<!-- Start of picture text --> 80 80<br>70 70<br>60 60 Agriculture,<br>56<br>50 50<br>40 Services, 41 40<br>Industry, 30<br>30 Agriculture, 30 Services, 29<br>29<br>20 20<br>Industry, 15<br>10 10<br>- -<br> Source: NIS, national accounts.<br>1993 1995 1997 1999 2001 2003 2005 2007 1993 1995 1997 1999 2001 2003 2005 2007<br><!-- End of picture text -->

# 9. **Agriculture remains a crucial part of Cambodia’s economy** (Table 1). Growth in the

sector is driven by crops (mainly rice) and, to a lesser extent, livestock and fisheries. _Crops_ are dominated by rice. Eighty percent of farmers grow rice, 60 percent of them for subsistence. Rice covered 2.6 million ha in 2007 (two thirds of arable land and 90 percent of cultivated land) and production grew from 3.4 to 6.7 million tons between 1997 and 2007. Although data are patchy, this would mean that Cambodia has been an exporter of rice since 2004, with around 2 million tons now exported (around US$300 million) each year. Yields remain however low (at 2.6 tons/ha, against 3.5-4.0 on average in the region). Cassava is a promising crop, with yields recently reaching 23 tons/ha (a level similar to Thailand and Vietnam) – but only 3 percent of cultivated land is used for it. Other crops include cashew nuts, maize, rubber, tobacco, and jathropha. _Livestock_ (pigs and poultry mainly) remains a crucial part of most farming activities and an important savings device. _Fisheries_ are an important, though declining source of growth. Inland fisheries (in particular around the Tonle Sap, an exceptionally rich freshwater environment) dominate the sector (with fish complementing rice in Cambodian traditional diet), while marine fisheries are largely for export. Reforms since 2000 have attempted to promote better management of the fish stock and the development of community fisheries, but the declining size of the fish stock remains a concern. Finally, _forestry_ played an important role in the 1990s, with significant illegal logging. Since strong regulations were put in place around 2000, massive logging has been curbed and activity in the sector relates more to community-level logging – as forestry continues for many communities to play a supporting role for rural livelihoods. Cambodia’s forests are estimated to cover about 11 million ha (or 60 percent of the country), although there is considerable debate about this statistic.

10. **Industry is the fastest growing sector** . Growth in the sector is driven by manufacturing (mainly garments and footwear) and construction. _Garments (and footwear)_ is the country’s leading export sector and has been growing at an average of 28 percent per annum: exports went from almost zero in 1994 to US$2.8 billion in 2007 (70 percent to the US market – where Cambodia was the 8<sup>th</sup> largest supplier in 2007 – and 22 percent to the EU). Cambodia’s exports are mainly low-end garments and some footwear, with no diversification to textile or more complex garments. _Food manufacturing_ is an area of unmet potential. _Other manufacturing_ are also underdeveloped, with only a few recent examples of assembly factories (bicycles, cars, motorcycles). _Construction_ has been booming since 2002 but it has significantly decelerated in 4