Political Links Influence Way Of Doing Business In Cambodia

PHNOM PENH, Nov 7 (Bernama) -- A study on the investment climate in Cambodia undertaken by the World Bank showed that companies with links with political leaders and organised crime have more influence over business regulations in the country.

Charis Woerffel, social research director of Indochina Research which is carrying out the study for World Bank, said initial results from 100 respondents showed they are also influenced to a lesser extent by business associations and foreign firms operating in Cambodia.

Asked who have less influence on them, the respondents, mostly small companies, mentioned international development agencies, said Woerffel at the Cambodia Investment, Trade and Infrastructure Conference here today.

But she was quick to point out it was preliminary results as they have only interviewed 100 of the targeted 500 firms operating in Phnom Penh, Seam Reap, Sihanoukville, Kampong Cham and Battambang.

The selected firms are in the garment, tourism, retail and trade industries, she said.

On a positive note, Woerffel said the respondents wanted to invest more in the next three years but also cited concern over corruption, anti-competitive issues and high electricity tariffs.

Senior partner of Sciaroni & Associates, Brett Sciaroni, described Cambodia as the "best kept secret" of Asia desite some rating agencies and international development agencies giving it poor marks.

"There is a lot of potential in the country. With all the poor reports and rankings, the country still attracts interest and that is why we have 600 participants today, more than double the number two years ago," he said.

One of the main reasons for the foreign interest was political stability, Sciaroni said, adding that the current government has been in office for some time and likely to win the mandate again in the election next year.

"There are little changes to the ministries and the ministers are the same. So there is not much swing in policies," he said.