CAMBODIA : The Asian Development Bank (ADB) has approved US$50m loan program to boost economic competitiveness
The ADB’s loan programs with Cambodia include financial support for a Trade and Competitiveness Program which aims to support Cambodia’s post-Covid-19 economic recovery. The program has three priority areas of focus: The first is to enhance the investment and business environment for both domestic and foreign firms operating in Cambodia to stimulate business growth and help businesses to migrate to higher value-added segments as necessary. The Cambodian government has also enacted reforms to its investment law to better codify legal protections for investors, including investment in special economic zones, and upgraded an online business portal to enable the timely issuance of specialized digital business licenses. The second area focused on fostering the growth of micro, small, and medium-sized enterprises (MSMEs) by improving the accessibility of financial resources to MSMEs to finance, helping them find new markets, and distributing a government-funded assistance package are among the top initiatives. The final area focuses on strengthening Cambodia’s trade policy and trade facilitation capabilities in accordance with the recently approved National Road Map on Trade Facilitation. The work in this area is to improve the implementation of regional trade agreements such as the RCEP and strengthen coordination across various stakeholders on trade facilitation to boost exports.