Consultation Workshop on Priority Export Sectors for STED

12 August 2015

Workshop Mechanics

• Group work guidelines

• Matrix of export sectors

• Selection criteria

Outline

Group Work

• 3 working groups

• Select Chair and Rapporteur

• Each group will discuss possible export sectors for STED from CDTIS list of priorities based on short-listing/selection criteria. Other possible criteria items maybe cited if deemed also important.

• Present the 2 selected export sectors based on working group discussion, citing reasons for selecting each sector

10 export sectors in the CDTIS

The Cambodia’s Diagnostic Trade Integration Strategy and Trade SWAp Roadmap 2014-2018 supports 10 export sectors:

• Garments

• Footwear

• Light manufacturing/ special economic zones

• Processed food

• Fisheries

• Milled rice

• Cassava

• Natural rubber

• Tourism

• High value silk

Trends in export sectors

2.9 3.02.4

3.0

4.04.4

0.0

1.0

2.0

3.0

4.0

5.0

2007 2008 2009 2010 2011 2012

Value in $ billion

Year 

Cambodian Garment Exports, $ billion, 2007‐2012

16.122.4 23.5

35.0

59.6

0.0

20.0

40.0

60.0

80.0

2007 2008 2009 2010 2011

Value in $ m

illion

Year

Cambodian processed food, beverage & tobacco exports, $ million

Trend of export sectors

493,760 471,000515,000

550,000608,000

682,000

0100,000200,000300,000400,000500,000600,000700,000800,000

2007 2008 2009 2010 2011 2012

Prod

uctio

n in M

T

Year 

Fisheries‐ Inland, marine and aquaculture production in MT, 2007‐2012

4,000 6,000 16,00051,000

146,000174,000

350,000

100,000

0

100,000

200,000

300,000

400,000

2007 2008 2009 2010 2011 2012 2013

Volume of milled

 rice 

in M

T

Year

Cambodian milled rice export, 2007‐2013

4.9

2.1

5.7

2.9

5.3

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2007 2008 2009 2010 2011

Value in $ million 

Year

Cambodian Cassava export, 2007‐2011

40.7 31.1 48.682.7

190.8 174.8

0.050.0

100.0150.0200.0250.0

2007 2008 2009 2010 2011 2012

Value in $ million

Year

Cambodian natural rubber export, 2007‐2012

Trend of export sectors

2,015,1282,125,4652,161,5772,508,289

2,881,862

3,584,307

4,210,165

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

2007 2008 2009 2010 2011 2012 2013

International visitors

Year 

International visitors, 2007‐2013

4

7

0

1

2

3

4

5

6

7

8

2004 2012

Value in $ million

Year

Finished silk products of export 

Import and export value in 2012SMC1

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SMC1 Can delete this slide. The next one already covers it.Sardaña, Ma. Concepcion, 10/08/2015

Trade Balance (Value of import and export) in 2012

Average annual growth rate (2008-2012) and future/target growth (2014-2018)

10.20

76.00

50.0041.00

7.00

124.00

25.00

45.00

15.609.00

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

Expo

rt growth ra

te % per ann

ual

Export sectors

In average of export growth rate (%) per annual: 2008‐2012

12.00

25.00 22.00 23.00

36.00

25.00

113.00

23.00

11.0015.00

0.00

20.00

40.00

60.00

80.00

100.00

120.00

Future ra

te per ann

ual in

 2014‐2018

 

Export sector

% future grown/target of export trade in 2014‐2018

SMC2

Slide 10

SMC2 Please edit titles of 2 graphs following the title of this slide.Sardaña, Ma. Concepcion, 10/08/2015

Direct employment creation by sector in 2012

370,000

64,20010,000

93,700

450,000

N/A N/A60,000

620,000

20,000

0100,000200,000300,000400,000500,000600,000700,000

Num

ber o

f employmen

t

Milled rice: Few rice mills; Cassava: Limitted employment in semi‐processing; Natural rubber: Few tousand in processing; 

Direct employment creation in 2012  

Potential direct employment creation per annual for future growth

10

20

25

N/A N/A N/A N/A

40

3N/A

0

5

10

15

20

25

30

35

40

45

Future growth ra

te per ann

ual

Export sector

Future grownth rate (%) per annual for potential direct employment creation.  

37,000

12,840

2,500N/A N/A N/A N/A

24,000

20,000

N/A0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Garmen

tsFootwear

Light m

anufact/SEZ

Processed food

Fisheries

Milled

 rice

Cassava

Natural ru

bber

Tourism

High

 value

 silk

Num

ber o

f poten

tial dire

ct employmen

t creation 

per a

nnual for fu

ture growth

Export sector

Number of potential direct employment creation for future grownth.  

Expected occupational demand

0

1

2

3

4

5

6

7

8

9

Growth dem

and (Low

, med

ium and

 high)

Export sectors

Expected occupational demand by sector and by skill levels (Low, medium and high)

Low skill Medium skill High skill

Selection criteria

Sector/ Criteria Garment

Footwear

Light manufacturing /SEZ

Processed food

Fisheries

Milled rice

Cassava

Natural 

rubber

Tourism

High value silk

Score for Criteria 1: Current position in export trade (Baseline and expect growth/plan):

1.1 Export value1.2 Import value1.3 Export growth rate

Score for Criteria 2:Future/potential growth of exports in the sectorScore for Criteria 3:Presence of sector/industry groups and associations.Score for Criteria 4:Current and potential support agenciesScore for Criteria 5:Current direct employment creation: Score for Criteria 6:Potential for direct employment creationScore for Criteria 7:Indirect employment creationScore for Criteria 8:Skill shortage and gapScore for Criteria 9:Expected occupational demandScore for Criteria 10:Presence of training institutions supporting the sectorTotal scoring

Selection criteriaSector/ Criteria Score could be from  1 to 10, with the following guide: 

Very low: 1‐2         Low: 3‐4           Medium: 5‐6          High: 7‐8           Very high: 9‐10Criteria 1: Current position in export trade (Baseline, expected export grow/ plan):

1.1 Export value Whether the sector currently generates high export value for the national economy and has high exposure to existing export markets. 

The higher the export value of the sector, the higher the score.1.1 Import value The difference between export value and import value (composed of inputs to the 

sector) is referred to as balance of trade.  A positive balance is known as a trade surplus if it consists of exporting more than is imported; a negative balance is referred to as a trade deficit or, informally, a trade gap.

The higher the trade surplus of the sector, the higher the score.1.3 Export growth rate  Refers to the annual growth rate of the value of exports.  

The higher the growth rate, the higher the score.

In the summary sheet, the average annual grown rate between 2007/2008 and 2011/2012 are based on the document of CDTIS 2014.

Selection criteriaCriteria 2: Future/potential growth of exports in the sector 

This could be in reflected in growth forecasts or targets for export in the sector.  

The higher the growth forecast/target, the higher the score

Criteria 3: Presence of sector/industry groups and associations.

Refers to existing groups, associations, including employer associations and trade unions that are supporting/can support the development of the sector’s competitiveness for export.   Consideration should be made on (possible) complementation of efforts/roles of these groups, which STED can support.

A medium or high score can be given if the sector is organized with existence of sector‐specific groups

Criteria 4: Current and potential support agencies

This refers specifically to development agencies that may be presently supporting or planning to work in the sector with the objective of improving the competitiveness for export.   

Positive consideration (medium or high score) will be made of possible complementation and synergy of efforts/roles of these groups with STED.  

STED should have value‐added to the sector and not overlap nor duplicate what is already being done by other development partners.

Selection criteriaCriteria 5: Current direct employment creation 

The number of persons employed directly in sector. 

The higher the number of employed, the higher the score. 

Criteria 6: Potential for increase in direct employment creation

Based on sector growth forecasts/ targets, what is the expected levels of direct employment in the future?   

The higher the expected employment creation in the sector, the higher the score

Criteria 7: Indirect employment creation

Along the value chains, the sector can have the potential to generate substantial levels of indirect employment creation in addition to direct employment.  For example, in agri processing there would be employment creation at the different stages of product development – from the farmers or primary producers to the actual processing and packaging of products, then further down to handling of outbound logistics and retailing. 

The higher the (traceable) indirect employment creation, the higher the score.

Primary producers/ farmers 

Intermediaries  

Inbound logistics‐Transportation and storage. 

Processing and packaging  

Outbound logistic  

International Retailers 

 

Selection criteriaCriteria 8:  Relevance of skills development and identified skills shortage.

The quantity and quality of skills are important to the sector’s competitiveness in international trade. 

“Skill” is defined as the ability to perform specified tasks at a certain level of competence.  “Skill shortage” refers to a lack of available people having a set of occupational skills that are required by companies/business.  This is manifested in recruitment difficulties and hard to fill vacancies.  “Skill gap” exists when employers feel that their existing workforce have inadequate skills types/levels to meet their business objectives.  It refers to a qualitative mismatch between available people and the requirements of the labour market.  (From Bruni, Luchand Kuoch, ILO 2013). 

The higher the actual (or perceived) need for skills development due to existing (or future) skills shortages and skills gap, the higher the score. 

Selection criteria

Criteria 9: Expected occupational demand.

The expected demand of quality and relevance of skills should be important to the sector’s competitiveness in international trade. 

The expected occupational demand are divided in 3 levels: Low level, medium level and high level and also there are 3 measurement of grown: High grow, medium grow and low grow.

If the expected occupation demand for low, medium and high levels are high grow, the score is very high and if the expected occupation demand of all skill levels are low grow, the score is very low.  

Criteria 10: Presence of training institutions supporting the sector

Refers to existing training institutions (including those in Higher education, TVET and those run by firms) that provide (or maybe tapped to provide) skills development in support of the sector’s export competitiveness.   

Positive consideration (medium or high score) will be made of possible complementation/partnership with STED.  

Group Work

• 3 working groups

• Select Chair and Rapporteur

• Each group will discuss possible export sectors for STED from CDTIS list of priorities based on short-listing/selection criteria. Other possible criteria items maybe cited if deemed also important.

• Present the 2 selected export sectors based on working group discussion, citing reasons for selecting each sector

SMC3

Slide 20

SMC3 Maybe important to repeat this slide and also to flash it while group work is ongoing.Sardaña, Ma. Concepcion, 10/08/2015

Thank youKhleang Rim

National Project Officer

ILO-STED Project

E-mail: rim@ilo.org