Though U.S.-owned businesses in Cambodia are optimistic of the
country’s economy, its appeal as an investment destination lags behind
most of its neighbors due to the perception of endemic corruption, a new
survey of 475 senior U.S. business executives in Asean shows.
The 2013-14 ASEAN Business Outlook Survey, jointly conducted by the American Chamber of Commerce
in Singapore and the U.S. Chamber of Commerce, cited several benefits
of doing business in Cambodia, such as low-cost labor, personal security
and a positive attitude toward the U.S.
For companies already operating in Cambodia, the profit outlook was
overwhelmingly positive—75 percent of respondents said they expected
profits to increase in 2013, and forecasting for 2014, 90 percent
anticipated an increase.
Expatriate employees based in Cambodia also expressed satisfaction
with life, with 90 percent attempting to extend their stay—the highest
percentage in the entire region.
Yet foreign companies not based in the country were less excited
about making the move to Cambodia, which placed 8th out of the 10 Asean
countries, behind Laos and Brunei. Reasons cited by companies were a
shortage of skilled workers, unfavorable laws and regulations
and underdeveloped infrastructure. But the major worry for
U.S. investors is corruption, with 81 percent of respondents raising the
concern.
“There are two groups of investors turned off by Cambodia, those who
cannot afford to pay bribes and those who do not know how to think
within a corrupt environment,” said Preap Kol, executive director of Transparency International (T.I).
Mr. Kol said countries such as Cambodia were unconcerned about
corruption—according to T.I.’s Bribe Payers Index, China, the top
investor in Cambodia, pays more bribes to other governments than any
other nation.
“It is important for Cambodian people that we have a variety of
investors, not just from a few countries, to create better competition
and even faster growth. And big companies from Western countries like
the U.S. tend to have more corporate responsibilities than countries
like China, which will help the country toward becoming
corruption-free.”
Mr. Kol said the government needs to create new laws and regulations to promote a level playing field among all businesses.
A statement accompanying the report says that the survey
is intended to provide governments with a unique window into the
sentiments of business leaders, and offer them a chance to address their
concerns.
Ministry of Commerce Secretary of State Mao Thora said the government does have plans to address Cambodia’s corruption issue.
“We have an entire corruption law by the Anti-Corruption Unit that
already exists, but the Ministry of Commerce has prepared a plan to
better implement that law to fight corruption in business and encourage
more foreign investors.”
He added that this will include putting investment policies
online for foreign companies to study, which will better explain what
documents are required and the costs involved in setting up a company.
The survey also stated that the 2015 target set by the Asean block
for creating a single regional economic market known as the Asean
Economic Community was unlikely to be met, with almost 60 percent of
respondents believing 2020 to be a more realistic date.
(Additional reporting by Eang Mengleng)
3 comments:
Hun Sen and his pigs must go!!!
low cost labor means SLAVE. Business owners everywhere around looking for cheap labor to gain profit. Cambodia is a slave country due to cheap labor. Thank you so much Cambodia for making the factory owners rich.
Corruption is only one of the symtoms of Cambodia problems.
When a country cannot control its own destiny, foreign influence and exertion, namely Yuon and Chen, Yuon the worst cultivate corruption, nepotism, abuses of democracy principles and human rights.
Cure the diseases, then their symptoms will disappear.
Khmer Girl
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