The 15th Royal Government-Private Sector Forum Was Held – Thursday, 29.4.2010

The Mirror, Vol. 14, No. 662

“Phnom Penh: The 15th Royal Government-Private Sector Forum was held in the morning of 27 April 2010 at the seat of the Council of Ministers. The forum was chaired by the Prime Minister of the Kingdom of Cambodia, Samdech Akkak Moha Senapadei Dekchor Hun Sen; other leaders of the Royal Government, from the private sector, and many other development partners, and diplomats attended the forum.

“Like at the previous time, the aim of the meeting, considered to be a kind of open ministerial session, is to jointly monitor the practical progress and improvements achieved, to see how problems, which were raised during the 14th Royal Government-Private Sector Forum had been addressed, and to know what other problems investors face in Cambodia.

“The Minister of Economy and Finance, Mr. Keat Chhon, said during his speech opening the Royal Government-Private Sector Forum that the Royal Government had led the Cambodian economy to get across a most difficult stage of the economic crisis, where the Royal Government managed to ensure financial stability as well as macro-economic and social stability, established a more favorable environment for economic and business activities, and strengthened social safety for the citizens.

“He added that encountering the global economic crisis, the Royal Government had continually intervened in the taxation system for garment and shoe factories as well as for other industries supporting these fields. Reduced tax payments on income of the garment and shoe factories was extended until the end of 2012, resulting in monthly losses for the state of about Riel 4,000,000,000 [approx. US$940,000]. To reduce the Value Added Tax (VAT) rate to 0% during that time resulted in additional losses for the state of about Riel 4,300,000,000 [approx US$1 million] per month in 2008 and it increased to as much as approx. Riel 9,300,000,000 [approx. US$2.2 million] in 2010.

“The Prime Minister of the Kingdom of Cambodia, Samdech Dekchor Hun Sen, chaired the event and waited to address all problems after they had been raised by the eight private sector groups. Then he dealt with the problems of the working teams for agriculture and for industry, relating to the export of agricultural products, even though it is recognized that there has been improvement in the commercial sector. Before the private sectors can export anything, they have to ask for permissions from many places, wasting much money and time. To export more than 200 tonnes of rice is even more difficult and takes even longer time. The private sectors needs to gain permissions from the Green Trade structure, that has the exclusive right to export rice. Then they need to ask for permission from many other ministries and institutions. Also, the working teams mentioned that for the transportation of livestock from Preah Vihear to Phnom Penh this process required to cross up to 37 check points, and companies have to pay both official and unofficial money at all those posts. Therefore, they asked the government to eliminate these activities.

“Regarding these issues, Samdech Dekchor Hun Sen said that such type of unimportant checkpoints should be abolished at all levels, especially when such activities are carried out by institutions which are not authorized for this, and he called to abolish such licenses required by unnecessary institutions, so that export business becomes more competitive exporting agricultural products of Cambodia.

“As for the tourism working team, Mr. Ho Vandy asked the government to reduce the price of plane tickets of Cambodia Angkor Air from Phnom Penh to Bangkok, to allow flights from Bangkok to Siem Reap, and to add another flight from Phnom Penh to Siem Reap, and to begin local flights between Siem Reap and to Sihanoukville.

“In response, Samdech Dekchor Hun Sen said that Cambodia adheres to a free market economy. Thus, the government cannot set prices of flights as it is done in a planned economy. In relation to the request to begin flights between Siem Reap and Sihanoukville, he said that the government does not provide exclusive rights to Cambodia Angkor Air, and other companies can operate direct flights. He encouraged Mr. Ho Vandy – if he could make any airline to start direct flights to Sihanoukville he will request that Mr. Vandy should get a medal for this incentive.

“Samdech Dekchor Hun Sen also addressed issues in other sectors, mostly concentrating on the lowering of tax for the import of raw materials and for means of transport, and the lowering of VAT. At the same time, he addressed also problems relating to trade unions and workers. In addition, he clarified some cases, where the private sector had called to strengthen the competition of the garment sector by considering that the expensive prices of telecommunication, transportation, and electricity are a burden.” Rasmei Kampuchea, Vol.18, #5183-5184, 28-29.4.2010

Newspapers Appearing on the Newsstand:
Thursday, 29 April 2010

Areyathor, Vol.17, #1437, 29.4.2010

• Samdech Dekchor Hun Sen Was Nominated as a Member of the Royal Academy of Cambodia

Deum Ampil, Vol.4, #463-464, 28-29.4.2010

• The Government Encourages the Private Sector to Export Agricultural Products
• Two Murderers Were Arrested for Killing a Woman to Rob Her Lexus Car to Sell it in Vietnam [Phnom Penh]
• The Prime Minister Reminded the Authorities to Crack Down on Illegal Check Points

Kampuchea Thmey, Vol.9, #22-342235, 28-29.4.2010

• Samdech Dekchor Hun Sen: The BHP Billiton Mining Company Did Not Give Illegal Money to Cambodia [to get a mining exploration concession from the government]
• The Ministry of Foreign Affairs Warned Ambassadors in Cambodia Not to Interfere in the Internal Affairs of Cambodia

Koh Santepheap, Vol.43, #6942, 29.4.2010

• The Khmer Rouge Tribunal Will Decide on Bail Requests of [former Khmer Rouge leaders] Ieng Sary, Ieng Thirith, and Khiev Samphan on 30 April 2010
• Samdech Hun Sen: Trade Unions Are Not My Enemy, and To Demonstrate [on 1 May 2010, the International Labor Day] Is Their Right
• The Australian Embassy Provides Scholarships to 40 Cambodian Students Every Year
• The National Children’s Hospital Receives Medical Equipment Donated by the Korea International Cooperation Agency [KOICA, worth about US$200,000]

Moneaksekar Khmer, Vol.17, #3866, 29.4.2010

• The Committee for Free and Fair Elections in Cambodia [COMFREL]: The Power of the National Assembly Is in the Hands of Only One Party, and Complaints against Mr. Sam Rainsy [filed by the government] Are Dangerous for Democracy
• [Sam Rainsy Party parliamentarian] Son Chhay Asked the Minister of Justice to Confirm the Conditions Under Which Courts Can Detain Citizens

Phnom Penh Post [Khmer Edition], Vol.1, #159-160, 28-29.4.2010

• [Prime Minister] Hun Sen: The Money from the [Australian] BHP Company Is Not Corrupt Money [he confirmed that the government was not involved in corruption with the BHP company in providing mining exploitation rights in Cambodia, but he said that this company did provide more than US$2 million for social development projects]
• Tourists Arrivals Increased by Almost 10% in the First Quarter of 2010 [there were more than 680,000 tourists, mostly from Korea, China, and Japan]
• Visakh Bochea Was Internationally Celebrated in the Angkor Area in Siem Reap [with an international “Trail of Civilization and Performance” with participation from Laos, Thailand, and Vietnam]
• Cambodia Lifts the Ban on Marriages between Khmer Women and South Korean Men
• The International Monetary Fund: Cambodia Should Improve Investment Atmosphere [in order to attract big investors: maintaining the macro-economic environment stable, improving the physical infrastructure such as roads, ports, and electricity supply, ensure a high level judicial system that is independent, and keep a well educated labor force]

Rasmei Kampuchea, Vol.18, #5183-5184, 28-29.4.2010

• The 15th Royal Government-Private Sector Forum Was Held
• Samdech Dekchor Hun Sen Criticized Big Institutions of the World [the World Bank, the International Monetary Fund, and the Asia Development Bank, for making different [independent] forecasts about the Cambodian economy]
• 88% of Garment Factories Were Affected by the Economic Crisis while 12% Were Not [according to the International Labor Organization]

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