Business registrations in Cambodia have surged more than 50 percent quarter on quarter, an indicator that fiscal experts and officials welcomed yesterday as a sign of economic recovery.
Firms registering at the Kingdom’s Ministry of Commerce hit 894 in the July to September period, a 54 percent jump compared to the 579 in quarter two and a 59 percent increase on the same period of 2009.
Over the quarter, the number of domestic firms listed surged 65 percent, to 520, while international companies rose by 42 percent, to 374.
Independent economist and president of the Cambodia Institute for Development Study, Kang Chandararot, said yesterday the increase was in line with positive estimates for 2010 GDP growth – issued in recent weeks by the Asian Development Bank and the International Monetary Fund – of up to 5 percent.
“This emphasises that our economy is recovering as projected,” he said.
Tous Sapha, deputy chief of business registration at the Ministry of Commerce said: “We have had good political stability during that period of time which has made the business environment grow stronger and has given confidence to business people.”
In August diplomatic ties between Thailand and Cambodia resumed after ousted Thai PM Thaksin Shinawatra quit as the Kingdom’s economic adviser.
Director general of Cambodia’s Chamber of Commerce, Nguon Meng Tech, put the rise down to growth in the garment and agricultural sectors and highlighted the importance of Chinese investment.
“We see most of the registrations are from firms working in the agricultural sector, especially from China, as product prices are rising this year,” he said.
“If we can develop skills to add value to agricultural products, such as cassava, rubber and corn, and export the processed products we will gain even more economic benefits.”