Logo of Phnom Penh Post newspaper Phnom Penh Post - New business registrations down 41%

New business registrations down 41%

Content image - Phnom Penh Post
Commerce minister Pan Sorasak at the ministry’s annual review meeting on Thursday. COMMERCE MINISTRY

New business registrations down 41%

Last year saw 7,860 new businesses register with the Ministry of Commerce, down 40.72 per cent from 13,259 in 2019.

At the same time, the ministry dissolved 500 businesses last year, marking a 187 per cent increase from 174 in 2019.

At the opening of the ministry’s annual review meeting on April 1, minister Pan Sorasak said his ministry is committed to diversifying the economy and negotiating bilateral and multilateral free trade zones with trading partners to draw in new investment.

He said the ministry will work towards strengthening the Kingdom’s intellectual property and consumer protection regimes, promoting public services and further facilitating conditions for doing business.

“The Ministry of Commerce has been striving to fortify the capacity and efficiency of officials to compete in the regional and global arenas by propping up human resources, structural reforms in governance and management, institutional development, as well as the development of laws and legal regulations related to trade,” he said.

Hong Vanak, director of International Economics at the Royal Academy of Cambodia, blamed the decline in registrations on the Covid-19 pandemic, pointing out that it had created a barrier to investment in the Kingdom.

“In the Covid-19 era, no one is willing to invest, because investing during this period would just be throwing money away. Buying and selling, as well as production also remain stagnant. People are taking a wait and see approach, holding on to their money to invest once the Covid-19 situation eases,” he said.

The Council for the Development of Cambodia (CDC) approved 238 investment projects worth a total of $8.2 billion last year, down 12 per cent from 2019, according to a CDC press statement issued in February.

CDC secretary-general Sok Chenda Sophea said in the statement that the government is in the process of drafting new investment laws and other regulations related to investment that are aimed at increasing foreign direct investment (FDI).

“The new investment law will increase the attractiveness of investment as a basis for investors, business people to decide to invest and do business in Cambodia,” he said.

MOST VIEWED

  • Ice cream, noodles flagged over carcinogen

    The General Department of Customs and Excise of Cambodia (GDCE) has identified three types of instant noodles and ice cream trademarks originating from Thailand, Vietnam and France that are suspected to contain ethylene oxide, which poses a cancer risk to consumers. The general department has

  • Exclusive interview with Josep Borrell Fontelles, High Representative of the EU

    CAMBODIA is hosting the 55th ASEAN Foreign Ministers’ Meeting (AMM) and Related Meetings this week with top officials from the US, China, and Russia and other countries in the region slated to attend and to meet with face-to-face with their counterparts on the sidelines. In

  • Rise in Thai air routes to Siem Reap fuels travel hopes

    Local tourism industry players are eager for regional airline Bangkok Airways Pcl’s resumption of direct flight services between the Thai capital and Siem Reap town on August 1 – home of Cambodia’s awe-inspiring Angkor Archaeological Park – which is expected to boost the growth rate of

  • ASEAN Foreign Ministers’ meet commences, Taiwan issue possibly on table

    The 55th ASEAN Foreign Ministers’ Meeting (AMM) and related meetings hosted by Cambodia kicks off in Phnom Penh on August 3, with progress, challenges, and the way forward for the ASEAN Community-building on the table. Issues on Taiwan, sparked by the visit of US House Speaker

  • NBC eyes KHQR payments in Laos, Vietnam

    The National Bank of Cambodia (NBC) is working with Lao and Vietnamese authorities to expand the use of KHQR code cross-border payment systems to promote trade and investment as well as increase the scope of regional economic linkages, and in particular, facilitate remittances from overseas

  • Recap of this year’s ASEAN FM meet and look ahead

    This year’s edition of the ASEAN Foreign Ministers’ Meeting (AMM) hosted by Cambodia comes against the backdrop of heightened global tensions and increasing rivalry between major powers that have been compared to the animosity of the Cold War era. The following is The Post’