Business Environment in Cambodia

The challenge

CAMFEBA LogoCAMFEBA utilized the Enabling Environment for Sustainable Enterprises (EESE) methology and undertook a cons

Cambodia has implanted major economic reforms over the past decade and transformed into a trade oriented economy with prosperous industrial and service sectors. Although political stability is improving, the prevalence of corruption causes challenges. The Cambodian Federation of Employers and Business Association (CAMFEBA) is an autonomous and independent federation of Employers and Business Associations.   

CAMFEBA’s vision is to have a business environment conducive to sustainable enterprise.  The organization commissioned a perception survey with the aim of identifying policy and advocacy strategies for the promotion of sustainable enterprises in Cambodia.

 

How employers’ organizations dealt with it

The 2007 International Labour Conference discussion on the promotion of sustainable enterprises identified 17 pillars for an environment conducive to the promotion of sustainable enterprises. With the support of the ILO, CAMFEBA commisioned the report Pathways to Prosperity with overarching goal of expanding CAMFEBA’s policy portfolio, in an evidenced based way, by identifying key constraints on enterprises’ growth and developing policy recommendations that are capable of wide support and eventual implementation.

The result

CAMFEBA utilized the Enabling Environment for Sustainable Enterprises (EESE) methology and undertook a consultative process that captured the perspectives of employers and workers throughout Cambodia.   

Two priority topics identified as part of the EESE project were Skills and Industrial Relations. These topics relate to the broader ongoing National Employment Policy (NEP) process, which is also supported by the ILO. Within the NEP process four priorities were identified for commissioning research and studies. These studies focused on rural employment, macroeconomic policy and its impact on the labour market, labour migration and skills gaps. These studies contributed to the EESE report.

As a national employer organization it is necessary for CAMFEBA to have clear and structured positions on issues facing Cambodian employers.  Issues such as the dollarization of the economy, the vulnerability of the macroeconomic framework and the limited control the National Bank of Cambodia has on money supply.

An action plan based on the findings of the reports will ensure the implementation of specific measures aimed at improving the environment for sustainable enterprises in Cambodia.

The immediate and expected result

Based on primary and secondary data, the results of the overall EESE assessment indicated several key priority areas for policy development.  These included education, training and skills, corruption, social dialogue, industrial relations and social security.

Six further areas were identified for future policy reform.  These include entrepreneurial culture, trade, the rule of law and secure property rights, access to financial service and physical infrastructures.