Excellency Tian Guoli, Chairman of the Bank of China,
Excellency Chen Siqing, President of the Bank of China,
Excellency Li Jun, Chairman of the Board of Supervisors of the Bank of China,
Excellencies, Ladies and Gentlemen!
Today, I am pleased to attend the launching of the International Finance Exchange and Cooperation Program. Taking this opportunity, on behalf of the Royal Government of Cambodia, I would like to extend my profound thanks to the Bank of China for hosting this program for Cambodian civil servants to gain their knowledge and learn the experience from China. Moreover, I would like to appreciate the importance of this program in providing an opportunity for the Chinese and Cambodian policymakers and practitioners to share their experiences and views on important issues as well as to strengthen the relationship between our two countries, I believe this program has become even more appropriate for our cooperation in the context of rapidly progressing regional financial and economic integration.
The current global growth is facing a slowdown, due to both weaker recovery in the advanced economies and further slowdown in emerging economies. While advanced economies are facing the challenge of weaker domestic demand, the emerging economies suffer from a combined effect of softer exports and sluggish investment. On the other hand, the euro area is largely affected by slower growth in Germany. In China, growth has showed signs of slowing, driven by subdued investment in the wake of correction in residential real estate.
In such regional and global contexts, we need to accelerate regional integration and connectivity as a new way to fuel economic growth. Therefore, finance cooperation has become increasingly important. A consistent and well-coordinated functions of monetary and financial systems is required for both effective macroeconomic management and efficient resource distribution for development, Indeed, ASEAN has worked with the Plus 3 in achieving remarkable results on financial cooperation, including the Capital Market Development (CMD), Financial Services Liberalization (FSL), ASEAN Capital Market Forum (ACMF), and ASEAN Infrastructure Financing Mechanism (AIFM). We also established ASEAN+3 Macroeconomic Research Office (AMRO), which is tasked to monitor and analyze regional economies and to serve as technical backstopping to the Chiang Mai Initiative Mutilateralization (CMIM). China, as second biggest economy in the world, should not only play important role in the regional financial architecture but also have greater influence at global level. In this regards, I believe that the International Finance Exchange and Cooperation Program will make important contribution to the efforts of realizing China’s economic belt and silk road initiative that covers a wider economic and trade networks including in Asia, Europe and Africa.
As for Cambodian economy, it grew by 7.1 percent in 2014. Last year’s growth was driven by the strong performance of industry and services, while the agriculture sector posted a measly growth. In 2015, the growth rate was projected early this year to achieve around 7%. Nevertheless, the unfavorable conditions of global economy and trends of regional economic slowdown coupled with unfavorable weather condition for agriculture are posing challenges in securing a 7% growth rate in 2015, though the latest forecast this year is somewhat about 7%.
Nevertheless, Cambodia’s medium-term growth outlook remains favorable. Moreover, in order to support and enhance economic and investment activities, the RGC is now promoting the implementation of its new growth strategy through Industrial Development Policy 2015-2025, by giving priority to human resource development, further investment in transport infrastructure, improvement in trade facilitation as well as investment attraction in specific value added sectors while making further efforts to develop agriculture through improved productivity and implementation of commercialization policy in agriculture.
I would also like to take this opportunity to deeply thank the people and government of the People’s Republic of China (PRC) for continuing their support provided to Cambodia. China has always been a great friend of Cambodia in all circumstances. Without China’s constant support, Cambodia’s socio-economic development process would not be as successful as it is today. China has played increasingly important role in Cambodia’s socio-economic development as its primary trading partner, largest source of foreign direct investment, and top provider of development assistance and soft loans. All the development assistance from our Chinese friend has not only contributed to the development of Cambodia but also to strengthening its ownership and independence.
I would like to reiterate that, more than ever, we need to work together in the culture of constructive dialogue and deepened cooperation to ensure peace, stability, development and prosperity in the future. I hope this program will promote active exchange of views and constructive dialogue on the future of our region and the strengthening of cooperation and friendship for our common benefits.
Before ending, on behalf of the RGC, I would like to once again thank the Bank of China for its contribution to enhancing the closer cooperation between our two countries and to Cambodia’s progress. Moreover, I believe that this cooperation program will make valuable contribution to enhancing exchanges and closer cooperation between our countries and people for their mutual benefit.
Finally, I would like to wish this program fruitful discussions, and wish all the participants here good health and success in all your endeavors.