| Author | Devin, Bin |
| Call Number | AIT RSPR no. SM-02-49 |
| Subject(s) | Lease and rental services--Cambodia
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| Note | A research study submitted in partial fulfilment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-02-49 |
| Abstract | The expansion of the private sector requires sufficient funds to finance its activities. This is not the case for Cambodia where the finance available for economic activities is inadequate, too much costly and exh·emely complicated to obtain. As a result, solutions should be sought by examining other different methods of financing besides bank loans. Experiences have shown that leasing is one of the effective and efficient responses to this problem because of its flexibility, sh·aightf01wardness, affordability, and in short accessibility. It is thus w011h conducting a research on the process of inh·oducing and promoting leasing business in Cambodia. For this, the paper is aimed at identifying the vital requirements for the implementation of leasing business in Cambodia. Specifically, the objectives of the study are to (i) illush·ate the importance of leasing for business financing and development, (ii) explore the leasing market in Cambodia, (iii) identify what are required for the establishment of leasing in Cambodia, and (iv) propose recommendations for leasing development in Cambodia. To attain these objectives, in-depth interviews were undertaken with the managers of eleven companies from different indush·ies, the general managers of three banks, a tax consultant of a consulting and auditing company, the managing director of a real estate film, a few government officials and a few expe11s of IFC and ADB. Leasing is supposed to offer great benefits to the private companies, financial sector and economy of Cambodia, when developed. The research study finds out that financial lease is unavailable in Cambodia, even if simple rent or operating lease is obviously available on small scale. It is further discovered that corporate awareness of leasing is very low even though private companies are willing to lease equipment in the future. The potential was found in garment/textile, construction, h·ansp011ation, and the small manufacturing sectors. The establishment of leasing requires a clear and enforceable legal framework specifically governing lease transactions. It is finally recommended that the government establish a well-defined law on leasing and a well-functioning implementation body, that a prospective lessor study their corporate clients and build relationship with them rather than asking for guarantees, increase the leasing awareness among SME's through workshops and publications, and that potential lessees show commitment to the service and demonstrate realistically their ability to pay back the money. |
| Year | 2002 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-02-49 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Ramachandran, N.; |
| Examination Committee(s) | Tang, John C.S.;Broustail, Joel F.; |
| Scholarship Donor(s) | Government of Switzerland; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2002 |