วิเชีย สวน. Key factors affecting the performance of foreign direct investment in Cambodia. Master's Degree(International Business). University of the Thai Chamber of Commerce. : University of the Thai Chamber of Commerce, 2005.
Cambodia
Key factors affecting the performance of foreign direct investment in Cambodia
Abstract:
The objectives of this study are threefold (1) to find out the key factors affecting the performance of foreign direct investment in Cambodia (2) to explore the problems being faced by foreign investors in Cambodia. (3) to identify the performance of foreign direct investment in Cambodia. The research model are used for this research is adapted from OLI (Ownership, Internalization and Location) which formulated to the conceptual framework, developed from Czinkota and Rokainen (2001), Gilomre, Os Donnel, Carson & Cummins (2003).The study shows the factors affecting the performance of foreign direct investment in Cambodia which composed of three factors (cost factors, market factors, and investment climate), and the problem being faced by the foreign investors in Cambodia which are constructed by 20 potential factors. The research is analyzed based on qualified 141 questionnaires that are collected from various industries by using: percentage, mean, standard deviation and simple regression model. The main finding in this research, regarding to the factors affecting the performance of foreign direct investment in Cambodia, indicates that domestic market (local market growth, local market size), export market (GSP & MFN), transportation cost, political instability and risk, government incentive (investment incentive, tax holiday, import and export exemption), economic policy (inflation, corporate tax) have positive relationship with the performance of foreign direct investment in Cambodia. Regarding to the problems of doing business in Cambodia, the research also found that legal system/bureaucracy, tax regime are the most problem for the foreign investors in Cambodia, while insufficient of investment incentive, local infrastructure, economic situation, clarity and validity of information on investment, political and social situation, lower labor skill, small local market, country image and exchange rate are the high problem for doing business in Cambodia. Behavior of local worker, local transportation, development local banking, competition, linkage of business network, expiry of GSP and firms financial restriction indicate medium problem. Regarding to the performance of foreign direct investment in Cambodia in term of sale growth from 2000 to 2004, most of company are perform well by increasing their sale from 1 percent to over 27%, except the sale of 12 firms had been decreased and only 1 firm, the sale had been stable. The finding of this study lead to recommend the Royal Government of Cambodia should focus and improve on the above results. The researcher has recommended to the Royal Government of Cambodia to support the foreign firms by cut some administration procedures (bureaucracy costs), reduce utilities cost, improve infrastructures.