Cambodia to exit from Least Developed Countries status

In Cambodia (Photo: Phnom Penh Post)

Hanoi (VNA) – Phnom Penh Post on May 10 quoted a senior official from the Cambodian Ministry of Commerce as saying that Cambodia is well-prepared to minimise economic risks when it graduates from its Least Developed Countries (LDC) status.

Four LDCs – Cambodia, Laos, Bangladesh and Nepal – met at a virtual workshop last week to explore potential solutions for managing a smooth exit from their UN designations, discuss potential challenges in the post-LDC era, and assess the impact of COVID-19 on the textile and garment sector.

Ministry Secretary of State Pich Rithy stressed the importance of the garment sector in promoting Cambodia's economic growth, and the benefits of preferential tariffs for increased export volumes.

He highlighted that ridding itself of the LDC status could present economic pains for the country, affecting tariff preferences, rules of origin, investment attraction, competitive advantages and opportunities for trade assistance, and hence compounding the impact of the COVID-19 crisis on garment and apparels.

To address these challenges, Cambodia has outlined policies and strategies so that the nation can strengthen its competitive position and prepare for a successful exit from the LDC status. These include the diversification of export markets through bilateral and multilateral free trade agreements.

Deputy Secretary General of the Garment Manufacturers Association in Cambodia Kaing Monika said private sector development is the engine of economic growth and raises people's living standards.

Statistics from the General Department of Customs and Excise of Cambodia showed that the country’s total exports of garment, footwear and travel goods reached 2.41 billion USD in the first quarter, down 6.48 percent from 2.577 billion USD recorded in the same period last year./.