It is indeed a privilege and a pleasure for me to take part at this Greater Mekong Sub-Region Business Workshop. 

On behalf of my colleagues, I would like to take this opportunity to thank ESCAP, BOI and the Brooker Group for providing their kind and helpful assistance to us all throughout this event. 

In view of a great economic challenge, the Royal Government of Cambodia, called the "Economic Government", has pledged its commitment to reforms in fiscal and monetary policies, forestry, civil services, military demobilization and the judiciary. 

As introduced to you earlier by my colleagues from the Council of Development of Cambodia, there are numerous incentives for investments geared toward exports. I can only re-emphasize the numerous natural advantages that Cambodia has to offer: 

First, funds for the infrastructure: 

-     Improvement of infrastructure planned for the next decade will lower production and transportation costs.   

Second, funds and programs for human resource development: 

-     An increase of the labor force by more than 150,000/year through 2010 will provide a competitive edge in salary and skills.  An example of this is in the garment industry.  The GAP Company started manufacturing of its lower range products “Old Navy” in 1995. It has ordered collections for its highest range, the “Banana Republic” line, this year. It took 13 years for the garment industry in Sri Lanka to develop this kind of performance.   

-     The figures from the CDC make evident that Cambodia has to attract four times more private investments than that of the past five years to absorb the new labor supplies. The MoC, with the objective to diversify trade and services, believe that exporting labor services (South Korea and Malaysia have expressed interest) is another area that has to be pursued in order to develop our human resources in parallel with better education and vocational trainings. 

-     (The MoC's web site and its links can provide you more information.) 

Third, Cambodia’s integration in the world economy and politics and its impacts: 

-     Custom tariffs are being lowered to 0 to 5% through the AFTA/CEPT scheme by 2018, if taking the normal track. The Ministry of Commerce believes that a super fast track approach shall take place since Cambodia wants to gear itself toward exports. 

Our Trade advantages are: 

-     Trade preferences, MFN and GSP mean no restriction and low custom tariffs for over 6,000 products. Currently, only 12 categories of textiles products are under quotas for the US market. 

-     GSP and quota free for the EU for textile. 

-         95% of our exports are textiles related. There is an opportunity for other trade and services.  The diversification of our trade is aimed at attracting investments in the areas of agro-industry and tourism.  There were 140,000 tons of production surpluses of rice in 1999 and about 140,000 tons lost each year due to post harvesting leakages.  Services related to the tourism industry saw a remarkable 45% increase last year.

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

An active participation in GMS will provide Cambodia as a stepping stone to prepare itself to adapt to the liberation of trade in an environment where “it is not the strongest species that survive nor the most intelligent but the ones most responsive to changes”. 

Excellencies, Distinguished Participants, Ladies and Gentlemen, 

Does this all happen by good fortune?  Cambodia is developing its economy in the global economy at an opportune time.  Despite having undergone periods of hardship and horror in its recent past, Cambodia, I believe, has resources and potential for strong and sustainable economic development.   

Our People want it so. The "Economic Government" is working hard to make it achievable. 
Distinguished Participants, Ladies and Gentlemen;  
Without further promotion we humbly welcome you to the Kingdom of Cambodia

Thank you for your attention.