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Insight into Logistics to increase the efficiency of CLMV business network building in Cambodia

A group of countries in Southeast Asia bordering each other with Thailand as the center of the region. Called the CLMV countries, referring to Cambodia, Laos, Myanmar and Vietnam. It has long been considered an important target of industrial investment due to its many special features that facilitate investment such as There is a geographically connected, convenient transportation. There is an area adjacent to China. It has some borders next to the sea. Availability of cheap labor and abundant natural resources

However, there is still a challenge for logistics development in the CLMV region due to many different factors such as geography. Infrastructure with unequal availability including regulations for cross-border shipments culture of local people As a result, entrepreneurs need to understand the details of each country well in order to prepare appropriately.

The World Bank clearly stated that With the emergence of an ASEAN Community with a vision of unification by 2025, Cambodia is the country that benefits the most because it is a slower developing country than its peers. Therefore, investments will be directed here to raise standards. Infrastructure system to catch up with other countries in the group and to be an important production base

In the past five years, Cambodia has seen a very high economic growth rate as a result of the rising cost of production in China. As a result, entrepreneurs from Europe began to move their production bases back to ASEAN more and use their rights to transport goods through Myanmar, Laos and Vietnam. back up to China again The country’s exports and imports are as high as 16% and 11% respectively and are expected to remain at this level for many years to come.

With Thailand being an important trading partner of Cambodia. It is predicted that trade between Thailand and Cambodia The intra-bloc trade alone will increase from $5.6 billion to $20 billion by 2025. This resulted in an agreement to increase the number of trucks crossing the Thai-Cambodia border per day from 40 to 200 in 2018 to support the daily expansion of border trade.

According to the World Bank, Cambodia’s logistic potential has grown much faster in the past 5 years until it has surpassed Myanmar. As of 2016, Cambodia’s Logistics Performance Index has moved up to 73rd out of 146 countries (Thailand 45th and Vietnam 64th).

However, despite the increasing market demand But the infrastructure of Cambodia is still very lacking. especially in the field of land transportation, which is the main logistics of the country. This is a good opportunity for Thai logistics operators to invest in building a logistics base in the Cambodian market.

Cambodian government Has a policy to fully support the development of the country’s logistics by announcing the establishment of the National Logistics Council (NLC) to drive the development of the logistics system to be concrete by setting a framework for investment of up to 16 billion USD between 2013 and 2022, accounting for a proportion of Up to 40% of the national development budget during the period

when analyzing the opportunities and needs of the country in depth will find that the construction of paved roads is the structure that is in the most demanding Although the total length of transport roads across Cambodia is more than 54,000 kilometers, only 10% of them are paved roads. This is another great opportunity that Thai entrepreneurs should not overlook.

Thank you information from thailand-business-news

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