PHNOM PENH, Nov. 26 (Xinhua) -- The Asian Development Bank (ADB) has approved a 50 million U.S. dollars policy-based loan to support Cambodia's efforts to make the business environment more investment-friendly, upgrade businesses toward higher competitiveness, and ease trade barriers.
In its press release on Tuesday, the lender said this second subprogram of the ongoing Trade and Competitiveness Program is reinforcing the government's efforts to leverage private sector investments to achieve higher, inclusive, and sustainable growth to improve the lives and livelihoods of its citizens.
"This program supports ADB's continued commitment to advancing Cambodia's economic potential and creating a more robust enabling ecosystem for business to grow, leading to increased investment, job creation, and sustainable economic growth," said ADB Country Director for Cambodia Jyotsana Varma.
It focuses on micro, small, and medium-sized enterprises (MSMEs) as they are the backbone of the economy, and their growth is crucial to drive competitiveness, she added.
"Through targeted incentives, we aim to empower them to diversify, integrate digital solutions, and increase productivity," Varma said. "This program also seeks to facilitate smoother, more efficient cross-border trade by improving regulatory frameworks, streamlining procedures, and reducing barriers to trade, leading to Cambodia being better positioned to participate in regional and global markets."
The program will help streamline business regulations and enhance public services, making it easier to do business in Cambodia.
"By 2027, the program would lead to some 50,000 MSMEs being formally registered in the online business registration system, and digitally secure necessary business licenses, certificates, and permits," the press release said.
In parallel, the program provides incentives and technological support to MSMEs to encourage them to expand in strategic sectors and move up the value chain, it added. ■
