WB Recommends Policy Measures to Foster Logistics & Supply Chain Reforms

• 20 July 2022
• Local News
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The World Bank (WB) has recommended key short and long-term policy measures to reduce national logistics costs and address weak links in the supply chain in Cambodia as the country’s logistics costs were estimated at 26.43% of GDP in 2020 – significantly higher than in comparable ASEAN countries.

Cambodia Economic Update June 2022 of WB has reported that the reason for the high price of logistics and supply chain in Cambodia is due to the lack of diversity in the economy which is slowing growth and is a major bottleneck to the country’s competitiveness.

Moreover, Cambodia’s infrastructure remains underdeveloped, and the country’s performance in logistics has been significantly below other countries in the region, thereby triggering higher costs.

To deal with this, the WB has selected key short and long-term policy measures to foster logistics and supply chain in Cambodia including:

• Establish a comprehensive monitoring system to assess the performance of the ports and benchmark them against similar ports in neighboring
• Develop a reform and business plan for the railway sector with a 10-year time horizon, jointly led by the MEF and MPWT in consultation with the private sector to ensure that railways meet customer demands for efficient and reliable service.
• Reduce the inspection requirement procedures, accept digital signatures, and use automated risk monitoring systems instead.
• Further, rationalize duty and special taxes on new truck imports.
• Promote specialized logistics and e-commerce.
• Ensure access to the most up-to-date logistics-related legislation.
• Finalize the Comprehensive Masterplan for Multimodal Transportation and Logistics (2022-2030) with sequencing and prioritization and a focus on smart logistics solutions and oversight and strengthening cross-border trade with neighboring

With these recommendations, by 2030, it is expected that Cambodian firms will move four times more goods through highways, ports, airports, and warehouses than currently. (Read more)

• Analysis
• Road and Infrastructure