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

1. 34th ADFIAP Annual Meetings Theme : “ Addressing Global Issues : Strategic Role of National Development Finance Institution “April 20-23, 2011 - Kyrenia, North Cyprus by H.E. SON Koun Thor Advisor to Samdech Techo HUN SEN, Prime Minister Vice-Chairman of the Supreme National Economic Council Chairman and CEO of the Rural Development Bank of Cambodia Rural Development Bank’s Developing Entrepreneurship in Cambodia

2. Contents slide No. I. Government Policy : 3 A/- Promotion of SME: 3 B/- Promotion of One Village One Product Movement: 5 C/- Created Chamber of Professional and Micro Enterprises: 6 II. RDB’s activities in developing entrepreneurship : 7 A/-Background : 7 B/-The main goal : 8 C/- RDB’s activities: 9 III- Lessons : 14

3. I. Government Policy : Rectangular Strategy A/- Promotion of SME : - The Government has reduced minimum requirements for the registration of SME and the company registration fee. Accounting system and financial report mechanism have been simplified. - Improvement of the business climate for SME development 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;

4. 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.

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

6. C/- Created Chamber of Professional and Micro Enterprises of Cambodia ( CPMEC ) : - 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.

7. II. RDB’s activities in developing entrepreneurship : A/-Background : - The Rural Development Bank of Cambodia ( RDB ) is a Public and autonomous enterprise, authorized to operate as a specialized bank. - RDB is focusing on rural economic development rather than commercial.

8. B/-The main goal : • 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. • To provide technical training to MFIs & Credit operators, especially help the credit operators in transforming to MFI.

9. C/- RDB’s activities: 1- Provide Financial : a/- Supports MFIs : RDB provides loan to farmers and micro/small enterprises through Microfinance Institutions, and others Credit Operators. b/- Supports Communities : RDB also gives loan to Agriculture Development Community as a pilot test. The interest rate has reached its members would be lower than MFIs.

10. c/- Supports SME : -RDB gives loans to SME In term of working capital to collect paddy and investment capital to upgrade its machinery. -SME and Microfinance Integration is the new method that RDB has used sufficiently in improving the living standard of rural people. For instance: .SME and Microfinance Integration in Malay District, BanteayMeanchey Province, and .Green Community Project implemented by Baitang (Cambodia) Ltd.

11. d/- Supports OVOP : RDB has supported OVOP’s members such as Cambodian Sedge Mats Association in term of loan to improve Cambodian products. e/- Supports CPMEC : 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.

12. 2- Provide Technical Training : 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.

13. c/- To OVOP Communities : In collaboration with GTZ, organizing a series of workshops to promote the One Village One Product Movement. All workshops focusing on important products which have great market potential. d/- To CPMEC : -Provide technical assistant, helping to do the business plan -Provide training workshops at both, the national and provincial level such as products development, marketing…

14. III- Lessons : • Micro-Financeand SME Integration operation : • production processing market. • For poor communities : nurturing process, strong • monitoring and evaluation. • Flexible terms of credit; and • Good community leadership.

16. Silk products Asparagus and Red Corn

17. Marble sculpture Silver products

18. Thanks for your attention