The government is pressing ahead with at least four of the 20 priority initiatives outlined in the draft Automotive and Electronics Sector Roadmap, in a bid to promote economic diversification with a focus on consistency with regional and global economic dynamics.
This is according to a statement issued by the Council for the Development of Cambodia (CDC) – the government’s highest decision-making body for large-scale investments – in conjunction with a virtual meeting of the Ministry of Economy and Finance’s Economic and Financial Policy Committee (EFPC) on October 10.
The statement identified the initiatives as: establishing the Automotive and Electronics Sector Development Advisory Council; determining locations for special economic zones that cater specifically to the automotive and electronics industry; entering partnerships with the private sector to upskill workers; and improving logistics-related procedures.
Of note, the advisory council – which is under the CDC – was formally established on May 3 through endorsement by Prime Minister Hun Sen, and had its first meeting on August 2, according to the CDC.
Minister of Economy and Finance Aun Pornmoniroth, who chaired the EFPC meeting, voiced confidence that the roadmap would materially stimulate economic development, as an effective addition to the government’s economic diversification toolkit, given the nature of the post-Covid-19 regional and global economic architecture, the statement noted.
The minister also appreciated the CDC’s efforts in facilitating the Khmer-language drafting of the roadmap as well as revising the document to be more comprehensive and able to meet the practical needs of today’s society, it said.
The CDC disclosed that the draft roadmap contains an overview of the development of the automotive and electronics sector, key barriers and challenges, and priority and supporting measures, including relevant institutional implementation, monitoring and evaluation mechanisms.
Earlier this year, the council revealed that the document seeks to raise automotive and electronics exports past $2 billion and create more than 22,000 new jobs over the next five years.
On a related note, Minister of Public Works and Transport Sun Chanthol has said that the state aims to bring up the share of electric cars and motorcycles on the road to 40 and 70 per cent, respectively, in Cambodia by 2050, in line with the “Long-Term Strategy for Carbon Neutrality by 2050” and other government plans.
Speaking to The Post on October 10, Cambodia Automotive Industry Federation (CAIF) president Tan Monivann commented that the government is currently implementing some of the provisions of the “urgently needed” roadmap, which he said is designed to improve management of vehicles and electronics use-efficiency, and provide a major boost for environmental protection, among other things.
He stressed that Cambodia still has plenty of shortcomings that prevent it from fully capitalising on the Fourth Industrial Revolution, including those in the human resources domain, a lack of dedicated locations for investment projects, and a shortage of enterprises that use state-of-the-art equipment and technology.
“Apportioning some of the priorities for early implementation is necessary, we have to recognise that Cambodia nowadays is bereft of many things, including skilled labour, sites, or clusters that can readily accommodate investment projects in electric vehicles or electronics,” Monivann said.
