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Lareina Rajah
214269421
ldrajah@deakin
...
au
MPK 736 International Marketing

AN ECONOMIC ANALYSIS OF THE KINGDOM OF CAMBODIA

Introduction
The Indochinese mainland of Southeast Asia is one of the oldest seats of
civilization blending Indian and Chinese elements
...
With vast lands and massive bodies of
waters, the country features dynamic trade routes that connect Southeast Asia to the
rest of Asia
...
Rapid economic growth the
past averaging growth at 8
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This paper is an insight into the most important economic facets that
characterize Cambodia in the context of an important new player in the region
...
Official databases such as the World Bank,
United Nations, Asian Development Bank, the Cambodian Government website and
selected academic literatures have been reviewed to aid this paper
...
This historical peak witnessed the construction of
what would be some of the world’s most surreal temples
...
History
was marked when the Communist Party of Kampuchea controlled the country from
1975-1979
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Under Pol Pot, the country was made into a detention camp typified by
slayings, human abuse and famine
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5 million Cambodians and
a country in financial ruins
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The following decade would have
marked the steady rebuilding of Cambodia’s political independence and legitimate
governance
...


Population
The total current population of Cambodia is 15,801,056 with an ethnic
composition of Khmers (90%), Vietnamese (5%), Chinese (1%) and a smaller group
of Muslim Cham-Malays and Laotians (4%)
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Among these ethnicities in Cambodia, the Chinese played a fundamental role
in shaping the country’s economic life
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Centuries of mutual aversion have troubled
Vietnamese-Khmer relations
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Buddhism (96
...
9%) and Christians (0
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As far as fertility goes, women
in metropolitan regions have an average of 2
...
3 children per
woman in the countryside areas
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5 children, the capital city, Phnom Penh, on the other hand
is at the country’s lowest of 2
...
Refer to Figure 1 for a
demographic distribution of Cambodia
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Economy Statistics and Activity
As far as growth goes, Cambodia is still rebuilding a Post-Khmer Rouge
nation
...
The
following are key economic indicators that depict Cambodia in the process of
economic reformation:
I
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71 billion, or 0
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The World Bank Group also reports that Cambodia had an
average of US$ 4
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51 billion in 1972
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Also, refer to Figure 6 for inflation rates
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Personal Income per Capita and Average Family Income
Rice cultivation is a main source of income and livelihood of the Cambodian
family
...

This is the sum of the economy’s gross value plus the relevant taxes, minus subsidies
and divided by the population
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Distribution of Wealth
In terms of wealth distribution in Cambodia, the Gini index, which estimates
the level of inequality in the dispersal of wealth, is at 37
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This ranks Cambodia 72nd
in the world, which is an indicator of the stark disparity between the rich, and poor
...
Minerals and Resources
Mineral resources are not the chief exports of Cambodia
...
Meanwhile in
Bătdâmbâng province, the mining of precious stones plays an important role
...
Thermal plants generate most of the country’s power
while hydroelectric power production is aided by the Mekong, swiftly developing for
the rest of the country’s power
...
Surface Transportation
Cambodia’s quality of infrastructure has been a considerable peril to the
country’s growth
...
While still at its early stages of development,
travel volumes are mounting quickly, principally in Phnom Penh and Siam Reap with
road network making up a 38,257km figure
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Working Conditions
Labor laws indicate that one can work up to 48 hours per week with a daily
cap of 8 hours
...
The
government plans to initiate a minimum wage of US$200/month, with a minimum

wage of US$150 (currently it is at US$75)
...

VII
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Tourism, construction, garment and agriculture
industries have contributed considerably to this progress
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Rubber cultivation is also
increasing among household farmers and overseas investors, especially large-scale
productions
...
Foreign Investment
The largest share of the aggregate foreign direct investment comes from China
(23
...
The other key partners in foreign investment are
Thailand, Taiwan, Malaysia and Hong Kong, earning the most in garment companies
(Refer to Figure 3)
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17 billion in 2014
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International Trade Statistics
Figures 4 and 5 of the Appendix indicate the highs and low of trade exports
and imports
...
Main imports were petroleum products, tobacco, gold, construction
supplies and machinery
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6%), UK (8
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5%), Canada (7
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9%) and Vietnam (5
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Main import
partners were Thailand (27%), China (22%), Vietnam (19
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2%) and
Hong Kong (6
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X
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The Cambodian
government, especially after it joined the World Trade Organization in 2004 has
explicitly incorporated open industrial policies
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Labor Force
In Cambodia, the gender demographic composition of the labor force
participation is inclined more towards men rather than women, arguably owing to
insufficient opportunities for employment, domestic labor limitations, and sociocultural norms
...
By integrating formal
education with technical and vocational education training within an institutional
framework, Cambodia needs a more concrete plan in improving the overall literacy
and technical know-how of the young population
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For
secondary and technical education, the main issue is to make systematic adjustments
in accreditation mechanisms, syllabus backing, and needs-based scholarships
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Cambodia invokes little market limitations on foreign involvement in the distribution
channels
...
Through the Ministry
of Commerce, registered importers can attain sole rights over brands
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This
challenges exporters in supplying to foreign clients and domestic enterprises from
tapping into the regional trade and production networks
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Media
Mobile phone systems are extensive in urban cities and continuously
expanding in the rural areas
...
As young consumers make up a bulk of the 3 million Internet users,
the once robust influence of mainstream media such as radios, TV and newspapers
have paved the way for a more pluralistic media landscape
...

Comments and Analysis
Even prior to the costly occupation of the Khmer Rouge, Cambodia’s
economy may have been one of the relatively slower growing nations within the fast
booming Southeast Asian region
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Its unprecedented growth spurt, young
population and endowment of natural resources warrants two points of evaluation
...
Right now,
some of the challenges faced by businesses are questionable infrastructure, lack of
law and regulatory enforcement, prevalence of corruption, and human resources that
are under-developed
...
e
...

While regulatory frameworks are in place now, it is crucial to keep up with the rest of
its neighboring countries’ pace by continually upgrading itself
...
In business terms,
working side by side with a local is the most appropriate way of tapping into the
Cambodian consumers
...
Partnership
with a local distributor, can ease market access since channels for distribution are still
very tightly knit in Cambodia, especially in the rural provinces where apprehension to

outsiders persist
...
The second point of evaluation is on Cambodia’s
human capital
...
Nonetheless, productivity in the labor force still remains low
...
Cambodia’s
young population can benefit from strategic international tie-ups by learning how to
craft a more fittiing educational and training framework for the kind of industries the
country have
...


Summary
The value of Cambodia, in the context of its greater relationship with the
region, lies in its people and resources
...
Today, the world needs
Cambodia just as much as Cambodia needs the world
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The economic indicators
presented on this paper depict a picture of a market with considerable room for
growth
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These will be the two defining points that
could either help Cambodia break away from the stagnant development trap or keep it
there for longer
...


References

Council for the Development of Cambodia
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Retrieved on August 17, 2015 from
< http://www
...
gov
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International Labour Organization (ILO)
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Decent Work Country Profile:
Cambodia,
retrieved
on
August
16,
2015
from
...
org/sites/default/files/publication/31193/gender-equality-labormarket-cambodia
...

Kang, M & Bark, T
...
” Asian
Development
Bank,
retrieved
on
August
18,
2015
from
...
org/sites/default/files/publication/111031/reiwp-141-trade-policychallenges-cambodia
...

Ministry of Land Management, Urban Planning and Construction
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Retrieved on
August 14, 2015 from < http://www
...
gov
...

The World Bank
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“Improving Trade and Logistics in Cambodia
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worldbank
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United Nations Development Program
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“Human Capital Dynamics and
Industrial Transition in Cambodia
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kh
...
org>
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Figure 2: Real GDP growth

Source: World Finance, 2015
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7

13,035
...
0

35
...
0

FDI Inwards (in % of GFCF****)

58
...
2

47
...
6

73
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8

Source: UNCTAD, 2014
...

Figure 5: Cambodia Imports Trend

Source: Ministry of Economics and Finance, Cambodia, 2011
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Figure 7: Internet Consumption

Source: Singapore Management University, 2010

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Title: An Economic Analysis of the Kingdom of Cambodia
Description: This paper is one of my first papers at the start of my course in International Marketing. It provides an outline of Cambodia's economic history and also details of how best to market and do business in this region. It provides a highlight into Southeast Asian culture and economic way of life. The language used is middle year to higher proficiency.

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