Strategic Framework and Programs for Economic Recovery in the Context of Living with COVID-19 in a New Normal 2021-2023.

This Strategic Framework and Programs for Economic Recovery in the Context of Living with COVID-19 in a New Normal 2021-2023 is a multi-sectorial policy document at national level. The goal of this Strategic Framework and Programs is to put Cambodia's economic growth in the near-and-medium terms, back on path to to its potential growth and strengthen resiliency for sustainable and inclusive socio-economic development in the long term.
To revitalize and promote economic growth in accordance with the above vision and goal, this Strategic Framework and Programs sets out the following objectives: 1. Revive key sectors of the economy which were affected by the COVID-19 crisis by addressing structural issues, and eliminating specific barriers in the sectors, together with harnessing potential sectors for economic growth. 2. Carry out structural reform aimed at building a solid foundation for growth, diversification and competitiveness. 3. Strengthen resilience through preparedness and responsiveness to ensure sustainability and inclusiveness of socio-economic development, and 4. Achieve macro-economic stability by improving fiscal mechanisms, ensuring monetary stability, strengthening trade balance, as well as considering financing mechanisms. The strategic framework and programs stands on three pillars (or 3Rs): 1.Recovery; 2.Reform; 3. Resilience.
To take additional advantages of agriculture to contribute to economic recovery, the strategic framework and programs focuses mainly on boosting agricultural productivity growth, strengthening competitiveness in terms of both costs and quality, modernizing supporting infrastructure in the supply chain of agricultural products, promoting processing of agricultural products, promoting the seed industry and maximizing the benefits of free trade agreements.
Reforms are urgently needed to seize the opportunity of structural changes in the domestic economy and attract more investments and businesses born from the shifting of regional supply chain into Cambodia, in order to contribute to restoring and accelerating sustainable and inclusive development of industries, agriculture, and service sectors. To maximize the benefits from Free Trade Agreements (FTAs), Cambodia needs to address relevant challenges for local producers to improve competitiveness, and meet the requirements for export conditions. Considering that the spread of COVID-19 has disrupted production chains, trade activities, investment flows and the evolution of economic and trade architecture in national, regional and global frameworks, a new Law on Investment is designed to revise and improve administrative procedures related to institutional arrangement and investment, and reduce the time and operating costs through the Single Window mechanism and the registration of qualified investment projects (QIPs) via information technology platform.
In order to strengthen sustainable and inclusive resilience, the policy document identifies strategic directions to address medium-and long-term challenges, especially in: (1) continuing to adopt and carry out digital transformation in Cambodia’s institutions, economy and society, (2) continuing to develop SMEs, (3) developing skills and education, (4) strengthening and expanding social protection and health systems, (5) strengthening the capability to adapt to climate change and (6) continuing to focus on green and sustainable development.