Products Edge Closer to GI Status

Feasibility studies on achieving Geographical Indication status for Thma Koul rice, Kampot durian and Cambodian golden silk have been completed, officials said yesterday.

Ouk Prachea, secretary of state at the Ministry of Commerce, said the ministry was waiting for the results of the studies done by experts from the UN Conference on Trade and Development in three provinces. He could not give a specific date as to when results would be made available.

“Experts have conducted feasibility studies on the products in the three provinces to determine the potential and the possibility to put them into GI status,” Prachea said.

“Regarding who will continue to fund the project, we need to wait for the result to come out,” he added.

Prachea said, last May, that registering one product for GI status is estimated to cost around $1 million.

The World Trade Organization’s GI status authenticates for buyers and consumers that a product is produced in a specific geographical area, thereby assuring its quality.

But obtaining a GI status is not an easy process. Producers must first form an association to clearly define the product’s characteristics and lay out a unique set of rules regarding the cultivation of the product within the designated area. An external body must then step in to certify the quality of the resulting product.

Song Saran, CEO and president of AMRU rice and CRF board member, said achieving GI status for Cambodia’s Thma Koul rice would allow Cambodia to enter higher value markets and would make promoting the rice internationally an easier task.

“It will help boost Cambodian rice exports and the higher value will increase margins for farmers and exporters. With GI status, it will take exporters less effort to promote rice to buyers,” he said.

Kampot pepper and Kampong Speu palm sugar are the only Cambodian products to hold the status. They have both seen a boost in demand since gaining GI recognition.

Song Saran, CEO and president of AMRU rice and CRF board member, said achieving GI status for Cambodia’s Thma Koul rice would open up new markets for Cambodian rice.

“It will help boost Cambodian rice exports and the higher value will increase margins for farmers and exporters. With GI status, it will take exporters less effort to promote rice to buyers,” he said.

Source: Phnom Penh Post | March 13, 2015 | By: Chan Muyhong

Biz Study Looks to Address Obstacles

Cambodian businesses are facing the same challenges today as they were in 2009, according to a new joint World Bank and Asian Development Bank (ADB) study.

The results of Cambodia’s 2014 Investment Climate Assessment (ICA) were launched yesterday in Phnom Penh. Mirroring the results of the 2009 ICA, the latest report lists electricity prices, corruption, a lack of skills and financing as the biggest constraints to doing business.

“Despite the government’s effort at introducing reforms to improve the investment climate, the business environment continues to hamper the competitiveness of firms in Cambodia,” the report states.

Overall, 43 per cent of the 862 businesses surveyed for the ICA listed electricity prices and more than 30 per cent listed corruption as their as the biggest constraints.

Consequently, the World Bank and the ADB have jointly called on the government to prioritise reviewing Cambodia’s energy source strategy, passing a new e-commerce law to expedite automated private-to-public-sector payment systems and revise the current Investment Law to improve the attractiveness of special economic zones (SEZs).

“Low wages, the Everything But Arms access program to the EU that Cambodia has been granted, and tax holidays have all helped to attract investment,” Julian Clarke, World Bank senior economist and author of the report, said.

“Still, Cambodia can do more to address the most serious constraints seen by the firms.”

Among the ICA’s additional recommendations was a “Zero Corruption Strategy” for the Kingdom’s SEZs where more than 70 per cent of the firms listed corruption as their primary concern – almost double that of non-SEZ companies.

“Policing this strategy would be feasible in the controlled environment of the SEZs, and have a strong resonance in terms of building a positive image for Cambodia as an FDI destination,” the report states.

It’s hoped that a good example shown by SEZ firms in combating corruption would prompt a sector-wide improvement to informal practices.

However, the issue remains that a vast portion of the Kingdom’s private sector deliberately chooses to conduct their operations informally due to the cost of paying taxes, registrations and complicated regulatory processes imposed by government departments.

Some 70 per cent of the country’s small-size firms and 45 per cent of medium-size are still not registered with the country’s Ministry of Commerce, according to the ICA.

“Efforts of the MOC in the area of improving company registration procedures should be scaled up, building on the results achieved in the past decade when many firms have decided to register under the system,” the report adds.

Sok Touch, owner of a grocery store on Sothearos Boulevard in Phnom Penh’s Chamkarmon district, is one such informal business. He said yesterday he would be willing to register his business with the Ministry of Industry and Handicraft if no fee and no tax was charged.

“I can barely earn enough to support my family, let alone the money to spend for tax or the fee for registration,” he said.

“If the government wants us all to register, so they can monitor the number of small and medium businesses, I am happy to do it if no fee or tax is attached,” he added.

However luring informal small- and medium-size businesses to register with the government for legal and tax purposes might be more than just a question of cost.

“Another issue is that [informal] firms might lack the trust in the Government to operate formally,” the ICA report said.

The World Bank and ADB recommended the government engage the informal business sector in a dialogue to “build trust“ and ultimately improve business registrations.

Rami Sharaf, CEO of RMA Cambodia Group of Companies, welcomed the World Bank and the ADB’s study, however said improving the Kingdom’s business environment hinges on conversation and action from both private industry and the government, not only reports and data.

“None of these problems can be tackled by either sector alone. We need to have mandated task forces made up of private businesses, agencies and government who have the power to put these findings into action,” Sharaf, one of the speakers at yesterday’s launch said.

“If this coordination is not there, and we keep everyone playing his or her own tune, we will again see the same findings at the next ICA and we will again be repeating ourselves.”

Source: Phnom Penh Post | October 29, 2014 | By: Eddie Morton

The Kingdom Impresses with Passion and Commitment at Travel Mart

The Pacific Asia Travel Association (PATA) Chairman said at the Travel Mart venue for this year, 450 seller delegates representing 233 organizations had booked over 3,000 square meters of floor space. That is a great opening and a boon for Phnom Penh, where the event is being held.

Of these seller organizations, 52% are first-time sellers to the Mart. In total, some 31 seller destinations (countries and territories) are present at the Diamond Island Convention and Exhibition Center for PATA Travel Mart 2014 (PTM2014).

The PATA Travel Mart 2014 (PTM2014) opened yesterday in Cambodia, with over 1,000 delegates from close to 60 countries around the world joining the annual networking event organized by the Pacific Asia Travel Association (PATA) and generously hosted by the Ministry of Tourism of Cambodia.

“Cambodia with its unique cultural heritage that spans more than a thousand years of history has so much to offer international visitors from its cultural and natural attractions to its people and traditions,” said PATA Chairman Scott Supernaw at the opening press briefing.

The Mart has also attracted 266 buyer delegates from 252 organizations across 48 countries and territories. Some 28% of buyers were first-timers to the Mart, and there were 60 journalists attending from 18 source markets.

Additionally, the International Conference on Community Development Through Tourism held two days before the Mart attracted over 300 delegates, and the ASEAN Tourism Investment Forum held yesterday afternoon attracted nearly 200 delegates.

Established in 1978, the PATA Travel Mart is Asia Pacific’s longest running and most value adding networking event for the travel and tourism industry. Evolving over the years to suit the needs of the industry, this year’s event features the first-ever Responsible Travel Pavilion, where members and travel industry stakeholders that are committed to responsible and sustainable travel can share their knowledge, experiences and lessons learned in an informal setting. Furthermore the Association introduced a new initiative at the Mart, PTM Talks, which involves a small seminar area within the main trade hall for organizations to conduct 20-minute ‘power’ workshops to engage and interact with a small group of delegates.

A ribbon-cutting ceremony in front of DICEC officially opened the Mart yesterday, and was presided over by His Excellency Dr. Thong Khon, Minister of Tourism, Cambodia, Mr. Scott Supernaw, Chairman, PATA, His Excellency R V Deshpande, Minister for Higher Education and Tourism Government of Karnataka, India, His Excellency Pa Socheatvong, Governor of Phnom Penh, Mr. Martin Craigs, CEO, PATA, His Excellency Chhuon Dara, Secretary of State of Ministry of Commerce, Cambodia, and His Excellency Ouk Socheat, Secretary of State of Ministry of Culture & Fine Art.

At the opening reception dinner on September 17th, Mr. Supernaw stated that, “Over the last few months all of us at PATA have been highly impressed by the passion and commitment of Cambodia to host PATA Travel Mart 2014, as well as the conference, forum and youth symposium being held in conjunction with this event.”

Source: ETN Global Industry News | September 19, 2014