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¡@ TRADE PERFORMANCE IN 2000
¡@ ¡@ Cambodia¡¦s main imports are fuels, raw materials, machinery, construction equipment and vehicles¡K etc. Imports of consumer goods increased significantly in recent years. On the export side, the primary exports are sawn timber, logs, rice, soybean, fish, ruby, rubber and garments.
The Imports increased from US$976 millions in 1996, US$917 millions in 1997, US$1,127 millions in 1998, US$1,152 millions in 1999 and US$1,290 millions in 2000.
Exports grew by 8.7% from US$378 millions in 1996, to US$411 millions in 1997. But in 1998, Cambodia¡¦s exports grew from US$535 millions in 1998 to 1,194 million in 2000.
Currently, Cambodia¡¦s re-exports mainly consist of beers, cigarettes, alcohol, soft drinks, motorcycles, television, gold, video cassette recorders¡K. etc. The sum of re- exports is totally US$ 260 millions in 1999 and US$ 226 millions in 2000 (15% declined).
Because re-exports are informal, they are subject to lower than normal duties. There is no documentary basis to determine the extent to which these goods are actually moved to Vietnam and Thailand. There is a strong incentive to diver some of the goods intended for re-export toward local sale.
The government should introduce some forms of duty drawback mechanism to limit loss of revenue due to leakage through re-exports and the government should impose normal duties on these goods and then rebate some or all of the duties when goods are exported.
With the granting MFN status from U.S and the GSP from the other 28 countries, the garment industries have been strongly contributed to the domestic export growths in the recent year.
With the development of garment products in Cambodia, the garments export to U.S has been increased from US$515,274,300.05 in 1999 to US$ 736,024,683.95 in 2000. Garment export to European Union increases from US$ 137,864,755.40 in 1999 to US$220,966,373.84 in 2000 (Total Amount of Garment Exportations to EU, Non-EU and USA is US$653,139,055.45 in 1999 and US$ 964,985,675.28 in 2000). With the incentive law and low cost labor, Cambodian government further encourages the foreign investors to increase FDI (Foreign Direct Investment) and continue to the diversification of economic activities.
In 2000, the total production of garment was worth 1,090 millions US Dollar, compared to 457 millions in 1998. This figure shows that the garment sector has contributed about 90% of the light industry and has been the leading industry which has made Cambodia known to the international market. Although the garment industry has displayed such a rate of high growth, this industry is still experiencing a number of noticeable difficulties due to:
¡P The lack of good cooperation between the company and unions of workers in the implementation of the Labor Law;
¡P The fact that the quality of exported products does not fully respond to conditions of foreign orders because of the apparently limited skills and experience of workers;
¡P Late, insufficient or interrupted orders; and
¡P High production cost as a result of weak infrastructure and services.
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