USAID Cambodia supports the only
Cambodian NGO focused solely on development of the Cambodian
private sector. Since 1998, Small and Medium Enterprise
Cambodia (SME Cambodia) has fostered formation of 13
business associations (the first of their kind in Cambodia)
and over 400 small and medium enterprises (SMEs). At
least one association, the Rice Millers Association,
has begun a dialogue with government authorities on needed
policy reforms.
In 2003 SME Cambodia’s activities are expanding.
Current activities will help to significantly strengthen
the hand of the private sector against factors that
adversely affect the economy. Activities are aimed
at developing
the competitiveness of individual SMEs, and fostering
the creation of private sector fora such as business
councils, working groups, sector associations and
local Chambers of Commerce at the provincial and
regional levels.
These fora are the focus of efforts to encourage
collaboration between sectors, to develop and articulate
policy proposals,
and to complete plans for joint action. Specific
activities include: advisory services for small and
medium businesses,
market and business information services center,
cooperative credit funds, rural energy projects and
rural energy
association support, enterprise training, and rice
mill certification.
USAID Cambodia also is supporting activities that
enable businesses involved in the rice and fishing
industries,
brick and tile manufacturers, and rural electrification,
to strengthen their operational and technical efficiency.
This strengthening of industry “clusters” not
only improves the capacity of individual businesses,
but also to improves the overall trade competitiveness
of these industries. Manufacturing for both domestic
goods and exports is weak in Cambodia with 90% of
export revenues resulting from the manufacture of
low-value
garments. Recent studies indicate that most Cambodian-owned
manufacturing enterprises lack exposure to international
markets, which contributes to their difficulty in
competing with goods from Thailand, Vietnam, and
China.
To help develop these industry clusters USAID supports
technical assistance through JE Austin Associates to
identify and address the needs of businesses involved
in an industry value chain. Some of JE Austin Assoc.
competitiveness activities involve identifying the
core skills and standards required to improve product
and
service quality to compete regionally and nationally
and then to design activities that will improve these
skills and standards. |
