Logo of Phnom Penh Post newspaper Phnom Penh Post - New business up 20% in 2011

New business up 20% in 2011

New business up 20% in 2011

New business registrations increased by more than 20 per cent in 2011 compared to a year earlier, data from the Ministry of Commerce showed.

A total of 3,090 businesses registered with the ministry as of December 2011, compared with 2,572 in all of 2010. Of these, 30-40 per cent were foreign-owned companies – a jump of about 10 per cent, according to the ministry.

Officials and experts said the rise in new business registrations reflects the country’s economic attractiveness.

“The political stability and good business environment that we have here have drawn more investors and new businesses,” said Chan Nora, Secretary of State of the Ministry of Commerce

“These factors make them confident in deciding to run a business or invest in our country – that’s the main point,” he said.

Infrastructure development and an increased power supply for industry is also contributing, according to the official.

“We know that high electricity costs are a barrier for attracting investors here. But now that we have increased power supply from hydro-dams, we will become more attractive to investors in the near future,” he said.

Chheng Kimlong, a lecturer of Business and Economics of University of Cambodia, said the increase also reflects the government’s efforts to urge all entrepreneurs register their businesses.

“The increase in new business registration proves that there is an increase in entrepreneurship, which is a main driving force pushing economic growth," he said.

“The [increase] also reflects the improvement of economic activities because these business activities promote other economic goods and services.”

It’s also a sign that the country’s formal economy is growing, not only unlicensed industry which often goes unaccounted for, he added.  

Hum Hean, director of the Business Registration Department of the Ministry of Commerce, was not available for comment about the increase in registrations.

He has previously told the Post that the majority of registered foreign companies are from South Korea, Vietnam, China, Malaysia, Singapore and Thailand, and are operating in the agriculture, service and tourism industry sectors.

MOST VIEWED

  • All Covid restrictions for inbound travellers lifted

    Cambodia has apparently taken the final step towards full reopening of the country without Covid-19 restrictions by removing all requirements for inbound travellers, who until now had to show health certificates indicating that they have tested Covid-19 negative in the past 72 hours as well as

  • Typhoon Noru brings flash floods – 16 dead

    An official warned that that the 16th typhoon of the season, Noru, had brought heavy rains to areas the Mekong River and flooded thousands of homes in the provinces bordering Thailand. As of September 27, the death toll from the flooding had risen to 16. National Committee

  • Cambodia stands firm on 5PC: No invite for Myanmar to ASEAN Summit this year

    Cambodia has not invited Senior General Min Aung Hlaing, chairman of Myanmar’s ruling State Administration Council (SAC), to the 40th and 41st ASEAN Summit and related meetings scheduled for next month in Phnom Penh. The government will instead invite a non-political representative from Myanmar

  • Mushrooming borey projects and home financing – a cause for concern?

    A spurt in housing developments is typically a sign of a growing economy but underneath all that might lay some anxiety of credit growth as developers offer financing to buyers at higher rates, an activity the central bank identifies as ‘shadow banking’ Earlier this year,

  • Thai Senate delegates in Cambodia to discuss anti-graft co-op

    A delegation from Thailand's Senate was in Phnom Penh on September 28 to meet their Cambodian counterparts to discuss strategies for fighting corruption and enhancing cooperation. The Thai delegates were from its Senate’s Committee on Studying and Inspecting Corruption, Misconduct and Strengthening Good Governance. They

  • Scholarship winner tells secrets to success

    Chhim Chaknineath was awarded the Chevening Scholarship for one year of postgraduate study in the UK for the academic year 2022-2023 along with a group of 10 other outstanding students who applied. She spent more than a year researching and studying – as well as consulting with