Cambodia on Wednesday launched an Industrial Development Policy (IDP) 2015-2025, which sets out a roadmap promoting investment and broadening the country's manufacturing base.
Speaking in a speech during the launching ceremony, Prime Minister Hun Sen said the IDP connotes the necessity and urgency to embark on a "new growth strategy" that responds to the structural transformation of domestic economy and the changing regional and global economic architecture.
"The IDP serves as a guide to promote the country's industrial development that will help maintain sustainable and inclusive high economic growth through economic diversification, strengthening competitiveness and promoting productivity," he said at the ceremony, which was attended by 500 people, including government officials, foreign diplomats and business executives.
He said the IDP will contribute to achieving the country's vision to become an upper-middle-income country in 2030 and a high- income country in 2050.
According to the prime minister, the Cambodian industry remains weak as reflected by its simple structure, narrow base and low level of sophistication, while mostly concentrated in garment, construction, and food processing industries.
"Most production activities are family-based with lack of entrepreneurship and inadequate use of technology, thus limiting their ability to compete in international markets," he said.
According to the IDP 2015-2025 document, the government aims to increase the GDP share of industrial sector to 30 percent by 2025 from 24.1 percent in 2013 and to diversify the export of goods by increasing the export of non-textile to 15 percent of all exports by 2025 while still promoting the export of processed agricultural products to 12 percent of all exports by 2025.
Cambodia's economic growth currently depends on traditional sectors such as garments, tourism, construction and agriculture. The government foresees that the country's growth will be around 7 percent per annum in a medium term.