CAMBODIA:

OPPORTUNITIES
POTENTIAL
& CHALLENGES

Current Economic Status of Cambodia 2

Doing Business in Cambodia 3
Natural Resources in Cambodia 5
Energy Generation 9
Steel Industries 12
Related Issues 12

October 2010

MM™
Current Economic Status of Cambodia
1. Cambodia’s GDP grew around 10% every year between 2004-2007 due to expansion of
garment industry (hiring one-third of the workforce and contribute 70% of the export),
construction, agriculture and tourism.
2. GDP dropped below 7% from 2008 onwards due to global economic slowdown
3. In 2005, exploitable oil deposits were found beneath Cambodia's territorial waters,
representing a new revenue stream for the government when commercial extraction
begins in 2011.
4. Mining also is attracting significant investor interest, particularly in the northern parts
of the country. Opportunities exist for mining bauxite, gold, iron and gems
5. Cambodia’s economy was driven significantly by “informal economy” that is small or
mid-sized businesses that are household-based and not registered with the
government - so government was unable to tax them. The proponent of these system
(the business owners) said “complicated licensing procedures and the high cost of
registration lead most micro, small and medium enterprises to the conclusion that
participating in the formal economy is unaffordable … Tax evasion and a lack of trust in
the transparency of the government’s tax management are powerful arguments for
informality”. Informal economy in Cambodia accounts for 52.2% of GDP and employs
85% of the workforce in 2006.
6. There was a marked deterioration in the fiscal position in 2009 as spending exceeded
expectations because of large increases in wages for civil servants and defence
spending. The IMF estimated the budget deficit was 6.75% of GDP. Thus was well
above the 4.25% original estimate. The IMF has urged the government to take
measures to reduce the budget deficit which based on current spending and revenue
projections will rise to 7.5% of GDP in 2010. In discussions with the IMF, the
government has indicated it is considering additional measures to raise revenue
including lifting excise taxes on truck sales, imposing a VAT on electricity imports and
further strengthening tax administration. The IMF urged the government to contain
wage costs by limiting wage increases, freezing new hirings and enacting
comprehensive civil service reforms.
7. The major economic challenge for Cambodia over the next decade will be fashioning
an economic environment in which the private sector can create enough jobs to
handle Cambodia's demographic imbalance. More than 50% of the population is less
than 21 years old. The population lacks education and productive skills, particularly in
the poverty-ridden countryside, which suffers from an almost total lack of basic
infrastructure.

Economic indicators Previous data latest data

GDP (purchasing power parity) USD28.34b (2008) USD27.92b (2009)
GDP (official exchange rate) n.a. USD10.9b (2009)
GDP (real growth rate) -1% (2009) 3% (2010)
GDP (per capita) USD693 (2009) USD735 (2010)
population below poverty line 35% (2004) 27.4% (2009)
live less than USD2 per day 78% (2007)
life expectancy 58 years (2008)
literacy 76.3% (2008)
labour force 8.6m (2008)

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 unemployment rate 3.5% (2007) < 3% (2010)
investment (gross fixed) 21.2% of GDP (2009)
inflation (customer prices) -1% (2009) 5.3% (2010)
industrial production growth rate -6.5% (2009) 1.5% (2010)
current account balance USD-218.1m (2003) USD-1.024b (2010)
external debt USD2.4b (2002) USD4.157b (2010)
exchange rates (against USD1) KHR4135.39 (2009) KHR4245.00 (2010)
Imports USD5.374b (2009)
Exports USD3.582b (2009)
From various sources, projected and official numbers

Doing Business in Cambodia

1. In 2010, Cambodia was ranked 131 out of 159 countries on corruption (third worst in
ASEAN behind Indonesia and Myanmar) by Transparency International
2. In 2010, Cambodia was ranked 145 out of 183 economies on ease of doing business
according to the World Bank/International Finance Corporation (down from 139 in
2009 survey).
3. There are 9 procedures needed before starting the business. It takes 85 days to
complete and it costs about 138.4% of the income per capita and require minimum
capital about 36.6% of income per capita. This may due to inefficient and
unsynchronized authorities and lack of basic infrastructures.
4. Application for construction permits has about 23 procedures and it took up to 2 years
to process. It also costs up to 53.6% of income per capita.
5. Property registration could take up to 2 months to be verified by local authorities.
6. Getting credits from local banks in Cambodia is rather difficult and complicated.
However, rights of the customers were protected fairly well.
7. Laws of Cambodia protecting investor to the extent that is better than Laos and
Philippines but far worst than Thailand and Malaysia.
8. Tax policies in Cambodia were good. While number of tax payments is much greater
than countries in East Asia and Pacific, it requires lesser hours (per year) to process (by
the companies and the government) and the rate was also substantially lower. Tax
policies in Cambodia are better than Thailand, Indonesia, Philippines and Laos.
9. Import-exports activities require more documents in Cambodia than any other
countries in Asia Pacific. However cost of imports and exports (per container) is about
30% cheaper than average East Asia and Pacific (cheaper than Laos and Philippines but
more expensive than Malaysia, Indonesia and Thailand). Time of imports and exports
has been cut almost half in the last two years, thanks to opening of new ports and
upgrades of existing facilities.
10. Resolving commercial disputes through the courts in Cambodia is far below the
international standards. The process required about 44 steps/procedures in 13 months
and costs as much as and slightly higher than the claims.
11. There is no information regarding bankruptcy protection laws in Cambodia. It is
assumed that business owners may got nothing when the business was closed
(compared to average East Asia-Pacific of 30 cents per dollar recovery rate, 42.4 cents
in Thailand and 38.6 cents in Malaysia)
12. Several human rights group reported when resource-rich areas are ready for
excavation, Cambodia’s government is suspected of dispatching soldiers and police to

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 forcibly remove residents. Government “militants” have torched homes and pushed
out hundreds of families. Once excavation begins, soldiers are believed to stand watch
over the sites as international firms do their work. Human rights group also speculate
the involvement of international firms (e.g. bribery) in these oppressive actions.
Member of Royal Cambodian Armed Forces (RCAF) are also reported to be the
beneficial owners of companies involved in mining activities.
13. Ninety-seven percent of all registered companies in the Cambodian industrial sector
are microenterprises, defined as one that employs less than 10 individuals, and has
capital sum of less than USD50 000. The majority of these face problems of access to
working capital and markets, and many are not competitive, handicapped by a lack of
technology.
14. Cambodia has 21 Special Economic Zones, only 6 have commenced the operation.
Nineteen of SEZs located along the border of Thailand and Vietnam, another two
located at Phnom Penh. Each of these SEZs has their own power plant, making possible
for cheaper electricity. Each SEZs also has one-stop centre for investors to gather
information, apply or pay for many services (e.g. tax) and others. How this one-stop
centre operate or does it live up to the hype (against reports from World Bank/IFC) are
unknown.
15. Openness to foreign investments:
corporate income tax in Cambodia is 20% (except for oil, gas and mining which is
30%)
projects eligible for incentives will get tax holiday up to 9 years and exemptions
for import duties for construction material, production equipment and input
materials for exports
there no legal distinctions between foreign and domestic investors
nationalization and expropriation can only occur for reasons of “public interest”
(no specific definition of public interest was disclosed). Investors whose property
has been taken must receive fair and just compensation. There have been no
recent cases of nationalization of a foreign investment
no local partner needed. Foreign companies can own 100% of their business
(certain exclusions applied) and there are also no repatriation of funds, capital,
royalties, management fees, dividend, interest payments and no price controls
when no local talents available, expatriate workers can be easily hired
due to its status among 50 least-developing countries (by United Nations),
exporter entitled for tariff-free privileges to USA, Canada, Japan, Euro and many
other international markets.
Cambodia is one of the most open economies in the world. The Index of
Economic Freedom 2003, compiled by Heritage Foundation USA ranked
Cambodia 35th from 170 economies, which is on par with Japan, slightly ahead
than Thailand (40th) and much better than Indonesia, Laos and Vietnam. The
same report do mentioned about lack of transparency, excessive bureaucracy
and insufficient basic infrastructures, however “at least where government policy
is concerned, it can claim to offer a liberal welcome to investors”.
16. All investors requesting incentives must submit an application to the Cambodian
Investment Board. Investors in retail, wholesale, and duty-free stores, entertainment
(including restaurants, bars, nightclubs, massage parlours, and casinos), tourist
services, currency and financial services, press and media related activities,

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 professional services; and production and processing of tobacco and wood products
and investments of less than USD500 000 in the food and beverages, textiles,
garments and footwear, plastic, rubber and paper products sectors are not entitled to
investment incentives.
17. Most sectors of the economy are open to foreign investment. Some sectors though
such as the manufacturing of cigarettes, movie production, rice milling, gemstone
mining, publishing and printing, radio and television, manufacturing wood and stone
carvings, and silk weaving require local equity participation or prior authorization from
the relevant government ministries.
18. Tax system in Cambodia:
corporate losses can be carried forward for 5 years
the first KHR500 000 (USD118) of income is tax free. After that the rates range
from 5% to 20% for income over KHR12 500 001 (USD2965)
non-residents pay a flat 20% income tax
VAT is 10%. VAT does not apply to public postal services, hospital and medical
services, public transportation owned by state companies, insurance and
financial services, non profit activities and electricity
capital gains are taxed as ordinary income. There are no social security, gift, real
estate, wealth, estate, inheritance and unemployment taxes
there is a 10% withholding tax on rental income and 15% for interest, services
and royalties
there is a 2% accommodation tax on hotel rooms, a 3% tax on local and
international telecommunications services, 10% for motorcycles, local and
international air tickets sold in Cambodia, entertainment including spas and
wine, and a 30% tax on beer
19. Foreigners cannot own land but allowed to lease it up to 99 years and own the
building build on the land.
20. Cambodia has adopted legislation regarding patents, copyrights and industrial design;
however it was not effectively enforced. There are no anti-monopoly and anti-trust
laws.
21. In first half of 2010, new foreign business registration in Cambodia surged 42%
compared to 1H09, led by investors from China, Vietnam and South Korea. China
currently the biggest investor in Cambodia with total FDIs about USD8b.
22. As on June 2009, there are about 26 financial institutions in Cambodia. The banking
system has been undermined by the collapse of US subprime crisis. Non performing
loans are also on rise. Stock exchange was planned to be opened this year – 49%
owned by South Korea Exchange and only trading three to five companies.

Natural Resources in Cambodia

1. While Cambodia’s mineral resources remain largely unexplored, several important
minerals have been discovered, which include bauxite, copper, zinc, gold, iron ore,
nickel, granite, gemstones and tungsten. Minerals currently extracted include
gemstones and gold - mostly mined by small-scale operators - marble, granite, sand,
limestone and salt.
2. Cambodia allowed 100% foreign ownership of mining companies (certain exclusions
applied)

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3. Mining industry contributed only 0.39% to Cambodia’s GDP in 2005 and employing
about 19 000 people (0.2% of total employment)
4. Council for the Development of Cambodia, government entity responsible for FDI
approving USD403m investment in mining industry in 2006. About 21 new mining
licences were approved in 2008. Each mining licence costs USD50 000 but the
“undocumented payments” could reach up to USD7m.
5. Extractive industries since then were grown tremendously until mid 2009 when
commodity prices plummet and the global financial crisis puts the squeeze on
capital. Small and medium-sized mining start-ups, which forms the core of Cambodia’s
mining sector selling mining licences “when companies find out they
don't have enough cash to go ahead”. Large players appeared to be unaffected by the
crisis, as none of the pledged investors withdrawn their investments. Local analyst
however said that the progress of the projects were slower due to lower cash reserves
and troubles at home (e.g. Kenertec has been hit by crisis and scandals at South Korea)
6. Mining industries have shown some recovery since early 2010.
7. The Cambodian government has made the decision to prioritise mining over
environmental needs and protection, causing international outcry.
8. On current trends, previously unexplored areas in the Cardamoms, Prey Long Forest
and Phnom Krasop Wildlife Sanctuary will be permanently damaged or destroyed. At
least six out of Cambodia’s 23 protected areas now have some form of mining activity
within their boundaries

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 Companies with Mining Licences, by Province
BATTAMBANG Oxiana Cambodia Limited and Shin Ha Mining Company Ltd
Cambodia Mining Development Co. Ltd. Southern Gold Ltd
Jireh International Cambodia Construction & Import-Export Co. Ltd. Summer Gold Investment PVT Ltd
Ultra Marine Kiri (Cambodia) Co. Ltd Zhong-Xin Industry Investment Cambodia Co
Kampong Chhnang ODDORMEAN CHEY
Meas Sopheap Co. Ltd. Angkor Wat Cement Ltd.
KAMPOT Cambodia Mineral Development Co. Ltd.
Cement Cambodia Chakrey Ting Co. Ltd. Neoneer
Kampot Cement Co. Ltd. Ratanak Stone Cambodia Development Co. Ltd.
Khaou Chuly Development Co. Ltd. & Tong Yang Cement Corporation PAILIN
Pheapimex Group - Phnom Kampong trach Sonuba Cham IndustriesCo. Ltd.
Thai Boon Roong Cement Co. Ltd. PREAH VIHEAR
Unite International (Cambodia) Foreign Investment Group Co. Ltd. Chhong Kor Chhean Pean Co. Ltd
KOH KONG Delcom Cambodia PTE. LTD
Samnang Rea Thbong Thmor Co. Ltd Ratanak Stone Cambodia Development Co. Ltd
KOMPONG CHAM Titan Mineral Group Co., Ltd
Sun Trading Co. Ltd. PURSAT
Kompong Speu Southern Mining Co. Ltd.
Future Environment RATANAKIRI
T.S.S.M Group Co., Ltd Cambo Cana Kiri Development Ltd
KOMPONG THOM Cambodia International Mining Group (CIMG - China)
NGOV PET Indochine Resources Ltd
Vannvymex Co. Ltd. Liberty Mining International PTY Ltd
KRATIE Rattanak Chhorpoan (Cambodia) Ltd
Cambodia International Mining Group Seoul Digem Cambodia Co Ltd
Chhong Kor Chhean Pean Co. Ltd Southern Gold (Cambodia) Ltd, Greystroke Ltd
Leang Samean Quarry Summer Gold Investment Pty Ltd
TTY Rithy Mexco Co. Ltd Transol Mining And Exploration Company Pty Ltd
Zhong Xin Industrial Co. Ltd. Ultra Marine Kiri (Cambodia) Ltd
MONDULKIRI SIEM REAP
Anging Cambodia Investment Company Co, Ltd Chea Ravy Quarry
Antrong EL Meas Narithy Quarry
Bhp Billiton World Exploration Inc and Mitsubishi Corporation Teng Mab Quarry
CAMBO CANAKIRI Development Ltd SIHANOUK VILLE
Cambodia Hai Lan Mineral Company Limited TKS International Co. Ltd.
Chin Siv Nginh CSN Cambodia Import Export Va Ly Heng
China Forwin International Investment Phnom Penh Mining Co, Ltd STUNG TRENG
D&Z Investment Co, Ltd Mong Good Luck Mining Co. Ltd.
Gold Metal Group Co, Ltd Ta Yi Co. Ltd.
Moeung Sok Try Pheap Co. Ltd.
Oksan Cambodia Inc Titan Mineral Group Co., Ltd

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Energy Generation
1. Cambodia’s power supply facilities were heavily damaged by war
2. Some sources indicated there are currently 24 fragmented and isolated, non-
nationwide grid-connected electric power plants in Cambodia. Thirteen of them using
fossil fuels – oil and gas (provide 95% of the total electric generated). Cambodia also
imported electric from Thailand and Vietnam.
3. Data from 2009 showed only 16.41% of Cambodia’s population have access to
electricity. Electricity consumption is as follows: private sectors 0.5%, service sectors
40%, industrial 14%. There are frequent power shortages and outages.
4. According to data from 2000, the average tariff of electricity is about USD0.146/kWh
(14.6 US cents) in urban areas (such as Phnom Penh) and between USD0.25 to
USD0.50 in remote areas. Tariff for imported electricity (concentrated mostly at SEZs)
is much cheaper than one generated locally, possibly due to better distribution system
and greater number of customers.
5. In an effort to solidify its electricity security, Cambodia has diversify it electricity
sources to include hydroelectric, coal and solar while at the same time keeps
importing electric from neighbouring countries.
6. As on 2009, a total of fourteen hydropower projects are planned, five of which are
already under construction. However, hydropower can only be used at full capacity for
the duration of Cambodia’s rainy season; the rest of the year capacity is reduced to
only one-third. For this reason Cambodia is also developing coal-fired power plants.
Coal was currently imported from Indonesia and Australia.

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7. As on October 2010, only two hydroelectric power plan (out of five that under
construction since mid 2008) already operated and generates electricity, namely
Kirirom III Hydro and Kamchay Hydro, both located at southwest of the country, within
forest reserves zone.

Steel Industries
1. Four Chinese steelmakers in 2005 have established a joint venture to explore and
develop iron ore mines in Cambodia. Wuhan Steel, China’s fifth biggest steel mill, is
leading the project with a 50% stake, with Shanghai-based Baosteel Group taking 20%;
Anshan Iron Steel Group and Beijing’s Shougang Iron Steel Group each hold 15% in the
venture. The project is to explore and develop mines (called Rattanak Stone mines,
beneficially owned by General Pol Saroeun, Commander-in-Chief of RCAF) in
Cambodia’s Preah Vihear province following exploration of the area by Cambodian
companies and China’s National Machinery and Equipment Group that found the
region may have 2.5 billion tons of iron ore reserves.
2. In 2008, Kenertec Co. Ltd. of South Korea said that they have concluded a contract to
take over 85% of the Rovieng iron mine (located near Rattanak Stone mines) with a
joint venture with Rattanak Stone. Kenertec has planned a 2 million tons production
plan and expects its annual sales to be at USD140m and profits to be over USD35m
each year.
3. It is reported that Kenertec’s mine lot is estimated to have about 200 million tons of
iron ore, more than 65% of which is high quality hematite and magnetite, and there is
regarded to be little risk in securing the reserves. The iron ore is distributed from the
surface to 150m deep underground in this mine lot, with more than 65% of the high
quality hematite being exposed to the surface, which makes mining easier, and the ore
is found to be commercially available without ore dressing.
4. Kenertec also planned to use surface/road transportation from the mine to the
Mekong River, 80km east of the mine, then a 2 000 ton barge will be used to the coast
along the Mekong River.
5. It is speculated that said mines was managed and operated by Chinese, from the front-
line to the top management.
6. Almost all iron ore mined in Cambodia were exported, primarily to China, South Korea
and Australia.
7. In December 2008, Ho Chi Minh City-based Thep Viet steel manufacturer is planning to
invest USD70m to build in a steel plant in Cambodia. The steel mill will begin operation
in 2012.

Related Issues
1. United Nations’ Human Development Index in 2009 ranked Cambodia at 137 out of
182 countries.
2. US’s Freedom House in 2009 has designated Cambodia as “not free” and has assigned
it a rating of 6 out of 7 for political rights and 5 out of 7 for civil rights (the lower the
rating the higher the degree of political and civil liberties). Cambodia is ranked 100 of
128 nations in the 2009 Bertelsmann Transformation Index, indicating that Cambodia’s
government too slow in reforming the country post-war. It is ranked 49 of 177 in the
Fund for Peace Failed State Index 2009 (the lower the ranking the higher the degree of

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 economic and political dysfunction) and is ranked at the 34.4 Percentile in the World
Bank’s Political Stability Governance Indicator 2009.
3. Freedom of speech and the press are not fully respected:
according to the constitution, free speech should not adversely affect public
security. The constitution also declares that the king is inviolable
there are about 20 Khmer language newspapers, the largest three were
controlled by the ruling party, same as all television stations and most of radio
stations. Newspapers are allowed to criticize the government but not in TV –
oppositions was not given equal broadcast time, especially during election.
there are no restriction, reports of snooping or censorship of internet by the
government, primarily due to inability of much of the population to own personal
computer and low electrification rate.
4. Freedom of religion and academic freedom were respected but there is discrimination
against minority Muslim population. Freedom of assembly is restricted by the
requirement that organizers of a march or demonstration must obtain a permit. The
government routinely does not issue permits to critics of the government. The
judiciary is not independent and is marred by inefficiency, lack of resources, poorly
trained personnel, low salaries and a shortage of lawyers. Illegal detention and torture
are common as is long trail delays.
5. With the exception of civil servants (including teachers and judges) and military
personnel, workers can form and join trade unions. Trade unions have to file a charter
and a list of their officials with the Ministry of Labour and Vocational Training
(MOLVT). Union leaders must be at least 25, be able to read and write, and have no
criminal record. Workers have the right to strike but that right is restricted. Labour
disputes for example are subjected to a conciliation discussion process that can last as
long as 30 days. It is conducted by an inspector of the MOLVT. If the MOLVT inspector
cannot resolve the dispute, a strike can be called only if a union obtains a majority
vote in a secret ballot and gives 7 days notice to the employer and the MOLVT. A
minimum of 15 days notification must be given for strikes in essential services (no
related information found on definition of essential services). Collective bargaining is
allowed.
6. According to the International Confederation of Free Trade Unions 2009 Report for
Cambodia: “in many factories, trade unionists continue to face repression of all kinds,
including beatings, death threats, blacklisting, false accusations, wage deductions and
exclusion from promotions. The government very rarely prosecutes or takes measures
against an employer for anti-union practices …. Labour inspectors are poorly trained
and, given their low pay, open to bribery. In cases where the MOLVT does rule in
favour of the workers, it rarely uses its legal authority to penalize employers who fail
to follow its orders"
7. Less than 3% of the labour force in 2007 was unionized. Unions were concentrated in
the garment and footwear industries, where 70% to 75% of the workers are union
members.
8. The law requires the MOLVT to establish a minimum wage in the garment industry.
There are no minimum wages set for any other industry. The minimum wage for
garment workers in 2008 was about USD50 per month, plus a minimum USD6 living
allowance. Teachers in primary school earn about USD35-40 a month while secondary
school teachers earn around USD60 a month. They usually paid irregularly. The legal

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 workweek is 48 hours. There are labour laws regarding nightshift pay, overtime,
holiday work and health and safety standards but they are not effectively enforced.
9. The law sets 15 as the minimum age for employment and 18 as the minimum age for
hazardous work. Children between 12 and 15 can engage in light work that is not
hazardous to their health and does not affect school attendance. Despite these laws,
child labour is widespread, particularly in agriculture, brick making, fishing, commercial
sex industry, domestic service, and on tobacco and rubber plantations.
10. There are 38 093km of roads of which only 7.8% are paved. The US State Department
Travel Advisory for Cambodia 2009 noted that: “driving at night is strongly
discouraged. Road maintenance is sporadic in both urban and rural areas. Roads
between major areas are adequate; however, roads leading to areas that are more
rural are poor. During the rainy season, both urban and rural road conditions
deteriorate considerably. Roadside assistance is non-existent"
11. There are 17 airports of which 6 are paved. Phnom Penh International Airport is the
largest international airport. It is located 7km west of the capital. There is also an
international airport at Siem Reap, which is near the Angkor Wat temples.
12. There are 602km of railway. The rail system is in dilapidated condition. The line
connection to Thailand is no longer operational. The US Department of State Travel
Advisory 2009 strongly warns against using the railway because of “low safety
standards and the high risk of banditry”. Almost all planned route expansion and
upgrades will be operational in 2013.
13. Sihanoukville is the main deep-water sea port. It became operational in 1960. The port
has warehouse and storage facilities, fork lifts, cranes that can lift as much as 64 tons
and an oil tanker terminal. A new container terminal has recently been constructed. In
2008, the port handled 2 057 967 tons of goods. This was 49% above the level of 2005.
14. Phnom Penh has a river port along the Mekong River. It is operated by a government
entity. The government is building a new port at the capital. The estimated cost is
USD25m. It will be located south of the city. The new facility will have a capacity of 300
000 containers a day, which is six times larger than the current Phnom Penh port.
15. There are 2,400 km of navigable waterways, mostly along the Mekong River, that are
an important means of transporting goods and passengers. The State Department
Travel Advisory 2009 noted that “boat travel should be avoided because boats are
often overcrowded and lack adequate safety equipment”
16. Quality of water supply was improved since 2004, thanks to funds from Asian
Development Bank. In 2007, more than 85% of population of Phnom Penh has access
to water. There is now 24-hour service. In rural areas, 55.4% had access to improved
water.
17. According to a recent report by the World Bank Water and Sanitation Program, only
16% of the rural population has access to toilets. As a result, many people are forced
to defecate in fields and forests, thus causing public health concerns. The government
has set a target of increasing the ratio of the rural population with access to improved
sanitation facilities to 50% by 2020.
18. Cambodia continues to become a heaven for pirates and drug trafficker from Golden
Triangle – smuggling of beers from Thailand and Singapore costs about 3% of total
budget revenue annually; cooking gas (from Thailand), gasoline, sugar, cigarette and
cattle (from Vietnam) and ancient artefacts costs millions of dollar but not as much as

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 narcotics and drugs trafficking (no official data available but NGOs estimated it values
around USD1b every year)
19. Access to technology among Cambodian is very poor. In every thousand people, there
are 3 fixed-line telephone lines, 291 cellular subscribers, 5 internet users, 4 personal
computers, 430 (43% of households) have a television and 98 radios. In 2007, there
were 154 389 motor vehicles of which 9% were cars, 4% were minibuses and vans that
carried less than 20 people, 84% were motorized 2 and 3 wheelers and 2% were
trucks.
20. Cambodia health care system was ranked 174 out of 190 countries by WHO in 2008.
There are 90 nurses and midwives per 100 000 people, 20 physicians per 100 000
people and 10 hospital beds per 100 000 people. The US State Department Travel
Advisory 2009 said "medical facilities and services do not meet international
standards. Both Phnom Penh and Siem Reap have a limited number of internationally-
run clinics and hospitals that can provide basic medical care and stabilization. Medical
care outside these two cities is almost non-existent. Local pharmacies provide a
limited supply of prescription and over-the-counter medications, but because the
quality of locally obtained medications can vary greatly”
21. Education in Cambodia is not compulsory but it is free. Schools are overcrowded and
there is a shortage of equipment and school materials such as books. Many schools are
in poor condition and lack drinking water and toilets. Teachers’ salaries are low (lower
than those who work in garment factories) and pay is often irregular. Primary
education begins at age 6 and lasts for 6 years. Of the students who enrol in grade 1,
52% reach the last grade of primary school and 12% of students repeat a grade. The
pupil/teacher ratio in primary school is 55:1. Secondary school begins at age 12 and
lasts 6 years. The 2009 Bertelsmann Country report for Cambodia noted that
“unemployment among university graduates is high … university education is of poor
quality, many graduates lack the necessary skills and qualifications for the job market"
22. Credit ratings for Cambodia are as follows: Standard & Poor’s: B+/Stable/B; Moody’s:
B2/Stable.

Important references
Financial Standards Foundation; 2010; Country Brief – Cambodia; eStandards Forum, New
York, USA.

Global Witness; 2009; Country for Sale – Welcome to Cambodia; Global Witness, San
Francisco, USA.

United Nation, International Chamber of Commerce; 2003; An Investment Guide to

Cambodia – Opportunities and Condition (September 2003); United Nations, New
York (USA), Geneva (Switzerland).

World Bank, International Finance Corporation; 2010; Doing Business 2010 – Cambodia; The
International Bank for Reconstruction and Development/The World Bank,
Washington D.C., USA.

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