Cambodia And Association Of Southeast Asian Nations

1487 words - 6 pages

ASEAN is the regional community established in 1967. The ASEAN’s vision to establish one community under the integration plan which was initiated in 2000 at ASEAN leader summit launched the Initiative for ASEAN Integration (IAI). The IAI work plans is to implement the blueprint for the integration of the community, which established the integration of the three communities; the ASEAN Political-Security Community, the ASEAN Economic Community, and ASEAN Socio-Cultural community. The ASEAN Economic Community (AEC) plans to integrate its members in the year of 2015. The AEC goals are; to establish a single market and production base, a highly competitive economic region, a region of equitable economic development, and a region fully integrated into the global economy (ASEAN, 2013). Likewise, Cambodia has joined ASEAN since 1999. Cambodia, since 1999, is trying to promote its economic in order to be able to keep up to its neighbor. As the ASEAN member, Cambodia has to be prepared for the upcoming integration. For the country is still in development of economic, what challenges await the country? Cambodia will face the three challenges such as tense competition to the neighbor country and the fellow ASEAN members, free flow of investments, and the free flow of goods to the country.
The first challenge of Cambodia in ASEAN Economic Community (AEC) is tense competition between other ASEAN members. “Cambodia is already prepared for regional economic integration –but not yet confident enough to compete”, said Chheang Vannarith (Sok, 2012, para.5). Comparing to Cambodia, firms in neighbouring countries have more experienced in doing business. Most of their companies are big ones with huge capital so they would have little to no challenges to the upcoming AEC; in fact, they would benefit a lot from it. On the contrary, Cambodian companies is regarded as not very effective and efficient; therefore, it is not very competitive against foreign companies (Sok, 2012). Despite business experience, free flow of skilled labour which is one of the criteria in AEC would also pose a threat to Cambodia. Foreign labour are more specialised, trained, and experienced. In contrast, there are few skilled labour in Cambodia. According to Kang Chandararot, not many Cambodians have the required technical skills to compete and little can be done to change this because 80 percent of local labour in the economy are in rural areas where education is very limited (as cited in Drennan, 2012). Sok Siphanna also added that 50 percent of the workforce has not even finished primary school (Drennan, 2012). This proved the lack of skilled workers which could result in unemployment because local workers could not compete with the foreign skilled workers. Adding the factors of foreign firms and foreign skilled labour, a huge problem awaits Cambodia industries due to the high productivity of foreign business. Local business would have no chance of going head to head with them and infant...

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