The Economic Activity of Cambodia
From 2004 to 2007, Cambodia was in the double digits growth bracket consistently registering the 10% growth. In 2008, the global economic meltdown pulled back Cambodia’s growth to 7%. To date, the driving force behind Cambodia’s economy is the textile industry where 85% of exports come from this segment of the country’s income. However, this may see some downtrend on the years to come as lower priced garments from India, Vietnam and China are direct competitors.
Another industry that has been keeping Cambodia afloat is their tourism. There are about approximately 2 million foreigners who visit the country. The Angkor Wat temple and the Buddhist temples that abound the country somehow attract people fascinated with ancient architecture and old religion.
Other industries Cambodia have somewhat comparative advantage is the rubber, fishing, rice milling, cement and wood (including wood products). In terms of agricultural products, Cambodia produces export grade quality cashews, silk, tapioca, corn and highland vegetables.
In 2005, potential commercial grade oil deposits were found on the territorial waters of this former French colony and extracting these precious commodity are well being looked into seriously. Another potential source of substantial income for the government is when its bauxite, iron, gold and gem mines in the northern part get fully tapped. As of now, a lot of foreign investors are expressing interest and so it is just a matter of time that these will be converted to actual income.
While waiting for the mines and the oils to get extracted, Cambodia would have to continue relying on its current industries and further improve marketing campaigns for their tourist spots around the world.