The Industrial Development Policy (IDP) was launched in 2015. It includes 4
main “Policy measures and action plans” (IDP, section 6) and the “Four key
practical measures” to be completed by 2018 (page 26). These policy measures can
be mapped to the ODA Database sectors/sub-sectors as per the table below.
|
Policy measure & Action Plan (IDP section 6) |
ODA Database sector / sub-sector |
|
6.1) Investment Promotion |
|
A. Investment climate |
|
Review the Law on Investment and other relevant
regulations |
Industrialisation & Trade / Industrial Policy &
Administration |
|
Review special criteria for attracting quality
investment projects |
|
Improving the regulatory framework, rationalizing
incentives |
|
Additional incentives (skills, R&D) |
|
Strengthen institutional capacity |
|
Reinforce the monitoring and evaluation mechanism |
|
Improve investment after-care services |
|
Strengthening Government-Private Sector Forum |
|
Strategies to promote investment (target countries
/ specific priority industries) |
|
Review investment information
dissemination/feedback mechanism |
|
B. Development of Special Economic Zones (SEZs)
and Preparation of Industrial Zones |
|
Review incentives framework (foreign/domestic
firms, SMEs located in SEZs) |
Industrialisation & Trade / SEZ & preparation of
industrial zones |
|
Promote private sector participation in physical
infrastructure development in SEZs |
|
Establish industrial parks & clusters (enacting
SEZ Law): infrastructure etc |
|
Developing provincial industrial zones (hub for
SMEs): infrastructure & logistics links |
|
Promote industrial corridors (Sihanoukville-Koh
Kong) linking main roads to poles |
|
SEZ competition (KPIs for providing incentives and
promoting best practices) |
|
Prepare urban/city development plan for industrial
centers |
Urban Planning & Management / Urban sector policy
& admin |
|
Develop Phnom Penh surrounding areas to become an
industrial hub |
Urban Planning & Management / Urban sector policy
& admin |
|
Conduct a study to develop industrial parks for
SMEs |
Industrialisation & Trade / SEZ & preparation of
industrial zones |
|
Develop physical infrastructure, especially in
SEZs, industrial clusters |
Infrastructure (selection of relevant sector) |
|
Standards and guiding principles on environmental
protection and production safety |
Environment & Sustainability / Environmental
protection |
|
Strengthening administrative capacity and
institutional framework for SEZs |
Industrialisation & Trade / SEZ & preparation of
industrial zones |
|
Public Private Partnership SEZs - review
feasibility |
|
6.2 Expanding and Modernizing SMEs |
|
A. Institutional arrangements and incentives |
|
SMEs medium-term growth plan |
Industrialisation & Trade / SME development,
management & support |
|
Strengthen SME development framework
(registration, monitoring and tracking progress) |
|
Enable technology transfer (field visits and
capacity building from other countries) |
Industrialisation & Trade / Technology, research &
innovation |
|
Establish R&D fund |
|
Enhance human resources (skills training e.g.
engineers and technicians) |
Education / Tertiary & Higher Education or
Vocational training & skills |
|
Review viability of providing support/incentives
to SMEs for investment |
Industrialisation & Trade / SME development,
management & support |
|
Build higher education capacity to absorb
scientific knowledge and technological innovation |
Education / Tertiary & Higher Education |
|
Create awards for technology innovation in various
priority sectors |
Industrialisation & Trade / Technology, research &
innovation |
|
Formation of sub-sector associations (share
knowledge, RGC advocacy) |
Industrialisation & Trade / SME development,
management & support |
|
Local enterprises - entrepreneurial capacity
building |
|
B. Registration and Account Ledgers
|
|
Amend the Law on Corporate Accounts, Audit and
Accounting Profession |
Business & Financial Services / Business support
services |
|
Strengthen the single-window mechanism for
registering SMEs |
Industrialisation & Trade / SME development,
management & support |
|
SMEs tax payer registration |
|
Strengthening corporate governance (culture of
social accountability & access to finance) |
Business & Financial Services / Business support
services |
|
Disseminate SME accounting system rules |
|
Provide training in accounting to SMEs |
|
C. Promoting Agro-Industrial Development |
|
Agro-processing public-private partnership -
feasibility studies |
Agriculture / Agro-industry |
|
Agro-processing public-private partnership -
incentives to private sector companies |
|
Create a development and promotion fund for export
led product development |
|
Develop processed agricultural exports
coordination (logistic, fees, trade facilitation) |
|
Export feasibility study (identify priority
products and value chain) |
|
6.3 Improvement of Regulatory Environment |
|
A. Trade Facilitation and Export Promotion
Measures |
|
Trade facilitation reform plan and utilization of
National Single Window Service |
Industrialisation & Trade / Trade policy,
negotiation & export promotion |
|
Establish trade information center |
|
Improve customs clearance procedures for
tax-exempt goods |
|
Reduce and abolish repetitive and non-transparent
procedures |
|
Prepare a logistic system master plan |
|
Cross-Border Transport Agreement (CBTA)
implementation |
|
Strengthen capacity of Export Promotion Department
(EPD) of Ministry of Commerce |
|
Policy-based financing institution – feasibility
study (credit provision and export insurance) |
|
Improving procedures, reduce trading transaction
cost, strengthening institutional coordination |
|
Incentive system for local exporters – feasibility
study |
|
Promote the formation of sub-sectoral associations
(share knowledge etc) |
|
B. Strengthening Industrial Standards and
Property Rights |
|
Institutional strengthening (National Metrology
Centre & Institute of Standards of Cambodia) |
Industrialisation & Trade / Industrial development
(incl standards & regulation) |
|
Registering industrial property rights
registration |
|
Strengthen the use of standardization and the
compliance evaluation |
|
Raise awareness on standards, metrology and
industrial property rights |
|
Support and improve capacity in metrology and
standards |
|
Strengthen the implementation of standards,
metrology and industrial property rights |
|
Support the National Productivity Centre of
Cambodia |
|
Strengthen capacity of the Institute of Standards
of Cambodia |
|
Strengthen capacity of the National Metrology
Centre |
|
C. Facilitation for Payment of Tax and Excise
|
|
Review tax & customs system |
Business & financial services / Business support
services |
|
Rationalize revenue collection mechanism and
improve taxpayer services |
|
Increase provision of services to taxpayers |
|
Expedite tax refunds |
|
Review tax collections and exemption procedures
(consistency etc) |
|
D. Labor Market Development and Industrial
Relations |
|
Strengthening government, employer and employee
relations (Labour Advisory Committee) |
Industrialisation & Trade / Industrial relations
and labour market strengthening |
|
Employee / Employer research (identify good
practices: disputes, productivity, training etc) |
|
Strengthen working conditions (auditing mechanism,
extending Better Factory Cambodia) |
|
Strengthen labour market management mechanism |
|
Promote the welfare of workers |
|
Review the Labour Law |
|
Strengthen mechanisms to manage skilled workers |
|
6.4)
Coordination of Supporting Policies |
|
A. Skills and Human Resource Development |
|
Second opportunity for students to finish
secondary education |
Education / select appropriate sub-sector
(Primary, secondary, higher, vocational education, Sector policy etc) |
|
Strengthen primary and secondary education (maths,
sciences, literature & technology) |
|
Promote general education for at least 9 years
(reducing dropout rate) |
|
Improve curriculum (soft skills, social
communication skills, problem solving) |
|
Link continuing education program to skills
development and vocational training |
|
Technical skills training (electrical,
electronics, mechanics, chemistry, etc) |
|
Establishment of technical secondary schools |
|
Develop technical and scientific training plan |
|
Promote incentives based apprenticeship schemes |
|
Strengthen technical training in response to
private sector demand |
|
Promote trilateral training “government-training
institutions-companies/factories” |
|
Expand on-site technical and vocational training |
|
Strengthen university education (curriculum for
agriculture, engineering & sciences) |
|
B. Promoting Sciences, technology and innovation |
|
Prepare regulatory framework for the development
of sciences, technology and innovation |
Industrialisation & Trade / Technology, research &
innovation |
|
Promote transfer of new technology in
manufacturing |
|
Strengthen the management of innovation |
|
Strengthen and build capacity for R&D and
industrial technology |
|
Promote study and research on sciences, technology
& innovation |
|
Creating scientific and technological parks -
feasibility study |
|
Create a contest for technology experts, business
initiators and talented engineers |
|
RGC research institute for sciences and technology
- feasibility study |
|
Promote the study of sciences, technology,
engineering and mathematics (STEM) |
|
Assess natural resource potential of the country
(investment in heavy industries) |
|
C. Establishing and developing industrial
infrastructure |
|
Create coordinating mechanism for investing in
transport infrastructure (road, rail, air and port) |
Select from Infrastructure sectors: Transportation
(road, rail, water etc); Energy, Power & Electricity; Water & Sanitation |
|
Monitor and direct energy supply to major
production zones |
|
Implement on-going electricity production projects |
|
Review the forecast of long-term electricity
demand and energy development |
|
Increase investment in physical infrastructure and
improve transport mode |
|
Expand the coverage of water supply (capacity of
public & private water supply units) |
|
Major road networks expansion |
|
SEZs infrastructure (incl. road networks) |
|
Railways development and use |
|
Waterway transport network and construction of
ports |
|
Resolve traffic congestions (Phnom Penh ring roads
/ bypasses) |
|
Infrastructure public-private partnership - review
feasibility |
|
D. Financing measures |
|
Financial Sector Development Strategy 2011 – 2020
implementation |
Select from Governance / PFM; or Business &
Financial Services sectors as appropriate |
|
Finance mechanism for industrial development &
SMEs in priority industries |
|
PFM governance (PIP for IDP) |
|
Strengthen securities market to mobilize resources
(medium-term move to Treasury bonds) |
|
Strengthen domestic savings mechanisms (pension
funds & insurance sector) |
|
Manage public investment program priorities for
IDP |
|
“Four key practical measures to promote the
implementation of the IDP” by end-2018 (IDP page 26) |
|
Expand electricity coverage and reduce cost |
Energy, power & electricity / (select relevant
sub-sector) |
|
Prepare master plan for transport & logistic
system development (poles & corridors) |
Transportation / Transport policy & management |
|
Labour market management & skills |
Industrialisation & Trade / Industrial relations
and labour market |
|
Sihanoukville multi-purpose SEZ |
Industrialisation & Trade / SEZ & preparation of
industrial zones |
