1. Learning Experienced f
L i E i d from R id
Rapid
Assessment on Logistic Facilities
and SME Clusters along the SEC
Case Study : Trade & Investment Southern Coastal
Provinces of Cambodia Koh Kong, Sihanouk Ville, Kampot
and Kep.
Mr. Chan SereiRatha
Cambodian YGMS Professional
Mekong Institute, Khon Kaen
Kingdom of Thailand
Ki d f Th il d
18 June, 2012

2. Contents:
1- Overall Background
2-
2 Overall Objectives
3- Overall Expected Outputs
3- Route i the coastal part of Cambodia
3 R in h l f C b di
4- Logistic Facilities of the coastal of Cambodia
5- Existing SMEs in the coastal of Cambodia
6- Potential Sectors in the coastal of Cambodia
7- Challenges and Opportunities in Developing
Trade and Investment in the coastal of Cambodia
8- Recommendations

3. Overall Background
Ca Mau

4. Overall Background
g
- The southern economic corridor of the GMS, adopted by GMS
country in 1998, comprises three subcorridors and one
Intercorridor link, and with the implementing of AEC and The
Dawei Development Project, the volume of trade and investment
along the SEC will be increased and could be developed to be the
most outstanding corridor for the GMS.
- On 19 December 2011, a meeting on JAIF proposal on Private
Sector Development in SEC was held. From the meeting, MI has
conducted the rapid assessment of logistic facilities and SMEs
cluster in 15 provinces and 3 cities along the two subcorridors,
central sub-corridors and southern coastal sub-corridor, in SEC
during the period of 29 January to 23 February 2012.

5. Overall Background
The SEC route connects 3 main cities in the
GMS region namely : Bangkok , Phnom Penh and
Ho Chi Minh. And also SEC cover 4 important
deep sea ports in Bangkok-Lamchabang in Thailand,
p
Sihanoukville in Cambodia, Phu Quoc and Cai Mep,
Vung Tau- Vietnam, 3 international airport –
Suvarnabhumi Airport, Thailand , Phnom Penh
p
International Airport, Cambodia and Ho Chi
Minh City International Airport ,Vietnam.
y p

6. Overall Objectives
Identify institutions and
p p
peoples directly involved in
y
trade and investment
promotion
Assess the institutions and
human resource capacities in
trade and investment
promotion
Survey SME clusters and
assess current and potential
p
capacity
Detailed survey of logistic
facilities

7. Overall Expected Outputs
Preliminary Assessment
y
Report and Provincial
Profiles
Detailed maps of logistics
facilities and SMEs sectors
Trade and Investment information
Draft SEC Capacity Building proposal

8. Route in the Southern Coastal of
Cambodia

9. Key information about the Southern
Coastal of Cambodia
C l f C b di
1-The southern coastal consist of Koh Kong ,g
Sihanouk Ville, Kampot and Kep provinces.
2
2- The total population in the coastal region is
960,487 (NIS2008) and the total land area is
covers 17 237 square kilometers
17,237 kilometers.
3- The general recognition of the total length
of the Cambodian coastal area i 440 K
f h C b di l is Km
about one sixth of the total borders.

10. Logistic Facilities of the coastal of
Cambodia
C b di
In general, the southern part of Cambodia
can access by all modes of transportation :
b ll d ft t ti
- Airport: One local airport in Sihanouk Ville (3
flights/week-SHV to Siem Reap).
- Land roads: The total length of the road in the coastal
area is around 398 km extent from Had Lem –Chan
Yeam (Thailand-Cambodia ) - Xa Xia, Ha Tieng,
( g
VIetnam/Prek Chak, Cambodia.
- Sea port: One big Sihanouk Ville international sea port
and one active private p
p port called Okhna Mong Port
g
and some other local ports for fishing and tourist.
- Rail road: The total rail road from PP to SHV is 264 km
but it currently active from PP to K-cement company
K cement
in Kampot ( 90 km).

11. Logistic Facilities of the coastal of
Cambodia

12. Existing SMEs in the coastal of Cambodia
Current Definition of SMEs in Cambodia
C D f f SME C b d
Country / Type Small Medium
Employees
Employees Capital
Capital Employees Capital
Cambodia 11‐50 50,000‐250,000 51‐100 250,001‐500,000
(USD) (USD)
- Koh Kong: Fishery ,Tourism Related Services, SEZ and
Agri and Agro-cultures (rice , sugar cane ..)
- Sihanouk Ville: Sea Food Processing, Hotel and
Processing
Restaurants, Resort ,Recreation and others, SEZ and
Agri and Agro-cultures (rice , rubber and p
g g ( palm oil)
)
- Kampot: Industrial Places (cement , mining ) , Agri and
Agro-cultures (pepper, rice , cassava)
- Kep: Pepper, Salt and Rice

13. Potential Sectors in the coastal of Cambodia
1-Currently, there are 22 SEZs in Cambodia,
but 11 SEZs (50 %) located in the coastal
provinces.
provinces In 2011 , export rise 39.5 % from 2010
39 5
-$4.9 B, and industrial export (mainly garment &
textile) account for about $4.3 B.
So manufacturing or export oriented companies
having a great potential.
2- There are increasing tourists arrival in
Cambodia from year to year. 2.85 M tourists
arrival i 2011 it i 14 % up from 2.5 M in 2010.
i l in is f 2 5 i 2010
For the tourist arrivals in the coastal area in 2011
is over 1 million (both local & international).
The Revenue expected to grow up to
Th R d
$2.1 B in 2012 comparing to $1.9 B in 2011.

14. Potential Sectors in the coastal of Cambodia
3- Agri-Processing : Cambodian government has
keen on encourage an investment in these sectors.
As the total export in Agricultural sector in 2011
was $ 422 M compared to $197 M in 2010. The
main export products are rubber, rice, palm oil
cassava and corn. The coastal area are potential
for most of all of the agricultural products and also
near the logistic hub as well
well.
4- Food Processing and Aquaculture: Since the
global and local demands are increasing on foods.
Cambodia can produce 72,000 MT in 2011 and
p ,
marine capture 91,000 MT. In the coastal area like
Koh Kong and Kampot are great potential for Aqua
and SihanoukVille for marine capture.

15. Challenges and Opportunities in Developing Trade
and Investment in the coastal of Cambodia
1- Opportunities :
- Access to international market via
Sihanoukville port
- Inland transport link well within the coastal area via
national road and in the Southern corridor link
ti l d d i th S th id li k
- Cheaper labor among others in the region
- Available and affordable land
- Rich of natural resources and tourist sites
- Agro and Aquaculture sector
- Benefit of 11 SEZs around the areas and good
connection along supply chain in the region (esp,
Thailand d Vietnam) with tax incentive (tax holiday
Th il d and Vi ) ih i i ( h lid
for 6 to 9 years)

16. 2- Challenges :
- L
Limited access to finance (esp, SME )
d f ( SMEs)
- Lack of skilled and less skilled labor as
the cheap wage nature in the country
h h i h
- Absence of e-documents at the border ,
rules and regulations not well aware among
l d l ti t ll
public and local authorities
- Overall logistic services in the area are limited
- The geographical area ( ex. Koh Kong is high hill
road where limited for heavy truck )
- Lack of supportive services like school , hospital
and centre
- High cost of electricity

17. Recommendations :
- Strengthening PPP through better policies
- Increasing awareness of laws, regulations
g , g
and agreements
- Strengthening in implementing Single
Window and e-document
Wi d d d t
- Increasing an investment on public services
on school , vocational training and hospital
g p
- Capacity building for local authorities on
trade procedures, rules and regulation and
agreement , management skills ..etcetc
- Decentralize the works and authorities
- Attracting more investment on priority sectors
- Higher productivities (human, machinery and
technology)