Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodian economy earns ‘mini-tiger’ recognition

Cambodian economy earns ‘mini-tiger’ recognition

Cambodian economy earns ‘mini-tiger’ recognition

CAMBODIA’S economy has emerged as a “mini-tiger” in terms of textile processing, despite a lack of attention from international investors, according to a report drawn up by Swiss banking giant UBS.

The Kingdom was one of the largest beneficiaries of the decade’s “globalisation boom”, said the report compiled by the Securities Asia division.

“The country has quietly established itself as a mini-tiger in textile processing and assembly, a fact generally overlooked by most investors including ourselves,” the emerging- market report said.

Of 80 emerging countries surveyed by the bank, only six – Cambodia, the Czech Republic, Hungary, Slovak Republic, Thailand and Vietnam
– recorded more than a 25 percent increase in manufacturing exports as a share of GDP from 1997 to 2008.

The report, which described Cambodia’s performance as a “shock”, has drawn support in the Kingdom.

Garment Manufacturers’ Association in Cambodia Secretary General Ken Loo said yesterday the Kingdom was generally an attractive location for foreign investors. With wages for garment workers rising in the China and Vietnam, Cambodia stood to attract additional interest, he said.

“There’s a huge potential here,” he said, although a number of challenges – such as frequent strikes, high electricity costs, and poor infrastructure – needed to be addressed.

Cambodia’s garment exports increased 13.4 percent to US$1.628 billion during the first seven months of the year, according to Ministry of Commerce statistics.

University of Cambodia economics lecturer Chheng Kimlong said yesterday that although the domestic economy was doing well, it was stronger before the financial crisis.

MOST VIEWED

  • US think tank warns of China's 'ulterior motives'

    A US think tank on Tuesday warned that spreading Chinese investment in the Indo-Pacific follows a pattern of leveraging geopolitical influence at the expense of the nations receiving investment, including Cambodia. The report looks at a sample of 15 Chinese port development projects, noting that the

  • More than three tonnes of ivory reportedly bound for Cambodia seized in Mozambique

    A total of 3.5 tonnes of ivory reportedly bound for Cambodia was seized by authorities in Mozambique late last week, according to the NGO Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES' information was based on a report from the

  • Defence Ministry denies weapons in smuggling case came from Cambodia

    After a Thai national was arrested last week for allegedly smuggling guns from Cambodia to Thailand, Cambodia's Defence Ministry has claimed the weapons seized during the arrest are not used in Cambodia, despite the fact that both types of rifle seized are commonly found in

  • Shipwreck found off coast of Koh Kong

    Royal Cambodian Navy researchers are working to identify a decades-old shipwreck found earlier this month off the coast of Koh Kong province. Divers found the 70-metre-long wreck on April 4 about a mile from Koh Chhlam island, according to Navy officials. Deputy Navy Commander Tea Sokha,