Cambodia

In 1863 Cambodia was placed under French rule and eventually became part of French Indochina. In 1953, the country became sovereign and by 1975, Khmer Rouge, a communist, had taken over the capital. In 1978, the Vietnamese subjected the country to a 10-year occupation. In 1991, the Paris Peace Accords demanded that democratic elections be held in Cambodia. Because of much fighting, the first government failed and another was created in 1998. While elections held in 2003 were calm, a year of discussions had to go by before a new government could be formed. Cambodia is being criticized from human rights groups for relocating people to areas with poor conditions; these relocations are a must for modernization and development, Cambodia claims.

Main Airports

Phnom Penh International Airport (PNH), Siem Reap International Airport (REP)

U.S. Embassy

#1, Street 96, Sangkat Wat Phnom
tel: (855) 23-728-000

Statistics

GDP: purchasing power parity:

$30.65 billion (2005 est.)

GDP - real growth rate:

6% (2005 est.)

GDP - per capita: purchasing power parity:

2,200 (2005 est.)

Inflation rate (consumer prices):

5.8% (2005 est.)

Labor force:

7 million (2003 est.)

Exports:

$2.663 billion f.o.b. (2005 est.)

Exports - partners:

US 48.6%, Hong Kong 24.4%, Germany 5.6%, Canada 4.6% (2005)

Imports:

$3.538 billion f.o.b. (2005 est.)

Imports - partners:

Hong Kong 16.1%, China 13.6%, France 12.1%, Thailand 11.2%, Taiwan 10.2%, South Korea 7.5%, Vietnam 7.1%, Singapore 4.9%, Japan 4.1% (2005)

Population:

13,881,427

Population growth rate:

1.78% (2006 est.)

Population Below Poverty Line:

40% (2004 est.)

Major Industries:

tourism, garments, rice milling, fishing, wood and wood products, rubber, cement, gem mining, textiles

Employing Workers: 124*

Registering Property: 100*

Enforcing Contracts: 118*

Closing a Business: 151*

*2006 World Bank rank out of 175 countries

Starting a Business

The table below shows the number of steps and the amount of time needed to start a business, on average

Indicator	Cambodia	Region
Procedures (number)	10	8.2
Time (days)	86	46.3

Cambodia Risk Assessment

Country Rating

Rating: D

A high-risk political and economic situation and an often very difficult business environment can have a very significant impact on corporate payment behaviour. Corporate default probability is very high.

Risk Assessment

Cambodia with 9.1 per cent growth in 2007 and 8.0°per cent expected in 2008 is among the fastest growing economies in Asia, after China. The growth drivers include the development of tourism, a construction boom, and above all the remarkable performances of the textiles sector, which generates 80 per cent of exports. But the growth rests on shaky foundations. The staying power of companies in the textiles sector is attributable more to the safeguard measures imposed on China by the European Union and the United States than to the sector's own competitiveness. The current overheating in the construction sector constitutes an additional source of vulnerability. Similarly, the good performance in the farm sector is more a reflection of favourable weather conditions than of progress on productivity. With agriculture representing 34 per cent of GDP and 70 per cent of the working population, Cambodia's economic performances and the level of consumption are largely dependent on the harvests. The continuing widespread poverty in the country only accentuates that vulnerability.

The country is highly dependent on international financial backers. Official transfers have limited the fiscal deficit with concessional aid largely financing a substantial current account deficit. But donors have shown their displeasure at the country's failure to make progress in combating corruption. International institutions have moreover rated the quality of governance in Cambodia harshly, which reflects the Coface business environment rating.

The domestic political situation has been stable. After winning local elections in April 2007 with 60 per cent of the votes cast, the Cambodian People's Party led by Prime Minister Hun Sen will surely win the upcoming legislative elections in July 2008. Tensions could develop during the legal proceedings against the Khmer Rouge with the principal leaders to stand trial starting in 2008 after many delays.

• Agriculture
• Apparel
• Arts & Crafts
• Automobile
• Bags, Cases & Boxes
• Chemicals
• Computer Hardware & Software
• Construction & Real Estate
• Consumer Electronics
• Electrical & Electronics
• Energy & Environment
• Food & Beverage
• Furniture & Furnishing
• Health & Medicine
• Home Supplies
• Industrial Supplies
• Lights & Lighting
• Machinery
• Mineral & Materials
• Office Supplies
• Security & Protection
• Service
• Sports & Entertainment
• Telecommunications
• Textile
• Toys
• Transportation