 14,173 1,169 13,004
21 Takeo 32,780 1,921 30,859
22 Otdar Meanchey 5,471 392 5,079
23 Kep 1,607 229 1,378
24 Pailin 2,945 434 2,511
Cambodia 513,660 47,299 466,361
Cambodia Manufacturing Enterprises by ISIC Code (2009-2015)
46
42
5
11
33
9 22
8
2
53
45
1
12
38
11
24
9
1
57
53
7
15
47
12
31
9
3
74
67
4
17
60
15
46
12
9
84
79
9
29
78
17
66
16
19
98
91
5
35
95
23
85
23
27
12
0
1,0
07
38
10
0
26
10
0
28
31
-
200
400
600
800
1,000
1,200
10-11-12 Manufactureof food, beverage and
cigarettes
13-14-15 Manufactureof textiles, apparel,leather and leather
products
17 - Manufacture ofpaper and paper
products
22 - Manufacture ofrubber and plastics
products
23 - Manufacture ofother non-metallicmineral products
24-25-26-27-28-29-30Manufacture of basic
metals, metal products,electronic, electrical
equipment, machinery,vehicles and other
transport equipment
31 - Manufacture offurniture
32 - Othermanufacturing
2009
2010
2011
2012
2013
2014
2015
International Standard of Industrial Classification ISIC Source: Ministry of Industry & Handicraft
2009 – 2015 Number of manufacturing enterprises in Cambodia
46
42
5
11
33
53
45
1
12
38
57
53
7
15
47
74
67
4
17
60
84
79
9
29
78
98
91
5
35
95
12
0
1,0
07
38
10
0
-
200
400
600
800
1,000
1,200
10-11-12 Manufacture of food, beverageand cigarettes
13-14-15 Manufacture of textiles,apparel, leather and leather products
17 - Manufacture of paper and paperproducts
22 - Manufacture of rubber and plasticsproducts
2009
2010
2011
2012
2013
2014
2015
Source: Ministry of Industry & Handicraft
2009 – 2015 Number of manufacturing enterprises in Cambodia
9
22
8
2
11
24
9
1
12
31
9
3
15
46
12
9
17
66
16
19
23
85
23
27
26
10
0
28
31
-
20
40
60
80
100
120
23 - Manufacture of other non-metallicmineral products
24-25-26-27-28-29-30 Manufacture ofbasic metals, metal products, electronic,
electrical equipment, machinery,vehicles and other transport equipment
31 - Manufacture of furniture 32 - Other manufacturing
2009
2010
2011
2012
2013
2014
2015
Source: Ministry of Industry & Handicraft
556 599 711
907
1,108
1,301
1,450
-
200
400
600
800
1,000
1,200
1,400
1,600
2009 2010 2011 2012 2013 2014 2015
Total
2009 – 2015 Total Number of manufacturing enterprises in Cambodia
Source: Ministry of Industry & Handicraft
Cambodia’s manufacturing enterprises by ISIC Code
ISIC Code 2009 2010 2011 2012 2013 2014 2015
10 - Manufacture of food products 23 27 30 45 50 60 78
11 - Manufacture of beverages 11 15 16 17 19 20 23
12 - Manufacture of tobacco products 12 11 11 12 15 18 19
13 - Manufacture of textiles 5 4 4 9 11 16 18
14 - Manufacture of wearing apparel 415 446 531 661 783 894 982
15 - Manufacture of leather and related products 2 1 2 4 5 5 7
16 - Manufacture of wood and of products of wood and
cork, except furniture; manufacture of articles of straw
and plaiting materials
- - - - - - -
17 - Manufacture of paper and paper products 11 12 15 17 29 35 38
18 - Printing and reproduction of recorded media - - - - - -
19 - Manufacture of coke and refined petroleum products 5 6 7 6 7 9 9
20 - Manufacture of chemicals and chemical products 5 5 8 10 12 12 14
21 - Manufacture of basic pharmaceutical products and
pharmaceutical preparations- - - - - - -
22 - Manufacture of rubber and plastics products 24 27 32 44 59 74 77
23 - Manufacture of other non-metallic mineral products 9 11 12 15 17 23 26
24 - Manufacture of basic metals 1 1 1 1 2
25 - Manufacture of fabricated metal products, except
machinery and equipment 4 11 14 16 19 29 33
26 - Manufacture of computer, electronic and optical products 2 2 2 2 3 3 3
27 - Manufacture of electrical equipment 2 1 3 13 23 27 31
28 - Manufacture of machinery and equipment n.e.c. 6 2 2 4 4 5 5
29 - Manufacture of motor vehicles, trailers and semi-trailers 1 1
30 - Manufacture of other transport equipment 8 8 9 10 16 19 25
31 - Manufacture of furniture 9 8 9 12 16 23 28
32 - Other manufacturing 3 2 3 9 19 27 31
33 - Repair and installation of machinery and equipment
Total 556 599 711 907 1,108 1,301 1,450
Source: Ministry of Industry & Handicraft Note: ISIC International Standards of Industrial Classification
ISIC 10-11-12-13 2
3
11
12
5
27
15
11
4
30
16
11
4
45
17
12
9
50
19
15
11
60
20
18
16
78
23
19
18
0
10
20
30
40
50
60
70
80
90
10 - Manufacture of foodproducts
11 - Manufacture ofbeverages
12 - Manufacture oftobacco products
13 - Manufacture oftextiles
2009
2010
2011
2012
2013
2014
2015
Cumulative number Including new enterprises and excluding closed enterprises
Source: Ministry of Industry & Handicraft
ISIC 14-15-16-17
41
5
2
0 11
44
6
1
0 12
53
1
2
0 15
66
1
4
0 17
78
3
5
0 2
9
89
4
5
0 3
5
98
2
7
0 3
8
0
200
400
600
800
1,000
1,200
14 - Manufacture ofwearing apparel
15 - Manufacture ofleather and related
products
16 - Manufacture ofwood and of products of
wood and cork, except
furniture; manufacture ofarticles of straw and plaiting
materials
17 - Manufacture ofpaper and paper
products
2009
2010
2011
2012
2013
2014
2015
Cumulative number Including new enterprises and excluding closed enterprises
Source: Ministry of Industry & Handicraft
ISIC 18-19-20-21 0
5
5
0
0
6
5
0
0
7
8
0
0
6
10
0
0
7
12
0
0
9
12
0
9
14
0
0
2
4
6
8
10
12
14
16
18 - Printing andreproduction of recorded
media
19 - Manufacture of cokeand refined petroleum
products
20 - Manufacture ofchemicals and chemical
products
21 - Manufacture of basicpharmaceutical products
and pharmaceutical
preparations
2009
2010
2011
2012
2013
2014
2015
Source: Ministry of Industry & Handicraft
Cumulative number Including new enterprises and excluding closed enterprises
ISIC 22-23-24-25 2
4
9
4
27
11
11
32
12
1
14
44
15
1
16
59
17
1
19
74
23
1
29
77
26
2
33
0
10
20
30
40
50
60
70
80
90
22 - Manufacture ofrubber and plastics
products
23 - Manufacture of othernon-metallic mineral
products
24 - Manufacture of basicmetals
25 - Manufacture offabricated metal products,
except machinery and
equipment
2009
2010
2011
2012
2013
2014
2015
Cumulative number Including new enterprises and excluding closed enterprises
Source: Ministry of Industry & Handicraft
ISIC 26-27-28-29 2
2
6
2
1 2
2 3
2
2
13
4
3
23
4
3
27
5
1
3
31
5
1
0
5
10
15
20
25
30
35
26 - Manufacture ofcomputer, electronic and
optical products
27 - Manufacture ofelectrical equipment
28 - Manufacture ofmachinery and equipment
n.e.c.
29 - Manufacture of motorvehicles, trailers and semi-
trailers
2009
2010
2011
2012
2013
2014
2015
Cumulative number Including new enterprises and excluding closed enterprises
Source: Ministry of Industry & Handicraft
ISIC 30-31-32-33 8
9
3
8
8
2
9
9
3
10
12
9
16
16
19
19
23
27
25
28
31
0
5
10
15
20
25
30
35
30 - Manufacture of othertransport equipment
31 - Manufacture offurniture
32 - Other manufacturing 33 - Repair and installationof machinery and
equipment
2009
2010
2011
2012
2013
2014
2015
Cumulative number Including new enterprises and excluding closed enterprises
Source: Ministry of Industry & Handicraft
Industry structure: narrow base • Based on GDP, the industrial sector consists of three
important activities, namely: garment production, construction and food and beverage processing.
• Other sectors have yet to make significant inroad while wood and paper processing and publishing has even seen a decline.
• The garment sector plays an important role in the industrial sector with its share jumping from a mere 8.2% in 1993 to 51.8% in 2004, the year of its highest growth. Subsequently, it witnessed a slight decline down to 42.4% in 2013.
• The construction sector, which represents 30% share of the industrial sector in 1993 has dramatically declined to its lowest level of 20.2% in 1998, but has since re-bounced back to 30.1% in 2013.
• The food processing sector continuously declined from 32.7% in 1993 to around 10% during the last 5 years.
Mostly retail and food businesses
• Overall, most of Cambodia’s enterprises are in retail and food establishments.
• Of some 510,000 enterprises, only 70,000 or 14% are in manufacturing, in which 45% are in food and beverage processing while the remaining 35% are garment and textile enterprises.
• It should be noted that 80% of large industrial enterprises are in garment, textile and footwear.
• The manufacturing structure is still underdeveloped because garment and textile production and food processing are industries with low value added and less sophisticated.
• The production of construction materials, electronics, engines and machineries, chemical products, motorbike and car assemblies, plastic products and other consumption materials are still at their early stage, and their productions are used very minimally as import substitution.
Massive number of unregistered MSMEs
• In term of official registration, 98.64% of microenterprises were not officially registered. The rate of non-registration dropped however according to the sizes of enterprises. Among small enterprises, 62.83% of them were not registered, followed by 28.57% for medium enterprises and only 7.04% for large enterprises.
• Moreover, a small number of enterprises had proper account ledgers, of which microenterprises represent a mere 0.02%, followed by 3.89% for small enterprises, 24.11% for medium enterprises and 66.19% for large enterprises. The absence of proper account ledgers hinders these enterprises from access to finance necessary for business expansion or new technology acquisition.
• Furthermore, the Royal Government would not be able to provide support to these enterprises unless they are officially registered and they maintain accurate accounting records as the basis for evaluation.
Distribution of GDP by Sectors
Sector 1962 1998 2008 2013 2015 2020 2025
Agriculture 49% 44.5% 32.8% 31.6% 29.0% 25% 23%
Industry 19% 16.7% 22.4% 24.1% 26.2% 28% 30%
- Manufacturing - 12.7% 15.3% 15.5% 16.0% 18% 20%
Service 32% 34.8% 38.8% 38.5% 39.4% 40% 40%
Taxes on products less subsidies 0% 4% 6% 5.8% 5.4% 7% 7%
0.4
9
0.1
9
0.3
2
0.0
0
0.4
5
0.1
7
0.3
5
0.0
4
0.3
3
0.2
2
0.3
9
0.0
6
0.3
2
0.2
4
0.3
9
0.0
6
0.2
9
0.2
6
0.3
9
0.0
5
0.2
5 0.2
8
0.4
0
0.0
7
0.2
3
0.3
0
0.4
0
0.0
7
0.00
0.10
0.20
0.30
0.40
0.50
0.60
Agriculture Industry Service Taxes on products lesssubsidies
1962
1998
2008
2013
2015
2020
2025
Distribution of GDP by Sectors
In % GDP
49.00%
44.50%
32.80% 31.60%
29.00%
25.00% 23.00%
19.00% 16.70%
22.40% 24.10%
26.20% 28.00%
30.00% 32.00%
34.80%
38.80% 38.50% 39.40% 40.00% 40.00%
0.00%
4.00% 6.00% 5.80% 5.40%
7.00% 7.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
1962 1998 2008 2013 2015 2020 2025
Agriculture
Industry
Services
Taxes on Products less Subsidiesកសិកម្ម
សសវាកម្ម
ឧសាហកម្ម
ពន្ធស ើទំនិ្ញដកអប្បហារ
Distribution of GDP by Sectors
Inspection of factories and workshops undertaken by MIH Joint Inspection Teams
13
28
53
45
28
44
48
48
36
48
80
97
78
84
60
56
88
13
41
94
13
9
16
7 21
1 25
9 30
7
34
3 39
1 4
71
56
8 6
46
73
0 79
0 84
6
93
4
0 10
27
55
75
12
18
26
27
40
55
81
11
9 1
87
23
9
27
9
31
8
0
100
200
300
400
500
600
700
800
900
1000
Inspected Factories/Workshops Cumulative Inspected Factories/Workshops
Cumulative Unfound Factories/Workshops
CAMBODIA -- Wages, allowance & Bonus required by Law
Year Minimum
Wage Cost of Living
Allowance Health
Allowance Transport Allowance
Full Attendance
Bonus
Seniority Bonus
2001 $40 $0 $0 $0 $5 Max 5 USD
2006 $45 0 0 0 5 Max 5 USD
2010 $50 $6 $0 $0 $5 Max 5 USD
01-Oct-10 $61 $0 $0 $0 $5 Max 5 USD
01-Mar-11 $61 $0 $0 $0 $7 Max 11 USD
01-Jan-12 $61 $0 $5 $0 $7 Max 11 USD
01-Sep-12 $61 $0 $5 $7 $10 Max 11 USD
01-May-13 $80 $0 $0 $7 $10 Max 11 USD
01-Jan-14 $100 $0 $0 $7 $10 Max 11 USD
01-Jan-15 $128 $0 $0 $7 $10 Max 11 USD
01-Jan-16 $140 $0 $0 $7 $10 Max 11 USD
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Strike in 2015 18 11 11 6 11 10 12 6 5 5 4 19
0
2
4
6
8
10
12
14
16
18
20
Axi
s Ti
tle
Strike in 2015
Too many strikes will threaten investors…
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
Strike in 2010 Strike in 2011 Strike in 2012 Strike in 2013 Strike in 2014 strike in 2015
45 34
121
147
108 118
Axi
s Ti
tle
Axis Title
Number of Strikes Compared within last 5 years
-24%
255%
21,5% -26%
9%
Strikers’ demands in 2015
11% 4%
5%
41%
3%
5% 3%
23%
5%
Striker's Demands in 2015 Lunch allowance & Additional
OT Meal Allowance
Additional Attendance Bonus
Additonal Housing and
Transportation Allowance
Other Additional benefits
Requesting to reinstate union
leaders & Union activists
Requesting to fire managerial
people
Requesting to renew FDC
Legal & labour Requirement
Hygiene & Safety Requirement
Man-Day Lost
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
130,284
107,112
52,419
343,713 294,142
304,396
313,966
202,204
139,513
542,827
888,527
526,944
452,364
Man-Day Lost
