Ministry of Commerce CAMBODIA NATIONAL EXPORT STRATEGY 2007 – 2010 JULY 2006 FINAL DRAFT – PAPER # 2 Table of Contents Table of Contents Chapter I: Introduction & Rationale ........................................................................ 1 A. The International Context: Challenges to be Addressed....................................... 1 B. Where Do We Want To Be? ................................................................................. 2 Chapter II: Where Are We Now? – An Assessment ............................................... 3 A. Export Performance .............................................................................................. 3 B. Assessment of National Competitiveness & Constraints...................................... 5 C. Current Government Policy & Strategy in Support of Export Strategy ............... 9 D. Budgets, Resources & the TSN: Capacity & Coordination................................ 11 E. Recapitulation: National SWOT Analysis .......................................................... 13 Chapter III: Strategy Design Process & Paradigms .............................................. 17 A. Scope of Strategy ................................................................................................ 17 B. Public Private Partnership ................................................................................... 18 C. Value Addition, Value Creation, Value Retention & Value Distribution .......... 19 D. Strategy Management Framework...................................................................... 20 Chapter IV: The Way Forward – ‘07-‘10 Export Development Strategy ............. 22 A. Three- to Five-Year Rolling Strategy ................................................................. 22 B. The Development Perspective............................................................................. 22 C. The Competitive Perspective .............................................................................. 23 D. The Client Perspective ........................................................................................ 26 E. The Institutional Perspective............................................................................... 28 Chapter V: Strategy Management.......................................................................... 31 A. Institutional Approach......................................................................................... 31 B. Monitoring & Impact Measurement.................................................................... 32 Chapter VI: Resources Mobilization ..................................................................... 35 A. Priorities, Approach & Focus.............................................................................. 35 B. Detailed Plan of Action....................................................................................... 35 Work Plan & Management Framework – Annexes 1-4......................... 36 Annex 5: Legal Framework for Establishing a National Export Council............... 40 Table 1: Cambodia’s Total Foreign Trade with the World, 2000-2004 ................... 4 Table 2: Main Trading Partner (supplying/importing), 2000-2004 .......................... 4 Table 3: Road Network in Southeast Asia Countries, 2001 ..................................... 6 Table 4: The Weighting of the Perspectives & Impact Measures........................... 32 Table 5: Simple Scoring Checklist.......................................................................... 32 Table 6: Impact Measures Checklist....................................................................... 33 Table 7: Sample Overall Assessment of Strategy Implementation......................... 34 Figure 1: Import & Customs Clearance Procedure for Loose Cargo Load .............. 8 Figure 2: National Export Strategy 4-Gears ........................................................... 17 Figure 3: Generic Value-Chain............................................................................... 19 Figure 4: The Logical Framework Applied to Develop the NES........................... 20 i NES – MoC/ITC CMB-61-87A Final Draft – For Discussion Only Table of Contents Figure 5: The Process Strategy Design & Management Framework ..................... 21 Box 1: The Vision...................................................................................................... 2 Box 2: Twelve Points Plan, etc…............................................................................ 10 Box 3: National SWOT Analysis ............................................................................ 14 Box 4: Excerpts from NSDP Draft .......................................................................... 22 Appendix I Sector 1: Garments & Textiles Sector Strategy ...................................................... 1 Work Plan & Management Framework – Annexes 1-4......................... 11 Table 1: Target Exports for 2010.............................................................................. 5 Figure 1: Sector Future Value-Chain........................................................................ 6 Figure 2: Garment Industry Strategic Action Plan ................................................... 8 Box 1: Garment Sector SWOT Analysis................................................................... 4 Box 2: Elements of Cambodian Garment Industry Development Strategy............... 9 Sector 2: Fisheries Sector Strategy........................................................................ 16 Work Plan & Management Framework – Annexes 1-4......................... 26 Figure 1: Fish Production & Export (Tons) 2001-2005........................................ 16 Figure 2: Sector Current Value-Chain.................................................................... 18 Figure 3: Future Fisheries Value-Chain.................................................................. 22 Box 1: Fisheries Sector SWOT Analysis................................................................. 20 Sector 3: Organic Agriculture Sector Strategy...................................................... 30 Work Plan & Management Framework – Annexes 1-4......................... 45 Table 1: Average of Rice Corp Production 1996-2005 .......................................... 30 Table 2: Area and Rice Production 2005-2006....................................................... 31 Table 3: Subsidiary & Industrial Crops Production 1996-2005 ............................. 32 Table 4: An Example of a Value Chain for Organic Agriculture ........................... 33 Table 5: Benchmarking Rice Production Costs – Cambodia & Thailand .............. 34 Figure 1: Future Organic Agriculture Value-Chain................................................ 40 Box 1: Administrative Market & Barriers to Competitiveness ............................... 35 Box 2: Organic Agriculture Sector SWOT Analysis............................................... 38 Box 3: Sector Development..................................................................................... 44 Sector 4: Silk Sector Strategy................................................................................49 Work Plan & Management Framework – Annexes 1-4......................... 62 Table 1: Silk Yarn Consumption ............................................................................ 52 Table 2: Fabric Production...................................................................................... 52 Figure 1: Annual Raw Silk Production................................................................... 52 Figure 2: Current Value Chain of the Silk Sector................................................... 56 Figure 3: Future Value Chain of the Silk Sector .................................................... 57 Box 1: Sericulture.................................................................................................... 53 Box 2: Silk Sector SWOT Analysis......................................................................... 54 Box 3: Strategy’s Focus........................................................................................... 55 Box 4: Sector Development..................................................................................... 61 Sector 5: Tourism Sector Strategy ........................................................................ 66 ii NES – MoC/ITC CMB-61-87A Final Draft – For Discussion Only Table of Contents Work Plan & Management Framework – Annexes 1-4......................... 78 Table 1: Length of Stay & Expenditures of International Visitors, 2004............... 68 Table 2: Employment Generation Effects, 2003..................................................... 68 Table 3: Leakage and Income Effects, 2004........................................................... 68 Figure 1: Visitors to Cambodia............................................................................... 67 Figure 2: Government Pro-Poor Tourism Strategy................................................. 69 Figure 3: The Tourist’s Destination Center ............................................................ 72 Figure 4: Tourism Sector 4-Gears .......................................................................... 72 Figure 5: Cross Sectors Support Services for National/Provincials ....................... 73 Figure 6: Generic Tourism Value Chain................................................................. 74 Figure 7: Tourism Sector Logical Framework ....................................................... 76 Appendix II