Understanding

Global Business



Doing Business in Cambodia



Submitted By:
Jaya Gupta
A 025
E & FB




About the Company:

City Mall Developers Pvt. Ltd is one of largest real estate firm across
Madhya Pradesh & Chhattisgarh. The City Mall Developers Pvt. Ltd,
headquartered in Raipur, Chhattisgarh, India, operates in varied fields of
construction, warehousing, rice trading, commercial and residential
projects.
The organization is headed by Mr. Sanjay Gupta (Managing Director),
who fosters an environment of professionalism and has a workforce of
over 500 employees. The company has forged strong values, ethics and
moralities and has consolidated its status as one of the fastest growing
diversified business houses in central India.

Vision
To become number one developer of Retail, Leisure and Hospitality
facilities in whichever region we work.


Mission
To constantly provide our customers with a fresh and world-class
experience of shopping & leisure through state of the art facilities.





Diversification





CITY MALL DEVELOPERS PVT. LTD.

City Mall 36 is the first project of CMDPL. Built up in almost 6.7 acres
of land area in Raipur and was built in record 16 months of time. The
mall has more than 94 shopping galas, ample parking spaces two and four
wheelers in basement and at backside of the mall.
The mall is occupied by best of the retail brands like-
Big Bazaar, Globus, Inox, Lotus, Levis, Sepia, Adidas, Wills Lifestyle,
Stellar, Amoeba and many more national & international brands are
associated with them.
City Mall Developers
Pvt.Ltd.
City Mall
Vikash
Pvt. Ltd
Krish
Hotels
Pvt. Ltd
CITY MALL VIKASH PVT. LTD

CMVPL was constituted to provide world-class infrastructure in
developing cities. Beginning with City Mall 36, Bilaspur as the first mall
in the city, spread across an area of 4.5 lakh square feet. The mall is a
fully functional retail space with international brands, office space, and
multiplex.

KRISH HOTELS PVT. LTD

KHPL is registered under the Indian Companies Act, 1956, Kolkata. It is
in alliance with the internationally acclaims Marriott Hotels for opening
hotels in the state of Chhattisgarh.
Projects under KHPL-
1. JW Marriot Hotels, Raipur
2. Courtyard By Marriot, Bilaspur



















About the Industry: Hospitality and Travel

Industry Composition:
The hospitality and travel industry is a collection of companies catering
to the needs of people who travel, either leisurely or for business. These
companies provide a range of services and products. The bulk of the
industry is composed of airlines and charters; lodging, ranging from
campgrounds to five star hotels; and foodservice establishments,
including restaurants, cafes, and catering companies. The industry also
includes travel agencies and services, such as car rental or tours;
gambling, and recreation and attractions, including sporting events,
amusement parks, and roadside attractions. These different services also
merge to offer options such as resorts or cruise lines - a mix of lodging,
attractions, and even transportation. In the United States alone, there are
over four million guest accommodations available, and many billions of
dollars are spent on travel; with global travel becoming more affordable
and in greater demand, the hospitality and travel industry will become
increasingly important.
Leaders: Delta Air Lines, Southwest Airlines and United Continental
proved best able to transport people in the often-fickle U.S. market, the
worlds largest, and have emerged, along with Air France and Lufthansa,
as leaders in airline travel. Big travel services providers include American
Express, Cendant, Expedia and Travelocity. In terms of lodging; Hilton,
Marriott, Wyndham, Accor, Best Western and Intercontinental HG are
the largest hotel groups in the business. Major companies in the global
foodservice market are McDonalds, Yum! Brands, Starbucks and Darden
Restaurants. In the entertainment industry, Time Warner, Vivendi
Universal and Walt Disney are major players.
Cambodia: Introduction

Cambodia is a country in Southeast Asia that borders the Gulf of
Thailand. Neighboring countries include Laos, Thailand, and Vietnam.
The geography of Cambodia is mountainous in the southwest and north
and dominated by the Mekong River and Tonle Sap Lake. The
government system is a multiparty democracy under a constitutional
monarchy; the chief of state is the King and the head of government is the
Prime Minister. Cambodia has a mixed economic system, self-defined as
a planned economy with markets, in which the economy includes a
variety of private freedom, combined with centralized economic planning
and government regulation. Cambodia is a member of the Association of
Southeast Asian Nations (ASEAN).

Cambodia is benefiting from two decades of relative stability, having
endured civil war and the murderous rule of the Khmer Rouge.
As it attempts to end its dependence on foreign aid, the country's
economic potential and natural resources are drawing foreign investment
- especially from China and neighbouring Vietnam.
Garment-making is the biggest industry, employing around half a million
people and accounting for 80% of exports. Tourism is expanding, and
Cambodia hopes to tap into offshore oil and gas reserves.
Cambodia: Economy
From 2001-2010, the Cambodian economy expanded by, on average, 8%
per year, with the garment sector and the tourism industry driving the
growth, and inflation remaining relatively low. The onset of the global
recession led to a 0.1% contraction in 2009, but growth resumed in 2010
at 5.95%. The economy is heavily dollarized; the dollar and riel can be
used interchangeably. Cambodia remains heavily reliant on foreign
assistance--about half of the central government budget depends on donor
assistance. Foreign direct investment (FDI) has increased 12-fold since
2004 as sound macroeconomic policies, political stability, regional
economic growth, and government openness toward investment attract
growing numbers of investors.
Manufacturing output is concentrated in the garment sector, and garments
dominate Cambodia's exports, especially to the U.S. and the EU. The
industry expanded rapidly from the mid-1990s until 2008, employing
350,000 workers and generating $3 billion in annual revenue at its peak.
The global economic slowdown caused a drop in demand, resulting in a
more than 20% decline in garment exports and an estimated 60,000
unemployed workers from late 2008 through 2009. In 2010, the garment
sector grew 15%. Employment in the sector and garment exports are
expected to reach pre-crisis levels in 2011. Tourism levels, which
increased to approximately two million arrivals in 2008 but were also
hurt by the global downturn, rebounded to 2.15 million arrivals in 2010.
The service sector is heavily concentrated in trading activities and
catering-related services. The real estate sector contracted by 15.8% and
land prices declined 10%-15% in 2010. Both commercial bank credits
and deposits grew between 20%-25% in 2010.

Economy



Cambodia, Trends in the Human Development Index 1970-2010

In 2011 Cambodia's per capita income in PPP is $2,470 and $1,040 in
nominal per capita. Cambodia's per capita income is rapidly increasing
but is low compared to other countries in the region. Most rural
households depend on agriculture and its related sub-sectors. Rice, fish,
timber, garments and rubber are Cambodia's major exports. The
International Rice Research Institute (IRRI) reintroduced more than 750
traditional rice varieties to Cambodia from its rice seed bank in the
Philippines. These varieties had been collected in the 1960s.
Based on the Economist, IMF: Annual average GDP growth for the
period 20012010 was 7.7% making it one of the world's top ten
countries with the highest annual average GDP growth. Tourism was
Cambodia's fastest growing industry, with arrivals increasing from
219,000 in 1997 to over 2 million in 2007. In 2004, inflation was at 1.7%
and exports at $1.6 billion US$.
China is Cambodia's biggest source of foreign direct investment. China
planned to spend $8 billion in 360 projects in the first seven months of
2011. It is also the largest source of foreign aid, providing about
$600 million in 2007 and $260 million in 2008.
The National Bank of Cambodia is the central bank of the kingdom and
provides regulatory oversight to the country's banking sector and is
responsible in part for increasing the foreign direct investment in the
country. Between 2010 and 2012 the number of regulated banks and
micro-finance institutions increased from 31 covered entities to over 70
individual institutions underlining the growth within the Cambodian
banking and finance sector.
In 2012, Credit Bureau Cambodia was established with direct regulatory
oversight by the National Bank of Cambodia. The Credit Bureau further
increases the transparency and stability within the Cambodian Banking
Sector as all banks and micro-finance companies are now required by law
to report accurate facts and figures relating to loan performance in the
country.
One of the largest challenges facing Cambodia is still the fact that the
older population often lacks education, particularly in the countryside,
which suffers from a lack of basic infrastructure. Fear of renewed
political instability and corruption within the government discourage
foreign investment and delay foreign aid, although there has been
significant aid from bilateral and multilateral donors. Donors pledged
$504 million to the country in 2004, while the Asian Development Bank
alone has provided $850 million in loans, grants, and technical assistance.
Tourism
The tourism industry is the country's second-greatest source of hard
currency after the textile industry. Between January and December 2007,
visitor arrivals were 2.0 million, an increase of 18.5% over the same
period in 2006. Most visitors (51%) arrived through Siem Reap with the
remainder (49%) through Phnom Penh and other destinations. Other
tourist destinations include Sihanoukville in the south west which has
several popular beaches and the sleepy riverside town of Battambang in
the east, both of which are a popular stop for backpackers who make up a
large of portion of visitors to Cambodia. The area around Kampot and
Kep including the Bokor Hill Station are also of interest to visitors.
Tourism has increased steadily each year in the relatively stable period
since the 1993 UNTAC elections; in 1993 there were 118,183
international tourists, and in 2009 there were 2,161,577 international
tourists.
Most of the tourists were Japanese, Chinese, Filipinos, Americans, South
Koreans and French people, said the report, adding that the industry
earned some 1.4 billion U.S. dollars in 2007, accounting for almost ten
percent of the kingdom's gross national products. Chinese-language
newspaper Jianhua Daily quoted industry officials as saying that
Cambodia will have three million foreign tourist arrivals in 2010 and five
million in 2015. Tourism has been one of Cambodia's triple pillar
industries. The Angkor Wat historical park in Siem Reap province, the
beaches in Sihanoukville and the capital city Phnom Penh are the main
attractions for foreign tourists.
Cambodia's tourist souvenir industry employs a lot of people around the
main places of interest. Obviously, the quantity of souvenirs that are
produced is not sufficient to face the increasing number of tourists and a
majority of products sold to the tourists on the markets are imported from
China, Thailand and Vietnam.

STARTING A BUSINESS

Formal registration of companies has many immediate benefits for the
companies and for business owners and employees. Legal entities can
outlive their founders. Resources are pooled as several shareholders join
forces to start a company. Formally registered companies have access to
services and institutions from courts to banks as well as to new markets.
And their employees can benefit from protections provided by the law.
An additional benefit comes with limited liability companies. These limit
the financial liability of company owners to their investments, so personal
assets of the owners are not put at risk. Where governments make
registration easy, more entrepreneurs start businesses in the formal sector,
creating more good jobs and generating more revenue for the
government.

Where does the economy stand today?
What does it take to start a business in Cambodia? According to data
collected by Doing Business, starting a business there requires 11
procedures, takes 104.0 days, costs 150.6% of income per capita and
requires paid-in minimum capital of 27.5% of income per capita.



Globally, Cambodia stands at 184 in the ranking of 189 economies on the
ease of starting a business (figure 2.2). The rankings for comparator
economies and the regional average ranking provide other useful
information for assessing how easy it is for an entrepreneur in Cambodia
to start a business.




What are the changes over time?

The benchmarks provided by the economies that over time have had the
best performance regionally or globally on the procedures, time, cost or
paid-in minimum capital required to start a business (figure 2.3) can help
show what is possible in making it easier to start a business. And changes
in regional averages can show where Cambodia is keeping upand
where it is falling behind.





Procedures (number)


Time (days)


Economies around the world have taken steps making it easier to start a
businessstreamlining procedures by setting up a one-stop shop, making
procedures simpler or faster by introducing technology and reducing or
eliminating minimum capital requirements. Many have undertaken
business registration reforms in stagesand they often are part of a larger
regulatory reform program. Among the benefits have been greater firm
satisfaction and savings and more registered businesses, financial
resources and job opportunities.

What are the details?

Underlying the indicators shown in this chapter for Cambodia is a set of
specific proceduresthe bureaucratic and legal steps that an entrepreneur
must complete to incorporate and register a new firm. Following is a
detailed summary of those procedures, along with the associated time and
cost. These procedures are those that apply to a company matching the
standard assumptions (the standardized company).

Summary of procedures for starting a business in Cambodiaand the
time and cost