The Effects of Cambodia Economy on Asean Economic Moving Forward

Abstract

In this research paper, we will examine the effects of the economy of Cambodia, a member of the Association of Southeast Asian Nations (ASEAN), on moving the ASEAN Economic Community (AEC) forward. We will support our research by using evidence that reviews the contribution of economic sectors boosting economic growth between 6.8 percent and 7 percent over the past decade (World Bank, 2016). Recently, The Ministry of Economy and Finance of Cambodia (MoEF) used three main economic sectors—services, agriculture, and industries—to forecast the economic growth for the years to come. We have reviewed a few articles related to the economic growth in Cambodia and found that the three sectors play a vital role in forming the backbone of prosperity in Cambodian development. In fact, these economic sectors contributed greatly to the Cambodian economy, and together with the stability of macroeconomic policies they help alleviate poverty in the country. Therefore, our paper will focus strongly on: 1. The services sector that is heavily concentrated on tourism; 2. The agriculture sector that is used to scrutinize the sources of rice productivity; 3. The industries sector used to investigate garment and footwear exports. Based on our observations, there are plenty of economic resources available for Cambodia to use to increase its Gross Domestic Product (GDP) growth rate to double digits. So, Cambodia needs to strategically institute and improve the quality of the tourism business, agriculture goods, and industrial manufacturing to achieve a prosperous and fair economy.