Business Environment Snapshot for Cambodia - Highlights

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Region: East Asia & Pacific
Income category: Low income

Population: 14,138,255 (2011)
GNI per capita (US$): 760

Below are select highlights for the data included in the profile.

According to the Doing Business 2011 Report, Cambodia is ranked 147th out of 183 economies. The largest improvement was recorded in the Trading Across Borders Indicator where the country jumped 8 spots by eliminating preshipment inspections and reducing the time and number of documents required for importing and exporting.
Enterprise Surveys (2007) reports that the top three constraints to investment in Cambodia are Corruption, Electricity and Political Instability.
According to the Investing Across Borders Indicators, Cambodia is one of the more open countries to foreign equity ownership in the East Asia and the Pacific region.
The Index of Economic Freedom gave Cambodia an economic freedom score of 57.9, making its economy the 102nd freest in the 2011 Index covering 183 countries. Its overall score is 1.3 points better than last year due to improvements in monetary freedom, labor freedom, and freedom from corruption. Cambodia continues to integrate into the global trading framework and to make progress in reducing poverty. There has been notable reform in the management of public finances, and the trade regime is more open and transparent. However, lingering institutional weaknesses hamper macroeconomic stability and retard growth.

View global rankings on the business environment. See the underlying scores, the trend indicator, and a radar chart with regional and income group comparisons.

View Comparison Chart

#	Indicator	Rank					Scale	Score									Trend over past year¹
#	Indicator	2012	2011	2010	2009	2008	Scale	2012	2011	2010	2009	2008	2007	2006	2005	2004	Trend over past year¹
1	Business Environment Index EIU - Global Outlook Report						1-10
2	Control of Corruption Indicator World Bank Group			187 (202)	189 (202)	184 (202)	-2.5-2.5			-1.2	-1.2	-1.1	-1.1	-1.2	-1.1	-1.0
3	Regulatory Quality World Bank Group			132 (202)	131 (202)	133 (202)	-2.5-2.5			-0.5	-0.5	-0.5	-0.5	-0.6	-0.5	-0.5
4	Country Credit Rating Institutional Investor		125 (178)	124 (178)	117 (178)	140 (174)	0-100		27.8	29.8	29.2	20.7	22.1	21.4	20.1	20.4
5	Index of Economic Freedom The Heritage Foundation and the Wall Street Journal	102 (178)	102 (178)	107 (178)	106 (179)	99 (157)	0-100	57.6	57.9	56.6	56.6	55.9	55.9	56.7	60.0	61.1
6	Political Risk Rating (ICRG) PRS Group						0-100
7	Doing Business Ranking* World Bank Group		138 (183)	138 (183)			1-183²

View Comparison Chart

Notes:

*Please Note: Rankings are reported here based on the year they were published, not the year indicated in the title of the publication. For example, the Doing Business 2011 report was published in 2010, and data from that publication is reported under the 2010 column. Also note that corrections are sometimes made to the data after publication of the annual Doing Business report. The most current data are reported in this table.

¹An up/down rating requires a change within the last 2 years with available data of at least 1%
²These two sources only provide rankings, not an underlying score. We do not report trends for these two, as trends on rankings cannot be compared with the trends on scores.

View more detailed data from Doing Business and the Enterprise Surveys, two flagship data products of the World Bank Group focusing on private sector development. View key economic and private sector development indicators.

Doing Business

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Source: Doing Business Website

Ease of...	DB 2012 rank	DB 2011 rank	Change in rank
Doing Business (Overall Ranking)	138	138	0
Starting a Business	171	170	-1
Dealing with Construction Permits	149	150	1
Registering Property	110	111	1
Getting Credit	98	96	-2
Protecting Investors	79	74	-5
Paying Taxes	54	51	-3
Trading Across Borders	120	120	0
Enforcing Contracts	142	141	-1
Resolving Insolvency	149	150	1

Three Well Performing Indicators	Percentile Rank¹	Indicator Value²	Compare with Income Group Average	Compare with Region Average
Getting Credit: Depth of credit information index (0-6)	99.5	0.0	2.0	4.1
Getting Credit: Private bureau coverage (% of adults)	99.5	0.0	3.6	47.3
Getting Credit: Public registry coverage (% of adults)	99.5	0.0	1.6	35.6

Three Potential Indicators for Reform	Percentile Rank¹	Indicator Value²	Compare with Income Group Average	Compare with Region Average
Enforcing Contracts: Cost (% of claim)	3.8	103.4	57.0	47.8
Resolving Insolvency: Time (years)	2.2	6.0	3.6	2.9
Dealing with Licenses: Time (days)	1.1	652.0	261.4	162.1

¹A percentile rank of 1 reflects a country ranked for that variable in the bottom 1 % of countries. Conversely, a percentile rank of 100 reflects a country ranked for that variable in the top 1% of countries.
²The value shown in this column is the specific value for the indicator. For example, if there is a value of 9.8 for Starting a Business: Duration (Days), that means that for the particular country it takes 9.8 days to Start a Business.

New!

Read about Doing Business's new pilot indicator, Getting Electricity > See full indicator list

Enterprise Surveys

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Source: Enterprise Surveys Website

Top 10 Constraints to Firm Investment in Cambodia

Note: These graphs compare the relevant country to the best and worst countries within the region and the world.

Time Series Data

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Source: WDI, ILO, S&P

	2008	2007	2006	2005	2004	2003	2002
Macro Indicators
GDP growth (annual %)	7.0	10.2	10.8	13.5	10.0	8.5	6.5
Inflation, consumer prices (annual %)	25.0	5.9	4.7	5.7	3.9	1.2	3.2
Total Returns Index (IFCGTRUS)	..	..	..	..	..	..	..
Financial & Private Sector Development Indicators
FDI Net Inflows (% of GDP)	8.0	10.4	6.6	6.0	2.5	1.8	3.4
Gross Fixed Capital Formation, private sector (% of GDP)	..	14.1	13.6	13.8	12.4	12.1	11.6
Tax revenue (% of GDP)	..	..	8.2	7.9	8.2	7.6	8.2
Exports of goods and services (% of GDP)	..	65.3	68.6	64.2	63.9	56.6	55.5
Imports of goods and services (% of GDP)	..	72.9	76.0	72.9	71.2	66.7	64.0
Domestic credit to private sector (% of GDP)	23.5	18.2	12.0	9.0	9.0	7.2	..
Domestic credit to private sector (% of total domestic credit)	144.6	141.1	135.3	124.3	113.1	109.7	..
Total Financial System Deposits to GDP	..	20.6	15.2	13.3	13.1	13.2	11.8
Bank nonperfoming loans to total (%)	..	..	..	..	..	..	..
Lending Spread	..	..	14.6	15.4	15.6	16.1	13.4
Private Sector Employment as a % of Total Employment	..	..	..	..	..	..	..
Business Entry Rate (new registrations as % of total)	..	..	..	..	..	..	..
Infrastructure Indicators
Paved roads (% of total)	..	..	..	..	..	..	..
Mobile cellular subscriptions (per 100 people)	..	..	..	7.6	12.1	17.9	28.8
Internet users (per 100 people)	..	..	..	0.3	0.5	0.5	..
Electric power consumption (kWh per capita)	..	..	..	54.8	88.1	94.1	..

Investing Across Borders

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Source: Investing Across Borders Website (Data from IAB 2010 report)

View projects associated with the World Bank Group's Finance and Private Sector Development unit. View brief summaries of the private sector strategy as stated in the most recent Country Assistance Strategy (CAS) document.

Cambodia Country Assistance Strategy (CAS) PSD focus:
(April 2005)

PSD Strategy:

Removing governance-related constraints (particularly corruption) that limit firms' productivity;
Building institutions to enable export diversification; and
Strengthening the private sector role in public service delivery by improving transparency and
competition.

World Bank [Click to expand/collapse]
Project		Total Project Amount (US $ millions)	Contact
Name:	Cambodia Business Incubation (ASP 8 & 9)	0.00	Olafsen,Ellen
ID:	P121963
Open/Close:	1/31/2011
Status:	Active
Name:	Cambodia Trade Development Support Program (RETF093573)	0.00	Clarke,Julian Latimer
ID:	P109648
Open/Close:	1/7/2009
Status:	Active
Name:	Cambodia Trade Facilitation and Competitiveness (Julian Clark co-TTL)	10.00	Chea,Huot
ID:	P089196
Open/Close:	6/2/2005
Status:	Active
International Finance Corporation [Click to expand/collapse]
Project		Total Project Amount (US $ millions)	Contact
Name:	IC-CB Inspections and Licensing Reform for the Food Processing Industry	0.45	Khy Touk
ID:	575367
Open/Close:	7/1/2010
Status:	Active
Name:	BEE-Cambodia: Support the Development of Commercial Arbitration	1.03	Soneath Hor
ID:	564607
Open/Close:	7/15/2009
Status:	Active
Name:	ATF-Cambodia Mobile phone banking	0.35	Hourn Thy
ID:	569387
Open/Close:	3/2/2009
Status:	Active
Name:	ATF-Cambodia Credit Bureau Project	0.77	Hourn Thy
ID:	564187
Open/Close:	2/1/2009
Status:	Active
Name:	Cambodia CIB Strategy Implementation & Capacity Building	0.17	Kathy Khuu
ID:	544084
Open/Close:	3/2/2008
Status:	Active
Name:	ATF-Cambodia Bank Advisory Project	1.27	Hourn Thy
ID:	554006
Open/Close:	5/1/2007
Status:	Active
Name:	BEE- Cambodia Private Sector Forum Secretariat	2.26	Si-Ambhaivan Sisombat
ID:	523052
Open/Close:	6/1/2004
Status:	Active
Name:	ATF-Cambodia Microfinance Institution	0.75	Hourn Thy
ID:	559385
Open/Close:	7/1/2008 - 12/31/2009
Status:	Closed
Name:	Cambodia SEZ Legal and Institutional Framework	0.16	Soneath Hor
ID:	556686
Open/Close:	8/1/2007 - 6/30/2009
Status:	Closed
Name:	BEE-CB Alternative Dispute Resolution	0.19	Soneath Hor
ID:	547386
Open/Close:	10/1/2006 - 6/30/2008
Status:	Closed
Name:	BEE-Cambodia Provincial Business Environment Scorecard	0.47	Soneath Hor
ID:	541523
Open/Close:	12/31/2005 - 12/31/2009
Status:	Closed
Name:	ATF-Cambodia CMA Advocacy	0.30	Sereivathana Pak
ID:	531522
Open/Close:	7/1/2005 - 6/1/2009
Status:	Closed

Title	Author/Contact	Source	Date
Cambodia - More efficient government spending for strong and inclusive growth : integrated fiduciary assessment and public expenditure review		Public Expenditure Review	11/11
Providing skills for equity and growth : preparing Cambodia's youth for the labor market	Rigolini, Jamele ; Pabon, Laura ; Infante Villarroel, Mariana ; Jones, Andrew ; Sanchez-Puerta, Maria Laura		01/11
Cambodia - World Bank country-level engagement on governance and anticorruption	Girishankar, Navin ; DeGroot, David ; Desai, Raj ; Stout, Susan ; Wescott, Clay		01/11
Doing business in a more transparent world 2012 - economy profile : Cambodia - comparing regulation for domestic firms in 183 economies			01/11
Understanding Cambodian small and medium enterprise needs for financial services and products		Working Paper	11/10
Towards a social protection strategy for the poor and vulnerable			08/10
Provincial business environment scorecard : a tool to measure economic governance			05/10
Cambodia 1998-2008 : an episode of rapid growth	Guimbert, Stephane	WPS5271	04/10
Handbook on food and beverage enterprise inspection in Cambodia			04/10
Global Investment Promotion Benchmarking - Eyes on COMESA			04/10
Doing business 2011 : Cambodia - making a difference for entrepreneurs : comparing business regulation in 183 economies			01/10
The provincial business environment scorecard in Cambodia : a measure of economic governance and regulatory policy	Malesky, Edmund		11/09
The establishment of commercial arbitration services in Cambodia			09/09
A Rough Guide to Investment Climate Reform in Conflict-Affected Countries			07/09
Microfinance in Cambodia : taking the sector to the next level			06/09
Global Investment Promotion Benchmarking 2009: Summary Report			05/09
Cambodia - A better investment climate to sustain growth : second investment climate assessment		Investment Climate Assessment (ICA)	04/09
The provincial business environment scorecard in Cambodia : a measure of economic governance and regulatory policy - summary report	Malesky, Edmund		04/09
Listing of business establishments in Cambodia's provincial towns and selected urban areas	Bishop, Ann		03/09
Doing business 2010 : Cambodia - comparing regulation in 183 economies			01/09
Justice without the rule of law? The challenge of rights-based industrial relations in contemporary Cambodia	Adler, Daniel, Michael Woolcock		01/09
Opportunities and challenges for small scale private service providers in electricity and water supply : evidence from Bangladesh, Cambodia, Kenya, and the Philippines	Baker, Judy L.		01/09
Strengthening the financial sector in Cambodia			10/08
Doing business 2009 : country profile for Cambodia - comparing regulation in 181 economies			09/08
Voices of Cambodian women entrepreneurs			09/08
Engaging local private operators in water supply and sanitation services	Triche, Thelma, Sixto Requeno, Mukami Kariuki		06/08
The tourism law in Cambodia : balancing regulation and facilitation of the sector		Business issues bulletin Cambodia ; No. 15	05/08
Cambodia - Country Assistance Strategy Progress Report			04/08
Cambodia - Handbook on export procedures : practical guide for small and medium enterprises			04/08
Commercial disputes and the new National Arbitration Center	Haythorne, Eric, Meng Tech Nguon, Thora Mao, Siah Yong Tan, Tayseng Ly, Visoth Prom	Business Issues Bulletin Cambodia. -- No 14 (August 2007)	08/07
Informalizing the formal : labor relations in Cambodia	Adler, Daniel	Justice for the poor ; Volume 1, issue no. 3	08/07
Cambodia - Poverty Reduction Strategy Paper Progress Report and Joint IDA-IMF Staff Advisory Note			06/07
Informal charges hinder business growth in Cambodia		Business issues bulletin Cambodia. -- No. 13 (March 2007)	03/07
Provincial business environment scorecard (PBES)		Business issues bulletin Cambodia. -- No. 12 (January 2007)	01/07
Doing business 2008 Cambodia : a project benchmarking the regulatory cost of doing business in 178 economies			01/07

Notes:

Doing Business

Enterprise Surveys

Time Series Data

Investing Across Borders

Banking and Credit Laws (Getting Credit, Protecting Investors)

Bankruptcy and Collateral Laws (Closing a Business, Getting Credit - Legal Rights)

Civil Procedure Codes (Enforcing Contracts, Closing a Business, Protecting Investors)

Commercial and Company Laws (Starting a Business, Protecting Investors, Closing a Business)

Constitutions (Starting a Business, Employing Workers, Registering Property, Enforcing Contracts)

Labor Laws (Employing Workers)

Land and Building Laws (Dealing with Licenses, Registering Property)

Securities Laws (Protecting Investors)

Tax Laws (Paying Taxes)

Trade Laws (Trading Across Borders)