Economic History of Cambodia - Recent Economic History

Recent Economic History

Industry accounted for only 5 percent of Cambodia's GDP in 1985, down from 19 percent in 1969. Industrial activity continued to be concentrated in the processing of agricultural commodities, mostly rice, fish, wood, and rubber. Manufacturing plants were small, and they employed an average of fewer than 200 workers. These plants aimed to produce enough consumer goods (soft drinks, cigarettes, and food items) and household products (soap, paper, and utensils) to satisfy local demand.

The extent of Cambodia's industrial rehabilitation could be gauged by a comparison of enterprises in prewar and in postwar times. In 1969 the last year before the country was engulfed in the war sweeping Indochina, a census disclosed 18 large industries countrywide (13 public and 5 mixed public-private sector) and 33,000 small and medium privately owned enterprises. About half the factories operating in 1969 were rice mills, or were otherwise engaged in rice processing. In 1985 the government news agency (Sarpodamean Kampuchea) announced that fifty-six factories had been renovated and had been put back into operation. In the capital itself, about half of Phnom Penh's prewar plants had reopened by 1985. Most industries were producing at far below capacity because of frequent power cuts, shortages of spare parts and of raw materials, and the lack of both skilled workers and experienced managers. Industrial revival continued to be difficult and extremely slow because it was based mainly on the use of limited local resources.