RESTRICTED  
  
WT/TPR/G/364  
17 October 2017  
(17-5586) Page: 1/15 
Trade Policy Review Body   Original: English  
 
 
TRADE POLICY REVIEW  
REPORT BY  
CAMBODIA  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by 
Cambodia  is attached.  
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Cambodia . WT/TPR/G/364 • Cambodia  
 
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  Contents  
1   INTRODUCTION  ................................ ................................ ................................ ..........  3 
2   MACROECONOMIC DEVELO PMENTS  ................................ ................................ .............  3 
3   INCOME, WELFARE, AND  VULNERABILITY  ................................ ................................ ... 3 
4   ENHANCING CAMBODIA'S  COMPETITIVENESS  ................................ ............................  4 
4.1   Completing and Improving the Legal and Regulatory Regime  ................................ ............  5 
4.2   Reducing the Costs of Complying with Government Regulations and Procedures  ..................  7 
4.3   Improving the Quality of the Labour Force  ................................ ................................ .....11 
4.4   Expanding the Availability of Electricity and Reduci ng its Cost  ................................ .......... 13 
4.5   Transportation and Logistics  ................................ ................................ ........................ 13 
5   TRADE, DEVELOPMENT, AND DEVELOPMENT PART NERS  ................................ ...........  15 
 
 
  WT/TPR/G/364 • Cambodia  
 
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  1  INTROD UCTION  
1.1.  Cambodia has been classified by the United Nations as a least developed country (LDC). Its 
population is growing rapidly, and reached roughly 15 million in 2016, 77 % of which live in rural 
areas, while 13.5 % live below the poverty line. Cambodia maintains an open economy, and 
depends heavily on exports as a source of growth of gross domestic product (GDP) and 
employment.  International trade and related investment are thus central to the Government 's 
efforts to raise the incomes and welfare of Camb odians. The international trading regime managed 
by the World Trade Organization (WTO), regional trading arrangements centered on the 
Association of Southeast Asian Nations (ASEAN), and the various generalized system of 
preferences (GSP) programs of WTO me mbers, shape the external environment in which 
Cambodia pursues its development objectives.  
2  MACROECONOMIC DEVELO PMENTS  
2.1.  Cambodia has experienced rapid and steady growth since its last Trade Policy Review in 
2011, with GDP expanding at an annual rate that i s slightly above 7 %. Construction has been the 
most dynamic sector, growing by about 14 % in 2014, 19 % in 20151, and by 32 % in 2016 .2 
Garments continued to perform well, growing at an average rate of about 8 % per annum during 
2012-16, supported by Cambodia 's benefits under several preferential trade agreements, in 
particular by the Everything But Arms (EBA) program of the European Union 's (EU) Generalized 
System of Preferences. The food, beverage and tobacco sector experienced rapid expansion during 
the peri od under review, fueled by rising domestic demand. This sector, which consists mainly of 
small and medium enterprises, many led by Cambodian entrepreneurs, has become an 
increasingly important component of economic growth. During 2013 -15, unfavo urable weat her 
conditions and a drop in commodity prices reduced the average annual growth of agricultural 
output to 0.7 %; improved weather and a stronger growth of crops and fisheries is expected to 
raise growth in 2016 and 2017 to 1.4 % and 1.7 %, respectively.  Services experien ced softer 
growth during 2015 -16, owing mainly to a slower expansion in the hotel and restaurant sector 
which, in turn, reflected a slowing in the growth of tourism, especially high -end tourism.  
2.2.  This economic performance was underpinned by a s teady, p redictable, and favo urable 
macro -economic environment. Price inflation was contained by prudent monetary policies, and 
declined from 5.5 % in 2011 to 1.2 % in 2015, as energy prices weakened.  In 2016 it rose to 3% , 
reflecting the gradual rise in inte rnational oil prices and in domestic food prices. The overall 
budgetary deficit, which had previously risen as the Government combatted the effects on 
Cambodia of the international financi al and economic crisis of 2008 -09, was reduced from 8.2 % of 
GDP in 2 011 to 3 % of GDP in 2015. The deficit reduction was accompanied by a strong expansion 
of government spending: current expenditure rose at an average annual rate of 14 % during the 
same period. Expenditure on education grew especially rapidly, and the share of education and 
vocational training in total spending rose from 7.9 % in 2011 to 10.5 % in 2015. The combination of 
fiscal consolidation and vigorous growth of expenditure was made possible by major improvements 
in collecting revenue: revenue equaled 13 % of GDP in 2011, and rose to about 18 % of GDP in 
2016. Better tax auditing, better collection of arrears, and a vigorous anti -smuggling campaign 
were major components of this improvement.  
3  INCOME, WELFARE, AND  VULNERABILITY  
3.1.  The rapid growth in GDP since the la st Trade Policy Review during the period under review 
produced an equally rapid advance in GDP per capita, which grew at an average annual rate of 
around 7.7 % and in 2016 reached US$1,302, as compared with US$911 in 2011. In 2016 , 
Cambodia passed the World  Bank's gross national income per capita graduation threshold, and 
passed from low -income -country status into lower -middle -income -country status.  
3.2.  The sharp rise in per capita income, in turn, has been accompanied by visible and significant 
improvement in the welfare of all Cambodians. The poverty rate, which was 53 % in 2004, and 
21% in 2010 fell further to around 13.5 % in 2014. The infant mortality rate  fell from 45 deaths 
per 1,000 live births in 2010 to 28 deaths per 1,000 live births in 2014, and the literacy rate 
increased from 79.9 % in 2011 to 80.5 % in 2015. During the 2015 United Nations ' review of LDCs, 
                                                
1 Source: MEF and MLMUPC . 
2 Source: MLMUPC . WT/TPR/G/364 • Cambodia  
 
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  Cambodia 's human assets index, which measures levels of health, nutrition, education and adult 
literacy, reached for the first time the threshold a llowing graduation from LDC status.  
3.3.  The 2008 -09 financial and economic crisis illustrated Cambodia 's exposure to negative 
external developments, an exposure that is magnified by its reliance on a relatively few export 
products  and export markets. The 2008 -09 negative influences occurred mainly through a drop in 
garment exports to the United States. In the period under review, Cambodia 's export reliance on 
both the U.S. market and on garments has been reduced. Garments accounted for 90 % of 
Cambodia 's total exports in 2007, 67 % in 2011, and 66 % in 2016. The United States accounted 
for 64 % of Cambodia 's total exports in 2007, 48 % in 2011, and 25 % in 2016. The more balanced 
current mix of products and destinations has lowered Cambodia 's vulnerability, but relia nce on 
garments, while greatly reduced, is still large, and exposure to developments in the United States 
and Europe, while reduced, remains high.  
3.4.  The progress described above is part of the longer -term trajectory of the Cambodian 
economy. As the Internat ional Monetary Fund and World Bank have pointed out, Cambodia ranks 
sixth in the list of the world 's most rapidly growing economies during the past 20 years. This 
achievement has been possible because of Cambodia 's access to , and participation in, the 
WTO-managed world trade regime. Cambodia is well aware of the critical importance to its own 
growth and development of the WTO requirement of open and fair trade, governed by a rule -based 
system. Cambodia 's experience is ample evidence that such a system can w ork well for least 
developed countries, but there is also need for constant attention to the system 's features, in 
order to ensure that these countries are able to fully realize the benefits that it offers. Cambodia is 
honored to have been asked to coordin ate the activities of the LDC Group in WTO this year and 
has made every effort to assist the Group in advancing their interests within WTO.  
4  ENHANCING CAMBODIA 'S COMPETITIVENESS  
4.1.  The remarkable growth that Cambodia has experienced is the direct result of its  ability to 
compete in international markets and maintain an open economy.  Cambodia 's competitiveness 
was initially based primarily on its abundant and low -priced labo ur. More recently, trade 
preferences under GSP and duty -free-quota -free (DFQF) program mes, in particular the EU 's EBA 
program me, as modified by the 2011 changes in its rules of origin, have been the key to export 
expansion: as much as 80 % of the growth of Cambodia 's exports occurred in markets providing 
non-reciprocal tariff preferences. These  incentives, when combined with Cambodia 's attractive 
investment regime, account for the major part of Cambodia 's growth performance.  
4.2.  The set of circumstances that allowed this rapid growth is changing, and will change further 
in the future. Some countrie s providing GSP preferences are also entering into free -trade 
agreements, which tend to dilute the commercial value of Cambodia 's preferential access. The 
special DFQF privileges that Cambodia enjoys as an LDC will at some point come to an end: 
UNCTAD has forecast that in the second half of the 2020s Cambodia may be approaching eligibility 
for graduation from the LDC group. Wage rates of Labo ur costs in Cambodia are going up, as they 
must if the benefits of Cambodia 's integration into the world economy are to be equitably shared. 
The old bases for Cambodia 's competitiveness are eroding, and new ones must be found and 
created by Cambodia itself.  
4.3.  Part of the response to the actual and prospective erosion of traditional preferential trading 
arrangements has bee n to create new ones. Cambodia participates fully in the elaboration and 
execution of the ASEAN Economic Community and has entered into free -trade agreements with 
ASEAN Dialogue Partners —Australia/New Zealand, China, India, Japan and the Republic of Korea.  
These destinations currently account for a relatively small part of Cambodia 's total exports, but 
regional value chains are being established and regional trade is growing rapidly; it will 
undoubtedly continue to do so in the future. Cambodia also partici pates in the negotiation of the 
Regional Comprehensive Economic Partnership, which aims to consolidate the various free -trade 
arrangements with ASEAN Dialogue Partners into to a single preferential trading bloc. It is 
anticipated that this negotiation will  be substantially concluded by the end of 2017.  
4.4.  Cambodia 's ability in the years ahead to expand rapidly its exports within these preferential 
trading arrangements and to penetrate markets where it does not enjoy preferences depends WT/TPR/G/364 • Cambodia  
 
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  critically on its underl ying competitiveness; bringing about rapid improvements in that 
competitiveness is Cambodia 's biggest challenge.  
4.5.  The Royal Government and its ministries have elaborated a multi -layered strategic approach 
designed to meet this challenge. The Rectangular Str ategy Phase III and the S trategic 
Development Plan 2014 -18 set out economy -wide development objectives and strategy. These are 
reinforced and elaborated by sectoral development plans and strategies, for example the Education 
Strategic Plan, 2014 -18; The Fi nancial Sect or Development Strategy, 2011 -20; the Agricultural 
Sector Str ategic Development Plan, 2014 -18; and, most recently, the Indus trial Development 
Policy, 2015 -25, which aims to transform Cambodia 's indus trial structure away from 
labour-intensive activities and toward skill -driven activities. Individual products have also been 
earmarked for policy action:  through its Trade Integration Strategy (CTIS) the Government has 
identified ten export sectors that will receive  priority attention. These are ga rments; footwear; 
light manufacturing assembly in special economic zones (SEZ); processed food; fisheries products; 
milled rice; cassava; rubber; tourism; and high -value silk products. These, in turn, are the object 
of product strategies, for example the P olicy Paper on the Promotion of Paddy Production and Rice 
Export; Strategic Planning Framework for Fisherie s 2015 -24; the Natural Rubb er Development 
Strategy, 2011 -20; and the Tourism Dev elopment Strategic Plan, 2012 -20. For each of these 
products the CTIS  focused, along with other key competitive issues, on opportunities for producers 
to move up value chains; opportunities to increase the volume of exports; opportunities to 
diversify target markets; opportunities to increase backward linkages through linka ges to domestic 
producers (mostly small and medium enterprises); and socio -economic and environmental 
impacts.  
4.6.  There are a number of broad, cross -cutting issues that affect the competitiveness of 
Cambodia as an investment destination and that impact all fi rms seeking to produce for export. 
These include the quality and completeness of the legal environment; the cost of complying with 
government regulations and procedures; the quality of the labo ur force; the cost of electricity; and 
the cost of transportati on and logistics. The following sections describe briefly the Government 's 
actions and plans in these areas.  
4.1  Completing and Improving the Legal and Regulatory Regime  
4.7.  Cambodia 's accession to WTO was governed by the 10 December 2002 Decision of the 
General C ouncil on the Accession of Least Developed Countries, and it joined WTO without having 
in place all of the laws and regulations normally required of a WTO member. In addition, it lacked 
numerous laws and regulations that, while not required by WTO rules, a re necessary to create a 
transparent and predictable legal environment for business. Consequently, legislative and 
regulatory development continues to have high priority, and is guided by a work program me.  
4.8.  Laws pass through three stages of development: dr afting by the line ministry concerned; 
consideration by the Council of Ministers; and, if approved by the Council of Ministers and 
submitted to the National Assembly, consideration and adoption by the National Assembly and by 
the Senate. The following repo rts on the main actions completed since the previous Trade Policy 
Review, and on the state of play as regards laws that are still under development.  
4.9.  The following laws were adopted during the period under review:  
 Law on Public Procurement (14 January 2012 ) 
 Law on the Management of Pesticide and Fertilizer (14 January 2012)  
 Law on Geographical Indications (20 January 2014)  
 Law on Insurance (4 August 2014)  
 Law on the Organization of Courts (16 July 2014)  
 Law on Telecommunications (17 December 2015)  
 Law on Animal Health and Animal Production (1 February 2016)  
 Law on Trade Unions (17 May 2016)  
4.10.   Cambodia acceded to the following international conventions during the period under 
review:  
 the Revised Kyoto Convention (28 June 2014)  WT/TPR/G/364 • Cambodia  
 
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   Madrid Protocol on the Internat ional Registration of Marks (5 June 2015)  
 Patent Cooperation Treaty (8 December 2016)  
 The Hague Agreement Concerning the International Registration of Industrial Designs 
(25 February 2017)  
4.11.   The following laws are currently under development:  
 Law on Competi tion (being developed by the Ministry of Commerce)  
 Law on Consumer Protection (being developed by the Ministry of Commerce)  
 Law on Commercial Contracts (with the Council of Ministers)  
 Law on Special Economic Zones (being developed by the Council for the De velopment of 
Cambodia)  
 Law on eCommerce (with the Council of Ministers)  
 Law on Trade Remedies (with the National Assembly)  
 Law on Food (with the Council of Ministers)  
 Law on Standards (being amended, with the Council of Ministers)  
 Law on Compulsory Licens ing for Public Health (with the Council of Ministers)  
  --Law on Patents, Utility Models and Industrial Designs (being amended, with the 
National Assembly)    
  --Law on Trade Secrets and Undisclosed Information (being developed by the Ministry 
of Commerce)  
 Law on Traditional Knowledge, Genetic Resources and Traditional Cultural Expression 
(being discussed and developed by relevant Ministries (Ministry of Environment, Ministry 
of Culture and Fine Arts, Ministry of Health and Ministry of Industry and Handicraf t) 
 Law on Layout Designs of Integrated Circuits (being developed by the Ministry of 
Industry and Handicraft)  
 Law on rubber (being developed by MAFF)  
 Law on Amendment of the Law on Fisheries (with the National Assembly)  
 Law on Plant Protection and Quarantin e (with the Council of Ministers)  
4.12.   The Law on the Organization of Courts rounds out the set of institutions available for the 
settlement of commercial disputes. The Law requires the establishment of commercial courts in the 
courts of first instance througho ut Cambodia (Article 5 and Article 14). The National Arbitration 
Center, established pursuant to the 2006 Law on Commercial Arbitration, became fully functional 
in 2013, and is an alternative platform for private commercial dis pute settlement involving 
quasi-judicial procedures. In some instances, line ministries themselves may play a role in dispute 
settlement. In 2016, for example, the Ministry of Commerce received 17 applications for the 
prevention of Trademark infringement, and mediated and settled 12 o f the cases.  
4.13.   The laws adopted and under preparation, as well as Cambodia 's adherence to international 
conventions, show a clear focus on the protection of intellectual property.  Cambodia 's accession to 
the Madrid Protocol was immediately followed by the ad option of 2 Prakas needed to implement 
Cambodia 's obligations: Prakas on procedures for the protection of certification marks; and Prakas 
on procedures for the international registration of marks. Since joining the Protocol, Cambodia has 
received 3,377 tra demark applications of international registration, 1,006 of which were granted 
protection.  
4.14.   The Law on Geographical Indications provides a firm basis for the protection of geographic 
indications, which were previously protected under a Ministry of Commerce Prakas. Cambodia 
currently provides protection to Kampot Pepper and Palm Sugar from Kampong Speu Province, 
and is in the process of registering Koh Trung pomelo. In 2016 , Kampot pepper was successfully 
registered in the EU and Viet  Nam; Kampong Speu palm s ugar has been registered in Viet  Nam 
and Thailand.  
4.15.   The draft Law on Compulsory Licensing for Public Health is designed to allow Cambodia to 
benefit fully from the Amendments to the TRIPS Agreement dealing with public health that came 
into effect in January  2017. The draft laws on undisclosed information and on the layout designs of 
integrated circuits complete Cambodia 's legal requirements under TRIPS. (It should be noted that 
integrated circuits are presently protected under a Prakas.)  WT/TPR/G/364 • Cambodia  
 
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  4.16.   The law on Patents,  Utility Models and Industrial Designs adopted in 2003 is being revised 
by adding new article 136 and new sub -paragraphs in the foll owing articles: Article 37 (new 
sub-paragraph 4), Art icle 38 (new sub -paragraph 2), Art icle 109 (new sub -paragraph 2 and 3).  
4.17.   Cambodia acceded to the Patent Cooperation Treaty in 2016.  Cambodia has entered into 
bilateral agreements with the EU, Singapo re and Japan to acknowledge and/ or facilitate the 
issuance of patents more quickly. On 20 January 2015, the Ministry of Industry and Handicraft and 
the Intellectual Property Office of Singapore entered into a Memorandum  of Understanding on 
Cooperation in Industrial  Property which enables holders of Singapore -granted  patents to obtain 
protection in Cambodia. This led to the adoption of Prakas on Re -registration of Singapore Patents 
in Cambodia, which entered into force in July 2016. A Prakas dated 25 July 2016 assures the 
Acceleration of the Issuance of Patents under the Cooperation of Facilitation of the Issuance of 
Patents in Cambod ia regarding Patent Applications with the Japan Patent Office, and allows patent 
applications in Cambodia based on prior search and examination reports conducted by Japan to be 
promptly granted.  
4.18.   The draft Law on Standards revises the 2007 Law, bringing i t into full compliance with 
WTO requirements.  
4.19.   The draft laws on commercial contracts, ecommerce, consumer protection and competition 
will, when adopted, provide greater clarity to the legal environment within which businesses 
operate. The law on animal healt h and the draft law on food will develop further Cambodia 's 
regime on sanitary measures. The law on trade remedies, when complemented by its 
implementing sub -decree, will add to the trade -policy measures available to Cambodia. The draft 
laws on standards, trade remedies, food, and intellectual  property comply fully with 
WTO requirements. In all, the package of adopted and prospective legislation is a significant step 
forward.  
4.2  Reducing the C osts of Complying with Government R egulations and P rocedures  
4.20.   The Royal Government continues to make sustained efforts to reduce the costs of complying 
with its regulations and procedures. It maintains an ongoing dialogue with the private sector, 
primarily through the Government -Private Sector Forum and its various worki ng groups, and the 
Customs -Private Sector Partnership Mechanism, which helps identify areas in which improvements 
in government procedures would be most beneficial to the business community.  
4.21.   A part of the costs of doing business, or of importing or exporti ng, consists of "discovery " 
costs, i.e. the costs of identifying exactly what government procedures are required, and how to 
comply with them.  To reduce these costs for international traders, the Ministry of Economy and 
Finance established in 2015 Cambodia 's national trade repository (NTR) www.cambodiantr.gov.kh , 
an online portal where traders can access easily all trade -related information needed to import into 
or export from Cambodia. Cambodia 's NTR fulfills c ommitments under the ASEAN Trade 
Agreement in Goods Agreement (ATIGA), making up part of the ASEAN Trade Repository.  In 
addition, the NTR provides a foundation for Cambodia to meet commitments under the WTO Trade 
Facilitation Agreement (TFA) Article 1 on P ublication and Availability of Information.   
4.22.   A similar initiative has been taken in the area of intellectual property protection. In 2014 , 
the Ministry of Commerce launched the web site www.cambodiaip.gov.kh , allowing the public to 
search for marks registered in Cambodia and ASEAN.  The Ministry of Commerce has also 
introduced the Intellectual Property Automation System (IPAS), which enables trademark 
examiners to store and search trademark data. IPAS has been per iodically upgraded and 
trademark examiners can now upload a wider range of trademark documents to the system, 
streamlining workflows, and allowing marks to be registered expeditiously.  
4.23.   In addition to providing better and quicker access to in formation on b usiness and 
trade -related procedures, the Royal Government has taken a number of steps to streamline the 
procedures themselves. This usually takes the form of applying risk management and/or 
computerization to the measures in question. The following steps have recently been taken to 
expedite import and export procedures.  WT/TPR/G/364 • Cambodia  
 
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  Customs Automation  
4.24.   The General Department of Customs and Excise (GDCE) has continued to improve and 
expand the functionality of ASYCUDA. The system is currently used at 74 major border post s and 
offices and processes 99 % of customs declarations (the single administrative document, or SAD). 
Its main functions are to process import/export declarations, direct trader input, transactions 
related to bonded warehouses and freight manifests (being piloted at Phnom Penh International 
Port). Traders may track the status of their SAD from the customs website. In addition, other 
customs procedures, namely transit and simplified declarations, have been automated. The 
average time for clearing a shipment,  i.e. the time between the lodgment of the SAD and cargo 
release, is less than two hours .  
Single Window  
4.25.   In March 2015, a National Single Window Steering Committee, along with a Policy and Legal 
Advisory Group and a Project Team, were designated to provid e oversight, management and 
execution skills for the Cambodia National Single Window (CNSW) development process. A number 
of ministries are involved, all of which will need, to one extent or another, to adapt their processes 
and procedures to the requireme nts of the CNSW.   
4.26.   The Cambodian National Single Window will eventually be part of the ASEAN Single Window, 
and care is being given to ensure that processes are harmonized and streamlined before the ICT 
component is designed.  Recommendations from a 2016 nee ds assessment suggested that the 
development and implementation of the CNSW be carried out in three phases.  Phase 1 would be 
focused on connecting the CNSW to ASYCUDA, and that part of the electronic certificates of origin 
system that pertains to ASEAN tra de to the ASEAN Single Window. In 2017, Cambodia requested 
support for the installation of the ASEAN Single Window gateway and by the end the year should 
have a routing system in place that will function as a basic NSW connected to the ASEAN Single 
Window for the limited purpose of exchanging certificates of ASEAN origin (electronic C/O Form D) 
with other Member States.  This should prepare Cambodia to engage in ASEAN 's test exchange of 
ASEAN Customs Declaration Documents (ACDD) and e -phyto certificates next  year. Phase 2 would 
bring about the integration of other government agencies, (e.g. licensing and permit -issuing 
agencies) to the CNSW.  Phase 3 will complete the implement the CNSW according to the NSW 
Blueprint and its supporting documents.  Cambodia has notified TFA Article 10.4 Single Window as 
a Category C provision.   
Risk Management  
4.27.   The GDCE uses a customs risk management database system that is integrated into 
ASYCUDA and that facilitates clearance by classifying customs declarations into four catego ries. 
Declarations classified as "green lane " are automatically assessed and a clearance document is 
issued. Such declarations are subject to post -clearance audit.  Declarations classified as "blue lane " 
are treated identically, except that the post -clearan ce audit is mandatory. Declarations classified 
as "yellow lane " require a document check before they can proceed to assessment and clearance, 
while those that fall in the "red lane " require a document check and a physical inspection before 
proceeding to as sessment and clearance. This system is undergoing continuous evaluation and 
updating to ensure that it efficiently identifies high -risk cargoes and importers.  
Best Traders Program and Authorized Economic Operators  
4.28.   As an initial step towards eventually im plementing an Authorized Economic Operators 
program (and fulfilling requirements of the WCO SAFE Framework of Standards), the GDCE 
introduced its Best Traders Incentives Mechanism in June 2014 to provide benefits to traders who 
meet certain criteria. To da te, 17 companies have qualified under the program and receive 
incentives including, among other things, receiving priority with respect to customs procedures; 
exemption from pre -verification of customs valuation and certificates of origin; and exclusion fr om 
the obligation of securing a transport permit for the import and export of goods.  WT/TPR/G/364 • Cambodia  
 
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  Post Clearance Audit  
4.29.   The GDCE introduced the initial phase of its post -clearance audit (PCA) program me in 2012 
for the garment sector with the objective of expediting the movement of imports through arrival 
and transport hubs, enhancing voluntary compliance and strengthening revenue mobilization. PCA 
enables selected consignments to be cleared without delay at the point of entry, and audits of 
traders ' declarations are cond ucted post clearance. The PCA mechanism has been gradually 
extended into other sectors, and since June 2016 has been applied generally, with particular 
attention to regular exporters and importers.  
Advance Rulings  
4.30.   The GDCE established a legally binding ad vance rulings process in January 2013. Traders 
may request advance rulings on tariff classifications, customs valuation and the origin of goods. 
These advance rulings are valid for three years, and remove classification, valuation and origin 
examinations f rom the procedures needed when goods move through customs.  
E-permit/Customs  
4.31.   The GDCE is working to automate several documentation systems, including the 
transportation document system, petroleum transportation document, customs transit document, 
summary d eclaration system, deposit system, container scanning system, and customs e -permit 
system.  The development of the customs e -permit is ongoing, but will essentially allow traders to 
apply and receive approval for a permit online. This initiative is still in  its early stages.  
Phyto -sanitary Certificates  
4.32.   More than 10,000 export consignments a year must be accompanied by a phyto -sanitary 
certificate. An automated system will be developed for issuing these certificates. Applications for a 
certificate will be made online, the inspections are carried out by mobile teams, and the 
certificates will be able to be issued at multiple locations within Cambodia.  The resulting electronic 
certificate can be sent directly to the relevant authorities in the importing country.  
Certificates of Cambodian Origin  
4.33.   In 2016 , the Ministry of Commerce introduced an on -line facility designed to simplify and 
speed up its issuance of certificates of Cambodian origin.  An exporter wishing to apply for 
certificates of origin on line first creates an account with the Ministry of Commerce. He is then able 
to log in to create individual certificates.  Once logged in he chooses the type of certificate of origin 
he wishes to create, and then enters his firm 's name and address and other expo rter details, 
provides the information that the certificate must contain --such as marks and number of 
packages, the description and HS code of the goods, and the origin criterion that is being used -- 
and submits the draft certificate electronically with at  least one uploaded supporting document, 
such as a bill of lading or customs declaration. The submitted draft certificate is then verified by a 
Ministry of Commerce official, and if it is in order the submitting firm pays electronically all fees 
and charge s, after which it may print out and sign the certificate of origin and submit it to the 
Ministry of Commerce for final endorsement.  
4.34.   Cambodia has taken the first steps toward a system in which exporters themselves issue 
their certificates of origin. In Augu st 2015 , Cambodia joined the ASEAN Self -Certification Pilot 
Project (SCPP1) through which Brunei Darussalam, Cambodia, Malaysia, Myanmar, Singapore and 
Thailand accept certificates of ASEAN origin produced by certified exporters in each other 's 
countries.  Currently, only a few Cambodian exporters and producers have been certified to issue 
their own certificates; the Ministry of Commerce is urging others to participate in the pilot project. 
Cambodia expects to participate in ASEAN Wide Self -Certification beg inning in 2019.  
Paperless Trade in Asia and the Pacific  
4.35.   In August 2017 , Cambodia joined the UNESCAP Framework Agreement on Facilitation of 
Cross -border Paperless Trade in Asia and the Pacific. The objective of the framework agreement is 
to promote cross -border paperless trade by enabling the exchange and mutual recognition of WT/TPR/G/364 • Cambodia  
 
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  trade -related data and documents in electronic form and facilitating interoperability among 
national and sub -regional single windows.  
The WTO Trade Facilitation Agreement  
4.36.   Cambodia r atified the WTO Trade Facilitation Agreement on 12 February 2016, becoming 
the 8th LDC and 69th Member to do so. In late 2016, Cambodia completed an assessment of its 
trade facilitation framework in the light of TFA requirements, and developed a road map t o 
implement the agreement.  In August 2017 , Cambodia submitted to WTO its Category A, B, and C 
notifications, as well as the indicative dates for the implementation of the various provisions of the 
TFA. The Trade Facilitation Agreement will form the framewo rk within which further efforts to 
simplify and expedite government formalities related to trade take place.  
Trademark Registration  
4.37.   On 25 May 2017, the Ministry of Commerce launched the Online Marks Filing System which 
is the new online infrastructure thou gh which applicants may file their trademark applications for 
registration online, reducing the time and cost associated with making such applications.  
Company Registration   
4.38.   In addition to streamlining import and export procedures, steps have been taken to  reduce 
the costs of registering a business in Cambodia. Prior to 2016, company registration was done 
manually, and it took 5 working days to process the required documents and issue a Registration 
Certificate. In 2016 , the Ministry of Commerce introduced a new registration procedure that 
reduces the number of steps required to register (demonstration of financial viability by submitting 
evidence of a bank account may now be done after registration; the Chairman of the business no 
longer needs to appear in person) and allows the remaining steps to be taken on -line, through the 
registration portal www.businessregistration.moc.gov.kh . This automated system allows 
businesses to register from any locatio n in Cambodia or from abroad, and creates an information 
data base that can be shared with other line ministries, thereby eliminating the need for firms to 
repeatedly provide the same information.  
4.39.   To register as a new user, applicants indicate whether the y are registering a sole 
proprietorship, partnership, private limited company, public limited company, or foreign company.  
The applicant then fills in the required information, provides the necessary documentation and 
pays the registration fee; the online system allows 15 days for the applicant to complete the 
process of submission. Once completed, the information and documentation is uploaded and 
submitted for review by a business registration official. If approved, the company will be 
immediately register ed and a certificate of registration will be i ssued. This normally occurs 
3-5 working days after the applicant 's submission successfully uploaded. If a new company is 
registering as a private or public limited company, it is automatically incorporated.  
4.40.   The registration portal allows the registrant to follow the progress of his application, and to 
obtain timely information on its status. Once the application is approved and the relevant fees are 
paid, the business will receive an electronic certificate that contains an electroni c stamp, a 
QR code and signature.  The QR code makes it easier to search the database and other systems for 
relevant information. In addition to facilitating the on -line payment of fees, the portal may be used 
to file the annual declara tion, file for the dissolution of a company, and undertake other related 
actions.  
4.41.   After the 2016 launch of the portal, all existing companies and sole proprietorships were 
required to re -register by 31 March 2016, using the new online system. This proved difficult and 
the deadline to re -register businesses was extended until 31 December 2016.  As of 
September  2017, there were 12,054 companies and 1,466 s ole proprietorships that had 
re-registered and obtained their electronic certificates.  
4.42.   The other registra tion required of a new business —with the General Department of Taxation 
of the Ministry of Economy and Finance —may now also be done on line. The Ministry of Commerce 
and the Ministry of Economy and Finance have been working to create an interface between t he WT/TPR/G/364 • Cambodia  
 
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  two registration systems that allows the sharing of information between the two institutions. This 
is expected to be accomplished by the end of 2017.  
4.3  Improving the Quality of the Labo ur Force  
4.43.   Labour is the most fundamental input to all economic activity , and the quality of that input 
is a prime determinant of competitiveness. The effectiveness of labo ur as an input depends on the 
general level of education of the work force; on the practical skills that workers entering the labo ur 
force bring to their ta sks; and on the creation of a legal environment for labo ur relations that 
promotes a harmonious interaction of employers and employees. Cambodia is making progress on 
all three of these fronts.  
4.44.   Labour skills begin with basic education which endows the futu re work force with the ability 
to learn and to be trained. Basic education should also endow students with skills, attitudes and 
disciplines that are needed for success in the workplace.  The Ministry of Education, Youth and 
Sport (MoEYS), operating within the framework of its Educ ation Strategic Plan 2014 -18 and its 
Master Plan for Technical Education at t he Upper Secondary Level (2015 -19) has undertaken a 
vigorous and wide -ranging program me of reform designed to ensure the access of all Cambodians 
to quali ty education; to increase the completion rate and raise the level of instruction and 
relevance of learning across the board; and to reduce the mismatch between the needs of the 
labour market in terms of skills, critical thinking ability and knowledge on th e one hand, and the 
actual competencies of school graduates, on the other.  Among the many changes that have been 
introduced, the following are of particular relevance in preparing students for the workplace.  
4.45.   As regards primary and secondary education:  
 the school curriculum was completely reviewed and revised in 2016, so as to meet 
contemporary needs. Greater emphasis is given to the "STEM " topics: science, 
technology, engineering and mathematics. The Ministry of Education, Youth and Sport is 
now developing  the new syllabuses  required by the new curriculum.  
 a policy on "New Generation Schools " (NGS) has been adopted, and pilot program mes 
are under  way. NGSs are designed to create a new development track within the public 
education system that will lead to th e creation of autonomous public schools, receiving 
high investment and linked to new standards of accountability and governance as well as 
professional standards for 21st Century learning.  
 five new General and Technical High Schools have recently been crea ted, bringing the 
total number of such schools to nine. Two more will begin operation in 2018. General 
and Technical High Schools provide general education and specialized education in the 
areas of electricity, electronics, mechanics, animal husbandry and agronomy. These 
schools are located in the provinces and eventually each of Cambodia 's twenty -four 
provinces and the capital city of Phnom Penh  will have at least one such school.  
 the disciplines surrounding the secondary -school graduation exam have been t ightened, 
so as to ensure that a high school diploma indicates that the required skills and 
knowledge have indeed been achieved.  
4.46.   As regards higher education:  
 the MoEYS has recently adopted its first long -term pl an for the higher education 
sub-sector, whic h consists of 73 higher education institutions (HEI) -- universities and 
institutes -- of which 60 are private. The Cambodian Higher Education Roadmap 2030 
and Beyond lays out four key goals: to raise the quality and relevance of higher 
education to the econ omy and society; to provide broad and more equitable access to 
higher education; to internationalize Cambodian higher education; and to improve the 
governance and financing of higher education.  
 A national policy on Cambodia Youth Development and a National  Action Plan have been 
adopted. The action plan aims, among other things, at motivating youths to develop 
their sense of initiative, creativity, i nnovation, and entrepreneurship.  
 The MoEYS has recently begun preparing a program of interventions designed to  
improve the curriculum, especially in priority STEM fields of study.  
 in the past few years, MoEYS has begun to invest more strategically in research and 
innovation conducted by HEIs. This  intervention includes the provision of  research grants WT/TPR/G/364 • Cambodia  
 
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  to HEIs; upg rading of faculty members ' skills and qualifications through support that 
allows them to  pursue higher degrees abroad and take advantage of on -the-job training 
opportunities; investment in research facilities and in particular in laboratory facilities; 
and the development of research policies and a master plan. Efforts are being made to 
develop selected cent res of excellence in niche research areas in some priority public 
HEIs as well as to encourage post -graduate schools to further improve their research 
capacities.  
4.47.   The Ministry of Labo ur and Vocational Training (MLVT) administers 39 institutions providing 
technical vocational education and training (TVET), located in all 24 of Cambodia 's provinces and in 
the capital city of  Phnom Penh. There are also 74 vo cational training institutes registered under 
MLVT that are operated by private companies and NGOs. Prior to 2010 the state -operated 
institutions were focused primarily on school drop -outs, and on alleviating poverty. Since then 
their functions have been r eformed and expanded, making them a significant provider of skills to 
the work force, improving its productivity. Some of the more important changes are:  
 in consultation with the private sector, orienting training to the needs of the labo ur 
market;  
 develop ing a comprehensive curriculum ranging from basic to advanced levels of 
competency based training (CBT).  Technical vocational certificates are awarded at 
three  levels: higher diploma of technology/business education; bachelor degree in 
technology/business education; and master degree in technology/business education;  
 establishing the Cambodia Qualifications Framework and quality assurance systems to 
ensure that standards are met;  
 expanding 29 the number of institutions offering diplomas;  
 establishing auto  mechanics, construction and Information Communication Technology 
(ICT)/Business as priority sectors; electricity and manufacturing will be added in the 
period ahead; and  
 introducing competency -based training methods.  
4.48.   In 2017 , the Royal Government approved  a national technical vocational education and 
training (TVE T) policy for the period 2017 -25. It objectives are: to increase decent and productive 
employment opportunities; to enhance skills and human resource development; and to improve 
labour market gove rnance.  
4.49.   Strengthening the overall capacities of school graduates facilitates the task of individual 
industries in training workers for specific functions. Cambodia 's major export industries have 
already established training facilities designed to enhance the skills of their work force. The 
Garment Manufacturers Association of Cambodia (GMAC) has recently put in place the Cambodia 
Garment Training Institute, which provides various short courses on technical issues such as 
garment construction and fit evolut ion and pattern alteration. In order to develop middle -level 
Cambodian staff, the Institute also offers "train and place " courses for university graduates, 
consisting of three months of intensive training followed by twelve months of work in a Cambodian 
garment company. The courses currently offered are in apparel merchandizing, apparel design and 
product development, and industrial engineering, quality, and production.  
4.50.   The tourism sector has also taken steps to increase the skills of its work force  in tour ism 
and hospitality skills. The Government established National Tourism Institute at the Ministry of 
Tourism 's premise. The schools of tourism have been established and on operation, namely: Ecole 
Paul du Bruile and Salabay in Siem Reap and Pour un Sourire  d'Enfant (PSE) in Phnom Penh. The 
Government plans to build two vocational training cent res in Phnom Penh and Sihanoukville in an 
effort to strengthen the competitiveness of tourism sector in Cambodia . The Academy of Culinary 
Arts, Cambodia is a public -private partnership. The Academy offers a two -year course in culinary 
arts, and is accredited through the Swiss Hotel Management Academy, Lucerne, which is the 
Cambodian Academy 's technical training partner.   
4.51.   Interaction between labo ur and employers is guided by the 1997 Labo ur Law, which lays out 
the rights and obligations of workers and employers, dealing with issues such as contracts, 
working conditions, the health and safety of workers, trade union freedom and worker 
representation, the settlement of  disputes, and strikes and lock -outs. The Law on Trade Unions, 
promulgated in 2016, provides a more detailed legal framework for the operation of trade unions, 
clarifying the rights and responsibilities of workers ' and employers ' organizations.  WT/TPR/G/364 • Cambodia  
 
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  4.52.   Cambodia pr esently has a government -mandated minimum wage for workers in the 
garment and footwear sectors. The minimum wage is set annually by the Ministry of Labo ur and 
Vocational Training, following a recommendation by the Labo ur Advisory Committee, a tri -partite 
body made up of representatives of labo ur, employers and the Government.  A Law on Minimum 
Wage and a Law on Procedures of Labour Dispute Judgment are presently under development, and 
are expected to be passed in the first quarter of 2018.  
4.4  Expanding the Avai lability of Electricity and Reducing its Cost  
4.53.   The availability and cost of electricity are key components of competiveness. Electricity 
costs in Cambodia are higher than in neighbo uring countries and availability is less assured, thus 
diminishing Cambodia 's relative attractiveness as an investment destination and export platform. 
Expansion of the electricity grids so as to provide access to electricity throughout the country, 
ensuring reliable provision of electricity to industrial zones, and lowering the c osts of electricity for 
commercial and industrial purposes are high priority objectives in the period ahead. Demand 
forecasts indicate that meeting these supply objectives and underpinning expected overall rapid 
economic growth will require an increase in the national electricity supply from 6,015 GWh in 2015 
to 9,406 GWh in 2020 and 14,951 GWh in 2025. At the same time, reductions in the cost of 
electricity will require that lower -cost sources of power, in particular hydro, play a greater role in 
overall s upply.  
4.54.   The generation master plan drawn up by Cambodia 's authorities envisages that in the 
period ahead peak generation in Phnom Penh will be assured by thermal units; small and 
medium -sized diesel units will provide both base and peak loads in provincial  towns and cities. The 
plan also envisages a major expansion of hydro power, initially through smaller size hydro units, 
and then through mid and larger size hydro projects. Five additional coal -fired plants are 
scheduled to come on stream during 2017 -21, as well as one hydro generator. During 2021 -25, 
thirteen different hydro projects will come on stream, as well as a major thermal unit.  
4.55.   The distribution network is being expanded to distribute this supply more broadly and 
effectively. Between 2017 and 2021 , 853 km of 115 kV transmission line will be constructed, as 
well as 1,426 km of 230 kV and 294 km of 500 kV lines.  
4.56.   The cost of electricity is being brought down. The price of electricity for commercial and 
industrial purposes, when purchased directly from  sub-stations, has been reduced to US$0.126 per 
kWh. The cost of power purchased directly from the Phnom Penh and provincial main networks is 
being progressively reduced and will reach US$0.162 in 2020, a reduction of about 9 % when 
compared to the price in  2015. It is anticipated that further reductions will take place during the 
period 2021 -25. 
4.5  Transportation and Logistics  
4.57.   Transportation and logistics costs are higher in Cambodia than in Cambodia 's neighbo urs, 
again reducing Cambodia 's relative attractiven ess as an investment destination and export 
platform. In addition, present logistics capacities will need to be expanded significantly to meet the 
expected rapid growth of imports and exports during the years ahead.  
4.58.   Most of Cambodia 's exports are shipped abroad from Cambodian or Vietnamese ports. 
Roughly 70% of Cambodia 's exports are shipped from Sihanouk Autonomous Port (PAS), and 
travel down all or part of the transportation corridor linking Phnom Penh with the port. Most of the 
remaining 30 % move east a nd cross into Viet  Nam, from whose deep -water ports they are shipped 
to their final destination. The efficiency of these two corridors is a prime determinant of the costs 
that Cambodian exporters incur in moving their goods to market, and hence of their 
competitiveness. The following paragraphs describe briefly plans t o enlarge and improve these 
two corridors, as well as plans to improve the corridor leading from Phnom Penh to the Thai 
border, a key element of ASEAN connectivity.  
4.59.   Since a great deal of manuf acturing takes place in a nd around Phnom Penh, the 
first logistics issue faced by most exporters is how to access efficiently one or the other of the 
three corridors. For those transporting goods by truck, the creation of ring roads allows access to 
the co rridors while avoiding the congestion costs of driving through the metropolitan area. WT/TPR/G/364 • Cambodia  
 
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  Cambodia has created a first, inner, ring road, and is constructing two more. The inner ring road 
runs mostly within the city limits, but avoids the downtown area. It is,  however, congested with 
normal city traffic. The second ring road lies outside the city limits, is partly constructed, and will 
be fully completed next year. It mostly avoids city congestion, and will be particularly helpful in 
moving goods from the metro politan area to national route 1, and then to the Phnom Penh 
Autonomous Port or directly to the Vietnamese border. Construction of the third ring road will 
begin next year. It lies even further outside the metropolitan area, allowing communication 
between the three corridors that is free from city congestion.  
4.60.   Truck traffic between the Phnom Penh metropolitan area and the Sihanouk autonomous port 
presently travels down national route 3 or national route 4, an enlarged and improved two -lane 
highway. Plans are  well advanced to construct a new 4 -lane limited access expressway linking 
Phnom Penh and Sihanoukville, which will reduce significantly the travel time between the 
two points.  
4.61.   Rail traffic between Phnom Penh and Sihanoukville has recently been restored, b ut its use in 
moving goods from Phnom Penh to the port has so far been relatively limited. The utility and 
feasibility of various suggestions regarding the way rail use could be made more attractive are 
being studied, including the possibility of laying a spur into the Phnom Penh Special Economic 
Zone, and of creating connections with the airport and with the Phnom Penh Autonomous Port.  
4.62.   Improvements in the port facilities themselves are under way. The PAS has under 
construction a new multipurpose terminal t hat will handle off -shore oil exploration, agricultural 
products and other dry bulk cargo. The terminal is expected to be operational in 2018.  
4.63.   Detailed plans have been drawn up to enlarge the port 's capacity to deal with container 
traffic. Demand forecasts indicate that the port would need to handle about 800 thousand TEU by 
2025, and as much as 1,200 thousand TEU by 2030, much above current capacity, which is about 
500 thousand TEU. During the firs t phase of the planned expansion, a new 350 m container 
terminal will be constructed, and the access channel and port basin will be dredged to allow larger 
vessels to access the port. These works are to be completed by 2023. Plans then call for further 
expansion of the container terminal (phases two and three), to be completed by 2040.  
4.64.   The Phnom Penh —Viet Nam corridor has recently been im proved by the completion of 
two construction projects: the replacement of the ferries that crossed the Mekong at Neak Loe ung 
by a bridge, significantly reducing the travel time between Phnom Penh and the Vietnamese 
border; the construction by the Phnom Penh Autonomous Port of a new container terminal on the 
Mekong downstream from Phnom Penh. This location, along national rou te 1 and close to its 
intersection with the two outer ring roads, allows containers to be delivered to the port without 
passing through metropolitan Phnom Penh. The master plan for the terminal foresees eventual 
enlargement, the creation of a logistics are a behind the port, and the construction of a rice 
processing facility. The port presently exports mainly garments and rice, destined principally for 
China, Viet  Nam and the United States.  
4.65.   Cambodia has signed an MOU with Viet  Nam regarding the construction  of a four -lane 
limited access expressway between Phnom Penh and Ho Chi Min city.  Planning for the Cambodian 
section of the expressway is under  way, but funding has not yet been secured.    
4.66.   A third corridor, from Phnom Penh to the border with Thailand at Po ipet, is not presently a 
major export route. It plays a key role, however, in forging ASEAN connectivity, and accelerating 
Cambodia 's trade with and through near -by ASEAN neighbo urs. This corridor, too, will soon have a 
four-lane limited access expressway,  part of which has already been completed. The rail line that 
runs almost to the Thai border is undergoing repair, and plans are advanced to construct the 
additional track needed to connect with the Thai railway system. The additional track is expected 
to be completed by 2020.  
4.67.   These individual projects in the transportation sector will soon provide Cambodia 's exporters 
with faster and cheaper means to move their goods to market, and will ensure that transport 
capacity keeps pace with the growth of export de mand and production. Other aspects of logistics, 
such as warehousing, and distribution and consolidation cent res, will need to grow apace. To 
ensure a fully coherent and comprehensive approach, the Government has asked the Ministry of WT/TPR/G/364 • Cambodia  
 
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  Public Works and Transportation to draw up a logistics master plan, and this master plan is 
expected to be completed by 2018. The Government will set up a task force with members from all 
relevant ministries, to be chaired by a Deputy Prime Minister that will review the ma ster plan, 
adjust it as necessary, and plan its execution.  
5  TRADE, DEVELOPMENT, AND DEVELOPMENT PART NERS  
5.1.  The progress that Cambodia has achieved during the period under review o wes much to the 
support of WTO M embers. The Royal Government expresses its appre ciation to all those who have 
facilitated its progress, whether by putting in place DFQF program mes or providing technical and 
financial support through EIF,  Aid for Trade, or other program mes.  
5.2.  Cambodia 's trade -related assistance needs are articulated in its Trade Integration Studies, 
the most recent of which was adopted in 2014. Cambodia now has a well -established 
infrastructure for coordinating and managing such assistance, using a trade sector -wide approach 
(trade SWAp). The main elements in this infras tructure are the Sub -steering Committee on Trade 
Development and Trade -Related Investment, whose membership includes all Cambodian ministries 
receiving trade -related assistance as well as all development partners providing such assistance, 
and the Departme nt for International Cooperation of the Ministry of Commerce (DICO), which 
provides management services and monitors progress and impacts. Recently DICO has produced, 
with the support of the EIF and UNDP, an assessment of those areas in which additional su pport  
would be required during 2016 -20. A number of development partners have indicated that they 
are prepared to consider providing such assistance, and we appreciate these in dications of 
continued support.  
 
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