Cambodia’s Prime Minister Samdech Akka Moha Sena Padei Techo Hun Sen said Cambodia has great potential for growth and opportunities for diversification in many other sectors, implying that there is still a big room for investment.
Addressing to the 2015 Cambodia Outlook Conference under the theme of “ASEAN Economic Community 2015 and Beyond: Our Reform Agenda”, Samdech Techo Hun Sen said at the present, Cambodia’s economic growth depends on traditional sectors such as garment, tourism, construction and agriculture sectors.
“This indicates it is necessary and urgent to diversify into new sectors especially industry, agro-industry and handicraft, which require massive investments, but we have seen some signs of hope, that is the economic diversification into the light industry e.g. electronics and food processing,” he added.
According to Samdech Techo Hun Sen, Cambodia has been classified as “high growth country” by the World Bank by averaging 7.7 percent per annum during the last two decades and is ranked sixth in the world in terms of economic growth. Over recent years, Cambodia has been viewed going through transformation in the politic, economic, trade and social aspects. Cambodia achieved 7.4 percent economic growth in 2013, along with the growth projection of around 7 percent per annum in 2014 and in the medium term, thanks to the development of energy and other physical infrastructure, enhanced competitiveness, improvement to trade facilitation and investment climate and so on. Inflation has been contained within 5 percent and the Riel/US$ exchange rate has been generally stable. The banking system remains robust with adequate capital and liquidity. Deposits and loans continue to grow, a reflection of stronger public confidence in Cambodia’s banking system.
Growth is estimated to be around 7 percent in 2015, spearheaded by 9.7 percent growth in the industry sector and followed by 6.6 percent growth in the service sector and 4.3 percent growth in the agriculture sector which is projected to remain so in the medium term. Growth in the industry sector is due to two main aspects that include the slight rebound of the clothing and footwear sector and the continued growth in the energy and construction sectors. Inflation is projected to remain low at 3.5 percent, due to dropping prices of oil and agricultural products, he underlined.