Rural Development Bank’s Developing Entrepreneurship in Cambodia


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Rural Development Bank’s Developing Entrepreneurship in Cambodia

  1. 1. 34 th ADFIAP Annual Meetings Theme : “ Addressing Global Issues : Strategic Role of National Development Finance Institution “ April 20-23, 2011 - Kyrenia, North Cyprus <ul><li>by H.E. SON Koun Thor </li></ul><ul><li>Advisor to Samdech Techo HUN SEN, Prime Minister </li></ul><ul><li>Vice-Chairman of the Supreme National Economic Council </li></ul><ul><li>Chairman and CEO of the Rural Development Bank of Cambodia </li></ul>Rural Development Bank’s Developing Entrepreneurship in Cambodia
  2. 2. Contents slide No. <ul><li>I. Government Policy : 3 </li></ul><ul><li>A/- Promotion of SME: 3 </li></ul><ul><li>B/- Promotion of One Village One Product Movement: 5 </li></ul><ul><li>C/- Created Chamber of Professional and Micro Enterprises: 6 </li></ul><ul><li>II. RDB’s activities in developing entrepreneurship : 7 </li></ul><ul><li>A/-Background : 7 </li></ul><ul><li>B/-The main goal : 8 </li></ul><ul><li>C/- RDB’s activities: 9 </li></ul><ul><li>III- Lessons : 14 </li></ul>
  3. 3. <ul><li>A/- Promotion of SME : </li></ul><ul><li> - The Government has reduced minimum requirements for the registration of SME and the company registration fee. </li></ul><ul><li>Accounting system and financial report mechanism have </li></ul><ul><li>been simplified. </li></ul><ul><li> - Improvement of the business climate for SME development </li></ul><ul><li> focusing on four main aspects : </li></ul><ul><li>1-Legal and regulatory framework-facilitating registration </li></ul><ul><li>particularly via internet system, defining procedures and principles for inspection and certificate of origin for </li></ul><ul><li>import and export, and adoption of a sub-decree on trade facilitation through risk management; </li></ul>I. Government Policy : Rectangular Strategy
  4. 4. <ul><li>2- Financing-creation of financial leasing companies, and </li></ul><ul><li>strengthening governance and financial report; </li></ul><ul><li>3- Supportive actions for small and medium enterprises- </li></ul><ul><li>promoting innovation and technology as well as </li></ul><ul><li>financing for small and medium enterprises, and </li></ul><ul><li>strengthening and widening other supportive services; </li></ul><ul><li>4- Integrating small and medium enterprises into a global </li></ul><ul><li>value chain and preventing all kinds of smuggling. </li></ul>
  5. 5. - 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 Movement :
  6. 6. <ul><li>- To help develop to all product and services by encouraging the </li></ul><ul><li>growth and expansion of the handicraft and micro enterprises. </li></ul><ul><li>- To provide training to professional craft artisans and the </li></ul><ul><li>growing urban micro enterprise sector. </li></ul>C/- Created Chamber of Professional and Micro Enterprises of Cambodia ( CPMEC ) :
  7. 7. <ul><li>A/-Background : </li></ul><ul><li>- The Rural Development Bank of Cambodia ( RDB ) is </li></ul><ul><li>a Public and autonomous enterprise, authorized to </li></ul><ul><li>operate as a specialized bank. </li></ul><ul><li>- RDB is focusing on rural economic development </li></ul><ul><li>rather than commercial. </li></ul>II. RDB’s activities in developing entrepreneurship :
  8. 8. <ul><li>B/-The main goal : </li></ul><ul><li>To provide finance to licensed financial institutions, commercial banks, specialized banks, Micro finance institutions, credit operators, associations, development communities and micro-small and medium enterprises. </li></ul><ul><li>To provide technical training to MFIs & Credit operators, especially help the credit operators in transforming to MFI. </li></ul>
  9. 9. C/- RDB’s activities: <ul><li>1- Provide Financial : </li></ul><ul><li>a/ - Supports MFIs : </li></ul><ul><li>RDB provides loan to farmers and micro/small enterprises through Microfinance Institutions, and others Credit Operators. </li></ul><ul><li>b/- Supports Communities : </li></ul><ul><li>RDB also gives loan to Agriculture Development Community as a pilot test. The interest rate has reached its members would be lower than MFIs. </li></ul>
  10. 10. <ul><li>c/- Supports SME : </li></ul><ul><li>-RDB gives loans to SME In term of working capital to collect paddy and investment capital to upgrade its machinery. </li></ul><ul><li>-SME and Microfinance Integration is the new method that RDB has used sufficiently in improving the living standard of rural people. </li></ul><ul><li>For instance: </li></ul><ul><li>.SME and Microfinance Integration in Malay District, Banteay Meanchey Province, and </li></ul><ul><li>.Green Community Project implemented by Baitang (Cambodia) Ltd. </li></ul>
  11. 11. <ul><li>d/- Supports OVOP : </li></ul><ul><li>RDB has supported OVOP’s members such as Cambodian Sedge Mats Association in term of loan to improve Cambodian products. </li></ul><ul><li>e/- Supports CPMEC : </li></ul><ul><li>Providing loan to CPMEC’s members to build rice miller and mill rice for exportation and local consumption, create local employment, and collect paddy in order to stop paddy exportation. </li></ul>
  12. 12. a/- To MFIs and Communities : Since 2001 under IFAD project, RDB has had the training funds component to conduct training courses on Credit Analysis, Accounting/ bookkeeping and Loan Monitoring. At present, there is no training fund for them anymore but they can request RDB to conduct training. b/- To SME : Beside financial supports, RDB also provide training to SME such as Rice Millers on how to prepare Business Plan, financial reports and Bookkeeping record. 2- Provide Technical Training :
  13. 13. <ul><li>c/- To OVOP Communities : </li></ul><ul><li>In collaboration with GTZ, organizing a series of workshops to promote the One Village One Product Movement. </li></ul><ul><li>All workshops focusing on important products which have great market potential. </li></ul><ul><li>d/- To CPMEC : </li></ul><ul><li>- Provide technical assistant, helping to do the business plan </li></ul><ul><li>- Provide training workshops at both, the national and </li></ul><ul><li>provincial level such as products development, marketing… </li></ul>
  14. 14. <ul><li>III- Lessons : </li></ul><ul><ul><li>Micro-Finance and SME Integration operation : </li></ul></ul><ul><ul><li>production processing market. </li></ul></ul><ul><ul><li>For poor communities : nurturing process, strong </li></ul></ul><ul><ul><li>monitoring and evaluation. </li></ul></ul><ul><ul><li>Flexible terms of credit; and </li></ul></ul><ul><ul><li>Good community leadership. </li></ul></ul>
  15. 15.
  16. 16. Silk products Asparagus and Red Corn
  17. 17. Marble sculpture Silver products    
  18. 18. <ul><li>Thanks for your attention </li></ul>