Smart Policies and Practices for Shared Prosperity

Value Chain Study for Three Export Products (CAMBODIA)

The objective of the assignment is to carry out three Value Chain Analysis (VCA) studies of key Cambodian export products in line with Cambodia’s Trade Integration Strategy (CTIS); and to provide training services on selected topics for the MOC’s Trade Training and Research Institute.

The methodology includes a thorough background literature review; analysis of the global trade; and field work data collection for the three products (palm sugar, mango, and bicycles). Primary data for the analysis were from qualitative surveys of producers, traders, processors and exporters. Along with the project, ACI had trained 30 officers from the Ministry of Commerce on the conduct of value chain analysis, development of value chain analysis interview instruments, conduct of field interviews with key value chain factors; and write-ups of value chain characteristics.

Findings from the Project

Mango is becoming a commercial product which could attract more people to invest in Cambodia especially in Kampong Speu and Kandal province. Advanced technology to allow maturation and harvest of mango during the off-season is already used in Kandal. This technology could provide higher benefits because of the price difference (2-4 higher in off-season than in-season). The majority of mango exported from Cambodia goes to Viet Nam, which in turn re-exports to other countries. The main variety cultivated in Cambodia is Keo Romeath which is not yet registered as Cambodian mango variety.

Sugar palm is ubiquitous in Cambodia. It is a traditional healthy product of Cambodia and mostly used in cooking. Palm tree is grown but not cultivated in all 25 provinces of Cambodia with about 3 million trees. Palm sugar is a small niche market within the sugar global export estimated at 54 million tons and forecasted to reach over $14 billion by 2020. Export of palm sugar from Cambodia was estimated between 70 and 100 tons in 2014; mostly to Asian countries (Korea, Japan, Taiwan), Europe (France, Germany) and the US.

Bicycle: In less than 10 years, Cambodia has risen to be the 5th largest global exporter of whole bicycles, shipping US$412 million of bicycles every year. The current state of Cambodia’s bicycle sector offers significant opportunity for policy action by the RGC to further strengthen the sector and to ensure its long-term viability and growth.  Bicycle manufacturing has been proven to be a formative sector in other countries.  It can serve as a building block to technology based manufacturing industries in Cambodia.  However, the sector is currently at risk since it depends on the preferential trade agreement between Cambodia and the import countries.