Since its return to a market-oriented economy in 1989, Cambodia has pursued policies and reforms to integrate itself into regional and global value chains by modernising its industrial structure. The latest and most important ‘economic growth strategy’ — the Industrial Development Policy 2015–2025 (IDP) — aims to reinforce this pursuit, but greater efforts are still needed.
The IDP lays out ‘key concrete measures’ ranging from reductions in electricity costs, enhancement of connectivity in transport and logistics, and improvement to the labour market and skills.
Past attempts to address these challenges have seen some success, leading to a significant economic transition over the last two decades and the diversification of Cambodia’s export outputs and destinations. The country exported 1215 product categories to 149 international markets in 2016 compared to the 680 product categories it exported to 94 international markets in 2001.
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