606 new companies were granted operating licenses in Cambodia in the first Quarter of this year.
Many of the new companies come from China, South Korea, Japan and Vietnam as well as Cambodian-owned businesses. The firms mainly deal in the textile and footwear industry, agriculture, tourism, construction and real-estate.
Even with so many firms opening there was decrease of 33 percent compared with the 904 firms during the same period last year, and in 2012 Cambodia granted 3,385 licenses for new firms a nine percent rise yearly, in a report by the commerce ministry on Tuesday.
Yim Rom, an official at the ministry's statistics and planning department, said the drop in new business registration was due to the ministry's restrictions on registration procedures by thoroughly examining proposed companies' business plans in order to ensure fair competition and to avoid duplicated trademarks.
Kang Chandararot, president of the Cambodia Institute of Development Study, said the restrictions will build more confidence for both local and foreign investors.
