Cambodia marginally improved its global competitive ranking this year, moving up five spots to place 90th out of 144 nations surveyed, according to a newly released World Economic Forum report, The Phnom Penh Post reported.
The Global Competitiveness Report for 2015-2016 (GCR) had Cambodia lagging behind most ASEAN member states, except Myanmar, which ranked 131. Bigger ASEAN economies such as Singapore, Malaysia, Thailand and Indonesia, ranked in the top 50.
Cambodia’s overall ranking was dragged down by its lack of capacity to innovate and a poor score on business sophistication – a metric that assesses the value of business networks as well the quality of the individual firms.
While these factors would continue to plague Cambodia in the short term, using its strategic geographical location should help improve that, according to Hiroshi Suzuki, lead economist at the Business Research Institute for Cambodia.
“Using the improved connectivity among the region, which is an advantage for Cambodia, business sophistication would be improved,” he said.
Despite the Kingdom’s low competitiveness ranking, Suzuki said investors would instead base their investment decisions on the kind of industry they are looking to set up here, though there will be limitations when it comes to attracting heavy industry.
“Cambodia is one of the best candidates for labour-intensive parts manufacturing because it has the advantage of low labour cost and connectivity with neighbouring countries,” he added.
Weak public and private institutions were another area of concern, with judicial independence strength of auditing and reporting standards ranking 128 and 132, respectively.
Cambodia marginally improved its global competitive ranking this year, moving up five spots to place 90th out of 144 nations surveyed, according to a newly released World Economic Forum report, The Phnom Penh Post reported.The Global Competitiveness Report for 2015-2016 (GCR) had Cambodia lagging behind most ASEAN member states, except Myanmar, which ranked 131. Bigger ASEAN economies such as Singapore, Malaysia, Thailand and Indonesia, ranked in the top 50.Cambodia’s overall ranking was dragged down by its lack of capacity to innovate and a poor score on business sophistication – a metric that assesses the value of business networks as well the quality of the individual firms.While these factors would continue to plague Cambodia in the short term, using its strategic geographical location should help improve that, according to Hiroshi Suzuki, lead economist at the Business Research Institute for Cambodia.“Using the improved connectivity among the region, which is an advantage for Cambodia, business sophistication would be improved,” he said.Despite the Kingdom’s low competitiveness ranking, Suzuki said investors would instead base their investment decisions on the kind of industry they are looking to set up here, though there will be limitations when it comes to attracting heavy industry.“Cambodia is one of the best candidates for labour-intensive parts manufacturing because it has the advantage of low labour cost and connectivity with neighbouring countries,” he added.Weak public and private institutions were another area of concern, with judicial independence strength of auditing and reporting standards ranking 128 and 132, respectively.
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