China's economic influence on the country and region

The Phnom Penh Post after the Chinese stock market has sold more up to the curb by the government this week, the government in Beijing released report China's economic growth in 2015, which gained 6.9 percent.

Low growth is causing concern for developing countries, as well as the entire world economy. Cambodia is a country that receives more investment from China, real estate and tourism. China's economic problems affect some areas, as well as Cambodia and what to do to maintain its growth ? Reporters Post Ananth Beliga met with Mr. Shang-Jin Wei, chief economist at the Asian Development Bank (AD B) to discuss the issue.

The slowdown of China's economy has reached what some other countries in the region?

Related to the impact on other countries there are two major factors. 1 is of those who expected to be negatively affected due to a change in China's economy. These are products such as oil and copper. Within the last two decades, China's import most consumer goods, which has contributed to major more demand for consumer goods. If you have any influence in the production of consumer goods and income from as the main source of your revenue budget this is a difficult time for your correction. , Including Indonesia, Kazakhstan and Mongolia and other countries.

2 for countries that suffered negative impact export parts and components to China, including Korea, Japan, Singapore and other countries.

There are a few sectors that can benefit from this strong. It is the countries that compete with China in the clothing market. China's leading clothing, but there are many countries also export clothing, including Cambodia as well as Vietnam, Bangladesh, Myanmar and other countries.

In principle, customers do not use less clothing, but they are used more and more. clothing demand will not decline. So if China is producing more clothing other countries will produce more than talk. So we will see Bangladesh and Vietnam is boosting exports its clothing. And have the potential to do the same because it has low labor costs Vietnam. In principle can do better than Vietnam.

Cambodia relations with China, through the arrival of tourists and investment, infrastructure and real estate. Whether it will have results like the Chinese economy?

I'll put it separately between factory production and foreign direct investment (FDI) from the property. FDI manufacturing process surely good for the country. FDI not just capital, but also online marketing skills as well, and they can market value-added goods and market them to the world easier.

Chinese companies used to do this, but at the moment they can not do it based on a competitive basis . So if they want to do it here is good. It will create jobs and entrepreneurship in the future. So who will do a job in a garment factory and factory Electronics China to specialize in the management of the factory. So one day they'll run your own company. That's the best thing.

Investment property 2 Part 1, it is still money flowing into. When foreign investors to buy real estate it will increase prices. The price increase means that it increases the wealth level of Cambodians who had real estate holdings. Therefore, they are the people who will benefit from this price increase.

Those who benefit are the people who manage the properties. Others, such as young people who currently manage the property but will not get higher. Distribution consequences because not everyone gets the benefits.

Cambodia into a lower middle-income. What do you make of it because that development assistance will fall?

This revenue growth as a result of stable growth. That's a great thing. So that means that the increase in revenue and an increase in the promotion of standards for most families. 1 It is important for companies and governments as well as people looking forward. To think about the problems that they need to maintain competitiveness and to maintain a higher growth rate.

Cambodia continues rapid growth potential because other countries still have a gap, so the potential for growth is still there. And when you're going into a lower middle income country, it is not bright road ahead for rates high growth. High growth rate, not by itself, but because of the benefits from the competition changed your revenue growth. Investment in human resources and education and skills are increasingly important. Another issue is the reform to make the country's overall investment climate, this is a continuous process. Infrastructure needs, high quality is necessary.

Besides the main driver of the economy, tourism, garment exports and construction. Where can invest in maintaining its high level of growth?

I think there is scope to do both. Even existing in the sector has a lot to do. Agriculture, which is the most important sectors related to the comprehensive sector has a huge opportunity to increase, especially in productivity. Cambodia had highly productive agricultural sector of the world during the Angkorian Empire. Irrigation and water management system is the productivity confirm the strength of the country at the time. If the country can be successful at the time, why can not succeed? Really have the opportunity to continue to invest and increase productivity. LA