Estatedia

Cambodia could be leaving LDC in two years

PHNOM PENH: Cambodia may be able to leave the Least Developed Countries (LDCs) in 2024 if it ranks second for the third time in a triennial review conducted by the United Nations Commission on Development Policy.

Least developed countries (LDCs) are low-income countries that face severe structural barriers to long-term development. They are extremely vulnerable to economic and environmental shocks, and they have few human assets.

However, by leaving this least developed country (LDC), Cambodia will no longer benefit from trade tariff preferences and international aid measures.

Mr. Bun Chanthy, Undersecretary of State, Ministry of Commerce, mentioned the country effort during the Vulnerability Profile-VP Study Meeting on Leaving the Least Developed Countries with the UN Commission on 10-12 August.

Cambodia was found to be ranked outside of the least developed countries for the first time as a result of the triennial review by the United Nations Commission on Development Policy in 2021.

Mr. Junior Davis, Director of Research and Analysis at UNCTAD, presented data on Cambodia’s ranking out of LDCs for the first time in 2021, such as GDP, Human Resources, and Economic and Environmental Vulnerability.

He added that Cambodia would be re-evaluated in 2024 to see if it could successfully exit the LDCs. Cambodia will lose its preferential tariffs, technical assistance framework, and concessional loans if it leaves the LDC.

For Cambodia to smoothly exit the LDC, the UNCTAD team will conduct a vulnerability study that will consist of four parts: (1) an examination of the overall situation of production capacity about the region, and (2) the identification of vulnerabilities. Victims are founded on prosperity, peace, people, the environment, and collaboration. (3) the significance of vulnerabilities (4) Economic and environmental resilience policies.

 

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