Social

Technological
Economic

Environmenta
l
Political

First language is Khmer (96.3%), English is a growing second

language
Population of 15, 708, 756
77.2% Literacy rate
7% GDP Growth
0.30% Unemployment
1.90 Inflation rate

1.42 Interest Rates

20% Corporate Tax rate

Legal
Ethical
Political
At 20%, Cambodians corporate taxes are relatively lower than their ASEAN
counterparts. In addition, interest rates are currently at 1.42%. These present large
growth opportunities for NSPs expansion into Cambodia. Profits will still be
substantial while the low interest rates offer NSP an alternative solution to finance its
expansion. Cambodia has also created a new regulation allowing credit bureaus to
collect and distribute positive as well as negative credit information. Cambodia is also
a member of ASEAN and in 2015 they implemented the ASEAN Economic
Community. This initiative strives to further integrate the ASEAN members to foster
increase in economic activity. NSP will be able to exploit its opportunities to provide
credit information of Cambodias SMEs to businesses from ASEAN countries.
Economic
Cambodias real GDP growth of 7% projects huge potential for the creation of new
SMEs. As the economy grows, NSP will be able to service more businesses and
provide credit information. On the other hand, the unemployment rate of 0.30% is a
threat to the expansion of NSP. If may be difficult for them to find employees as they
compete with other businesses for the best-trained staff.
Social
96.3% of Cambodians use Khmer as their first language while English is increasingly
becoming a major language. As NSP expands into Cambodia, it will have to employ

locals to run its business and this may be a challenge to the process flow of selling
credit information. Furthermore, Cambodia has a literacy rate of 77.2%, which may
pose a challenge to find the ideal employee who understands the complexity of the
business.

Technological
Though the Information and Communication Technology (ICT) sector in Cambodia
has been growing, there are challenges that still hinder businesses from fully utilizing
the services. Internet provision is hindered by the lack of fixed telephone lines and
high costs. An estimate of Internet subscribers are at 17,000 the second lowest
within ASEAN countries. NSPs provision of credit information depends on the
connectivity and usage of the Internet by SMEs in Cambodia and the lack of
connectivity or technical knowledge will impede its growth and profits.
Sources:
http://www.ifc.org/wps/wcm/connect/70858880474dce1595069f11d57e6c63/Cam+S
ME-Financial+Services+and+Products.pdf?MOD=AJPERES
http://www.fi2020progressreport.org/cambodias-new-credit-bureau/
https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-ratesonline/corporate-tax-rates-table.html
http://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/Documents/
asean-tax-guide-v2.pdf
https://www.cia.gov/library/publications/the-world-factbook/geos/cb.html
http://www.doingbusiness.org/data/exploreeconomies/cambodia/~/media/giawb/doin
g%20business/documents/profiles/country/KHM.pdf
https://www.moc.gov.kh/tradeswap/userfiles/file/uploadedfiles/Gallery/4.%20Benefits
%20and%20Challenges%20for%20Cambodia%20on%20AEC
%2020159_16_2014_10_40_5.pdf

http://aseanup.com/benefits-asean-economic-community-aec/
http://www.bloombergbriefs.com/content/uploads/sites/2/2014/12/asean_integration_
2015-optim2.pdf