34th ADFIAP Annual Meetings Theme : “ Addressing Global Issues : Strategic Role of National Theme : “ Addressing Global Issues : Strategic Role of National

Development Finance Institution “Development Finance Institution “April 20-23, 2011 - Kyrenia, North CyprusApril 20-23, 2011 - Kyrenia, North Cyprus

by H.E. SON Koun ThorAdvisor to Samdech Techo HUN SEN, Prime Minister

Vice-Chairman of the Supreme National Economic CouncilChairman and CEO of the Rural Development Bank of Cambodia

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Rural Development Bank’s Rural Development Bank’s Developing Entrepreneurship in Developing Entrepreneurship in

CambodiaCambodia

ContentsContents slide slide No.No.

I. Government Policy :I. Government Policy : 33

A/- Promotion of SME: A/- Promotion of SME: 33

B/- Promotion of One Village One Product Movement:B/- Promotion of One Village One Product Movement:55

C/- Created Chamber of Professional and Micro Enterprises:C/- Created Chamber of Professional and Micro Enterprises: 66

II. RDB’s activities in developing entrepreneurship :II. RDB’s activities in developing entrepreneurship : 77

A/-Background :A/-Background : 77

B/-The main goal :B/-The main goal : 88

C/- RDB’s activities:C/- RDB’s activities: 99

III- Lessons :III- Lessons : 1414

22

A/- Promotion of SME :A/- Promotion of SME : - - The Government has reduced minimum requirements for the The Government has reduced minimum requirements for the registration of registration of

SME and the company registration fee. SME and the company registration fee. Accounting system and financial report mechanism have Accounting system and financial report mechanism have been simplified.been simplified.

- - Improvement of the business climate for SME development Improvement of the business climate for SME development focusing on four main aspects :focusing on four main aspects :

1-Legal and regulatory framework-facilitating registration

particularly via internet system, defining procedures and principles for inspection and certificate of origin for import and export, and adoption of a sub-decree on trade facilitation through risk management;

I. Government Policy : I. Government Policy : Rectangular Rectangular Strategy Strategy

33

2- Financing-creation of financial leasing companies, and

strengthening governance and financial report;

3- Supportive actions for small and medium enterprises-

promoting innovation and technology as well as

financing for small and medium enterprises, and

strengthening and widening other supportive services;

4- Integrating small and medium enterprises into a global

value chain and preventing all kinds of smuggling. 44

- Encouraging inventions, entrepreneurship, and self-confidence in rural areas.

- This movement provides a comprehensive network linking production to the market, helps maintain regional identity, and encourages new initiatives for product diversification.

- Promoting technical training for special products within some regions in the context of strengthening quality and expanding markets which are critical for further support to and participation in this movement.

B/- Promotion of One Village One Product B/- Promotion of One Village One Product Movement :Movement :

55

- - To help develop to all product and services by encouraging the growth and expansion of the handicraft and micro enterprises.

- - To provide training to professional craft artisans and the growing urban micro enterprise sector.

C/- Created Chamber of Professional and C/- Created Chamber of Professional and

Micro Enterprises of Cambodia ( CPMEC ) Micro Enterprises of Cambodia ( CPMEC ) ::

66

A/-Background :A/-Background :

-- The Rural Development Bank of Cambodia The Rural Development Bank of Cambodia ( RDB ) is ( RDB ) is

a Public and autonomous enterprise, authorized a Public and autonomous enterprise, authorized to to

operate as a specialized bank.operate as a specialized bank.

- RDB is focusing on rural economic development - RDB is focusing on rural economic development

rather than commercial. rather than commercial.

II. RDB’s activities in developing II. RDB’s activities in developing entrepreneurship : entrepreneurship :

77

B/-The main goal :B/-The main goal :

- To provide finance to licensed financial To provide finance to licensed financial institutions, commercial banks, specialized institutions, commercial banks, specialized banks, Micro finance institutions, credit banks, Micro finance institutions, credit operators, associations, development operators, associations, development communities and micro-small and medium communities and micro-small and medium enterprises.enterprises.

- To provide technical training to MFIs & To provide technical training to MFIs & Credit operators, especially help the credit Credit operators, especially help the credit operators in transforming to MFI. operators in transforming to MFI.

88

C/- RDB’s C/- RDB’s activities:activities:

1- Provide Financial : 1- Provide Financial :

a/a/- Supports MFIs : - Supports MFIs :

RDB provides loan to farmers and micro/small RDB provides loan to farmers and micro/small enterprises through Microfinance Institutions, and enterprises through Microfinance Institutions, and others Credit Operators. others Credit Operators.

b/- Supports Communities : b/- Supports Communities :

RDB also gives loan to Agriculture Development RDB also gives loan to Agriculture Development Community as a pilot test. The interest rate has Community as a pilot test. The interest rate has reached its members would be lower than MFIs. reached its members would be lower than MFIs.

99

c/- Supports SME : c/- Supports SME :

-RDB gives loans to SME In term of working capital to -RDB gives loans to SME In term of working capital to collect paddy and investment capital to upgrade its collect paddy and investment capital to upgrade its machinery.machinery.

-SME and Microfinance Integration is the new method that -SME and Microfinance Integration is the new method that RDB has used sufficiently in improving the living standard RDB has used sufficiently in improving the living standard of rural people. of rural people.

For instance: For instance:

.SME and Microfinance Integration in Malay District, .SME and Microfinance Integration in Malay District, Banteay Meanchey Province, and Banteay Meanchey Province, and

.Green Community Project implemented by Baitang .Green Community Project implemented by Baitang (Cambodia) Ltd.(Cambodia) Ltd.

1010

d/- Supports OVOP : d/- Supports OVOP :

RDB has supported OVOP’s members such as RDB has supported OVOP’s members such as Cambodian Sedge Mats Association in term of Cambodian Sedge Mats Association in term of loan to improve Cambodian products.loan to improve Cambodian products.

e/- Supports CPMEC : e/- Supports CPMEC :

Providing loan to CPMEC’s members to build rice Providing loan to CPMEC’s members to build rice miller and mill rice for exportation and local miller and mill rice for exportation and local consumption, create local employment, and consumption, create local employment, and collect paddy in order to stop paddy exportation.collect paddy in order to stop paddy exportation.

1111

a/- To MFIs and Communities : a/- To MFIs and Communities : Since 2001 under IFAD project, RDB has had the Since 2001 under IFAD project, RDB has had the training funds component to conduct training courses training funds component to conduct training courses on on Credit Analysis, Accounting/Credit Analysis, Accounting/bookkeeping and Loan Monitoring. bookkeeping and Loan Monitoring. At present, there is no training At present, there is no training fund for them anymore but fund for them anymore but they can request RDB to conduct they can request RDB to conduct training.training.

b/- To SME : b/- To SME : Beside financial supports, RDB also provide Beside financial supports, RDB also provide training to SME such as Rice Millers on how to training to SME such as Rice Millers on how to prepare Business Plan, financial reports and prepare Business Plan, financial reports and Bookkeeping record. Bookkeeping record.

2- Provide Technical Training :

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c/- To OVOP Communities : c/- To OVOP Communities :

In collaboration with GTZ, organizing a series of workshops In collaboration with GTZ, organizing a series of workshops to promote the One Village One Product Movement. to promote the One Village One Product Movement.

All workshops focusing on important products which have All workshops focusing on important products which have great market potential. great market potential.

d/- To CPMEC : d/- To CPMEC :

--Provide technical assistant, helping to do the business planProvide technical assistant, helping to do the business plan

--Provide training workshops at both, the national and Provide training workshops at both, the national and

provincial level such as products development, provincial level such as products development, marketing…marketing…

1313

III- Lessons :III- Lessons :

Micro-Finance and SME Integration operation :

production processing market. For poor communities : nurturing process, strong

monitoring and evaluation. Flexible terms of credit; and Good community leadership.

1414

1515

1616

Silk productsSilk products

Asparagus and Red Corn Asparagus and Red Corn

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Marble sculptureMarble sculpture

Silver productsSilver products

  

  

Thanks for your attentionThanks for your attention

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