[PHNOM PENH POST]
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.
Entrepreneurs are getting smarter and smarter everyday so businesses should be growing in the coming year. Strategies and lessons can be learned anywhere, we just have to read and listen.
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