General

Cambodia, World Bank Discuss Logistics Cost Reduction

H.E. Vongsey Vissoth, Minister attached to the Prime Minister and Permanent Secretary of State at the Ministry of Economy and Finance on June 6 received a senior delegation of the World Bank Group to discuss strategies to reduce Cambodia’s logistics costs.

The World Bank (WB) team led by Ms. Cordula Rastogi, Senior Economist based at the Washington headquarters shared with the secretary of state the bank’s study on logistics costs especially in Cambodia.

H.E. Vongsey Vissoth acknowledged the somewhat high costs of Cambodia’s logistics as well as transport infrastructure and connectivity issues.

According to the secretary of state, logistics sector is key for promoting trade and investment in Cambodia, and the country needs an cost-effective and vibrant logistics system.

The world economy is currently being affected by supply chains and logistics systems hampered by COVID-19, and the changes in the trading pattern due to relocation of investment from China.

The Royal Government is improving Cambodia’s logistics in order to attract foreign investment in response to the changing trading context.

The two sides looked into short- and medium-term resolutions shared by the WB team such as monitoring the effectiveness of border gates, expanding the best trader scheme, and establishing a reporting system like road-watch, promoting rail transport, and strengthening the effectiveness of post-customs inspections.

Goods transit facilitation, multi-purpose logistics strategies and logistics development planning in urban areas, and preparation of logistics regulations were also discussed.

Source: Agency Kampuchea Press