By CHHIENG Pich, Director, DICO National Project Director, TDSP - - PowerPoint PPT Presentation

By CHHIENG Pich, Director, DICO National Project Director, TDSP Director, EIF-NIU

• 1. Part I

1.TDSP 2.EIF Tier 1 and Tier 2

• 2. Part II

Medium Term Plan development 3.Part III Study on Cambodia’s graduation from LDC

1. Project Development Objectives (PDOs): TDSP will contribute to increase the Royal Government of Cambodia's efficiency in formulating and implementing effective trade policies. 2. Multi-Donor Trust Fund : EU, DANIDA & UNIDO 3. Trust Fund Manager : World Bank 4. Executing Agency : DICO/MoC 5. Board approval date : 07 Jan 2009 6. Effective date : 09 Mar 2009 7. Duration : 5 years (until 31 Mar 2012) 8. Original budget : US$12,350,000 9. Additional budget : US$3,100,000

• 10. First extension

: 31 Jan 2014 (22 months)

• 11. Second extension

: 31 Mar 2015 (14 months)

• 12. Third extension

: 14 Aug 2016 (17 months)

• 13. EU-ROM & WB Implementation Support Mission: 22 Sep – 02 Oct 2015
• 14. Last WB Implementation Support Mission : 02-12 May 2016

TDSP Funds Position

As of 15 September 2016

(Unaudited - Expressed in Percentage of the Total Grant Amount of US$ 15.450 million)

• TDSP has US$ 869,914 to spend before 14 October 2016,
• Out of which DICO will pay US$ 259k for Tax and US$ 2.5K

for Audit– this would leave US$ 608,414 unspent or 5.63%)

TDSP Fund

Actual Disbursement against Projected Disbursement by Quarter, 2015/ 2016 As of 15 September 2016

135% 94% 45% 63% 31%

TDSP Fund

Disbursement by Year, As of 15 September 2016

(Expressed in Percentage of the Total Grant Amount of US$ 15.450 million) 4% 0.75 % 10.8% 17.8% 13.5%

NOTE: *. Cumulative Disbursement = USD 14,580,086 **. Cumulative Disbursement as a Percentage of Total Grant = 94.37%

No Date Proposal IA Pillar Focus (P) Component focus (C) Budget 1 01 Jul 2010 (18 months) Rule of Origin: Operational Procedures & Training D/MUL MoC P1: Legal Reform C1-C: Other legal reforms & RGC WTO obligations $303,046 2 14 Jul 2010 (4 months) Information dissemination on Top Ten products from Cambodia 24 provinces TPD MoC P2: Various C1-A: Technical Barrier to Trade, Sanitary & Phyto- Sanitary $48,211 3 14 Jul 2010 (9 months) Export training & SME training: Export training & coaching services TPD MoC P1: Trade Facilitation C1-B: Trade Facilitation $54,899 4 14 Jul 2010 (18 months) Strengthening the capacity of Institute

• f Standard of Cambodia (ISC)

ISC MIME P1: TBT, SPS, & Trade Facilitation C1-A: TBT & SPS $384,264 5 26 Jul 2010 (3 months) Study on minimum wages & minimum wages negotiation in garment sector CANFEBA P1: Legal Reform C1-C: Other legal reforms & RGC WTO obligations $46,000 6 06 Aug 2010 (18 months) Capacity Building for the Dept of Trade & Statistics DTSI MoC P3: Strengthening key MoC Depts & key Moc functions C3: Human & Institutional Capacity Building $137,540 7 17 Sep 2010 (12 months) Customs Valuation GDCE MEF P1: Trade Facilitation C1-B: Trade Facilitation $50,000 8 17 Sep 2010 (12 months) Awareness program on Customs in Cambodia GDCE MEF P1: Trade Facilitation C1-B: Trade Facilitation $95,000 9 23 Sep 2010 (14 months) Development of a trade curriculum at the Royal School of Administration RSA OCM P3: Strengthening trade- related capacities of RSA C3: Human & Institutional Capacity Building $123,650 10 28 Sep 2010 (20 months) Enhancing IP Teaching and Training DIPR MoC P1: Legal Reform C1-C: Other legal reforms & RGC WTO obligations $110,000 11 15 Oct 2010 (24 months) Support drafting E-Commerce Law LAD MoC P1: Legal Reforms and Cross-cutting Issues & P3 : Strengthening Key MOC Depts & Key MOC Functions C3: Human & Institutional Capacity Building $164,923

TDSP Summary of MoU – 1/3

No Date Proposal IA Pillar Focus (P) Component focus (C) Budget 12 29 Dec 2010 (15 months) Reviewing of Commercial Laws D/N&C MoC P1: Legal Reforms and Cross Cutting Issues C1 : Trade Policy Formulation and Implementation $219,949 13 29 Dec 2010 (18 months) Strengthening MoC core DR functions through the DoP Institutional and Individual Capacity DoP MoC P3: Capacity Development for Trade C3: Strengthening institutional and human capacity $234,540 14 30 Dec 2010 (12 months) Strengthening Institutional Risk Management Capacities in CAMCONTROL General Directorate

CAMCONTROL

MoC P3: Capacity Development for Trade C3: Strengthening institutional and human capacity $150,386 15 30 Dec 2010 (12 months) Value Chain Information Unit TPD MoC P3: Capacity Development for Trade C3: Human and Institutional Capacity Building $263,208 16 31 Dec 2010 (12 months) Phase 1: Raising awareness on the law

• n investment and its regulation and

investment promotion to the sub- committee on Provincial/Municipal investment and private CIB CDC P3: Capacity Development for Trade C3: Strengthening institutional and human capacity $195,860 17 30 May 2011 (14​ Months) Capacity Enhancement Program GDCE MEF P1 & P3 C1-B: Trade Facilitation $613,105 18 09 Jun 2011 (9 months) ICT Master Plan Implementation GDIT MoC P1 & P3 C1-B: Trade Facilitation $2,608,876 19 11 Jul 2011 (10 months) Implementing Agency Capacity Enhancement Program RSA OCM P1 & P3 C1-B: Trade Facilitation $605,125 20 11 Jul 2011 (8 months) The development of completed drafts

• f national standards for rice and

strengthening the capacity of conformity assessment body-Phase I ISC MIME P1 C1-C: Policy Formulation and Implementation in the area of SPS and TBT $360,216

TDSP Summary of MoU – 2/3

No Date Proposal IA Pillar Focus (P) Component focus (C) Budget 21 30 Sep 2011 (6 months) Better Quality and Safety of Fish and Fishery Products for Improving Fish Trade Development in Cambodia FiA MAFF P2 C1-C: Policy Formulation and Implementation in the area of SPS and TBT $1,262,708 22 16 Aug 2012 (15months) Development of a stronger National system for IP generation, protection, administration and enforcement. DIPR/MoC P1 C1-C: Trade Policy Formulation $148,491 23 28 Sep 2012 (15 months) Support to G-PSF CCC P2 B. Trade Support Institution

• C2. Increase transparency &

user feedback mechanism on trade-related processes. $260,338 24 12 Jul 2012 (18 months) GDCE ASYCUDA World System Project GDCE P1 C1-B: Trade Facilitation $1,398,753 25 20 Jun 2014 (11 months) Streamlining and Automation of Business Registration DBR P1 C1-B: Trade Facilitation $399,398 26 20 Jun 2014 (11 months) Automation of Phyto-Sanitary Certificates GDA/MAFF P1 C1-B: Trade Facilitation $392,800 27 Jul 2014 (11 months) Trade Training & Research Institute (TTRI) TTRI/MoC P3: Capacity development for trade C3: Strengthening institutional & human capacity $500,000 28 Jun 2015 (14 months) Support to the Arbitration Council and Dispute Resolution in Cambodia ACF P2 B. Trade Support Institution

• C2. Contribute to export

competitiveness and private sector development $135,055 29 Jun 2015 (14 months) Strengthening the Operational Capacity

• f the National Commercial Arbitration

Center NCAC P3: Capacity development for trade C3: Strengthening institutional & human capacity $99,640 TOTAL $11,365,981

TDSP Summary of MoU – 3/3

World Bank Rating on TDSP Towards Achieving the PDO 2010 2011, 2012, 2013, 2014 2015

Satisfactory Moderately Satisfactory Moderately Unsatisfactory Unsatisfactory Highly Satisfactory

World Bank Rating on TDSP’s Overall Implementation Progress 2010 2011, 2012, 2013, 2014, 2015

Satisfactory Moderately Satisfactory Moderately Unsatisfactory Unsatisfactory Highly Satisfactory

Project Objective: The project aims at strengthening the in-country arrangements of the Enhanced Integrated Framework in order to increase Cambodia’s ownership of trade-related technical assistance (TRTA) and maximizing the benefits that the country, in particular the private sector, can derive from the Enhanced Integrated Framework.

• 1. Donors

: EIF Multi Donor Trust Fund, managed by UNOPS

• 2. Implementing Entity

: DICO/MOC (NIU)

• 3. Liaison officers (LOs)

: 7 LOs representing a total of 7 line ministries

• 4. Board Approval

: Date: September 29, 2009

• 5. Effective kick-off date

: February 3, 2010

• 6. Duration

: 6 years

• 7. Original budget

: US$1,293,900

• 8. Additional budget (CTIS update): US$200,000
• 9. Total EIF Budget

: US$1,493,900.00 10.Total Expenditure : US$ 1,488,392.12

• 11. No-cost extension

: 4 times 12.Project Closing date : April 30, 2016

• Total Disbursement at the end of project– US$ 1,488,392 or 99.63%
• US$200,000 was directly expended by TFM/UNOPS for DTIS update in 2014

• 1. Title: Cambodia Export Diversification and Expansion Program (CEDEP).
• 2. Multi-Donor Trust Fund: 23 donors
• 3. Trust Fund Manager: UNOPS
• 4. Executing Agency: DICO/MoC

CEDEP I CEDEP II 5. PDO CEDEP I: to strengthen and diversify export supply capacity in Milled Rice, High- Value Silk sectors and enhance the capacity of DICO/MoC to monitor and evaluate substantive progress of Cambodia’s Trade Sector Wide Approach (Trade SWAp). 7. PDO CEDEP II: to strengthen and diversify export supply capacity in cassava, marine fishery products, academy of culinary arts of Cambodia and enhance the capacity of DICO/MoC to monitor and evaluate substantive progress of Cambodia’s Trade Sector Wide Approach (Trade SWAp). 6. Implementing Agency for CEDEP I

• Milled Rice by IFC
• High-Value Silk by ITC
• M&E function by DICO/MoC
• Starting date: 25 Oct 2012
• Closing date: 25 Oct 2015

8. Implementing Agency for CEDEP II

• Cassava by UNDP
• Marine Fisheries by UNIDO
• ACAC (Academy of Culinary Arts of

Cambodia) by Shift360

• M&E function by DICO/MoC
• Starting date: 11 Aug 2014
• Closing date: 11 Aug 2017

Program Objective: is to strengthen and diversify export supply capacity in selected pillar 2 sectors that have been identified as priority sectors by Government. 1.Donors : EIF Multi Donor Trust Fund, managed by UNOPS 2.Main Implementing Entities : IFC, ITC & DICO/MOC (NIU) 3.Board Approval Date : August 6, 2012 4.Effective kick-off date : July 1st, 2012 5.Duration : 3 years (until June 30th, 2016) (*) 6.Original EIF budget : US$2,407,714 7.Total Program Cost : US$3,383,429 8.Last Supervision mission : 29 March-01 April 2016 (UNOPS and EIF ES)

(*)- High Value Silk-ITC : Completed on 30 March 2016

• Milled Rice-IFC

: Completed on 30 June 2016

• M&E-DICO

: Completed on 26 October 2016

Components Budget Request from EIF Tier 2 Government contribution Private Sector contribution In-Kind Contribution from MIEs Total Program Cost Milled Rice $1,112,847 $408,000 $159,725 $1,680,572 High Value Silk $1,004,347 $167,400 $40,000 $178,150 $1,389,897 Evaluation Function + Core Teams $290,520 $22,440 $312,960 Total $2,407,714 $189,840 $448,000 $337,875 $3,383,429

Budget from EIF Tier 2 Year 1: $802,571 Year 2: $802,571 Year 3: $802,572

Program Objective: The program aims at strengthening and diversifying export supply capacity in three of the nine (out of 9) Pillar 2 sectors that have been identified by the Government as export sectors requiring immediate, priority action including Cassava, Marine Fisheries Products and Tourism. 1.Donors : EIF Multi Donor Trust Fund, managed by UNOPS 2.Main Implementing Entities : UNDP, UNIDO, Shift 360 & DICO/MOC (NIU) 3.Board Approval Date : January 13, 2014 4.Effective kick-off date : February 21, 2014 5.Duration : 3 years (until 2017) (*) 6.Original EIF budget : US$3,283,589 7.Total Program Cost : US$6,382,944

• 8. Last Supervision mission

: 29 March-01 April 2016 (UNOPS and EIF ES) (*) depends on actual MoU signature date

Budget from EIF Tier 2 Year 1: $1,204,499 Year 2: $1,039,545 Year 3: $1,039,545

Components Request from EIF Tier 2 Government contribution Private Sector contribution In-Kind Contribution from MIEs Contribution from other Donors Total Program Cost Cassava $997,026 $40,885 $128,000 $137,574 na $1,303,485 Marine Fisheries Products $988,953 $71,000 $188,000 $55,989 na $1,303,942 RACA $950,000 $144,000 $270,767 $140,400 $1,900,000 $3,405,167 Evaluation Function + Core Teams $347,610 na na $22,740 na $370,350 Total $3,283,589 $255,885 $586,767 $356,703 $1,900,000 $6,382,944

Other DPs Contribution to be confirmed)

# of Actions % of Total Status of Work No work 56 42% Work under way 74 55% Completed 4 3% Total: 134 100% Status of TA Not needed 31 23% Ongoing 62 46% TA needed 41 31% Total: 134 100%

• 1. Trade Policy, Sector Policy, Legal and Regulatory Reform: Formulate Trade Policy in view of AEC, RCEP, TPP and erosion of preferences

including RoOs; develop sector policies (e.g. cassava, fish, rubber, others); identify sector-specific NTMs; implement the Government’s 2012-2015 Work Program on Legal Reform, including key reforms identified in the Trade SWAp Road Map 2014-2018.

• 2. Trade Facilitation and Transport Logistics: Establish the NSW including automation of trade related documents; respond to the Bali

Agreement on Trade Facilitation; develop, adopt, implement a national transportation logistics plan; improve cross-border transit agreements; improve and enforce road transport regulations; encourage modernization of road transport fleet.

• 3. SPS and Other Quality Systems for Trade: Complete key legal reforms in SPS; develop capacity of key agencies not only in Phnom Penh

but in field offices as well especially in areas of surveillance and inspections; promote a culture of SPS including through encouraging agro exporters to adopt SPS standards required by importing markets, develop various quality systems to support export sectors (e.g. rubber, silk.)

• 4. Private Sector Structuring: Strengthen sector associations and private sector in rice, cassava, fisheries, rubber, and hospitality including

ability of sectors to articulate positions and engage government through G-PSF or other venues; strengthen and promote branding through sector-specific collective marks, GIs, Quality Seals, other means as well as through “Made in Cambodia” branding; strengthen export promotion capacity including through capacity building in sector associations.

• 5. Development of Inclusive Value Chains: Build capacity of priority export sectors identified by Government in the Trade SWAp Road Map

2014, including in light manufacturing, agro-processing, rubber and tourism.

• 6. Trade Mainstreaming and Management of Aid for Trade: Continue to build capacity for monitoring and communicating Trade SWAp as a

program instead of a collection of projects; continue to mobilize and coordinate AFT support; strengthen capacity of MoC and other line ministries to participate in SWAp; improve fiduciary management of AFT projects using different disbursement modalities. Deepen trade build trade-related training and research capacity in Government;

• 7. Skills for Exports: Address the lack of skilled technical personnel as a result of the absence of a robust TVET structure is a serious

bottleneck in Cambodia’s ability to move up value chains; address the lack of well-trained engineers (mechanical, structural, agricultural, chemical, biologist, etc.); strengthen collective bargaining environment and dispute resolution mechanisms.

• 8. Investment Environment, Integration in Regional Value Chains, Backward Linkages: Complete supportive legal framework including

encouraging development/deepening of backward linkages in garment, bicycles, footwear, hospitality (horticulture); diversify investment in regional and global value chains beyond garment, footwear and bicycles; develop investment promotion capacity including at provincial level.

• 9. Rural Development for Exports including Extension Services, Cooperatives Development, Surveillance Services: Develop structured

value chains between farmers and semi-agro-processors or agro-processors through farmers groups, cooperatives, contract farming arrangements, etc; strengthen quality of seeds, seedling, and other plantings;

• 10. Access to Finance: Address the lack of access to working capital and trade finance especially for SMEs and other small

producers/exporters as it is a significant constraint to export development.

Cluster 1: Trade policy, sector policy and legal and regulatory reform Cluster strategic objectives Trade SWAp Roadmap Outcomes 1. Complete trade-related key legal and regulatory reforms Outcome 1: Trade policy, legal reform and trade negotiations 2. Strengthening implementation of trade-related laws and regulations through strengthening of implementation and enforcement capacity of relevant line ministries and agencies Outcome 6: Establishing a trade-supportive framework for intellectual property rights 3. Formulate a trade policy 2015-2025 to guide Cambodian negotiators Outcome 1: Trade policy, legal reform and trade negotiations 4. Develop sector policies based on value chain analytical work Outcome 18: Mainstreaming trade Start-up projects (Low-hanging fruits) 1) Accelerate implementation of the work program on legal reform 2012-2015 2) Analyze non-tariff measures included in the National Trade Repository 3) Strengthen enforcement of geographical indications 4) Formulate a trade policy Estimated resource needs (2016-2020) USD 4-5 million

Cluster 2: Trade facilitation and Transport logistics Cluster strategic objectives Trade SWAp Roadmap Outcomes 1. Implement Cambodia National Single Window (NSW) Outcome 2: Trade facilitation 2. Formulate and Implement National Trade Logistics Plan Outcome 3: Trade logistics 3. Implement ATIGA and the WTO Trade Facilitation Agreement (“Bali Package”) Outcome 2: Trade facilitation Outcome 1: Trade policy, legal reform and trade negotiations Start-up projects

1)

Review Arrangements among Cambodian Border Agencies and with Vietnamese and Thai Counterparts Agencies to Create Shared Border Point Offices/Facilities at Key Crossings

2)

Assessment of Other Trade-Facilitation-related Documents not yet Computerized

3)

Support Initial Work on National Trade Logistics Plan

4)

Institutional Arrangements and Assistance Modalities for TFA Implementation in Cambodia Estimated resource needs (2016-2020) USD 5 million

Cluster 3: SPS and other Quality Systems for Trade Cluster strategic objectives Trade SWAp Roadmap Outcomes 1. Establish a coherent WTO- and ASEAN- compatible legal and regulatory framework for SPS and other quality systems Outcome 4: Strengthened capacity of exporters to meet technical standards and SPS requirements. 2. Enhance systems and structures to develop adoption of SPS standards and practices throughout the entire food value chain from “farm-to-fork”, including strengthening SPS practices at farm, producer, and retailer levels Outcome 4: Strengthened capacity of exporters to meet technical standards and SPS requirements. 3. Achieve international accreditation of Cambodian laboratories for relevant parameters Outcome 4: Strengthened capacity of exporters to meet technical standards and SPS requirements. Outcome 17: Bridging the skill gap for exports. Start-up projects

1.

Amend and adopt a WTO-compliant Law on Standards

2.

Complete drafting of Food law and assemble group of experts to eliminate contradictions and lack of coherence in current SPS framework.

3.

Adopt 250 or ASEAN harmonized standards not yet adopted by Cambodia Estimated resource needs (2016-2020) USD 5-7 million

Cluster 4: Private Sector structuring Cluster strategic objectives Trade SWAp Roadmap Outcomes 1. Private sector Associations are able to articulate positions and dialogue with Government through the G-PSF or other venues Outcome 10: Processed food. Outcome 12: Milled rice. Outcome 13: Cassava. Outcome 14: Rubber. Outcome 16: High value silk. 2. The private sector and Government develop PPP arrangements to narrow the labor skill gap, invest in common facilities, or support

• ther investment in “public goods”

Outcome 7: Garments. Outcome 9A: SEZ. Outcome 15: Tourism. 3. The private sector increases capacity in marketing, promotion and branding for exports Outcome 7: Garments. Outcome 8: Footwear. Outcome 10: Processed food. Outcome 12: Milled rice. 4. The private sector is able to meet international SPS and other quality standards Outcome 4: Strengthened capacity of exporters to meet technical standards and SPS requirements. Outcome 7: Garments. Outcome 14: Rubber. Outcome 17: Skill gap Start-up projects

1.

Develop culture of professions in Tourism

2.

Develop/strengthen collective branding in High-value fragrant rice, garments, and high-value silk. Estimated resource needs (2016-2020) USD 5-6 million

Cluster 5: Development of inclusive export value chains Cluster strategic objectives Trade SWAp Roadmap Outcomes 1. Develop export capacity in priority sectors identified by the Government, beginning with the priority sectors identified in CTIS 2014- 2018 and the 2015 Industrial Development Policy Outcome 9B: Light manufacturing assembly. Outcome 10: Processed food. Outcome 12: Milled rice. Outcome 13: Cassava. Outcome 16: High value silk products 2. Develop a business and investment environment supportive of the development

• f Inclusive Value Chains including through

deepening backward linkages Outcome 5: Investment environment for exports. Outcome 9A: SEZ. Start-up projects

1.

Prepare Draft Project Document(s) for Submission to EIF or Other Interested Development Partners.

2.

Support Implementation of Laws on Investment and SEZ once adopted.

3.

Develop Relevant Investment Promotion Tools to Attract New Investment in Key Priority Export Value Chains Estimated resource needs (2016-2020) USD 5-7 million

1.Trade Policy, Sector Policy, Legal and Regulatory Reform: 2.Trade Facilitation and Transport Logistics: 3.SPS and Other Quality Systems for Trade: 4.Private Sector Structuring: 5.Development of Inclusive Value Chains: 6.Trade Mainstreaming and Management of Aid for Trade: 7.Skills for Exports: 8.Investment Environment, Integration in Regional Value Chains, Backward Linkages: 9.Rural Development for Exports including Extension Services, Cooperatives Development, Surveillance Services: 10.Access to Finance: 1.EU, GIZ 2.EU, WB, USAid 3.EU, UNIDO 4.ADB 5.EU, ESCAP, IFAD 6.EIF, EU 7.SIDA, AFD, CBI 8.JICA, EU, GIZ 9.IFAD

• 10. ADB

1.MOC 2.WB/GDCE 3.MAFF/MOC 4.MIH 5.MOC/MAFF 6.MOC 7.MOLVT/MOC 8.CDC 9.MAFF 10.MEF

EU Funding Program (MIP) Multi-Annual Indicative Program 2014-2020

Fund for Bilateral: EUR 410 million Fund for Regional: EUR 50 million

• Focus sectors:
• Agriculture/national resources management: 144m
• Education/skill: 140m
• Governance and Administration: 120m
• Support measure: 6m
• Three expected results:

Improved business enabling environment for the agriculture and NRM related sectors, through the improvement of existing national capacities, policies and regulations which support the development of sustainable agricultural and forestry use and commercialisation, stimulate innovation and private sector investment, and ensure protection of natural resources. Strengthened value chains, including increased productivity, processing efficiency, improved product quality and increased market competitiveness in domestic and export markets that result in increased rural incomes and employment creation. Empowered local communities to participate in the conservation and management of agriculture and natural resources including sustainable forest management (FLEGT) through the improvement of national and sub-national capacities, regulations and law enforcement.

• Identification mission: May-Jun 2015
• Formulation mission: Q4 2015
• Programs to start by early 2017
• Focus Areas: support the ASEAN Economic Integration beyond

2015: Support improvements in customs, transit, standards, services, investment, food safety, IPR. Narrowing the development gaps in the public administrations

• f CMLVs

Further integration into the global economy of ASEAN Member States Euro 35 million for ASEAN Secretariat Euro 15 million for Cambodia, Laos PDR and Myanmar Will include regional programs (ECAP IV, ARISE) and national envelopes (Cambodia)

• Identification mission: finalised in January 2015
• Evaluation and Formulation mission: 22-26th June 2015
• Programs to start: Q4 2016
• Exploring new modalities for implementation, building on what

has been achieved, more RGC ownership.

• Any project must be based on Rectangular Strategy, NSDP, CTIS, IDP
• This program will approve by EU Parliament in Sep 2015

Timetable for SSC-TD-TRI Meeting in 2016

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec SSC Thu 25 SSC Mon 30 SSC Wed 31 SSC Tue 29

Timetable for IC Meeting in 2016

IC Mon 11 IC Thu 11 IC Tue 15 IC Thu 21 IC Wed 11 IC Tue 14 IC Tue 12 IC Thu 11 IC Tue 13 IC Wed 12 IC Thu 10 IC Tue 13

Timetable for DICO and IAs Meeting in 2016

Mod 07 Tue 05 Wed 04

Timetable for D/ICO and Line Ministries Meeting in 2016 (Under EIF)

Wed 06 Tue 10 Mon 05 Thu 08

Report of Any Wrongdoing under EIF Programs By email fraudhotline@unops.org By telephone +45 3546 7654 (fraud hotline voicemail worldwide system By mail UNOPS Internal Audit and Investigations Group Marmovej 51 2100 Copenhagen, Denmark

35

Cambodia’s graduation out of the LDC status Complete in June 2016

Where we stand now?

Cambodia will soon become a lower middle income country according to the World Bank This is an important achievement BUT…. It is only the first step towards achieving graduation from the LDC status

LDC Graduation – how far are we?

• GNI per capita: 853 USD – Graduation Threshold is 1,242 USD

– At 7% to 8% growth per year we will reach the threshold by 2021

• HAI: Graduation threshold is 66 or above. We now qualify for

graduation under this indicator with a score of 67.2 in 2015

• EVI: Graduation threshold is 32 or below – we score 38.3 in

2015

– We scored 55.6 in 2009 / 50.5 in 2012 – We are getting there but there is a high risk to graduate with a high EVI

HAI = Human Assets Index EVI = Economic Vulnerability Index

The road to graduation – what should we focus on?

• With a sustained economic growth over the next 5 years

at the level of the average growth of the Cambodian economy, we will reach GNI eligibility in 2021

• We need to monitor HAI to ensure we stay over the

graduation threshold. New index will be added such as maternity mortality ration. The undernourishment is expected to be measured by levels of stunting. We need to monitor this.

• Most of the work to be done to ensure a smooth

transition is about the Economic Vulnerability Index

The road to graduation – what should we focus on? (Cont’)

• Cambodia EVI index is mostly hampered by 3 sub-indexes

– “remoteness”, – “share of agriculture, forestry and fishing in GDP” and the – “victims of natural disasters”

• This is the visible part of the iceberg as it has to be noted

that the “merchandise export concentration” index would jump in the case all EU importing countries were aggregated into a single EU market destination ONE KEY SUCCESS FACTOR LIES WITH THE DIVERSIFICATION OF OUR ECONOMY

Graduation Impact

• Besides all the various issues our Government

must consider to ensure a smooth path to graduation (tax revenues, productivity, economic diversification, labor market, infrastructures, health and education etc…) we must understand how graduation will impact us as such. GRADUATION = LOSS IN PREFERENTIAL TREATMENTS PROVIDED TO LDCs by bilateral and multilateral partners, both from an ODA and a trading perspective

Graduation Impact (Cont’)

• The major impact of graduation as such lies with our

partners:

– World Bank and ADB (middle income status) – UN (LDC status) – WTO (LDC status) – Bilateral and multilateral ODA providers (share of ODA tight to LDC status) – Bilateral and multilateral trading partners (preferential market access) TO DATE THERE IS NO RECOGNIZED METHODOLOGY TO ASSESS THE IMPACT OF GRADUATION ACCORDING TO ALL THOSE FACTORS – IT MOSTLY DEPENDS ON OUR CAPACITY TO PROACTIVELY PREPARE THE GROUND WITH EACH PARTNERS

Graduation Impact – Risk mitigation

To mitigate the risks linked to graduation, we need to define a clear strategy: 1.From now towards graduation to ensure we lower our risk exposure (EVI) 2.After we are recommended for graduation to implement

• ur “smooth transition strategy” (3 years period granted

to graduating countries before graduation becomes effective)

How can the EiF helps us

From now towards graduation:

1/ Support our efforts in economic diversification

• sector based intervention in identified priority sectors
• competency development through targeted vocational

curriculum development

• Investment promotion programs and sector based policy

development 2/ Further build our capacity to better negotiate with partners

• WTO compliance post graduation
• bilateral and multilateral trade agreements

3/ Develop our “smooth transition strategy” and support the consultation and coordination process with all key partners at strategic level

How can the EiF helps us (Cont’)

After graduation during the smooth transition period: 1.Coordinate with all partners to ensure commitment made in the smooth transition strategy are being implemented 2.Trade negotiation and capacity building for better advocacy when Cambodia becomes a member of the Developing Country Group (at the WTO and UN levels)

ក៓រសួងពិណ ិ ជ៓ជរម៓ម និយរដ្ឌ ា នសហក៓រតិបតតិកិរអនតរជិតិ

អិស័យដ្ឌ ា ន: ឡូត៌លេខ ១៩-៦១ វិថីក៓រសួងពិណ ិ ជ៓ជរម៓ម (១១៣លេ), ភូម៓ិទឹរថ្វ ា , សង្ខ ា ត់ទឹរថ្វ ា , ខ័ណ ស ែសនសខខ, រិជ៓ធិនីភនំលេញ ១២១០២ ទូរស័េទ/ទូរសិរៈ ០២៣-៨៦៦-០៧៤

Email: chhiengpich@gmail.com www.moc.gov.kh | www.moc.gov.kh/tradeswap Ministry of Commerce Department of International Cooperation Lot 19-61, MoC Road (113B) Phum Teuk Thla, Sangkat Teuk Thla Khan Sen Sok, Phnom Penh 12102 Cambodia Tel/Fax: 023-866-074 Email: chhiengpich@gmail.com www.moc.gov.kh | www.moc.gov.kh/tradeswap