Excellencies, Ladies and Gentlemen; 

It is indeed a great honor and pleasure for me to take part of this event organized by Asia Pacific Resources Inc., represented by Mr. Eric Lim in co-operation with the Ministry of Commerce's Export Promotion Department. 

Rather than making a presentation on "trade and investment incentives", which will be the topics of many seminars this year, I had rather define the role of the MoC in the environment that the Cambodian economy is facing. 

In view of a great economic challenge - the Coalition Government called the "Economic Government" has pledged its commitments to economic reforms in fiscal and monetary policies, forestry, civil services, military demobilization and the judiciary – The Ministry of Commerce will undertake this test by establishing a methodology toward the facilitations of Trade and Services. 

I - As presented to you previously by HE Mr. SOK Chenda, there are numerous incentives for investments geared toward export in our Investment Law. I will only cite the numerous other natural advantages that Cambodia has to offer: 

-     MFN and GSP; no restriction and low custom tariffs for over 6,000 products. Only 12 categories of textiles products are under quotas for the US market.

-     GSP and quota free for the EU for textile.

-     Improvement of the infrastructure planned for the next decade thus lowering production and transportation costs.

-     An increase of the labor forces by more than 150,000/year through 2010 thus a competitive edge in salary and skills (with priority funding for education and vocational trainings).

-     The lowering of custom tariffs to 0 to 5% through the AFTA scheme by 2018 if taking the normal track.

-     And last but not least, a more stable political and macro-economic situation than of many in the Region! 

II - The mission of the Ministry of Commerce in facilitating Trade and Services starts with:

1. A defined legal framework; the National Assembly as this moment is approving the Law on Quality Control on Goods and Services. The Trademarks Law, as well as the Commercial Code are in the agenda to be passed by the National Assembly this year.

2. A task in providing the private sector, the rural sector an extensive network and technical help for a quality control of Cambodian products. Its promotion should be in the creation of an annual Cambodian Quality Products Event supported by the RGC.

3. Research and gathering of trade information and markets through our Commercial Attaches posted abroad, and our Domestic Trade and Export Promotion Departments. Radios, TVs, the press and the MoC's web site and its links are our supports for the dissemination of such data.

4. A duty in assisting the private sector in cultivating competitiveness of export industries and products by facilitating procedures and link with other Government agencies to smooth any conflicting policies. The creation of an Export Prize, sponsored by the RGC, the private sector and the concerned NGOs, shall take place this year.

5. A definite task to organize fairs and participate, in a pro-active and creative manner, to International Trade Fairs.

Excellencies, Ladies and Gentlemen; 

Recent statistics show that Cambodia has to attract four times more private investments than of the past five years to absorb new labor. The MoC, in view of diversifying Trade and Services, believe that exporting services through labor is another area that has not been thoroughly considered (Malaysia and South Korea has expressed some interest). As stated above, MoC will work toward reasonable and comprehensive solutions with different governmental agencies to promote such new area in Cambodian culture. 

In an environment where "it is not the strongest species that survive nor the most intelligent but the ones most responsive to changes", the MoC team dedicates itself to the Royal Government of Cambodia in fighting poverty and in participating toward the achievement of a vibrant and vital economy.

 
Thank you for your attention