You are on page 1of 4

The sectoral composition of Cambodia’s economy is surprisingly well-rounded.

Although Cambodia’s services sector constitutes a larger fraction of Cambodia’s GDP, it is not overly reliant on this sector. The larger share of the service sector does not come as a surprise because of Cambodia’s healthy tourism industry that contributed about 10% of GNP in 2007 ; with approximately 2 million visitors in a country of almost 15 million people. The textiles industry in Cambodia, which is the largest component of the industry sector, has suffered as of late. Cambodia belongs to the Association of Southeast

Cambodia, Sectoral Compostion, 2010 (%GDP)

Agriculture, value added (% of GDP) 41% 36% Industry, value added (% of GDP) Services, etc., value added (% of GDP)


Asian Nations (ASEAN), which is a geopolitical and economic organization of ten countries. The organization, as a whole, presents a better bargaining position for the countries it represents, which Cambodia is able to benefit from because the nation is not landlocked. Thus, trade is very important which is mostly conducted through three main international ports Sihanoukville, Phnom Penh, and Koh Kong. Cambodia is a net import economy with imports of goods and services at 59.5% of GDP, and the exports of goods and services at 54.1%, conversely. Net development assistance is very significant at $733.7 million. FDI inflows and worker’s remittances are also very significant at 6.96% and 3.29% of GDP, respectively. The interest rate on deposits of riel was 5.28% at the end of 2011. The interest rate on loans in riel was 16.99% at the end of 2011.2 This deposit interest rate may seem attractive at first, but forex investors must be wary of exchange rate risk that the riel holds. Domestic credit provided by the banking sector is at 24.07% of GDP in 2010, which seems to represent fair access to credit for businesses and personal consumption. The depth of credit information is medium which may cause inefficiencies in obtaining credit, and for lending parties to measure risk of default. The strength of legal rights is fairly high in Cambodia, which protects both borrowers and lenders, and ultimately the facilitation of lending.


Yuxia, Jiang. Xinhua News Agency. 2009. 4 December 2012. 2 National Bank of Cambodia. "National Bank of Cambodia 2011 Annual Report." 2011. National Bank of Cambodia. 4 December 2012.

This is an alarming figure because the internet provides access to information that can potentially educate and improve the lives of Cambodia’s citizens. and internet users (per 100 people).The two indicators used to capture the state of Cambodia’s infrastructure were the quality of port infrastructure. which will determine their willingness to import and export through those ports. The quality of port infrastructure measure represents business executives’ perceptions of the country’s port facilities. Improving Cambodia’s port infrastructure should be a major concern for Cambodia as a net import economy.1 persons per 100 people have access to the world wide web in Cambodia. The quality of port infrastructure was deemed to be an important measure because of Cambodia’s net import economy. . Approximately 3. The internet users infrastructure indicator was deemed an important measure because it represents access to information.

net inflows (BoP.97 6.734.596.07% 3 8 Exhibit 3: Cambodia Infrastructure Infrastructure Indicators 2011 3 Quality of port infrastructure 4 Internet users (per 100 people) 3.World Development Indicators 3 WEF (1=extremely underdeveloped to 7=well developed and efficient by international standards) .007.80 Exhibit 2: Cambodia Credit Markets Credit Indicators Domestic credit provided by banking sector (% of GDP) Credit depth of information index (0=low to 6=high) Strength of legal rights index (0=weak to 10=strong) Table 2: (Source) World Bank .1 Table 3: (Source) World Bank .1% 59.Exhibits Exhibit 1: Cambodia Trade Indicators Trade Indicators Exports of goods and services (% of GDP) Imports of goods and services (% of GDP) Capital Inflows and Outflows Net official development assistance received (constant 2010 US$) Foreign direct investment.96% 3.5% 2010 $ 733. net inflows (% of GDP) Workers' remittances and compensation of employees.29% $ 369.00 $ 782.458. received (% of GDP) Workers' remittances and compensation of employees.730. received (current US$) Table 1: (Source) World Bank . current US$) Foreign direct investment.World Development Indicators 2010 54.World Development Indicators 2011 2012 24.000.

xinhuanet. 4 December http://data. National Bank of Cambodia. http://www. "National Bank of Cambodia 2011 Annual Cambodia|Data. http://www.htm. World 4 December 2012. . Runckel & 2012. Business in Asia. 19 September 2012.nbc. 2009. Xinhua News Agency. Jiang.Bibliography National Bank of Cambodia. http://news." 2011.html. 4 December 2012.