PHNOM PENH: The Asian Development Bank (ADB) has approved a US $50 million loan under the Trade and Competitiveness Program (subprogram 1) to assist Cambodia in diversifying its economy and increasing its global competitiveness.

According to ADB Senior Economist Sion L. Morton, the program's reforms will aid Cambodia's post-Covid-19 recovery by opening the path for enterprises to develop, move toward higher-value-added products, and adapt to a changing business landscape.

"The Covid-19 pandemic has severely affected key sectors of the Cambodian economy, such as garments, footwear, and textiles, as well as tourism and construction," he said.

These loans will support Cambodia's post-Covid-19 economic recovery by supporting government reforms to increase investment and the business environment, promote the growth of Micro, Small and Medium Enterprises (MSMEs), and improve trade policies and facilitation.

The Royal Government of Cambodia has approved a new investment law to provide legal protection for investors, including those in special economic zones, and to improve its online business portal to enable the timely issuance of specialized digital business licenses. At the same time, the government also established the National Committee for Trade Facilitation and adopted the National Trade Facilitation Roadmap.

Business programs and competitiveness will help improve the overall business environment for local and foreign companies.

The program will also support the development and diversification of MSMEs by improving their access to finance and creating new markets for them. At the same time, the program will assist Cambodia in the implementation of regional trade agreements and strengthening trade facilitation in order to create more opportunities for Cambodian enterprises to export goods.

The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.