Cambodia: Business registrations plunge

• Apr 17, 2020

The number of business registrations for the first three months of the year have plunged dramatically compared with the same period last year.

From January to March 2020, Cambodian-registered businesses to around 2,868 companies and enterprises, dropped about 27.7 percent compared with 3,968 companies and enterprises in the same period in 2019, according to the report from the Ministry of Commerce.

The report said that in Q1 of 2020, companies’ registration was 2,013, down 16 percent compared with 2,397 in the same period last year. It also reported that registered enterprises fell to around 45.67 percent, from 1,571 in Q1 2019 to 855 in Q1 2020.

Om Dararith, the director at the MoC’s Business Registration Department, told Khmer Times that compared with Q1 2019, the business registration in Q1 2020 has dropped remarkably.

He said that the main factor to push the business registration down in Cambodia is the COVID-19 pandemic which has deterred the investors and business to run businesses in overseas, while some countries have applied travel restrictions or lockdowns.

“The main factor is the COVID-19 pandemic, especially as there are no Chinese companies to register and open businesses in Cambodia,” he said.

“I think they have suspended their business for a while as previously they proposed to open companies, but they have not yet registered. Now, many countries are imposing travel bans and it makes it difficult for investors and business people to make investments in Cambodia,” Om said.

“Some investors in Thailand and Singapore are also stuck for the moment, so there is no growth in the registration. We normally receive company registrations both locally and internationally,” he said.

“During this COVID-19 pandemic, everything is just silent,” he added.

Source: https://www.khmertimeskh.com/50714185/business-registrations-plunge/