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Cambodia: Selected Issues and Statistical Appendix

Author(s):
International Monetary Fund
Published Date:
March 2003
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V. The External Sector: Recent Performance and Prospects27

111. The rapid expansion of garment exports and tourism receipts since the mid-1990s has contributed greatly to the integration of Cambodia’s economy with the region and the rest of the world. Foreign direct investment played an important role in this development, although the contribution in terms of value added was less notable owing to the high import content of garment exports. Given the low capital stock and skill level, foreign direct investment is expected to continue to play an important role in the future. Accordingly, improving the investment climate, including the rebuilding of the infrastructure severely damaged by the civil war, would be key in ensuring sustainable economic development.

112. This Chapter reviews external sector developments, mainly focusing on the 1999-2002 period, during which the Fund provided support under a PRGF arrangement. Section A will discuss actual performance compared to policy targets, while section B will focus on developments of leading industries, in particular the garment sector. Section C will discuss the challenges that Cambodia’s external sector is facing. Section D will touch upon the expected role of foreign direct investment and section E will conclude.

A. External Sector Developments

Developments during the 1990s

113. Prior to the mid-1990s, the export base was very small, with forestry products accounting for about 85 percent of total domestic exports.28 Re-exports were larger than domestic exports until the expansion of the garment sector that was driven by foreign investors attracted by the U.S. granting Normal Trade Relations (NTR) status to Cambodia. Service receipts also improved considerably as the emergence of the tourism industry since the mid 1990s was made possible by improved stability, safety, and security in the country. Imports, on the other hand, rose dramatically reflecting developments in official aid flows (about US$300 million annually during 1994-96), foreign direct investment (about US$200 million annually during 1995-97) and garment exports. The current account deficit increased from 9 percent of GDP in 1993 to 17 percent of GDP in 1995, reflecting a surge in imports tied to aid inflows, but gradually declined to 7 percent of GDP in 1998 with the increase of garment exports. Gross international reserve rose from 1½ month of imports in 1994-95 to about 3½ months of imports in 1998.

114. In 1995, Cambodia agreed with Paris Club creditors to reschedule the maturities of its external debt falling due from January 1995 to June 1997 on Naples terms. In addition, the government was cautious regarding contracting external non-concessional borrowing. New debt during this period was largely limited to international financial institutions, including the IMF (PRGF: about US$40 million, approved in May 1994), the World Bank (e.g., Economic Rehabilitation Credit: US$40 million committed in September 1995), and the Asian Development Bank (e.g., Agricultural Sector Program Loan: US$30 million in July 1996).

Developments during 1999-2002

115. During the 1999-2002 period, the authorities’ reform efforts were supported by a PRGF arrangement. The government committed to continue an outward-oriented growth strategy, recognizing that such a strategy would best allow Cambodia to realize its development potential, a policy which the government had already committed to in the earlier Policy Framework Paper, 1995-97.

116. Cambodia joined the Association of Southeast Asian Nations (ASEAN) in April 1999, to accelerate its integration into the regional and world economy. Under the attendant ASEAN Free Trade Agreement (AFTA), Cambodia has committed to reducing tariff rates on imported goods from other ASEAN members to 0-5 percent by 2010. The government has also made strides toward membership in the World Trade Organization (WTO) since the establishment of the WTO Accession Working Party on Cambodia in December 1994. Key steps in the WTO accession process were: (i) the submission of a Memorandum on Cambodia’s Foreign Trade Regime in June 1999; (ii) the release in January 2001 of the replies to WTO members’ questions on the Memorandum and ; (iii) the holding of Working Party meetings in May 2001, February 2002, and November 14, 2002, which advanced decisively the accession process. As a result, the WTO Secretariat is scheduled to prepare the Working Party’s report for the Spring 2003 meeting, which is expected to pave the way for Cambodia’s membership by September 2003.

117. Significant steps have also been taken to further liberalize the trade and exchange rate regimes. To that end, the government took the following steps to reform the tariff regime. In July 2001: (i) the maximum tariff rate was reduced to 35 percent; (ii) the number of tariff rates was reduced to four; and (iii) the unweighted average tariff rate was lowered to about 16.5 percent. The second phase of tariff restructuring involving the reduction of the unweighted average tariff rate to below 15 percent is now expected to take place in mid-2003. In addition, the conversion of the tariff classification to the new eight-digit ASEAN harmonized tariff nomenclature (AHTN) is underway, as a requirement under AFTA, which would in turn affect the unweighted average tariff rate. The government has also confirmed the liberalized nature of their exchange and payments system through the acceptance of the obligations of the Fund’s Article VIII, Section 2, 3, and 4 in January 2002.

118. The initial growth projections of domestic exports under the PRGF-supported program in 1999 provided for a slowdown of domestic exports to about 6 percent on average during 1998-02, while the projected growth of retained imports29 was expected to be about 10 percent. Accordingly, the current account deficit (excluding official transfers) was expected to widen from 9 to 12-13 percent of GDP during 1999-2002. Export growth was expected to slow down as a result of garment quota restrictions imposed by the United States in early 1999, while exports of log and sawn timber was also expected to decline, reflecting the government’s strong commitment to forestry reform.

119. Balance of payments outcomes during 1999-2002, however, were more favorable than envisaged under the program. This performance largely stemmed from a higher-than-anticipated growth of exports and larger tourism receipts. Exports increased by 20 percent per annum on average. In particular, the share of garment exports to total domestic exports increased from 70 percent to 87 percent during 1999-2002. Tourism receipts have accelerated markedly, with the 2002 outcome expected to be three times larger than initial program projections. Although imports rose more rapidly than programmed, the current account deficit (excluding official transfers) was about 9 percent of GDP on average during 1999-02, much less than envisaged under the program.

Cambodia: Exports and Imports-the Projections under the PRGF (1999-02) and the Actual Outcomes

Sources: The Cambodian authorities; and staff estimates

120. The role of trade in the economy expanded significantly during 1999-2002. Exports of goods and services increased to 55 percent of GDP in 2002 from 40 percent in 1999, and retained imports rose to 64 percent of GDP in 2002 from 48 percent in 1999. The garment and tourism industries contributed about 3 percent and 14 percent, respectively, to the average GDP growth of about 6 percent during 1999-02. The importance of these two industries in pulling the economic recovery has increased markedly compared to the 1994-98 period, when average GDP growth was 5 percent, while the contribution from the garment and tourism industry was 1 percent and about percent, respectively.

Cambodia: The Role of Trade in the Economy

Sources: The Cambodian authorities; and staff estimates

121. Significant changes in the direction of trade for both exports and imports have taken place since 1998. The share of exports to the U.S. has increased significantly, from 31 percent of total exports in 1998 to 64 percent in 2001. This expansion reflects soaring garment exports to the U.S. In contrast, exports to ASEAN countries decreased from 42 percent of total exports in 1998 to 6 percent in 2001. However, imports from the ASEAN region have increased dramatically from 26 percent in 1998 to 72 percent in 2001. This development may reflect the predominance of foreign direct investments from other ASEAN countries.

Cambodia: Directions of Trade, 1998 and 2001(in percent of total)
1998200119982001
Total Exports100100Total Imports100100
Industrial countries4791Industrial countries295
o/w United States3164o/w United States31
United Kingdom310Japan61
ASEAN426ASEAN2672
o/w Singapore142o/w Singapore027
Thailand81Thailand1535
Vietnam192Vietnam88
Other113Other4524
o/w China51o/w China86
Hong Kong SAR30Hong Kong SAR128
Source: Direction of Trade. IMF.
Source: Direction of Trade. IMF.

122. Despite lower current account deficits during 1999-2002, the increase in gross official reserves was broadly in line with program projections, partly reflecting lower than anticipated inflows in foreign direct investment since 2001. Given the limited capacity of the government to service its debt obligations, the government has prohibited the contracting or guaranteeing of any nonconcessional borrowing. Concessional borrowing was closely monitored and disbursements of medium- and long-term loans were broadly in line with the expectations. The bulk of disbursements during 1998-2001 was provided on a concessional basis by multilateral financial institutions (IMF, World Bank, and Asian Development Bank). While finalization of outstanding debt rescheduling agreements with the Russian Federation and the U.S. has still not been completed, progress has been made toward resolving outstanding issues.

B. Industries that led the External Sector

123. Cambodia’s external sector is led by the garment industry, followed by the tourism industry. Garment exports have increased by 35 percent on average from 1998 to 2002, while total domestic exports rose by 17 percent. As a result, the share of garment exports in total domestic exports reached about 85 percent in 2002. Tourism receipts increased more rapidly than garment exports during the same period, but are still only about ¼ of the value of garment exports. Accordingly, at least over the short term, the sustainability of Cambodia’s growth and balance of payment viability depends critically on these two industries.

124. Although garment exports started in 1994, mainly to the EU market, exports to the U.S. have increased substantially since 1997, exceeding exports to the EU in 1998.30 This expansion directly stemmed from the change of the U.S. trade policy toward Cambodia, with the granting of the Normal Trade Relations (NTR) status to Cambodia in 1996. As a result, foreign investors were attracted to Cambodia to benefit from a reduced tariff, and without quota restrictions. The improved US trade policy toward Cambodia also facilitated foreign direct investment inflows to Cambodia, especially in the garment sector in 1997 and 1998, leading to a 70 percent average increase in garment exports during 1997-1999.

125. Faced with the rapid increase in Cambodia’s garment exports, the U.S. imposed quota restrictions on 12 categories of garment products under the US-Cambodia Textile Agreement of 1999-2001. These increased restrictions, however, have led to an increase in non quota exports of Cambodia’s garment products to the U.S. The quota agreement provided for an automatic 6 percent increase, plus an additional increase of up to 14 percent linked to a review of labor conditions in Cambodia; additional quota increases of 9 percent were granted in both 2001 and 2002, While the growth of garment exports subject to quota stabilized at about 15 percent per annum during 1999-2001, non-quota exports expanded at an average annual rate of 100 percent, during the same period. The U.S.-Cambodia Textile Agreement has been extended for the period 2002 to 2004 under a 6 percent automatic increase and an additional increase up to 18 percent.

126. The growth of non-quota garment exports, however, declined substantially in 2002. Cambodia’s non-quota garment exports to the U.S. remained at the 2001 level during the first three quarters of 2002, while quota garment exports increased by 11 percent. In volume terms, non-quota exports to the U.S. increased only by 17 percent during the first three quarters of 2002, far below the 92 percent increase in 2001. This downward trend was evident across the product range (e.g., dresses, skirts, dressing gowns, nightwears, and other apparel including overalls, coveralls, and swimwear). This lower growth reflects loss of market share for all non-quota products, except nightwear. Regarding the other products, other countries have increased their market shares at the expense of Cambodia.31 Vietnam has also been able to rapidly expand its production in this area-although its market shares in most of these products are still relatively small—owing to the 2000 Bilateral Trade Agreement between the U.S. and Vietnam, which paved the way for Vietnamese garment producers to export to the U.S. market at NTR tariff rates and without quota restrictions.

Cambodia: Garment Export to the United States(Percent change; unless otherwise indicated)
20002001Market

Share 1/
2002

Q1-Q3
Market

Share 1/
Export growth, in value28.426.86.2
Quota products19.87.710.7
Non-quota products175.971.4−0.2
Export growth, in volume
Quota products46.621.3
Non-quota products91.616.9
336/636 Dresses51.44.5−41.22.8
342/642 Skirts49.06.8−6.45.7
350/650 Dressing Gowns260.45.06.64.2
351/651 Clotton and MMF Night142.312.656.418.1
359/659 Other apparels, (including overalls, coveralls, and swimwear)26.44.1−19.32.8
Sources: The Office of Textiles and Apparel, U.S. Department of Commerce; and staff estimates.

Cambodia’s shares in U.S. imports for each product.

Sources: The Office of Textiles and Apparel, U.S. Department of Commerce; and staff estimates.

Cambodia’s shares in U.S. imports for each product.

C. Challenges for the External Sector

127. Improving competitiveness is an immediate challenge for Cambodia’s garment industry. Under the WTO Agreement on Clothing and Textiles, quota restrictions for textiles and apparels among WTO members will be phased out in 2005. Future market shares will be contingent on the competitiveness of individual exporting countries. For example, China, as a member of the WTO, has considerable potential to expand its garment exports to the U.S. after 2005, thus potentially affecting Cambodia’s market share. Garment industry representatives indicated that Cambodia’s costs would need to be reduced by about 15-20 percent to meet this challenge. Some investors have already relocated their garment factories outside Cambodia, possibly out of the competitiveness concern, as evidenced by the decline in the number of garment factories from a peak of 190 in 2000 to 186 in October 2002.

128. Further efforts are therefore required to strengthen the cost competitiveness of Cambodia’s garment industry. The role of the exchange rate policy is limited, however, due to the highly dollarized economy, Cambodia’s garment wages (minimum of US$45 a month and average of US$61 a month) are higher than those in many of its neighboring countries, Moreover, average wages in the non-garment formal sector are reported to be higher, around $80 a month. In addition, Cambodia has generous labor benefits, such as 100 percent supplementary pay for overtime, long annual leave, and about 26 official paid holidays per year. Cambodia’s electricity tariff is regarded as relatively high, although an international comparison is difficult. Cambodia’s electricity tariff for commercial and industrial consumers ranges from Riel 480/kWh (US$0.12) to Riel 650/kWh (USS0.16), while electricity tariffs for other ASEAN countries, such as Thailand, Malaysia, the Lao P.D.R., and Vietnam, range from US$0.04/kWh to US$0.08/kWh.

129. The lack of adequate infrastructure is also emphasized by the business community as a major obstacle toward investment. As for telecommunications, Cambodia has only 2 telephone mainlines per 1000 people, as against 112 in China, 8 in the Lao P.D.R., 92 in Thailand, and 32 in Vietnam. Paved roads account for only 16 percent of the total road network in Cambodia, compared with 22 percent for China (with a huge land mass), 98 percent for Thailand, and 25 percent for Vietnam.

130. A discretionary and unpredictable investment regime is regarded as another obstacle toward investment. The discretionary nature of the existing regime has given rise to hidden bureaucratic costs, and facilitation fees, which, together with the low quality of public services, are significant investment disincentives.

131. Cambodia’s garment and tourism industries rely extensively on imports. Imported materials account for about 55-65 percent of the garment industry’s exports. In the tourism sector, up to 75 percent of each tourist dollar is estimated to be returned to Thailand and Vietnam to import fresh vegetables, fruit, flowers, handicrafts, paper products, and furniture. The authorities recognize that to reduce this high dependence on imports further efforts are needed to develop supporting industries, which would in turn create new employment opportunities, generate additional income to the economy, and help reducing poverty.

132. Reversing the declining trend in non-garment exports through export diversification will be a challenge over the long term. Even excluding exports of logs and timber (which have declined sharply since 1999, due to the forestry reform program), domestic non-garment exports increased only marginally (by 3 percent), highlighting a serious competitiveness problem and/or difficulties in accessing global markets.

D. The Role of Foreign Financing

133. Foreign direct investment has declined to US$95 million in 2001 from about US$150 million annually during 1997-99. However, reversing this decline and attracting continued inflows of foreign direct investment in the garment and tourism industry are critical to Cambodia’s development. These industries arc likely to remain the engine of economic growth for the foreseeable future. Achieving a broader growth base would also require foreign direct investment into other industries, including supporting industries for garment and tourism.

134. Reducing tariff rates under AFTA will encourage foreign direct investment from other ASEAN countries. Cambodia’s continuing Generalized System of Preference (GSP) status could be an incentive for foreign investors to come to Cambodia. There are indications that new industries are emerging, (e.g., shoes, fabric). In this vein, further effort to foster an attractive investment environment, such as passing the Investment Law, moving more forcefully to reduce facilitation fees, improving infrastructure, facilitating trade through improved customs administration, and improving markets access by joining the WTO, will be very important in the period ahead.

135. External financing has been limited to grants, foreign direct investment, and loans from multilateral financial institutions. Bilateral creditors, however, have also started providing concessional loans to Cambodia. As the economic integration within the region and the world is intensified, bilateral creditors are likely to increase lending to Cambodia. However, it will be crucial for Cambodia to maintain a sustainable debt dynamic over the medium and long term. An early resolution of debt restructuring both with the Russian Federation and the United States will be critical in this regard.

E. Conclusion

136. Overall, Cambodia’s external sector developments since the mid 1990s have been broadly favorable. The country’s outward-oriented growth strategy has started to bear fruit. The volume of external trade has substantially increased over the past decade, and to a certain extent, Cambodia’s integration into the regional and world economy has been intensified. The government succeeded in joining the ASEAN in 1994, and aims to join the WTO in 2003. Progress in liberalizing the trade regime has also been made.

137. External sector developments, however, have been narrowly based on the garment and tourism industries. The garment industry is expected to encounter a major change in external competition in 2005, as a result of the phasing out of the quota policy under the WTO Agreement on Clothing and Textiles. Therefore, further improvements in cost competitiveness are needed to ensure that Cambodia’s garment industry can withstand this change. Also, efforts to diversify export industries and to develop supporting industries for garment and tourism will be crucial for fostering external sector sustainability. These efforts in turn will also contribute toward creating job opportunities and reducing poverty.

138. Foreign financing, including foreign direct investments and foreign loans, will be essential in accomplishing the above objectives. Foreign direct investment would be attracted more widely and rapidly to Cambodia if cost competitiveness was strengthened and the infrastructure and investment regimes were improved. An early resolution of outstanding external debt issues with the U.S. and the Russian Federation would also help to pave the way for additional foreign lending.

Cambodia: Basic Data, 1996–2001
1996199719981999200020012002

Est.
Population
Total population (mid-year)11.011.612.212.512.813.113.4
Population growth rate (annual percentage change)5.45.54.72.62.62.52.0
Income
Gross domestic product (GDP; at current prices)
(in billions of riels)8,8869,77811,36412,58712,93213,35714,377
(in millions of U.S. dollars)3,3863,3193,0113,3003,3513,4043,663
(in U.S. dollars; per capita)307285247264261259273
(Annual percentage change)
Real GDP, of which:4.64.32.16.97.76.34.5
Agriculture, fisheries, and forestry2.35.53.00.0−0.33.9−1.7
Industry9.921.37.313.234.615.59.3
Services3.6−2.60.77.15.82.73.4
(In percent of GDP)
Saving-investment balance
Gross national saving7.913.29.113.69.212.713.7
Government−1.20.60.31.61.51.20.9
Nongovernment9.112.59.412.07.711.512.6
Gross investment13.614.3ll.315.913.517.916.6
Government6.64.55.35.76.77.27.7
Nongovernment7.09.86.110.26.810.78.9
(Annual percentage change)
Inflation
Period average7.18.014.84.0−0.80.23.2
End of period10.09.213.3−0.5−0.80.73.7
GDP deflator4.75.513.83.7−4.6−2.93.0
(In percent of GDP)
General Government budget
Total revenue, of which:8.49.08.310.611.211.712.1
Tax revenue6.06.16.07.78.28.48.5
Nontax revenue2.02.82.02.82.83.23.5
Total expenditure, of which:16.212.913.814.716.417.718.9
Current expenditure9.18.38.38.99.510.411.1
Capital expenditure7.14.65.55.86.97.37.8
Overall fiscal balance, (including grants)−1.8−0.4−2.5−1.3−2.3−3.1−3.3
(Annual percentage change)
Money and credit
Broad money, of which:40.516.615.717.326.920.426.8
Riel in circulation 1/7.66.114.4−3.50.34.57.5
Foreign currency deposits 1/32.29.90.117.325.416.017.3
Credit to the economy 1/18.614.213.43.02.0−2.00.4
Of which; credit to government (net) 1/−3.1−8.111.7−6.1−6.9−4.3−0.9
(In percent; end of period)
Interest rates
Riel savings deposits8.87.47.57.35.92.62.3
Foreign currency loans18.618.417.617.317.415.017.1
(In percent of GDP)
Balance of payments
Current account balance (excluding official transfers)−14.5−7.4−8.7−8.9−12.3−13.4−10.7
Current account balance (including official transfers)−5.7−1.1−2.2−2.3−4.3−5.3−2.9
Exports of goods 2/8.716.122.727.936.038.139.1
Imports of goods 2/22.824.031.736.949.752.251.3
(In millions of U.S. dollars; unless otherwise indicated)
foreign exchange reserves
Gross official reserves 3/234262390422485550642
(in months of imports of goods and services)2.12.53.63.22.82.93.3
Net international reserves 3/164197323349411470549
External debt
Outstanding debt (in percent of GDP) 4/18.261.867.968.767.666.265.6
Debt service (in millions of U.S. dollars)138.0124.0124.0125.5129.354.456.2
(in percent of exports of goods and services)28.023.014.211.18.53.33.0
(In millions of SDRs)
Fund quota65.065.065.087.587.587.557.5
(In riels per US. dollar)
Exchange rate
Period average2,6242,9463,7743,8133,8593,9243,925
End of period2,7133,4523,7803,7753,9103,9003,935
Sources: Data provided by the Cambodian authorities; and Fund staff estimates.

As a percent of beginning broad money stock. Represents contributions to 12-month change of broad money.

Excluding re-exports.

Including gold holdings.

Starting in 1997, includes $1,346 million owed to countries of the former Council of Mutual Economic Assistance. This amount is indicative and subject to negotiations and rescheduling.

Sources: Data provided by the Cambodian authorities; and Fund staff estimates.

As a percent of beginning broad money stock. Represents contributions to 12-month change of broad money.

Excluding re-exports.

Including gold holdings.

Starting in 1997, includes $1,346 million owed to countries of the former Council of Mutual Economic Assistance. This amount is indicative and subject to negotiations and rescheduling.

STATISTICAL APPENDIX
Table 1.Cambodia: Gross Domestic Product by Sector at Current Prices, 1997-2001
19971998199920002001
(In billions of riels; at current prices)
Agriculture4,5025,2045,3854,9354,930
Crops2,0792,4162,4952,3402,286
Of which: Paddy rice1,2691,5051,5531,3121,295
Livestock and poultry561677824737799
Fisheries1,2291,4921,6101,5611,564
Forestry and logging633619456297281
Industry1,4831,8322,1522,6902,924
Mining1415171524
Manufacturing9931,3441,4851,9962,101
Food, beverages, and tobacco330390420399383
Textile, wearing apparel, and footwear3055077171,2511,427
Wood, paper, and publishing148224938828
Rubber manufacturing3733323228
Other manufacturing174191224226235
Electricity, gas, and water4147434357
Construction435425606631743
Services3,38O3,8594,3434,5914,711
Trade1,1821,3051,4061,3431,333
Hotels and restaurants279314393469534
Transport and communications570638779875941
Finance98100129175138
Public administration305333389377369
Real estate and business601732764826852
Other services346436484526543
Taxes on products less subsidies537594865870920
Less: imputed bank charges123124157155128
Gross domestic product (GDP)9,77811,36412,58712,93213,357
(In percent of GDP)
Agriculture46.045.842.838.236.9
Crops21.321.319.818.117.1
Of which: Paddy lice13.013.212-310.19.7
Livestock and poultry5.76.06.55.76.0
Fisheries12.613.112.812.111.7
Forestry and logging6.55.43.62.32.1
Industry15.216.117.120.821.9
Mining0.10.10.10.10.2
Manufacturing10.211.811.815.415.7
Food, beverages, and tobacco3.43.43.33.12.9
Textile, wearing apparel, and footwear3.14.55.79.710.7
Wood, paper, and publishing1.52.00.70.70.2
Robber manufacturing0.40.30.30.20.2
Other manufacturing1.81.71.83.81.8
Electricity, gas, and water0.40.40.30.30.4
Construction4.43.74.84.95.6
Services34.634.034.535.535.3
Trade12-111.511-210.410.0
Hotels and restaurants2.92.83.13.64.0
Transport and communications5.85.66.26.87.0
Finance1.00.91.01.41.0
Public administration3.12.93.12-92.8
Real estate and business6.16.46.16.46.4
Other services3.53.83.84.14.1
Taxes on products less subsides5.55.26.96,76.9
Less: imputed bank charges1.31.11.31.21.0
Gross domestic product (GDP)100.0100.0100.0100.0100.0
Source: Data provided by the Ministry of Planning, National Institute of Statistics (NIS).
Source: Data provided by the Ministry of Planning, National Institute of Statistics (NIS).
Table 2.Cambodia: Gross Domestic Product by Sector at Constant Prices, 1997-2001
19971998199920002001
(In billions of rids; at constant 1993 prices)
Agriculture3,774.13,857.83,888.33,876.14,025.7
Crops1,331.41,354.11,533.11,589.11.592.3
Of which: Paddy rice773.4794,9915.1911.8928.3
Livestock and poultry554.75883583.4539.1590.9
fisheries1,410.41,467.91,446.31,528.71,632.1
Forestry and logging477.7477.4325.6219.3210.3
Industry1,291,71,385.91,569.12,111.62,439.3
Mining11.611.812.713.614.9
Manufacturing915.61,056.41,151.51,665.51,954.0
Food, beverages, and tobacco249.4253.0262.6273.6279.6
Textile, wearing apparei, and footwear309.0452.6636.61,141.01,446.7
Wood, paper, and publishing192.1178.270.455.916.8
Rubber manufacturing31.735.936.237.033.6
Other manufacturing133.4136.7145.8157.9177.3
Electricity, gas, and water36.437.839.240.741.8
Construction328.1279.9365.7391.8428.6
Services2,733.42,751.52,946.03,115.73,200.2
Trade921.3891.5909.2900.7906.8
Hotels and restaurants266.7263.8315.3357.1391.1
Transport and communications401.9398.7456.8494.3535.5
Finance76.269.082.6117.296.2
Public administration260.7278.1274.8272.6273.5
Real estate and business510.6530.7550.6573.45912
Other services296.0319.7356.640O.5406.0
Taxes on products less subsidies433.137S.5587.5570.0593.1
Less: imputed bank charges89.083.3l01.8103.887.1
Gross domestic product (GDP)8,143.38,318.38,889.19,569.710,171.2
(Annual percent change)
Agriculture5.53.00.00.33.9
Crops−2.01.713.23.60.2
Of which: Paddy rice−1.22.815.1−0.41.8
Livestock and poultry−0.16.1−0.8−7.69.6
Fisheries5.74.1−1.55.76.8
Forestry and logging14.3−0.1−31.8−32.7−4.1
Industry21.37.313.234.615.5
Mining0.11.48.07.19.4
Manufacturing36.315.49.044.617.3
Food, beverages, and tobacco1.71.43.84.22.2
Textile, wearing apparel, and footwear128.046.540.679.226.8
Wood, paper, and publishing61.6−7.2−60.5−20.6−69.9
Rubber manufacturing3.713.20.72.4−9.4
Other manufacturing−5.72.56.68.312.3
Electricity, gas, and water1.63.73.84.02-5
Construction−5.2−14.730.67.19.4
Services−2.60.77.15.82.7
Trade−1.5−3.22.0−0.90.7
Hotels and restaurants5.0−1.119.513.39.5
Transport and communications−12.6−0.814.6828.3
Finance3.6−9.519.741.9−18.0
Public administration3 56.7−1.2−0.80.3
Real estate and business2.73.93.74.13.1
Other services−11.28.011.512.31.4
Taxes on products less subsidies5.0−13.156.1−3.04.0
Less: imputed bank charges65.6−6.422.21.9−16.1
Gross domestic product (GDP)4.32.16.97.76.3
(Excluding garment)2.10.44.92.13.5
(Excluding garment and agriculture)−0.8−2.09.74.33.2
(Excluding garment and tourism)2.00.54.41.73.2
Source: Ministry of Planning, National Institute of Statistics (NIS).
Source: Ministry of Planning, National Institute of Statistics (NIS).
Table 3.Cambodia: Aggregate Demand at Current Prices, 1997-2001
19971998199920002001
(In billions of riels: at current prices)
Consumption9,28810,87611,74411,66211,837
Private8,73510,31211,08310,92511,033
Government553563661737804
Gross Investment1,3951,2861,9961,7432,391
Gross fixed capital formation1,2741,3841,8141,9572,126
Changes in. inventories222−98181−214265
Domestic demand10,68312,16213,74013,40614,228
Foreign balance (net)−764−1,028−1,100−1,542−1,607
Exports of goods and services 1/2,8813,9334,9896,5637,212
Imports of goods and services 1/3,6454,9616,0898,1058,819
Statistical discrepancy−141230−521,068745
Gross domestic product (GDP)9,77811,36412,58712,93213,365
Income from abroad (net) 1/−138−180−294−318−467
Gross national income (GNI) 1/2/9,64011,18312,29312,61412,898
Current transfers (net) 1/7949591,1071,3051,362
Gross national disposable income (GNDI) 1/10,43512,14213,40013,91814,260
(In percent of GDP)
Memoranda items:
Domestic demand 3/107.8109.0108.7111.9112.0
Consumption 3/93.597.792.998.494.1
Private 3/87.992.887.692,788.1
Government5.75.05.35.76.0
Gross Investment14.311.315.913.517.9
Foreign balance (net)−7.8−9.0−8.7−11.9−12.0
Current account balance (including official transfers)−1.1−2.2−2.3−4.3−5.3
Gross domestic savings 4/3.83.35.88.910.6
Gross national savings 5/13.29.113.69.212.7
Source: Ministry of Planning, National Institute of Statistics (NTS).

IMF staff estimates based on latest balance of payments estimates.

Gross national income under the 1997 System, of National Accounts (SNA) corresponds to the former Gross national product (GNP) aggregate.

Including statistical discrepancy.

Defined as GDP net of final consumption.

Defined as GNDI net of final consumption. Includes net income and transfers from abroad.

Source: Ministry of Planning, National Institute of Statistics (NTS).

IMF staff estimates based on latest balance of payments estimates.

Gross national income under the 1997 System, of National Accounts (SNA) corresponds to the former Gross national product (GNP) aggregate.

Including statistical discrepancy.

Defined as GDP net of final consumption.

Defined as GNDI net of final consumption. Includes net income and transfers from abroad.

Table 4.Cambodia: Cross Domestic Product by Expenditure at Constant prices, 1997-2001 1/
19971998199920002001
(In billions of riels; at constant 1993 prices)
Consumption7,5427,5847,9448,1788,409
Private7,1117,3077,5487,7187,889
Government431377398460520
Gross Investment1,2101,0311,4191,2671,590
Gross fixed capital formation1,1151,1211,2991,4011,393
Changes in inventories115−90120−133197
Domestic demand8,7728,7159,3639,44610,000
Foreign balance (net) 1/−402−292−432233365
Exports of goods and services 1/3,0153,3323,8895,3106,085
Merchandise, f.o.b.2,5512,9753,3804,6095,286
Services463406508701799
Imports of goods and services 1/3,4163,6744,3205,0775,719
Merchandise, c.i.f.2.9493,2313,8124,4244,990
Services468443508654729
Statistical discrepancy−227−105−42−109−189
Gross domestic product (GDP)8,1438,3188,8899,56910,176
(In percent of GDP)
Consumption 1/89.891.138.984,380.8
Private 1/84.586.684.479.575.7
Government5.34.54.54.85.1
Gross investment15.112.416.013.215.6
Gross fixed capital formation13.713.514.514.613.7
Changes in inventories1.4−1.11.3−1.41.9
Domestic demand 1/104,9103.5104.997.696.4
Foreign balance (net)−4.9−3.5−4.92.43.6
Exports of goods and services37.040.743.755.559.8
Imports of goods and services42.044,248.653.156.2
Gross domestic product (GDP)100.0100.01OO.0100.0100.0
(Annual percentage change)
Consumption 1/−5.13.64.32.11.9
Private 1/−5.24.64.21.41.2
Government−4.2−12.65.615.513.1
Gross Investment17.8−16.237.6−10.725.5
Gross fixed capital formation23.70.615.97.8−0.6
Changes in inventories−19.7−177.7−233.2−211.6−248.0
Domestic demand 1/−2.40.88.30.25.1
Foreign balance (net)−57.6−27.447.9−153.957.1
Gross domestic product (GDP)4.32.16.97.76.3
Source: Ministry of Planning, National Institute of Statistics (NIS).

Including statistical discrepancy.

Source: Ministry of Planning, National Institute of Statistics (NIS).

Including statistical discrepancy.

Table 5.Cambodia: GDP Deflators, 1997-2001
19971998199920002001
(Annual percentage changes)
Agriculture4.312.23.5−8.1−3.8
Crops7.914.2−8.8−9.5−2.5
Livestock and poultry1.813.822.8−3.2−1.1
Fisheries−1.116.69.5−8.3−6.2
Forestry and logging9.7−2.18.1−3.2−1.4
Industry0.215.13.8−7.1−5.9
Mining7.09.13.70.917.2
Manufacturing−2.717.31.3−7.1−10.3
Food, beverages, and tobacco8.516.63.7−8.7−6.2
Textile, wearing apparel, and footwear1.013.60.5−2.7−10.0
Wood, paper, and publishing−18.963.35,119.73.6
Rubber manufacturing−10.4−21.8−3.3−3.3−3.3
Other manufacturing11.87.09.8−6.5−7.4
Electricity, gas, and water−0.310.4−10.0−4.227.8
Construction9.514.69.1−2.87.5
Services10.013.45.10.0−0.1
Trade9.114.15.6−3.51.4
Hotels and restaurants8.413.94.65.53.9
Transport and communications22.312.86.63.9−0.8
Finance9.113.37.7−4.8−3.5
Public administration−0.52.418.0−2.3−2.2
Real estate and business8.917.30.53.90.1
Other services9.716.6−0.5−3.21.8
Taxes on products5.827.3−6.73.71.6
Less: imputed bank charges17.68.03.5−3.5−1.4
Gross domestic product (GDP)5.513.83.7−4.6−2.8
Source: Ministry of Planning, National Institute of Statistics (NIS).
Source: Ministry of Planning, National Institute of Statistics (NIS).
Table 6.Cambodia; Gross Value Added of Agriculture, Fisheries, and Forestry at Constant Prices, 1997-2001
19971998199920002001
(In billions of riels; at constant 1993 prices)
Total3,7743,8883,8883,8764,026
Agricultural Crops1,3311,3541,5331,5891,592
Paddy773795915912928
Corn1821407874
Cassava2824395247
Sweet potatoes1011121209
Mung beans2012212027
Soybean4924312533
Groundnuts1110141112
Sesame0706081110
Vegetables129158156156149
Sugarcane2216192519
Black pepper
Tobacco1919121114
Cotton
Jute0101000
Rubber6978798173
Other crops174180187195197
Livestock and poultry555588583539591
Fisheries1,4101,4681,4461,5291,632
Forestry and logging478477326219210
(In percent of total production)
Total100.0100.0100.0100.0100.0
Agricultural Crops35.334.839.441.039.6
Paddy20.520.423.523.523.1
Other crops14.814.415.917.516.5
Livestock and poultry14.715.115.013.914.7
Fisheries37.437.837.239.440,5
Forestry and logging12.712.38.45.75.2
(Annual percentage change)
Total5.53.00.0−0.33.9
Agricultural Crops−2.01.713.23.60.2
Paddy−1.22.815.1−0.41.8
Other crops−3.00.210.59.6−2.0
Livestock and poultry−0.16.1−0.8−7.69.6
Fisheries5.74.1−1.55.76.8
Forestry and logging44.3−0.1−31.8−32.7−4.1
Source: Ministry of Planning, National Institute of Statistics (NIS).
Source: Ministry of Planning, National Institute of Statistics (NIS).
Table 7.Cambodia: Agriculture, Livestock, and Fishery Production, 1997–2001
Unit19971998199920002001
(’000)
Agriculture 1/
RiceTons3,4153,5104,0404,0264,099
MaizeTons424995183186
CassavaTons7767228145142
Sweet potatoTons2930323526
VegetablesTons250217182166185
MungbeanTons159161517
PeanutTons77977
SoybeanTons5628352828
SesameTons7571010
Sugar caneTons188133160213169
TobaccoTons1010665
JuteTons21
RubberTons3234454238
Livestock
CowsHeads2,8722,6802,8263,490 2/3,495
BuffalosHeads766694654626
PigsHeads2,2372,3392,1891,9792,114
PoultryHeads11,98213,16713,41715,02815,248
Fisheries
Fresh fish and shrimpTons11512212486191
CrocodilesHeads1741252636
Source: Data provided by the Ministry of Planning, National Institute of Statistics (NIS).

Harvest year for crops; tons are metric tons.

Including buffalos.

Source: Data provided by the Ministry of Planning, National Institute of Statistics (NIS).

Harvest year for crops; tons are metric tons.

Including buffalos.

Table 8.Cambodia: Visitor Arrivals and Tourism, 1997-2001
1997199819992000200119971998199920002001
(In percent of total)
Total visitor arrivals by air 1/218,843186,333262,907351,661408,377
Visitor arrivals by country of residence 2/218,843175,910234,382254,649274,689100.0100.0100.0100.0100.0
Asian and Pacific150,205107,421137,054155,350163,09868.663.158.558.759.4
Australia and New Zealand8,75810,86611,28713,23715,2664.06.24.85.05.6
China17,28218,03526,80530,58632,0027.910.311.411.611.7
Japan25,36213,38617,88519,90617,95211.67.67.67.56.5
Malaysia18,38111,01912,54114,70115,9948.46.35.45.65.8
Singapore13,5369,12310,63410,73410,9826.25.24.54.14.0
South Korea8,4694,4676,3777,5369,5793.92.52.72.83.5
Taiwan28,11618,23920,60721,62623,09812.810.48.88.28.4
Thailand16,05610,98315,27216,55017,4967.36.26.56.36.4
Vietnam2,8383,0445,2178,3337,8281.31.72.23.12.8
Other11,4078,25910,42912,14112,9015.24.74.44.64.7
Europe43,33146,16560,03165,65766,08819.826.225.624.824.1
Germany4,6044,1996,4907,2986,8612.12.42.82.82.5
France17,53818,61623,75424,88323,3288.010.610.19.48.5
United Kingdom9,19311,15613,78915,91217,6864.26.35.96.06.4
Other11,99612,19415,99817,56418,2135.56.96.86.66.6
North, South, and Central America24,56121,77336,23342,15643,90511.212.415.515.916.0
Canada3,7163,2985,4155,6466,1911.71.92.32.12.3
United States20,29117,94630,30135,81437,0339.310.212.913.513.5
Other5545295176966810.30,30.20.30.2
Africa and Middle East7465511,0641,4861,5980.30.30.50.60.6
Visitor arrivals by mode of transportation
Total visitors367,743466,365604,919100.0100.0100.0
Arrivals by airplane218,843186,333262,907351,661408,37771.575.467.5
Phnom Penh218,843175,910234,382264,649274,68963.756.745.4
Siem Reap10,42328,52587,012133,6887.818.722,1
Other types of arrivals 3/104,836114,704196,54228.524,632.5
Visitor arrivals by purpose of visit 1/218,843186,333262,907351,661408,377100.0100.0100.0100.0100.0
Tourism163,005141,926199,644209,581335,37574.576.275.959.682.1
Other 4/55,83844,40763,263142,08073,00225.523.824.140.417.9
Memoranda items:
Total visitor arrivals by air (Annual percentage changes)−16.0−14.941.133.816.1
Of which: Asia and Pacific 2/−15.6−28.527.613.35.0
Europe 2/−19.46.530.09.40.7
Americas 2/−11.7−11.466.416.34.1
Tourism receipts 4/
In millions US dollars6866133199235
Annual percentage changes−17−31025018
Average receipt per tourist417465666950701
In percent of GDP2.22.24.05.96.9
Source: Data provided by the Ministry of Tourism.

Arrivals at Pochentong (Phnom Penh) and Siem Reap airports.

Arrivals at Pochentong (Phnom Penh) airport only.

Arrivals by land and boat.

Including business and other purposes.

Source: Data provided by the Ministry of Tourism.

Arrivals at Pochentong (Phnom Penh) and Siem Reap airports.

Arrivals at Pochentong (Phnom Penh) airport only.

Arrivals by land and boat.

Including business and other purposes.

Table 9.Consumer Price Index, 1998-2002 1/
Overall

Consumer

Price Index

(July-Dec.

2000)=100
Overall

Consumer

Price Index
Food,

Beverages

and

Tobacco
Clothing

and

Footwear
Housing

and

Utilities
House

Furnishings

and

Household

Operations
Medical

Care
Transportation

and

Communication
Recreation

and

Education
Personal

Care and

Effects
(Annual average and 12 month percent changes)
1998 December101.413.320.66.35.618.58.64.47.67.6
Average97.014.814.013.015.017.524.115.17.711.0
1999 December100.8−0.5−0.2−2.50.114.4−12.13.2−6.3−1.7
Average100.94.07.61.70.215.0−7.13.5−0.90.3
2000 December100.0−0.8−3712.02.8−1.10.84.8−0.71.4
Average100.1−0.8−3.4−2.72.72.1−3.46.6−5.20.8
2001. December100.70.7−2.3−8.14.0−2.66.1−6.512.13.4
Average100.30.2−2.5−7.03.4−0.54.7−4.27.41.7
2002 December104.43.73.5−4.76.8−1.4−1.33.9−3.3−0.3
Average103.63.2−0.1−0.90.9−0.30.50.00.80.2
FoodNonfood
Overall

Consumer

Price Index
Food,

Beverages

and

Tobacco
Clothing

and

Footwear
Housing

and

Utilities
House

Furnishings

and

Household

Operations
Medical

Care
Transportation

and

Communication
Recreation

and

Education
Personal

Care and

Effects
Weights (in percent)100.042.72.233.30.74.08.76.22.2
(12 month percentage changes)
2000 January99.70.4−0.3−3.43.14.4−6.34.5−6.1−2.0
February99.4−0.3−2.5−4.13.15.3−5.17.8−6.1−1.9
March99.60.2−2.0−3.73.11.6−5.210.3−8.1−2.4
April99.1−0.9−2.80.32.67.0−5.93.7−7.30.4
May98.6−2.7−6.10.63.16.4−6.12.3−7.3−0.6
June98.5−3.3−7.6−4.72.76.2−5.34.8−5.41.7
July99.3−2.7−6.8−3.32.1−1.5−2.56.8−5.82.1
August99.7−1.8−5.3−3.41.9−1.8−2.38.7−5.93.0
September102.00.2−3.1−3.23.0−2.02.810.8−2.82.5
October104.02.41.9−3.42.7−1.7−1.410.3−2.82.4
November101.5−0.1−2.1−2.52.8−1.2−0.35.0−2.82.7
December100.0−0.8−3.7.1.82.8−1.10.84.8−0.71.4
2001 January99.4−0.2−1.2−1.00.42.4−0.60.01.21.6
February99.1−0.3−1.7−5.30.60.51.50.71.22.5
March100.00.3−1.9−5.54.4−0.13.4−6.63.9−1.2
April100.91.80.7−6.84.31.12.8−3.03.1−2.3
May98.90.3−3.1−8.33.91.12.9−0.83.1−2.0
June99.75.2−3.1−8.64.5206.6−0.610.24.2
July99.90.7−3.9−9.73.6−1.613.7−1.710.76.0
August100.71.0−1.2−8.84.1−1.58.8−7.910.81.5
September101.3.0.6−3.0−8.63.5−2.52.9−8.911.00.6
October1021−1.8−5.6−6.03.8−2.04.4−8.011.03.2
November101.3−0.2−3.5−6.93.7−2.14.1−5.311.02.4
December100.70.7−2.3−8.14.0−2.66.1−6.512.13.4
2002 January103.13.6−1.7−10.610.7−4.06.80.410.33.0
February102.73.7−0.4−10.010.3−2.93.8−2.810.31.9
March102.82.90.3−14.73.7−3.3−5.01.06.36.3
April103.82.80.30.36.3−4.14.50.86.36.4
May102.83.93.2−10.36.3−4.93.3−0.76.38.2
June102.93.23-5−4.56.2−5.32.5−2.7−1.9−1.9
July103.73.74.5−3.76.7−2.5−3.9−0.7−1.2−1.7
August104.23.53.0−4.26.7−2.40.21.1−1.2−0.3
September104.53.22.5−4 16.8−1.50.10.5−2.30.5
October104.52.30.5−6.96.8−1.61.00.5−2.3−0.7
November104.53.12.1−5.16.8−1.60.02.4−2.30.3
December104.43.73.5−4.76.8−1.4−1.33.9−3.3−0.3
Source: Ministry of Planning, National Institute of Statistics (NIS).

As measured by the consumer price index for Phnom Penh (Jul-Dec. 2000=100).

Source: Ministry of Planning, National Institute of Statistics (NIS).

As measured by the consumer price index for Phnom Penh (Jul-Dec. 2000=100).

Table 10.Cambodia: Central Government Operations, 1998–2001 1/
19981999200020011998199920002001
ActualActual
(In billions of riels)(In percent of GDP)
Total revenue9431,3161,4091,5208.310.510.911.4
Tax revenue6799481,0261,0876.07.57.98.1
Direct taxes56831361400.50.71.01.0
Indirect taxes, of which:2484325005712.23.43.94.3
Excise taxes (incl. on imports)76921131550.70.70.91.2
Domestic161619200.10.10.10.1
Import6076941350.50.60.71.0
VAT (incl. on imports)3153714032.52.93.0
Domestic4373850.30.60.6
Import2863133272.32.42.4
Refund (-)141490.10.10.1
Trade taxes3764333913763.33.43.02.8
Nontax revenue, of which:2303553534242.02.82.73.2
Timber royalties233641290.20.30.30.2
Enterprises and immobile leases272027280.20.20.20.2
Civil aviation181925380.20.20.20.3
Tourism income116140.00.00.00.1
Royalties (mining, etc.)42020.00.00.00.0
Royalties (casino)012220.00.10.2
Post and telecommunications (PTT)87109921220.80.90.70.9
Passports and visa71320360.10.10.20.3
NBC profit1013150.10.10.1
Quota Auction8722320.70.20.2
Garment licenses2143390.20.30.3
Others422729470.40.20.20.4
Capital revenue33142990.30.10.20.1
Total expenditure 2/1,5711,8252,0852,32913.814.516.117.4
Current expenditure9411,0971,1891,3548.38.79.210.1
Wages4515255124884.04.24.03.7
Civil administration1541942112141.41.51.61.6
Defense and security2973313012742.62.62.32.1
Nonwage4905726778664.34.55.26.5
Operating expenditure3724104976023.33.33.84.5
Civil administration2202763654891.92.22.83.7
Defense and security1521341321131.31.11.00.8
Economic transfers141231300.10.10.20.2
Social transfers711041041090.60.80.80.8
Civil administration639590970.60.80.70.7
Defense and security8914120.10.10.10.1
Interest152221220.10.20.20.2
Other nonwage182111380.20.20.10.3
Reserve funds0013630.00.00.10.5
Capital expenditure6307288969755.55.86.97.3
Locally financed1202243032831.11.82.32.1
Externally financed5105045936924.54.04.65.2
Current balance−32205190157−0.31.61.51.2
Overall balance−628−509−576−809−5.5−4.0−5.2−6.0
Overall balance (incl. grants)−286−167−293−413−2.5−1.3−2.3−3.1
Financing6285096768095.54.05.26.0
Foreign financing (net)5055157087634.44.15.55.7
Of which: Project aid5045115946924.44.14.65.2
Budget support24113540.00.00.90.4
Domestic financing116−44−12141.0−0.4−0.10.1
Of which: Bank financing125−76−100−781.1−0.6−0.8−0.6
Nonbank financing−426103730.00.20.80.5
Outstanding operations 3/638−20320.10.3−0.20.2
Memoranda Items:
Defense and security outlays4574774473994.03.83.53.0
Revenue from forestry254941290.20.40.30.2
Total revenue (excl. garment quotas)9431,2291,3651,4818.39.810.611.1
Health, Education, Rural dev. (commitment)1492322993821.31.82.32.9
Customs department revenue5277967978384.66.36.26.3
Sources: Data provided by the Ministry of Economy and Finance, and Fund staff estimates.

Excludes provincial revenue and expenditure data.

Current expenditure is based on cash basis, while capital expenditure is based on accrual basis.

Includes expenditure committed but not yet allocated to the accounts of the government agencies that execute the budget.

Sources: Data provided by the Ministry of Economy and Finance, and Fund staff estimates.

Excludes provincial revenue and expenditure data.

Current expenditure is based on cash basis, while capital expenditure is based on accrual basis.

Includes expenditure committed but not yet allocated to the accounts of the government agencies that execute the budget.

Table 11.Cambodia: Structure of Central Government Revenue, 1997–2001(in billions of riels)
19971998199920002001
Total revenue881.0942.71,316.31,408.51,520.3
Tax revenue597.4679.4947.71,026.01,087.4
Direct taxes43.655.582.7135.6140.5
Wage tax5.78.510.613.219.0
Profit tax35.042.163.8100.9112.8
Property tax2.64.75.77.18.3
Tax on unutilized land0.30.20.00.00.0
Other income taxes0.00.02.614.40.3
Indirect taxes206.5247.5431.6500.0571.2
Turnover tax46.665.921.812.69.9
Consumption 1ax75.290.1
VAT313.6371.6402.8
Domestic41.572.884.9
Import285.8312.8327.1
VAT refunds (-)13.714.09.3
Excise taxes74.176.191.8112.6154.8
Domestic11.115.915.519.020.1
Import63.060.276.393.7134.7
Others10.615.44.33.23.7
Taxes on international trade347.3376.3433.4390.4375.7
Taxes and duties on imports335.5372.5415.3372.8364.1
Taxes on exports9.92.716.515.810.0
Penalties2.01.11.61.81.7
Nontax revenue271.3230.1354.8353.3423.8
Receipts on public property134.1120.489.4135.9155.4
Fisheries7.48.29.29.95.8
Forests37.422.836.341.029.1
Receipts from public enterprises36.455.530.551.474.5
Of which: Factory leases8.48.78.85.26.6
Civil aviation17.117.719.224.840.5
Tourism receipts1.00.70.85.914.4
Royalties and concessions33.23.51.811.822.6
User fees6.610.90.10.00.0
Building leases12.618.8ll.521.822.9
Other0.60.80.00.00.5
Other nontax revenue137.2109.7265.5217.4268.4
Post and telecommunication83.087.2108.991.9122.3
Ratio-TV (advertisement)0.00.00.00.00.1
Public services46.017.5141.9101.4119.6
Of which : Visa fees23.87.217.220.227.9
Quota auction and export licenses108.165.471.6
Interest0.03.40.00.00.0
Nontax revenue of provinces0.10.10.10.10.2
Banking profit10.012.815.7
Other nontax revenue8.11.64.611.210.5
Capital revenue12.333.213.729.39.1
Of which: Privatization receipts10.532.213.222.98.2
Source: Data provided by the Ministry of Economy and Finance.
Source: Data provided by the Ministry of Economy and Finance.
Table 12.Cambodia: Central Government Budgetary Expenditure by Economic Classification, 1997–2001
19971998199920002001
(In billions of rids)
Total expenditure1,259.71,571.21,825.02,085.52,329.9
Current expenditure807.8941.21,097.21,189.61,354.7
Salaries381.9451.1525.4512.3488.4
Civil administration132.2154.3194.1211.5213.9
Defense and security249.7296.8331.3300.8274.5
Operating costs321.9371.7410.1497.1602.2
Civil administration163.7219.6276.0365.4488.9
Defense and security158.3152.2134.1131.7113.3
Economic transfers6.614.312.030.930.5
Social transfers68.070.9103.8103.9109.2
Civil administration60.862.894.690.196.8
Defense and security7.18.09.213.812.4
Interest9.514.722.421.121.6
Other current expenditure19.918.423.524.3102.8
Of which:
Subsidy to provinces16.716.316.019.829.6
Contribution to international organizations1.12.14.96.03.7
Capital expenditure451.9630.0727.8895.9975.2
Locally financed110.3120.4223.6303.4283.0
Externally financed341.6509.5504.2592.5692.2
(In percent of total expenditure)
Total100.0100.0100.0100.0100.0
Current expenditure64.159.960.157.058.1
Salaries30.32S.728.824.621.0
Civil administration10.59.810.610.19.2
Defense and security19.818.918.214.411.8
Operating costs25.623.722.523.825.8
Civil administration13.014.015.117.521.0
Defense and security12.69.77.36.34.9
Economic transfers0.50.90.71.51.3
Social transfers5.44.55.75.04.7
Civil administration4.84.05.24.34.2
Defense and security0.60.50.50.70.5
Interest0.80.91.21.00.9
Other current expenditure1.61.21.31.24.4
Of which:
Subsidy to provinces1.31-00.90.91.3
Contribution to international organizations0.10.10.30.30.2
Capital expenditure35.940.139.943.041.9
Locally financed8.87.712.314.512.1
Externally financed27.132.427.628.429.7
Source: Data provided by the Ministry of Economy and Finance.
Source: Data provided by the Ministry of Economy and Finance.
Table 13.Cambodia: Budgetary Expenditure by Ministry, 1998–2001 1/
1998199920002001
MinistryTotalSalariesOperating

Costs
Other

Current
Capital 2/TotalSalariesOperating

Costs
Other

Current
Capital 2/TotalSalariesOperating

Costs
Other

Current
Capital 2/TotalSalariesOperating

Costs
Other

Current
Capital 2/
(In billions of riels)
Total1,0584483691211201,3265184041792241,5455174812303031,698589628278283
Royal Palace1343702063110207490198560
National Assembly129300138500211092032121820
Senate63300105510145720
Constitutional Council211002110031200
Council of Ministers57740735443312685565150101679150
Foreign Affairs26111320371322213614220041112710
National Defense31221393703362369280309206901302771987090
Interior1738766210147914672142974310140884840
National Assembly Relations and Inspection000001010010100
Economy and Finance10931827621343226940963296401931600
Information1613011813049279082700
Public Works and Transport134117294322020441202146100
Agriculture, Forestry and Fisheries1878132171130237133030615100
Justice21100513006240061500
Eduction, Youth and Sport1028020201561123536166121387020912948320
Commerce211004130062410121740
Industry, Mines and Energy31110412105131061310
Planning21100211003120041200
Health4411331012612621501021479901301374420
Tourism21100514006150091710
Public Worship and-Religion11000111002110021100
Post and Telecommunication5422802411423607629227004143700
Culture and Fine Arts32100532007340083500
Training4811451191216026232202804240
Environment11100211004I30051300
Rural Development61104161201281600121920
Woman Affairs and Veteran10000441141153115105904550
Urbanization and Conslitution10000211004230052300
Water Resources and Metrology303006150091710
National Election Committee3203200212002412300
National Audit Authority
Other4000490036335001830342208455283
(In percent of total budgetary expenditure)
Memoranda items;
National Defense30482560254623502040196016391130
Interior1619181701118114191991007810
Economy and Finance101522521016381861628011300
Public Works11016211191115011140
Agriculture21213213202131021240
Education10185201222923112383012258120
Industry00010000100011000100
Health4290092150227316408312150
Source: Data provided by the Ministry of Economy and Finance.

Commitment basis.

Excludes exlermally financed capital expenditure.

Source: Data provided by the Ministry of Economy and Finance.

Commitment basis.

Excludes exlermally financed capital expenditure.

Table 14.Cambodia: Official External Assistance to the Budget, 1997–2001(in billions of riels)
19971998199920002001
Total official external financing445.9505.4515.4707.5763.2
Budget support96.01.54.4113.254.2
Grants46.21.54.423.836.2
Loans49.80.00.089.418.0
World Bank7.20.00.036.918.0
Asian Development Bank42.50.00.052.50.0
Project aid350.8503.9511.0594.4713.3
Grants244.6340.7337.4360.0360.0
Loans97.0168.9166.8232.5332.2
World Bank66.456.369.897.8141.8
Asian Development Bank30.6112.696.9134.7190.4
Pending9.2−5.76.81.921.1
Amortization−0.90.00.00.0−4.3
Source: Data provided by the Ministry of Economy and Finance.
Source: Data provided by the Ministry of Economy and Finance.
Table 15.Cambodia: Profile of the Commercial Bank System(As of end-December 2002)
Name of Banks (Number of banks)Number

of

Branches
Authorized

Capital

(000U.S.$)
Date of beginning

of Operation
Majority

Shareholder
State-owned banks (1)
Foreign Trade Bank050 billion rielsOct. 10, 1979State-owned
Foreign bank branches (3)
Krung Thai flank Public Co. Ltd.013,000Sep. 25, 1992Thai
May Bank013.000Dec. 28,1993Malaysian
First Commercial Bank013,000Sep. 23,1998Taiwan POC
Private banks (9)
Cambodia Commercial Bank213,000Jul. 1,1991Thai
Canadia Bank Ltd.913,000Nov. 11, 1991Cambodian/Canadian
Cambodia Public Bank015,000May. 25, 1992Malaysian
Cambodia Asia Bank013,000Feb. 23, 1993Malaysian
Singapore Banking Corp.013,000Oct. 27, 1993Singaporean
Union Commercial Bank313,000Apr. 20, 1994Hong Kong
Cambodia Mekong Bank313,000Jun.4, 1994Cambodian
Advanced Bank of Asia Ltd.013,000Oct. 25, 1996Korean
Vattanac Bank013,000Nov. 8, 2002Cambodian
Specialized banks (4)
Rural Development Bank04,960Jun. 22,1998State-owned
ACLEDA Bank144,000Oct. 6,2000Cambodian
Peng Heng SME Bank03,500Mar. 20,2001Cambodian/Canadian
Cambodia Agriculture Industrial03,000Mar. 19,2002Cambodian/Japanese
Specialized Bank
Closed banks (17) 1/
Bangkok Bank Public Co. Ltd.Sep. 26, 1992Thai bank branch
Thai Farmers Bank Public Co. Ltd.Aug. 21, 1992Thai bank branch
Agricultural and Commercial Bank of CambodiaJul. 9, 1992Thai
Angkor BankFeb. 4, 1998Cambodian
Cambodia International BankJun. 30, 1994Singaporean
Cambodia Farmers BankApr. 5, 1992Thai
Chansavangwonk BankMay. 19, 1993Thai
Global Commercial BankApr. 26, 1994Thai
Great International BankMay 30,1994Australian
Pacific Commercial BankMay 28,1994Cambodian
Phnom Penh City BankSep, 15, 1993Thai
Rich Nation BankJan. 25, 1994Hong Kong
Singapore Commercial BankDec. 25, 1993Singaporean
First Oversea BankMay 30,1994Malaysian
Emperor International BankMay 31,1994Hong Kong
Standard Chartered BankFeb. 25, 1999British
Credit Agricole IndosuezDec. 28, 1993French
Source: Data provided by the National Bank of Cambodia.

Banks closed between November 1999 and November2002.

Source: Data provided by the National Bank of Cambodia.

Banks closed between November 1999 and November2002.

Table 16.Cambodia: Monetary Survey, 1997-2002(in billions of rids; unless otherwise indicated)
199719981999200020012002
Dec.Mar.Jun.Sep.Dec.Mar.Jun.Sep.Oct.
Net foreign assets1,1721,7282,0192,5882,7332,8072,9513,0813,3663,6143,6933,642
National Bank8081,4251,6492,1022,1982,2572,3132,4292,6802,9643,1173,067
Assets1,0331,6751,9242,3892,5032,5492,6452,7403,0163,3153,4973,443
liabilities225251275286305292332311335350380376
Deposit money banks363304370486535550638651686649577575
Assets564528585659729757867S47885839785779
Liabilities200224214173194208229196199189208204
Net domestic assets−109−498−576−758−834−821−827−877−959−965−956−948
Net domestic credit697839876904837866921868829767854852
Government (net)541791033−69−82−73−75−152−165−106−129
National Bank581821074−69−82−73−75−152−165−147−169
Deposit Money Banks−4−4−400000004141
Public enterprises6610311875433
Private sector63765576389890594799293697692895S978
Other items (net)−805−1,337−1,453−1,662−1,672−1,687−1,754−1,744−1,788−1,732−1,810−1,800
Capital and reserves−875−1,387−1,451−1,541−1,510−1,604−1,671−1,694−1,513−1,389−1,395−1,393
Other7050−2−121−162−84−83−50−275−343−416−407
Broad money1,0631,2301,4431,8311,8991,9852,1242,2042,4082,6482,7372,694
Narrow money385543532540548544569610676748771757
Currency in circulation356509490495511510535578641711727713
Demand deposits293442453735343235374444
Quasi-money6786879111,2911,3511,4411,5551,5941,7311,9011,9661,938
Time deposits132032464852585662697573
Foreign currency deposits6656678791,2451,3031,3901,4961,5391,6701,8311,8911,864
Memoranda items:
Net foreign assets (in millions of dollars)339457535662698716748790663922935924
Deposit money banks1058098124137140162167176166146146
National Bank23437743753856257658662368775678977S
Gross assets299443510611639650671703773846885874
Gross liabilities656673737874848086899695
Foreign currency deposits
(in millions of U.S. dollars)193176233318333354379395428467479473
Credit to private sector
(in millions of U.S. dollars)184173202230231242251240250237242248
Nominal GDP (in billions of riel)9,77811,36412,58712,93213,03713,14313,24913,35713,60513,85814,11514,202
Velocity 1/10.410.39.37.37.17.06,86.66.36.05.75.7
Source: Data provided by the National Bank of Cambodia.

Ratio of nominal GDP to average stock of broad money.

Source: Data provided by the National Bank of Cambodia.

Ratio of nominal GDP to average stock of broad money.

Table 17.Cambodia: Reserve Money, l997-2002(In billions of riels, unless otherwise indicated)
199719981999200020012002
Dec.Mar.Jun.Sep.Dec.Mar.Jun.Sep.Oct.
Reserve money5458039301,1611,1761,2041,2291,3601,5001,7521,8991,857
Currency outside banks356509490495511510535578641711727713
Currency in banks10820343042383634453738
Bank deposits1792854206336356536567468249961,1341,106
Required reserves446383109119117123132145158158159
Other 1/136222337524516536533614680837976947
Net foreign assets8081,4251,6492,1022,1982,2572,3132,4292,6802,9643,1173,067
Foreign assets1,0331,6751,9242,3892,5032,5492,6452,7403,0163,3153,4973,443
Gold0434439427406424458432472499507497
Bank accounts6584904717406258837688731,085841777838
Foreign exchange2541371849475493104397335
SDR holdings413720I451321221411
IMF Reserve Position000000000000
Other 2/3096739561,2021,4191,1901,3521,3401,3411,9332,1262,061
Foreign liabilities225251275286305292332311335350380376
IMF225251275286305292332311335350380376
Net Domestic Assets−263−622−719−941−1,022−1,053−1,085−1,070−1,180−1,213−1,218−1,210
Net Credit to Government581821074−69−82−73−75−152−165−147−169
Net claims581821074−69−82−73−75−152−165−147−169
Claims211289283272272272272271269269269269
Deposits153106176268341354345346421434416439
Net claims on banks−51−67−77−69−81−69−76−85−82−86−94−78
Claims on banks685161656535353531313
Restricted deposits4369768497858998959810791
Loans from deposit money banks146600404040404100
Other items (net)−270−738−749−877−873−902−935−910−947−962−977−962
Assets121102121124116120127126168181186190
Liabilities3928408701,0009881,0221,0621,0351,1151,1431,1631,152
Source: Data provided by the National Bank of Cambodia.

Effective May 1994, deposits required of new commercial banks prior to their commencing operations.

Consists mainly of holdings of short-term securities issued by foreign governments.

Source: Data provided by the National Bank of Cambodia.

Effective May 1994, deposits required of new commercial banks prior to their commencing operations.

Consists mainly of holdings of short-term securities issued by foreign governments.

Table 18.Cambodia: Reserve Money, l997-2002(In billions of riels, unless otherwise indicated)
199719981999200020012002
Dec.Mar.Jun.Sep.Dec.Mar.Jun.Sep.Oct.
Net foreign assets363304370486535550638651686649577575
Foreign assets564528585659729757867847885839785779
Foreign liabilities200224214173194208229196199189208204
Net domestic assets1447179113134169180108148233234243
Net claims on government−4−4−400000004141
Net claims−4−4−400000004141
Claims00000000004141
Deposits4441I0000000
Claims on public enterprises6610311875433
Claims on private sector 1/637655763898905947992936976928958978
Net claims on National Bank1414118543454343451−2
Claims212019141353535152521010
Liabilities7686898897912
Other assets (net)−509−599−702−796−777−822−866−878−875−743−769−776
Assets229248251207180172187222228266259275
Fixed assets11012010910110096100126110112106105
Interbank claims325557491516201531302413
Other assets887386576560688286123129156
Liabilities7388479531,0039579941,0531,1001,1031,0091,0281,051
Capital603690767791792828878924904791803809
Restricted deposits444222211422
Interbank liabilities262949451010141419172118
Other105125132164153154158161179197202222
Reserves2003465047377197587718679311,0551,2001,163
Cash10820343042383634453738
Deposits at National Bank1903384847036897167338318971,0101,1631,124
Other credits to National Bank000000000000
Deposits7077219531,3361,3881,4761,5891,6261,7661,9372,0101,981
Demand deposits293442453735343235374444
Time and savings deposits132032464852585662697573
Foreign currency deposits6656678791,2451,3031,3901,4961,5391,6701,8311,8911,864
Sources: Data provided by the Cambodian authorities.

Predominantly in foreign currency.

Sources: Data provided by the Cambodian authorities.

Predominantly in foreign currency.

Table 19.Cambodia: Interest Rates, 1997-2002 1/(Percent per annum)
199719981999200020012002
Dec.Mar.Jun.Sep.Dec.Mar.Jun.Sep.
Deposit rates
Riel savings deposits7.47.57.35.95.15.13.32.62.92.42.3
Foreign currency savings deposits2.42.52.22.32.32.22.01.61.51.61.5
Foreign currency term deposits3.8393.53.73.93.73.32.72.62.92.9
Lending rates 2/
Foreign currency loans: rates charged to private enterprises18.417.717.317.417.117.015.515.015.016.217.1
Source: Data provided by the National Bank of Cambodia.

Simple averages of rates reported by the ten commercial banks with the largest deposits.

Virtually all loans to the private sector in Cambodia are denominated in foreign currencies.

Source: Data provided by the National Bank of Cambodia.

Simple averages of rates reported by the ten commercial banks with the largest deposits.

Virtually all loans to the private sector in Cambodia are denominated in foreign currencies.

Table 20.Cambodia: Prudential Regulations(As of November 2002)
RegulationsMain FeaturesDate of Relevant Regulations 1/
Large exposureBatiks are not allowed to grant credit to an individual customer exceeding 20 percent of their net worth.Dec, 29, 1997

Feb. 17,2000
LicensingAll entities that conduct banking activities must be licensed by the NBC.

Microfinance institutions (MFIs) that meet certain criteria must be licenced by or registered with the NBC.
Oct. 25,1996

Feb. 25, 2002
LiquidityBanks and MFIs must at all times have a liquidity ratio of at least 80 percent.Feb. 9, 2000

Feb. 25, 2002
Loan/deposit ratioThe total amount of domestic deposits must be greater than or equal to the sum of domestic loans, deposits with other local banks and the NBC, and vault cash.Aug. 28,1998
Reserve requirementReserve requirements of 8 percent (5 percent for licensed MFIs) are levied on deposits in both foreign and domestic currency. Penalties for noncompliance are imposed by charging 1/10 of the latest refinancing rate per day on the deficiency.Dec. 30,1993

Jan. 1, 1998

Feb, 25, 2002
Minimum capitalLocally incorporated banks and foreign bank branches must have paid up minimum capital equal to at least CR 50 billion. In addition, each bank must maintain 10 percent of authorized capital in a special capital account at the NBC, as a form of security. Deposits in US dollars are remunerated at 3/8 of six-month SIBOR.Jan. 1, 1994

Jan. 1, 1998

Feb. 9, 2000
Monitoring banks open foreign exchange positionsBanks are required to observe a limit on the long or short position in each currency not exceeding 5 percent of the net worth, and a limit on the aggregate short position not exceeding 15 percent of the net worth.Jan. 16, 1995
Provisions for non-performing assetsBanks are required to classify their assets and off-balance sheet commitments into the four classifications (standard, substandard, doubtful, and lost), and the specific provisioning shall be recorded depending on the classification in the account and charged to the profit and loss account in the month identified.Dec. 31, 1994

Feb. 17, 2000

Jun. 7, 2002
Solvency ratio (capital adequacy)Banks must maintain solvency ratio (net worth divided by the aggregate of assets and off-balance sheet commitments) at the minimum level of 20 percent.May 22,1995

Feb. 16, 2000
Fixed assetsThe total amount of fixed assets must not exceed 30 percent of net worth.

Banks are not allowed to acquire fixed assets except for operating purposes.
Dec. 29, 1997

Nov, 8,2001
Other operational regulations for banks and financial institutionsBanks must maintain their net worth at least equal to their paid-up capital.

Banks are not allowed to grant credit to their own shareholders, members of board of directors, managers, individuals or legal entities who participate in their establishments.

Banks are not allowed to use demand deposits to grant long-term credit.
Dec. 29, 1997
Source: Data provided by the National Bank of Cambodia.

Includes regulations, prakas (announcements), and circulars.

Source: Data provided by the National Bank of Cambodia.

Includes regulations, prakas (announcements), and circulars.

Table 21.Cambodia: Balance of Payments, 1997-2001(In millions of U.S. dollars; unless otherwise indicated)
19971998199920002001

Est.
Current account (excluding official transfers)−252−261−296−412−456
Current account (including official transfers)−43−67−75−144−180
Trade balance−263−264−292−452−476
Exports7868681,10013941475
Domestic exports 1/53468592112061295
Re-exports252183178188180
Imports, f.o.b.−1,050−1,131−1,392−1,846−1,951
Of which: retained imports, f.o.b.−798−954−1,219−1,664−1,777
Services and income (net)−43−57−73−30−53
Receipts205190226336379
Of which: tourism6866133199235
Payments−248−247−300−366−432
Of which: interest−17−18−12−12−12
Private transfers6060707071
Official transfers210194220268276
Capital and financial account−44−38−1886200
Medium- and long-term loans−77−69−57−2379
Disbursements38465791113
Amortization−115−115−114−114−35
Foreign direct investment16812114613595
Short-terra flows and errors and omissions 2/−135−90−106−2626
Overall balance−90−105−93−5820
Financing901059358−20
Change in gross official reserves−28−11−32−63−65
Debt rescheduling000016
Change in arrears (- reduction)11811711711720
Use of Fund credit0−1849
Purchased/disbursements00111121
Repurchases/repayments013712
Memoranda items:
Current account balance
Excluding official transfers (in percent of GDP)−8.1−8.7−9.0−12.3−13.4
Including official transfers (in percent of GDP)−1.4−2.2−2.3−4.3−5.3
Gross official Teserves 3/262390422485550
In months of imports of goods and services2,43.63.22.82.9
Net international reserves197323349411470
External debt (in percent of GDP) 4/6168696866
Sources: Data provided by the Cambodian authorities; and Fund staff estimates.

Includes estimates for unrecorded forestry exports.

Believed to be primarily short-term capital and unrecorded imports.

Includes $117 million associated with the return of Cambodian gold holdings by the BIS in 1998.

Includes $1,346 million owed to countries of the former Council of Mutual Economic Assistance This amount is indicative and subject to negotiations and rescheduling.

Sources: Data provided by the Cambodian authorities; and Fund staff estimates.

Includes estimates for unrecorded forestry exports.

Believed to be primarily short-term capital and unrecorded imports.

Includes $117 million associated with the return of Cambodian gold holdings by the BIS in 1998.

Includes $1,346 million owed to countries of the former Council of Mutual Economic Assistance This amount is indicative and subject to negotiations and rescheduling.

Table 22.Cambodia: Merchandise Exports, 1997-2001(In millions of U.S. dollars)
Unit19971998199920002001

Est.
Total exports7868681,1001,3941,475
Domestic exports5346859211,2061,295
General System of Preference (incl. garment)2793926791,0131,147
Logs and sawn timber 1/2241671115933
Rubber 1/2355566350
Volume(‘000 MT)28110113116105
Unit price($/MT)799496492548477
Fish33354
Volume(‘000 MT)21442
Unit price($/MT)1,6111,9258651,0492,256
Agricultural products (incl.rice)11222
Others43146
Re-exports252183178188180
Sources: Data provided by the authorities; and Fund staff estimates.

Includes estimates for illegal exports.

Sources: Data provided by the authorities; and Fund staff estimates.

Includes estimates for illegal exports.

Table 23.Cambodia: Merchandise Imports, 1997-2001(In millions of U.S. dollars)
19971998199920002001

Est.
Total imports, f.o.b. 1/1,0501,1311,3921,8461,951
Total imports, c.i.f.1,1411,2301,5132,0072,121
Freight & insurance on imports9398121161170
Taxable imports740528695758696
Cigarettes1881431197070
Motorcycles1744363021
Beer53232
VCRs12122
TV sets65665
Audio cassettes22333
Gold1363283412
Vehicles2615272326
Construction materials198131314
Clothing1822334636
Cloth44433
Petroleum products91111131176160
Sugar1514221025
Cement1613202731
Steel11192118
Other176140232292268
Sources: Data provided by the Cambodian authorities; and Fund staff estimates.

Includes imports for re-exports.

Sources: Data provided by the Cambodian authorities; and Fund staff estimates.

Includes imports for re-exports.

Table 24.Cambodia: Investment Approvals by Sector, 1997-2001(Total fixed assets approved; in millions of US dollars)
19971998199920002001

Est.
Total745850448220198
Agriculture61504240
Industries5176501836786
Agro-Industry422260
Building material91070
Cement20554600
Energy80170050
Food processing69202
Garment97124673720
Paper613612
Petroleum321110
Plastic41122
Shoes1581100
Textile005840
Tobacco27004
Wood processing47179001
Others10233995
Services12539516938
Construction131800
Education02000
Infrastructure21100022
Telecommunication5301900
Transporation011500
Other501486916
Tourism421121728074
Hotel40106257171
Tourism Centre1614793
Other00000
Source: Cambodian Institute for Cooperation and Peace.
Source: Cambodian Institute for Cooperation and Peace.
Table 25.Cambodia: Investment Approvals by Investor Country of Origin, 1997-2001(Total fixed assets approved, in millions of US dollars)
19971998199920002001

Est.
Total744850448218197
Cambodia1662962525858
Foreign578554196160138
America971120136
United States86520126
Canada116010
Argentina00000
Asia460533171126130
Australia221020
Thailand2733212615
Malaysia6612514251
Philippines00001
Singapore1521180
Indonesia161150
Vietnam00100
Taiwan44144551956
China3610546285
Hong Kong70913051
Korea17850192
Japan01200
Europe884222
United Kingdom602172
France11150
Switzerland05100
Portugal11000
Others133100
Source: Cambodian Institute for Cooperation and Peace.
Source: Cambodian Institute for Cooperation and Peace.
Table 26.Cambodia: Foreign Debt, 1997-2001(In millions of U.S. dollars
19971998199920002001

Est.
Total external debt outstanding 1/2,0502,1102,2692,2652,254
Multilateral287348604597585
World Bank126156251251251
AsDB95128244244244
IMF66641039684
Bilateral1,7631,7621,6651,6681,669
New debtn.a.1161615
Rescheduled debtn.a.28282929
Nonrescheduled debtn.a.1,6201,6211,6231,625
Total disbursements495768113135
Multilateral445666106134
World Bank2315293739
AsDB1030264869
IMF1111112221
Bilateral61260
Total amortization11511611812147
Multilateral013712
World Bank00000
AsDB00000
IMF013712
Bilateral11511511411435
New debt11001
Rescheduled debt00000
Nonrescheduled debt6611411433
Total interest88888
Multilateral33344
World Bank11122
AsDB11222
IMF11111
Bilateral55444
New debt11000
Rescheduled debt11111
Nonrescheduled debt33333
Sources: Data provided by the Cambodian authorities; and Fund staff estimates.

Includes $1,346 million owed to countries of the former Council of Mutual Economic Assistance. This amount is indicative and subject to negotiations and rescheduling.

Sources: Data provided by the Cambodian authorities; and Fund staff estimates.

Includes $1,346 million owed to countries of the former Council of Mutual Economic Assistance. This amount is indicative and subject to negotiations and rescheduling.

Table 27.Cambodia: Previously State-Owned Enterprises and Assets Sold to the Private Sector(As of October 2002)
BusinessMinistryCountry

of buyer
Date of saleSale price (US$)
Total34,627,590
Flour FactoryIndustryJuly 24,1991450,000
Soap FactoryIndustryCambodiaOctober 25, 199185,800
Mechanical Factory #2IndustryNovember 14, 1991360,000
Mechanical Factory #4IndustryCambodiaNovember 14, 1991225,000
Battery ShopIndustryNovember 14, 1991156,000
Tire ShopIndustryCambodiaNovember 14, 199140,000
Mechanical Factory #3IndustryNovember 15, 1991440,000
Mechanical Factory #9IndustryNovember 15, 1991420,000
Mechanical Factory #7IndustryNovember 29, 1991155,000
KM 6 StoreIndustryCambodiaJuly 30,199256,000
Rubber WarehouseIndustryCambodiaJuly 30, 199225,000
Bata Shoe FactoryIndustryAugust 24,1992140,000
Soap FactoryIndustryCambodiaAugust 24, 199272,000
Kbal Thnal StoreIndustryCambodiaDecember 8,1992170,000
Print ShopCultureCambodiaJune 15,1993
Agriculture Material ManufacturerIndustryCambodiaJune 17,1994
Print ShopCultureCambodiaJune 17, 1995
CKCCommerceCambodisMarch 11, 199610,680,000
Battery ManufacturerIndustryNovember 14,199680,000
SOKLAIT (Warehouse and plant)IndustryCambodiaOctober 21,19961,250,000
Tobacco ManufacturerIndustryCambodiaJanuary 26, 19963,400,000
CKCCommerceCambodia199710,680
Zeam Conte Garages 2CommerceCambodiaJanuary 27,1997200,000
Vacant Land near the Cigarette FactoryIndustryCambodia1997132,000
Bran Oil FactoryIndustryCambodiaDecember 4,19971,020,000
Zeam Conte Garages 1planningCambodiaOctober 24,1997200,000
Gas Station in Seam Reap ProvinceFinanceCambodiaOctobers, 199740,000
Taprum HotelFinanceCambodiaMarch 13,199770.0O0
Warehouse of Crop Company GroupCommerceCambodia199863,600
Warehouse in Posat ProvinceCommerceCambodiaApril 2, 199821,980
Pailin. Hotel in Batarnbang ProvinceCommerceCambodiaFebruary 18, 199845,666
Vacant Land behind Council of MinistersCouncil of MinistersCambodia1998800.000
Focker AirplaneCouncil of MinistersCambodiaNovember-98663,970
Peace HotelFinanceCambodiaJuly 30,199840,000
Chinese HospitalHealthCambodia19982,345,324
Beng Trabek GarageIndustryCambodiaJanuary 26, 19981,185,000
Beverage FactoryIndustryCambodiaJuly 20,1998630,000
Phnom Kamchay HotelInteriorCambodiaJune 15, 1998155,516
Vacant Land in Kampong Speu ProvinceInteriorCambodiaApril 30, 199871,160
Warehouse of Acid WaterPublic WorksCambodiaJuly 21, 1998352,000
KAMTRANSHIPPublic WorksCambodiaMay 18, 1998543,000
Driving School DepartmentPublic WorksCambodiaDecember 5, 1999250,000
Goods Transport CompanyPublic WorksCambodiaDecember 22,20001,189,878
Vacant Land in Phnom Penh Health DepartmentPhnom Penh MunicipalityCambodiaApril 18,200041.198
Youth ClubPhnom Penh MunicipalityU.S. Govt.September 26,20005,839,000
Warehouse in Construction CompanyCommerceCambodiaJune 29, 2001377,355
Second Cotton Warehouse KampexinCommerceCambodiaJune 21,2001135,462
Source: Data provided by the Ministry of Economy and Finance.
Source: Data provided by the Ministry of Economy and Finance.
Table 28.Cambodia: State-Owned Enterprises Leased to the Private Sector(As of October 2002
Number of

Leases
Duration of Lease
1-14 years15-20 years>20 years
By Type of Asset
Beverage companies1010
Brick, ceramics, stone manufacturers7016
Car repair, ship repair5104
Chemical plants4031
Garages, gas stations16088
Land, buildings5481432
Leather, textile manufacturers190109
Mechanical plants4031
Miscellaneous manufacturing271620
Restaurants, guest house221615
Sawmills9072
Shops, offices2611015
Tire factories6042
Warehouses2201012
Total2222273127
By Government Agency
Agriculture22110111/
Commerce1402121/
Council of Ministers3003
Culture71241/
Defense142481/
Education4202
Foreign Affairs8521
Health10011/
Industry51030211/
Information4112
Interior20111/
Public works and transport151591/
Post and telecommunications2110
State secretariat of civil aviation111100
Tourism60241/
Urbanization50231/
Phnom Penh Municipality53315351/
Total222
Data provided by the Ministry of Economy and Finance.

Includes leases to the private sector with unknown duration.

Data provided by the Ministry of Economy and Finance.

Includes leases to the private sector with unknown duration.

Table 29.Cambodia: Government’s Privatization Plan(As of October 2002)
Type of EnterpriseTotal NumberDecisions
of EnterprisesTo be LiquidatedTo be PrivatizedTo be Retained
Total16862
Chemical industry11
Construction431
Fisheries44
Printing, video211
Service industries4121
Utilities, post, and telecommunications22
Source: Data provided by the Ministry of Economy and Finance.
Source: Data provided by the Ministry of Economy and Finance.
Table 30.Cambodia: Joint Ventures by the State(As of October 2002)
Share RetainedPrivate Interest
CompanyBusinessMinistryby the State

(In Percent)
NationalityShare in Percent
CASOTIMWood processingAgriculture20Russia80
COLEXIMWood processingAgriculture51Japan49
Royal Air CambodgeAirlineCouncil of Ministers60Malaysia40
Cambodia Samart CommunicationTelecommunicationsPost & Telecommunications30Thailand70
Cambodia Shinawatra Co.TelecommunicationsPost & Telecommunications30Thailand70
CAMTELTelecommunicationsPost & Telecommunications30Thailand70
SOCITELTelecommunicationsPost & Telecommunications30Thailand70
Telstra International Ltd.TelecommunicationsPost & Telecommunications40Australia60
CAMINTELTelecommunicationsPost & Telecommunications51Indonesia49
Cambodia Pharmaceutical EnterpriseMedicine ProcessingHealth48China52
Source: Data provided by the Ministry of Economy and Finance.
Source: Data provided by the Ministry of Economy and Finance.
Table 31.Cambodia: General Education, 1997/98-2001/02
1997/981998/991999/002000/012001/02
Number of students 1/2,314,8232,402,1672,553,2292,796,8733,170,492
Primary education 2/2,011,7722,094,0002,211,7382,408,1092,705,453
Secondary education303,051308,167341,491388,764465,039
Junior High school 3/229,102226,057233,278283,678357,635
Senior high school 4/73,94982,110108,213105,086113,404
Number of schools5,5015,6435,7776,1306,283
Primary education 1/5,0265,1565,2745,4685,741
Secondary education475487503662542
Junior High school 2/350355363511379
Senior high school 3/125132140151163
Number of teachers69,68471,54373,30476,12079,403
Primary education 1/48,46049,40050,18852,16854,519
Secondary education21,22422,14323,11623,95224,884
Junior High school 2/17,38817,57018,02018,95219,650
Senior high school 3/3,8364,5735,0965,0005,234
Memoranda items:
Students per teacher3334353740
Primary education 1/4242444650
Secondary education1414151619
Junior High school 2/1313131518
Senior high school 3/1918212122
Sources: Ministry of Education, Youth and Sports.

Excluding technical and vocational education and higher education.

First to sixth grade.

Seventh to ninth grade.

Tenth to twelth grade.

Sources: Ministry of Education, Youth and Sports.

Excluding technical and vocational education and higher education.

First to sixth grade.

Seventh to ninth grade.

Tenth to twelth grade.

Table 32.Cambodia: Health Sector, 1997-2001
19971998199920002001
Number of health personnel18,37719,07518,59417,96017,799
Doctors1,4061,6801,7641,8782,047
Pharmacists325391381362383
Dentists5870698591
Nurses8,4618,8018,3128,1608,085
Other 1/8,1278,1338,0687,4757,193
Number of health establishments1,2601,3291,2961,1851,442
Phnom Penh88888
Other1,2521,3211,2881,1771,177
Number of medical beds11,10011,00011,00030,90010,900
Phnom Penh1,9001,9001,9001,9001,900
Other9,2009,1009,1009,0009,000
Memoranda items
Population10.411.411.612.012.0
Number of inhabitants per doctor7,3746,8086,5756,3905,862
Source: Ministry of Public Health; and IMF staff estimates.

Including assistant doctors and pharmacists, midwifes, and other health workers.

Source: Ministry of Public Health; and IMF staff estimates.

Including assistant doctors and pharmacists, midwifes, and other health workers.

Table 33.Cambodia: Employment by Sector of Activity, 1997-2001
1997 1/1998 2/1999 3/2000 4/2001 5/1997 1/1998 2/1999 3/2000 4/2001 5/
(In thousands)(In percent of total)
Total employment4,4304,9095,5195,2756,243100.0100.0100.0100.0100.0
Agriculture, forestry, and fisheries3,4923,7714,2143.8894,38478.876.876.373.770.2
Industry2102163534446404.74.4648.410.2
Services7289229539421,21916.418.817.317.919.5
Agriculture, forestry, and fisheries3,4923,7714,2143,8894,38478.876.876.373.770.2
Agriculture and forestry3,4133,6984,1093,7424,12377.075.374.570.966.0
Fisheries79731051472611.81.51.92.84.2
Industry2102163534446404.74.46.48.410.2
Mining and quarrying866340.20.10.10.10.1
Manufacturing1441592593675493.33.24.77.08.8
Utilities436440.10.10.10.10.1
Construction54488370841.21.01.51.31.3
Services7289229539421,21916.418.817.317.919.5
Trade3493414024366447.97.07.38.310.3
Hotels and restaurants6152819100.10.30.5040.2
Transport and communications811181211201671.82.42.22.32.7
Financial intermediation1116860.20.00.10.20.1
Real estate, renting6311840.10.10.20.20.1
Public administration and defense1382221871471493.14.53.42.82.4
Education56818887881.31.71.61.71.4
Health and social work18262830250.40.50.50.60.4
Other social services20683940520.51.40.70.80.8
Other42454446721.00.90.80.91.2
Source: Data provided by the National Institute of Statistics (NIS).

Based on the results of the Socioeconomic Survey of Cambodia (SESC 1997).

Based on the results of the 1998 Population Census.

Based on the results of the Socioeconomic Survey of Cambodia (SESC 1999).

Based on the results of the Labor Force Survey of Phnom Penh.

Based on the results of the Labor Force Survey of Cambodia (LFS 2001)

Source: Data provided by the National Institute of Statistics (NIS).

Based on the results of the Socioeconomic Survey of Cambodia (SESC 1997).

Based on the results of the 1998 Population Census.

Based on the results of the Socioeconomic Survey of Cambodia (SESC 1999).

Based on the results of the Labor Force Survey of Phnom Penh.

Based on the results of the Labor Force Survey of Cambodia (LFS 2001)

Summary of the Cambodian Tax System(As of November 2002)
TaxNature of TaxExemptions and DeductionsRates
1. Taxes on income, profits, and capital gains

  • Tax on salaries

A monthly tax on income from salaries (including remuneration, bonuses, overtime compensations), withheld at the source. The tax applies to all salaries received in Cambodia if the employer is a Cambodian resident and to salaries received abroad by Cambodian nationals.Exempted from the tax on salaries are: (i) salaries of diplomatic and other foreign officials, such as international organization representatives, (ii) real refunds on professional expenses, (iii) indemnity for the layoff provided under the Labor Law, (iv) additional remuneration with social characteristics provided under the Labor Law, (v) uniform and professional equipment provided by employers, and (vi) travel expense allowance.

Deductions of CR 75,000 from the tax base per month are allowed for each minor dependent child and a spouse without occupation.
Progressive rates applied to monthly income are as follows:

(i) CR 0-500,000, 0 percent; (ii) CR 500,001-1,250,000,5 percent;

(iii) CR 1,250,001-8,500,000, 10 percent;

(iv) CR 8,500,001-12,500,000, 15 percent; and

(v) CR 12,500,000 and over, 20 percent.
  • Fringe Benefits

A monthly tax on fringe benefits withheld at source.Value of fringe benefits is the fair market value inclusive of all taxes.20 percent.
  • Tax on property rental

A tax on receipts from rents on land and buildings and certain equipment. The tax is withheld and paid by the payor if the owner is part of the Estimated Regime. The withholding provision does not apply to income of a legal person enterprise registered under the Real Regime.Property owners whose monthly income from rent is below CR 500,000 are exempted.10 percent.
  • Tax on profits

A monthly tax on the profits of businesses, including interest, rent and royalty received, and capital gains from the sale of assets. An enterprise under the real regime system is subject to accounts-based profit taxes, and an enterprise under the estimated regime system is subject to a proxy profits tax based on estimated turnover.Exemption from tax on profits provided under the Law on Taxation are: (i) the income of the Royal Government and institutions of the Royal Government, (ii) the income of religious, charitable, scientific, literary or educational organization, (iii) the income of labor organizations, chamber of commerce, industry or agriculture, and (iv) the profit from the sale of agricultural produce. In addition, under the Law on Investment, exemptions can be granted by the Council for the Development of Cambodia (CDC) to investing enterprises tor up to & years, commencing the year the investment project first becomes profitable.

Deductions allowed from tax on profits are: (i) interest expenses, (ii) depreciation of tangible, and intangible property, and natural resources resources, and (iii) charitable contributions. Carry forward of losses is also allowed.
For corporations, the tax rates applied to annual profits are as follows: (i) an investment enterprise during the period of tax exemption, 0 percent; (ii) and investment enterprise after the period of tax exemption, 9 percent; (iii) enterprises engage in production or exploitation of oil, gas, natural resources including limber, ore, gold, and precious stones, 30 percent, (iv) other legal person, 20 percent.

For noncorporation, progressive rates applied to annual profits are as follows: (i) CR 0.6,000,000,0 percent, (ii) CR 6,000,001-15,000,000, 5 percent; (iii) CR 15,000,001-102,000,000, 10 percent; (iv) CR 102,000,001-150,000,000, 15 percent; and (v) 150,000,000 and higher, 20 percent.
2. Patent taxAn annual registration or license fee levied on all businesses, industries, and services. The base is the previous year’s turnover, or estimated turnover. New businesses are taxed on the basis of a provisional estimate.Farmers are not subject to the tax.For business and industries, the patent is levied according to annual turnover as follows: (i) CR 0-7,500,000 = CR 15,000; (ii) CR 7,500,001-12,500,000 = CR 21,000; (iii) CR 12,500,001-25,000,000 =CR 27,000; (iv) CR 25,000,001-30,000,000 = CR 40,000,000; (v) CR 30,000,001-37,500,000 =CR 60,000,000; (vi) CR 37,500,001-50,000,000 = CR 90,000,000; (vii) CR 50,000,001-62,000,000 = CR 140,000; (viii) CR 62,000,001-75,000,000 = CR 180,000; (ix) CR 75,000,001 1 million = CR 240,000, (x) CR 100,000,001-1 billion (max.) = 0.1 percent of turnover

For services, the patent is levied according to annual turnover as fallows: (i) CR 0-3,000,000 = CR 15,000; (ii) CR 3,000,001-5,000,000 = CR 21,000; (iii) CR 5,000,001-10,000,000 - CR 27,000; (iv) CR 10,000,001-12,000,000 = CR 40,000,000; (v) CR 12,000,001-15,500,000 = CR 60,000,000; (vi) CR 15,000,001-20,000,000 = CR 90,000,000; (vii) CR 20,000,001-24,800,000 = CR 140,000; (viii) CR 24,800,001-30,000,000 = CR 180,000; (ix) CR 30,000,001-40,000,000 = CR 240,000, (x) CR 40,000,001-400,000,000 (max.) = 0.25 percent of turnover.
3. Taxes on domestic goods and services

  • VAT

Value-added tax, applied to any person subject to the Real Regime system. It covets both goods and services, extending through all stages of importation, production and distribution.Exempted from the VAT are: (i) public postal service, (ii) hospitals, clinics, medical and dental services, and the sale of medical and dental goods, (iii) public transportation services, (iv) insurance services, (v) primary financial services, (vi) the import of goods for personal use exempted from customs duties, (vii) nonprofit activities in the public interest, (viii) the import of goods for or by foreign diplomats and consular missions, international organization and agencies of technical cooperation of other governments for use in the exercise of their official function.

The calculation of tax payable in a tax period, a credit is allowed to the taxable person for the tax payable in respect of: (i) all taxable supplies made to that person during the tax period, (ii) all imports of goods by that person during the tax period. The credit is only allowed if the supply or import is for use for taxable supplies of the taxable person.

Shall not be allowed input lax credit for any lax paid on: (i) purchases or imports of automobiles, unless the taxable person is in the business of dealing in, or hiring such automobiles, (ii) entertainment, amusement and recreation expenses, unless the taxable person is in the business of providing entertainment, amusement and recreation, (iii) purchases of petroleum products for use as road fuel, unless the taxable person is in the business of supplying petroleum products.
Uniform rate of 10 percent.
  • Turnover tax

A monthly tax on business turnover, applied to any person subject to the estimated regime system.Agricultural products sold by primary producers (but not sold by traders); and mobile traders and small permanent establishments, as determined by the Minister of Economy and Finance. Enterprises operating under the Law on Investment are not automatically exempted from the turnover tax.Uniform rate of 2 percent
  • Minimum tax

The Minimum Tax is applied as a percentage of (he annual taxpayer’s turnover. It is due irrespective of the taxpayer’s profit or loss positionAn exemption has been provided to those taxpayers that have been granted the status of Qualified Investment Project under the Law on Investment on profits under the Qualified Investment Project.1 percent of the taxpayer’s annual turnover,
  • Excise tax

A tax levied on select products, both locally produced and imported.None.Airline tickets and telecommunication services:2 percent
Motor vehicles ((smaller than 2000 cc);45 percent
Automobiles (2000 cc and larger):80-110 percent
Spare parts for motor vehicles (125 cc and larger):15 percent
Spare parts for motor vehicles (2000 cc and larger)25 percent
Cigarettes:33.33 percent
Alcoholic products (spirits and wine)33.33 percent
Beer:20 percent
Gasoline:33.33 percent
Diesel:4.35 percent
Lubricating oil:25 percent
  • Stamp tax

Tax payable in the form of stamps affixed to some documents.None.Specific small amounts depending on the type of document, ranging from CR 100 for school registration to CR 2,000 for investment authorizations.
4. Slaughter taxTax levied on slaughterhouses based on the value of the livestock that is slaughtered.Exempted from slaughter tax are livestock (i) slaughtered for celebrating national tradition, (ii) slaughtered for research uses, and (iii) killed in accident.Uniform rate of 3 percent of the set price for each animal.
5. Registration tax(Taxes on property transfer)Tax levied on the transfer of land, buildings, motor vehicles, motorcycles, and shipsTransfers of property ordered by the State are exempted, as are government transfers, public utilities, and charitable organizations. The sale of motor vehicles is also exempted if the seller is subject to the turnover tax or the profits tax.

Tax is paid by purchaser at 3 percent of presumptive values.
6. Taxes on international trade
  • Taxes on imports

    • - Import duties



Effective January 2000, a general tariff (based on the Harmonized System classification) has been levied on all imports. All rates are ad valorem and duties are levied on c.i.f. basis, except for a number of products including automobiles, petroleum products, steel, cigarette, and chemical fertilizers. For these products, values for duty purposes are fixed by the Minister of Economy and Finance.


Exempted from import duties are:

(i) imports for projects and investments approved by the CDC, on approval at the time of import; (ii) fuel for Royal Air Cambodge, up to a ceiling of 2,000 Ions of aviation fuel; (iii) insecticides, pesticides, and agricultural machinery (excluding tractors); and (iv) imports of embassies, international organizations providing humanitarian aid, and projects financed through bilateral grants and aid.


There are essentially four rate categories: (i) 0 percent for essential goods and basic raw materials, (ii) 7 percent for intermediate goods seed and others; (iii) 15 percent for machinery and equipment; and (iv) 35 for luxury goods including automobiles.

Petroleum products:

(i) Gasoline: 35 percent of the prescribed value of $320 per ton

(ii) Diesel: 15 percent of the prescribed value of $275 per ton
  • - Additional Tax

Levied on selected products.None.(i) Gasoline: 2 cents per liter.

(ii) Diesel: 4 cents per liter.
Export taxes
  • Tax on timber



  • Tax on rubber



  • Other products



Ad valorem tax levied on the value of processed woods at export. Exports of woods are limited to those cut on government-agreed concessions. An export ban on all logs was introduced on December 31, 1996.

Ad valorem tax levied on rubber.

Ad valorem tax levied on livestock and precious stones.


None.







None.

None.


0, 5, and 10 percent.







7 percent.

0, 5, 10 and 50 percent.
7. Other taxes and fees
Motor vehicle taxAnnual levy automobiles and boats.None.Trucks:CR 160,000
Motor car:
up to 9 horsepowerCR 37,500 & 50,000
9-12 horsepowerCR 50,000 & 75,000
over 12 horsepowerCR 87,500 & 125,000
MotorcyclesCR 3,000-7,500
Small power boatCR 5,000
Cargo ship (over 2,000 tons)CR 1,200,000
Sea-going fishing boat (over

500 horsepower)
CR 300,000
  • Tax on unused land

Tax levied on land in specified cities and areas where there is no construction or with construction but not in use.None.Tax is paid by purchaser at 2 percent of presumptive values. The tax is calculated at 25 of the market value of the land per sq. m as determined by the “Commission for Evaluation of Unused Land” as at 30 June each year. The first 1,200 sq. m of land is free of tax. The owner of the land is required to pay the tax by 30 September each year.
  • Tax for public lighting

The tax is levied on the distribution in Cambodia of alcoholic and cigarette products.None.3 percent of the sale value.
Source: Data provided by the Cambodian authorities.
Source: Data provided by the Cambodian authorities.

Prepared by Sumio Ishikawa (ext. 38312).

Export, excluding re-exports.

Imports excluding imports for re-exports.

The EU allows duty free access if the rule of origin requirement is observed.

India and Pakistan are large exporters to the U.S. for dresses, Mexico and India for skirts, Mexico and China for overalls and coveralls, and Mexico, the Dominican Republic, and Canada for swimwear.

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