With Cambodia's weak productivity problem, how could Economic Dr. Hun Xen dream of closing the trade imbalance gap?

Cambodia's Strongman: All talk no action?

Hun Sen Wants Trade Balance With Neighbors

By Kong Sothanarith, VOA Khmer
Original report from Phnom Penh
05 February 2010

Prime Minister Hun Sen on Thursday urged a balance of imports and exports to countries like China, Thailand and Vietnam.

In 2009, imports from Vietnam and Thailand reached $2 billion each, and $1 billion from China. However, exports to those countries were far lower, creating a wide deficit, Hun Sen said at the inauguration of a new building for the Ministry of Commerce in Phnom Penh.

“At this point, we must push our efforts to encourage investment for export to Asean markets and other important markets like the US, Europe, China, Korea and Japan,” he said.

Cambodia has the capacity to export $4 billion in goods on the world market, Hun Sen said. Cambodia’s economy is led by the garment industry, which accounts for nearly half its exports, followed by agricultural goods such as rubber and corn. The garment industry has been hard hit by the economic downturn, with fewer orders coming in from lucrative markets like the US and Europe.

According to government figures, Cambodia exported $3.6 billion in goods in 2009, down $807 million from the previous year. Its imports reached of total of $5.2 billion in 2009, down $1 billion from the year before.

Nov Sieha, a researcher for the Economic Institute of Cambodia, said Cambodia’s export problems were due to “weak” productivity.

“We lack competitiveness,” he said.

Study raises concerns about Cambodia farm trade gap

Thursday, November 1, 2007

PHNOM PENH (Xinhua): A recent study by the Royal Academy of Cambodia has raised concerns about the trade imbalance in fruits and vegetable between Cambodia and its neighbors, the Cambodia Daily newspaper said Thursday.

According to the September report, there was a nearly 400-fold trade imbalance in fruits and vegetables passing through international gateways at Poipet on the Thai border and Trapang Plong on the Vietnamese border in 2004 and 2005, and the trend is continuing.

The study further contended that the trade deficit has led to a loss of Cambodian agricultural jobs, as well as low moral among Cambodia's farmers, most of whom are small-scale and cannot compete in such an environment.

Around 113 million U.S. dollars in fruits and vegetables were imported from Thailand in 2005, versus a mere 296,159 U.S. dollars exported from Cambodia to Thailand, the study concluded.

In Banteay Meanchey province alone, 772 small and mid-size Cambodian firms are currently importing agricultural goods into Cambodia, the report said.