A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management

Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1996

The new government in Cambodia has adapted the new economic policy and investment law which is internationally welcome and is considered as one of the most liberal policy in the region. Therefore joint ventures in Cambodia though still a relatively new phenomena increase rapidly. However the joint ·venture partners still have to face number of problems of various types and scale during establishment and subsequent operation of their business in the country. In this research, an attempt has been made to identify and analyze the key issues and problems related to the establishment and operation of joint ventures in Cambodia. Based on a comprehensive literature review of problems and difficulties faced in establishing and operating joint ventures in developing countries and the current government policies toward foreign investment, joint ventures, in Cambodia. An analytical framework with four stages has been devised for analyzing the problems and issues associated with joint ventures in Cambodia. According to the findings of this research, the new law on investment in Cambodia is a very competitive investment incentives in Southeast Asia. However, there are many practical problems still faced by foreign investors due the lack of proper legal framework, shortage of qualified of human resources (especially skilled financial, technical and managerial personnel), and inadequate physical infrastructures (especially electricity and water supply, and roads and railways). Some guidelines suggested to the government deal with improving the legal system and the training of personnel in management to help them adapt to new challenges. Guidelines suggested to the joint venture partners deal with the practical behavior of joint venture partners and careful study of the potential sources of problems.