Huge scope for increasing India-Cambodia trade: [Indian] President

September 18th 2010
By Vikas Mohapatra
India Company News

Indian SMEs can now look forward to greater business opportunities in Cambodia with President Pratibha Devisingh Patil paving the way for cooperation with the latter country to boost economic ties. Speaking at the India-Cambodia Meeting in Phnom Penh recently, the President said that there is huge scope for increasing bilateral trade and investments between the two countries and called for business units in both countries to cash in on the lucrative trade environment.

Significantly, the event, which was attended by Indian industry bodies such as the Confederation of Indian Industry (CII), the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Associated Chambers of Commerce and Industry of India (ASSOCHAM), sought to explore business potential in the two countries.

Two-way trade between India and Cambodia stands approximately at around US$50 million. Incidentally, one of India’s major exports to Cambodia comes from the pharma sector which has significant SME population. In the wake of the recent development, Indian pharma-based SMEs can seek to invest in Cambodia further.

Incidentally, the President identified agriculture and IT/ITeS as sectors that small businesses in both countries can look to explore to enhance bilateral cooperation.

The fact that the President has also urged for more initiatives to increase the bilateral trade basket should encourage Indian SMEs from other sectors to scout for business investment in Cambodia.

Cambodia Calls on Indian SMEs

Submitted by davidpar on March 23, 2009
BestSyndication.com

For years, Cambodia has lived under the shadows of its economically superior neighbours—Malaysia and Thailand. This Southeast Asian country has made a gradual transition from an agro-based economy to an emerging manufacturing hub of Asia.

Its open economy, investment-friendly environment and unexploited commercial avenues are attracting the Indian SMEs to explore business opportunities in this largely untapped market.

View of the past…

In the 1990s, Cambodia initiated efforts to promote industrialisation across sectors. This strategic move however received a major jolt in 1997-98 when the Cambodian economy went through its worst crisis. Economic activity in the country plunged to a record low and prospects of achieving financial prosperity became bleak.

A major turning point came in 1999 when the Cambodian economy made a recovery, and the government began implementing developmental policies. That year, Cambodia became a member of the Association of Southeast Asian Nations (ASEAN) and agreed to lower tariff rates for trade with other ASEAN members.

Consequently, the Cambodian economy registered a 4% growth during the period, reviving hopes of business enterprises in the country. Today, Cambodia is an ideal business destination for investors looking at setting up manufacturing units for export. In view of this positive business outlook, Cambodia is also trying to attract Indian investors, especially the SMEs.

Growing sectors…

Tourism, garments, fishing, wood and wood products, rubber, rice milling and gem mining are some of the key industries in Cambodia. It is a major exporter of rice, rubber, timber, clothing, tobacco and footwear, while cigarettes, gold, motor vehicles, petroleum products and pharmaceutical products dominate its import basket.

Analysts opine that Cambodia is a lucrative market for the Indian SMEs to export raw materials used for pharmaceutical products, garment industry, machinery and automobile components. Alternately, chief articles that the Cambodian SMEs can supply to India include rubber and fish products. Market experts further suggest that the Indian SMEs should step up efforts to foray into segments such as the pharmaceutical industry, information technology (IT) services and education sectors in Cambodia.

Notably, some of the leading Indian companies in the real estate and hospitality segments have shown a keen interest in undertaking property development projects in Cambodia.

Trade ties…

Government authorities in both India and Cambodia realise that to boost the Indo-Cambodian trade ties in the near future, it is extremely pivotal to implement appropriate policies. This understanding led to the formation of the Cambodia-India Entrepreneurship Development Centre (CIEDC) in 2006. CIEDC is a unique platform serving the new entrepreneurs who want to set up their business in Cambodia.

Similarly, the Indian government runs the Indian Technical and Economic Cooperation (ITEC) programme to train Cambodian entrepreneurs. These technical exchanges aim to provide the best industrial training to the next generation of entrepreneurs in India and Cambodia as well as an impetus to the SME sector in particular. According to Indian analysts, these initiatives will pave a new way for domestic SMEs who are looking to expand their reach in the international market.