Logo of Phnom Penh Post newspaper Phnom Penh Post - Kingdom’s concern over crisis in Europe

Kingdom’s concern over crisis in Europe

Kingdom’s concern over crisis in Europe

Despite the government’s upgrade of Cambodia’s gross domestic product outlook for 2011 on Wednesday, officials yesterday reiterated concern on the country’s export exposure to crisis in the European Union.

Worries stemming from the Greek economic crisis could hurt Cambodian garment exports to the EU, the second biggest importer of Cambodian garments, Minister of Economy and Finance Keat Chhon said at a trade exhibition in Phnom Penh yesterday.

“We are already concerned but we will make our own efforts to strengthen our internal [affairs],” Keat Chhon said.

Cambodia can brace itself for external shock by boosting the domestic coverage of the law, as well as by strengthening financial institution and human resources, he said.

A greater focus on rice production and exportation was another remedy to a possible decline in exports to Europe, Keat Chhon said.

“I’m talking about rice because everybody needs rice. Our market is strong both in the US and in Europe,” he said.

Preferential trade treatment has made the EU the biggest importer of Cambodian agricultural products. Thon Virak, chairman and director general of state-owned agricultural company Green Trade, said yesterday that the EU imports about 60 per cent of Cambodia’s rice exports.

Increased investments in roads, bridges and canals were also needed, Keat Chhon said.

The inexpensive nature of Cambodian garments may guard against a decrease in orders to Europe, Minister of Commerce Cham Prasidh said yesterday.

“For garment products, I believe that no matter what level of financial troubles reach Europe, it won’t stop them from buying clothes,” he said.

MOST VIEWED

  • Negotiations on EBA being held

    In an effort to defuse tensions, a senior government official said Cambodia is negotiating with the European Union (EU) on the Everything But Arms (EBA) trade deal, which allows the Kingdom to export goods to the 28-member bloc tariff-free. The EU notified Cambodia on October 5

  • Ministers to tackle sea pollutants

    Preah Sihanouk provincial authorities and members of local communities have collected 77 tonnes of water hyacinth at a Sihanoukville beach, Preah Sihanouk Provincial Hall spokesperson Or Saroeun said. He told The Post yesterday that the aquatic weeds had been floating along some of the province’s

  • Chinese police escort deported scam suspects

    Ninety-one Chinese nationals accused of extorting money from victims in a Voice over Internet Protocol (VoIP) scam were deported from Phnom Penh International Airport on Monday under the escort of 182 Chinese police personnel. General Department of Immigration head of investigations Ouk Hay Seila told reporters

  • Sam Rainsy, government group set to clash at IPU Geneva meet?

    Opposition figure Sam Rainsy has been invited to speak at the General Assembly of the Inter-Parliamentary Union (IPU) in Geneva, according to a former Cambodia National Rescue Party (CNRP) lawmaker. A government delegation is also set to attend the meeting, a National Assembly press release