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CAMBODIA: Create the right investment climate: World Bank Chief

PHNOM PENH: World Bank chief Robert Zoellick has said that the Cambodian economy is too narrowly focused on its garment sector. It should now build on its successes to draw investors to other industries.

Cambodia is a labor friendly textile producer.  It has carved out a niche for itself. The country has a particular opportunity to develop as a global brand, Zoellick said. It has been able to stay in the game and grow, he added.

Cambodia's garment sector continues to expand, employing some 330,000 people in more than 200 factories and accounting for 80 percent of the country's export earnings. Zoellick said the garment sector is 'too narrow a base on which to develop' and it was essential for Cambodia to create the right investment climate to attract other businesses.

'Cambodia is a small country. It needs to be distinctive to get on the map and I believe it can be distinctive by emphasizing its heritage, better labor practices, better transparency, fighting corruption,' he said. 'This is all important if Cambodia is going to draw foreign investment and create jobs.'

Economic growth has been projected at 9.0 percent this year by the International Monetary Fund. While it continues to expand at a healthy rate, the economy has shrunk from a growth high of 13.5 percent two years ago and relies almost solely on garments and tourism to drive it.

Source: Agencies • News Courtesy: BharatTextile.com