Logo of Phnom Penh Post newspaper Phnom Penh Post - Credit bureau makes business easier

Credit bureau makes business easier

Credit bureau makes business easier

A report released by the World Bank on Tuesday highlighted Cambodia as the most improved country in terms of businesses getting credit, due to the establishment of the country’s first credit bureau in March.

Cambodia ranked 133 out of 185 in the World Bank’s report, up from 141 in the previous year. It was also one of the top 50 countries to narrow their distance from the top spot over the past eight years, according to the report.

However, the report also noted the addition of a new tax on immoveable property as a policy decision that has negatively impacted the ease of doing business in the Kingdom.

The World Bank report also discusses the importance of transparency and its role in the ease of doing business worldwide.

Kol Preap, executive director for Transparency International, said that in Cambodia paying bribes is considered standard practice when doing business.

“Corruption has become a systematic issue in Cambodia and paying bribes is often considered a normal activity to gain access to certain services,” he said.

These issues can deter European and Western companies from setting up subsidiaries in Cambodia due to the strict regulations and anti-corruption laws in their home countries, said to Kol Preap.

In contrast, businesses from China, Malaysia or Vietnam might not be regulated as strictly, allowing them to gain a competitive advantage over those from the West or Europe, he said.

“Our goal is to reduce corruption so development can flourish and to promote a better, levelled playing field for conducting business in Cambodia,” added Kol Preap.

According to John Brinsden, a member of the International Business Chamber of Cambodia’s executive committee, the Kingdom’s business landscape is highly variable.

“Some negatives are bureaucracy, corruption, infrastructure issues and for some companies they’re concerned about being targeted by NGOs and human rights organisations over labour issues should they choose to
operate here,” he added.

However, in Brinsden’s experience, Cambodia stands out from other countries in terms of how open it is to investment, both foreign and domestic.

“The access to senior government officials to express concerns is unique from most other countries in Asia,” said Brinsden, who identified the Government-Private Sector Forum as a specific example.

“I would say to foreign businesses considering coming to Cambodia, to come here, because you actually have a chance to talk to the government and help frame regulations and laws,” he said.

The Doing Business report is a worldwide overview of regulatory policies and reforms across the full lifecycle of a business, including start-up and operations, paying taxes and protecting investors.

To contact the reporter on this story: [email protected]

MOST VIEWED

  • Public warned of dengue risks amid rainy season

    Minister of Health Mam Bun Heng has issued an eight-point plan to destroy mosquitoes carrying dengue fever amid the rainy season. In a four-page directive, Bun Heng warned that while the number of dengue cases has dropped sharply compared to last year, it could increase

  • Thirteen charged in UK migrant lorry tragedy

    Thirteen suspects arrested by French police over the deaths of 39 Vietnamese migrants in a refrigerated lorry in Britain have been charged with people trafficking, a judicial source said on Saturday. Six of the group – mainly Vietnamese and French nationals – were held on Tuesday in the

  • Cambodian Blue Helmet dies of virus

    The last rites for Cambodian Blue Helmet peacekeeper Sar Savy, who died on Friday at 63 from Covid-19 while on a mission in the Republic of Mali, will be held on Wednesday and Thursday at the UN base there. Cambodia’s National Centre for Peacekeeping Forces

  • World Bank donates $15 million in aid

    The World Bank on Friday approved $15 million for a medical training system to help Cambodia equip doctors with more skills before they start work. The budget, which was granted by the International Development Association (IDA), is intended to improve health care services. The World Bank

  • Ministry signs MoU to develop ICT training

    The Ministry of Education, Youth and Sport on Friday signed a Memorandum of Understanding (MoU) with IT Academy STEP Cambodia (STEP) to further develop the Sisters of Code project. The project trains female students in computer programming, and enhances information and communication technology (ICT) textbooks

  • Masseuse caught planting fake bills

    Four suspects were sent to Phnom Penh Municipal Court on Sunday for allegedly stealing money from a customer who had visited their massage parlour for a cupping session last Friday in Anlong Kgnan village, in Sen Sok district’s Khmuonh commune. District police chief Hour