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

Rereach report (M.Sc.) - Asian Institute of Technology, 2005

This is a qualitative study aimed at identifying and assessing business opportunities based on analysis of the economic system and the business environment of Cambodia. The research is also attempted to address an issue of the bank system accused of short supplying loans to the private sector. The research is compiling information issued by organizations involved in the development of the private sector and economy as well as literatures, which is serving as basis for analysis. The research suggests that the economic system of Cambodia is in vicious cycle. In addition, given relatively small size of domestic market, in terms of number of population and income per capita, Cambodia can have difficulty in attracting investors. The business environment is deteriorating the situation, with corruption seen as the most important barrier to the private sector. The research comes to a conclusion that there are only some few business opportunities; in agro-industries producing primary consumption products such as sugar, fish sauce... to serve the mass consumption market; in light manufacturing sector such as silk, clothes producing materials serving as inputs for garment factories; and in tourism sector providing supporting services other than hotel and restaurants such as entertainment, tour package. And financing is not a real concern for the development of the private sector in such circumstance. It's recommended the internal economic system is strengthened through prioritizing the development of the agriculture sector and tourism, which is supposed to increase the income of rural population, make the domestic market more attractive. The reforms aimed at improving the business environment have to speed up, especially those concerning fight against the corruption. All this requires exclusively active intervention and political will of the RGC, and the spirits of the powerful and rich people of the country.