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Tag: Credit Guarantee

CGCC participating in Mission to UNIDO’s Headquarter in Austria

Posted on by Sorn Chhorvyvatey

From 06 to 11 April 2025, Mr. No Lida, CEO of Credit Guarantee Corporation of Cambodia (CGCC), was invited by the United Nations Industrial Development Organization (UNIDO) to join a mission to the Headquarter of UNIDO in Vienna, Austria.

The purposes of this mission are to (1) share the progress of the Value Chain Investment Support Facility (ISF), including challenges and lessons learned (Equipment and Technical assistance), and (2) build capacity of CGCC to implement ISF and innovative finance, including ISF grant disbursement through meetings and guidance from with UNIDO HQ colleagues.

During this mission, Mr. No Lida had met and discussed with various UNIDO HQ teams, including the Islamic Finance Taskforce, the Procurement and Finance Division, the Agriculture Division, and the Innovative Finance Division, to discuss lessons learnt, ways to improve the ISF, and future collaboration opportunities.

Investment Support Facility (ISF) is a joint project under CAPFISH-Capture: Post-harvest Fisheries Development Project jointly implemented by the Fisheries Administration and UNIDO Cambodia, co-funded by the European Union, and having CGCC as a fund manager. CGCC has also launched the Post-Harvest Fisheries Guarantee Scheme (PFGS) to provide guarantees on loans under the ISF. As ​​of the end of March 2025, CGCC has approved credit guarantees to 12 enterprises, with the total guaranteed loan size equivalent to approximately USD 300,000 under this scheme.

Entrepreneurship Program Initiative of CGCC (EPIC 4)

Posted on by Sorn Chhorvyvatey

On 25 May 2025, in Kampong Cham province, Credit Guarantee Corporation of Cambodia (CGCC) and the Department of Industry, Science, Technology & Innovation Kampong Cham province, co-organized the EPIC 4 on “Bankable Business Plan for SMEs”, presided over by Mr. Poun Run, Chief of the Department of Industry, Science, Technology & Innovation Kampong Cham province, and with honorable presence of Mr. No Lida, CEO of CGCC, participated by trainees who are Micro, Small, and Medium (MSMEs), especially Private Water Operators in Kampong Cham and the various provinces, in total 75 participants, in which 28 are females.

Through the EPIC 4, trainees learnt about the training topic on “Bankable Business Plan for SMEs” shared by Ms. Chau Lonmolika,, who is the CEO and Founder of Cambodian Standard Development & Supply Co., Ltd., and BoD in charge of Commission Access to Finance of YEAC. After learning about the training topic, all participants also shared their experiences with each other through a group discussion forum on creating a one-page business plan (Business Plan Model Lean Canvas), which was an opportunity for participants to practice and receive constructive feedback from the trainers and guest speakers.

Moreover, trainees also learnt about “CGCC’s Credit Guarantee Mechanism to Support the Access to Formal Financing of MSMEs” through the presentation by Mr. Yun Phan, Director of Strategy and Business Development of CGCC. Mr. Yun Phan also shared the Utilities Development Guarantee Scheme (UDGS) f with private water operators, which will be officially launched very soon to support them.

In line with the CGCC credit guarantee mechanism, Mr. Taing Hokleng, Head of Retail SME of Maybank Cambodia, also discussed “Bank Loans Assessment and Guaranteed Loans/Financial Solutions for SMEs” and the financial solutions that Maybank could provide with private water operators.

Capacity-building is one of the priorities of CGCC in the mission of improving financial inclusion and developing SMEs in Cambodia. EPIC is the flagship entrepreneurs’ capacity-building program of CGCC that will provide training to MSMEs on relevant and practical topics for entrepreneurs in collaboration with related stakeholders/Participating Financial Institutions.

CGCC Provides $271M Loan Guarantees to SMEs

Posted on by Sorn Chhorvyvatey

The Credit Guarantee Corporation of Cambodia (CGCC) has provided credit guarantees of $271 million for micro, small and medium-sized enterprises (MSMEs) as of February 2025 as their working capital for expansion.

“As of the end of February 2025, CGCC has approved 3,979 guaranteed accounts, amounting to $271.14 million,” CGCC said in a report issued last Thursday.

In February 2025, CGCC approved 547 guaranteed accounts, which is the highest number of guaranteed accounts approved in a month since CGCC started the credit guarantee services in 2021.

The outstanding guaranteed loan as of February was $156.69 million, while the outstanding guaranteed amount was $114.89 million, read the report.

There are 3,792 micro, small and medium enterprises (MSMEs) and 187 large businesses in Cambodia, the report said, adding that 1,834 of the businesses were women-owned.

No Lida, CEO of CGCC, said that credit guarantee mechanisms have helped in contributing to the potential MSMEs that need funds to expand their production chains.

“Small and medium-sized enterprises that have potential but lack collateral or a certain level of risk that banks and microfinance institutions cannot provide credit to, so the Cambodia government, through the CGCC, will step in to help guarantee the credit of small and medium-sized enterprises,” he said.

Through the Cambodian Credit Guarantee Corporation, which insures up to 80 percent of loans to small and medium-sized enterprises, the government expects that banks and microfinance institutions will be able to provide more loans according to the needs of small and medium-sized enterprises, he said.

The CGCC scheme involves participating financial institutions (PFIs) including state-run Agriculture and Rural Development Bank and SME Bank to extend credit as working capital investment and business expansion to SMEs.

Established in November 2020, the CGCC is the preferred credit guarantee institution in Cambodia set up to improve financial inclusion and develop the growth of SMEs. CGCC’s credit guarantee is instrumental in aiding MSMEs to obtain sufficient financing, enabling the enterprises to capitalize on investment opportunities, boost employment and increase income.

Credit to: Khmer Times, Published on 24 March 2025

 

Agreement Signing Ceremony on Post-Harvest Fisheries Guarantee Scheme Between CGCC and FTB Bank

Posted on by Sorn Chhorvyvatey

On 21 March 2025, Credit Guarantee Corporation of Cambodia (CGCC) and Foreign Trade Bank of Cambodia (FTB) co-organized an agreement signing ceremony on “Post-Harvest Fisheries Guarantee Scheme (PFGS)” with honourable attendance from Management and the team of CGCC, FTB, and representatives of United Nations Industrial Development Organization (UNIDO Cambodia), to announce the official expanded partnership in providing guaranteed loans by CGCC through FTB to post-harvest fishery businesses and relevant suppliers.

PFGS is developed as a scheme for the Value Chain Investment Support Facility (ISF), a joint project under CAPFISH-Capture: Post-harvest Fisheries Development Project, jointly implemented by the Fisheries Administration and the UNIDO Cambodia, co-funded by the European Union, and having CGCC as the fund manager. Post-harvest fisheries enterprises and relevant suppliers can apply for support from the ISF on Technical Assistance (TA) for upgrading business operations and improving food safety practices, ISF Grant funds to procure Eligible Equipment to introduce innovations and optimise the business operations, and business loans guaranteed by CGCC from Participating Financial Institutions (PFIs) of CGCC such as FTB that has entered in this agreement on PFGS with CGCC.

Mr. No Lida, Chief Executive Officer of CGCC, said, “CGCC is delighted to have FTB as a new Participating Financial Institution (PFI) in the Investment Support Facility (ISF) project. The participation of FTB will improve the efficient implementation of the ISF in response to the demand of post-harvest fishery enterprises for access to financing support and guaranteed loans necessary to increase the competitiveness, productivity, and standard of production of potential post-harvest fishery enterprises in Cambodia.

Mr. Dith Sochal, Chief Executive Officer of FTB Bank, said, “Our two institutions are committed to strengthening and expanding our collaboration with the shared goal of driving innovation, enhancing efficiency, and optimising business operations for enterprises in the post-harvest fisheries sector, domestic suppliers, and exporters to international markets. This agreement also reflects the strong partnership and active engagement between FTB and CGCC since 2021, with the expectation of successful and sustained comprehensive cooperation between the two institutions.”

Through this PFGS agreement, CGCC and FTB are committed to supporting post-harvest fishery enterprises and input suppliers in increasing productivity, improving food safety compliance and quality standards of fishery products, reaching new markets, including international markets, and improving businesses in a more efficient, sustainable, and inclusive way.

For post-harvest fisheries enterprises, apply for ISF now! Limited funding is available on a first-come, first-served basis.

For more information about the ISF and the application process, visit: https://www.cgcc.com.kh/en/post-harvest-fishery-guarantee-scheme/

Email: [email protected]

Credit to: Khmer Times, Published on 21 March 2025

CGCC, CAPFISH-Capture Expand Support for Fisheries Enterprises

Posted on by Sorn Chhorvyvatey

The Credit Guarantee Corporation of Cambodia (CGCC) and the EU-funded CAPFISH-Capture: Post-Harvest Fisheries Development project have reached a significant milestone in promoting financial inclusion and growth for local micro, small, and medium enterprises (MSMEs) in the post-harvest fisheries sector.

According to a press release on Wednesday, the two organizations officially signed support agreements for 11 fish processing enterprises under the Investment Support Facility (ISF).

The ISF, a key initiative of the CAPFISH-Capture project funded by the European Union (EU), is administered by CGCC in collaboration with the United Nations Industrial Development Organization (UNIDO) and the Fisheries Administration (FiA).

This innovative financing scheme amounts to approximately $2.5 million, consisting of $1 million in grant funding (40 percent of the total investment) from the project for equipment support, $1.25 million (50 percent) in loans from participating financial institutions (PFIs) guaranteed by CGCC, and $250,000 (10 percent) contributed by the beneficiaries.

Since its launch in late 2024, the ISF has supported an initial group of 11 fish processing enterprises, with more expected to benefit from the program.

So far, the project has provided around $320,000 in initial grant funding, leveraging an additional $340,000 in CGCC-guaranteed loans from PFIs such as ACLEDA Bank and Maybank Cambodia, along with $580,000 contributed by the enterprises themselves.

The ISF primarily supports post-harvest fisheries enterprises seeking to enhance their operations and expand their market reach both nationally and internationally. The program places a strong emphasis on empowering businesses led by women, youth, and persons with disabilities.

Through the ISF initiative, CGCC and the CAPFISH-Capture project are committed to helping eligible post-harvest fisheries enterprises meet food safety and market standards.

The program offers tailored support, including business development assistance, market linkages, food safety compliance, and adherence to environmental and social safeguards.

Credit to: Khmer Times, Published on 27 February 2025

 

Post-Harvest Fisheries Businesses Receive Financing Support

Posted on by Sorn Chhorvyvatey

The Credit Guarantee Corporation of Cambodia (CGCC) and the EU-funded CAPFISH-Capture project have marked a major milestone in their efforts to support local fish processing enterprises.

On February 21, the two organisations signed support agreements for the first group of 11 enterprises, which have already benefitted from approximately $320,000 in grant funding under the Investment Support Facility (ISF).

This financial support is part of a broader initiative aimed at enhancing micro, small, and medium enterprises (MSMEs) in Cambodia’s post-harvest fisheries sector by providing vital resources for business growth, food safety compliance and market expansion.

The ISF combines grant funding, loans and contributions from beneficiaries to offer a comprehensive financial package.

“It is administered by the CGCC in collaboration with the UN Industrial Development Organization (UNIDO) and the Fisheries Administration (FiA),” explained a joint press release.

This innovative financing scheme totals approximately $2.5 million.

It includes $1 million in grant funds (40% of the total investment) for equipment support, $1.25 million (50%) in loans from participating financial institutions (PFIs) guaranteed by the CGCC, and $250,000 (10%) contributed by the beneficiaries themselves.

“Since its inception in late 2024, the ISF has welcomed its first group of 11 fish processing enterprises, with many more in the pipeline for this groundbreaking support,” it said.

“The project has provided its initial grant funding of around $320,000, leveraging an additional $340,000 guaranteed loans from CGCC’s partners, such as ACLEDA Bank and Maybank Cambodia, along with $580,000 from the enterprises themselves,” it added.

This collaborative funding structure is designed to provide a balanced approach to supporting business development, market access and sustainability.

The primary aim of the ISF is to assist post-harvest fisheries enterprises in improving their operations, meeting international food safety standards and expanding their market reach both domestically and internationally.

By focusing on sectors with high growth potential, particularly those led by women, youth and persons with disabilities, the ISF ensures that financial inclusion is central to its objectives.

All post-harvest fisheries enterprises are encouraged to apply for funding, as limited resources are available on a first-come, first-served basis.

Credit to: The Phnom Penh Post, Published on 26 February 2025

 

Fish Processing Businesses Receive Funding Boost to Expand

Posted on by Sorn Chhorvyvatey

Small- and medium-sized fish processing enterprises are set to see their operations expand after an agreement was signed between the Credit Guarantee Corporation of Cambodia and CAPFISH-Capture.

Eleven fish processing enterprises are set to benefit from support agreements signed between the Credit Guarantee Corporation of Cambodia (CGCC) and the EU-funded CAPFISH-Capture: Post-harvest Fisheries Development in a major milestone in promoting financial inclusion and growth in the post-harvest fisheries sector.

On February 21, 2025, the two organisations officially signed an agreement for 11 fish processing enterprises as part of the Investment Support Facility (ISF). The financing scheme totals approximately $2.5 million.

This comprises $1 million in grant funds (40 percent of total investment) from the project as equipment support, $1.25 million (50 percent) in loans from participating financial institutions (PFIs) guaranteed by the CGCC, and $250,000 (10 percent) contributed by the beneficiaries.

The ISF is an initiative under the CAPFISH-Capture project funded by the EU and administered by the CGCC in collaboration with the United Nations Industrial Development Organization (UNIDO) and the Fisheries Administration (FiA).

“Since its inception in late 2024, the ISF has welcomed its first group of 11 fish processing enterprises, with many more in the pipeline for this groundbreaking support,” according to a statement.

“The project has provided its initial grant funding of around $320,000, leveraging an additional $340,000 guaranteed loans from CGCC’s PFIs, such as ACLEDA Bank and Maybank Cambodia, along with $580,000 from the enterprises themselves.”

The ISF has a primary focus on supporting post-harvest fisheries enterprises who are aiming to boost their operations and expand their market reach nationally and internationally. It has a strong emphasis on empowering businesses led by women, youth and people with disabilities.

Through the initiative, the CGCC and CAPFISH-Capture project aim to help eligible post-harvest fisheries enterprises meet food safety and market standards. Tailored support includes assistance with business development, market linkages, food safety compliance, and environmental and social safeguards.

For more information on the initiative and how post-harvest fisheries enterprises can apply for the funding through the CGCC website.

Credit to: KIRIPOST, Published on 26 February 2025

Investment Support Facility (ISF): CGCC, Participating Financial Institutions & EU-funded CAPFISH-Capture Team Up to Boost Investments in the Fisheries Sector

Posted on by Sorn Chhorvyvatey

Phnom Penh, 26 February 2025 – On February 21, 2025, the Credit Guarantee Corporation of Cambodia (CGCC) and the EU-funded CAPFISH-Capture: Post-harvest Fisheries Development project celebrated a significant milestone in promoting financial inclusion and growth for local micro, small, and medium enterprises (MSMEs) in the post-harvest fisheries sector. They officially signed support agreements for 11 fish processing enterprises as part of the Investment Support Facility (ISF).

The ISF, a key initiative under the CAPFISH-Capture project funded by the European Union (EU), is administered by the CGCC in collaboration with the United Nations Industrial Development Organization (UNIDO) and the Fisheries Administration (FiA). This innovative financing scheme totals approximately US$2.5 million, comprising US$1 million in grant funds (40% of total investment) from the project as equipment support, US$1.25 million (50%) in loans from participating financial institutions (PFIs) guaranteed by the CGCC, and US$250,000 (10%) contributed by the beneficiaries themselves.

Since its inception in late 2024, the ISF has welcomed its first group of 11 fish processing enterprises, with many more in the pipeline for this groundbreaking support. The project has provided its initial grant funding of around US$320,000, leveraging an additional US$340,000 guaranteed loans from CGCC’s PFIs, such as ACLEDA Bank and Maybank Cambodia, along with US$580,000 from the enterprises themselves.

The ISF focuses primarily on supporting post-harvest fisheries enterprises eager to enhance their operations and expand their market reach, both nationally and internationally. There is a strong emphasis on empowering businesses led by women, youth, and persons with disabilities.

Through the ISF initiative, the CGCC and the CAPFISH-Capture project are committed to helping eligible post-harvest fisheries enterprises meet food safety and market standards. Tailored support includes assistance with business development, market linkages, food safety compliance, and environmental and social safeguards.

For post-harvest fisheries enterprises, APPLY NOW! Limited funding is available on a first-come, first-served basis.

For more information about the ISF and the application process, visit: https://www.cgcc.com.kh/en/post-harvest-fishery-guarantee-scheme/

Email: [email protected]

Photo credit: @UNIDO_CAPFISH-Capture_Sovannarith NUTH
Photo credit: @UNIDO_CAPFISH-Capture_Sovannarith NUTH
Photo credit: @UNIDO_CAPFISH-Capture_Sovannarith NUTH

Understanding Market Structure

Posted on by Sorn Chhorvyvatey

What products or services are your business offering? Who else in the market is offering similar products or services? What is your business strategy to stay ahead of the competition? The answers to these questions relate to the market structure in which your business operates. Market structure refers to the characteristics of a market, including the number of firms, the nature of products and services, freedom of entry and exit, and so on. Market structure plays a pivotal role in the strategic decision-making of a business – how to operate and compete.

Perfect Competition

In Phnom Penh, if you wish to purchase a pure drinking water bottle to satisfy your thirst on a hot day, you have many options like Vital, Angkor Puro, Dasani, Oral, Hi-Tech, Aruna, Cambodia, etc. Despite the different branding, these products share a very similar taste and are generally priced at approximately 0.25 cents per bottle, representing the equilibrium price in this market. If sold at the same place and in the same setting, any products priced above this equilibrium price will eventually be out of the market. The customer is indifferent to switching between these products for the lowest cost. This market of pure drinking water can be a close example of perfect competition.

Perfect competition is a market structure where numerous firms offer identical products or services, and no single firm has the power to set the price. Buyers have complete information about the products and services, and the price is determined by supply and demand. Entry and exit into this market are extremely easy. The key to competing in this market is to set the price equal to the marginal cost, an additional cost for an additional output. 

It is indeed rare, if not impossible, to find perfect competition in real life. The conditions for perfect competition, where many firms offer the same products or services, buyers have all the information, and entry and exit are easy, are seldom met. However, perfect competition serves as a theoretical benchmark that helps us understand the dynamics of real-life markets.

Monopoly

When I rejoined the Ministry of Economy and Finance in 2010, I was involved in the first-ever Initial Public Offering (IPO) on the Cambodia Securities Exchange. As the first IPO in Cambodia, the listing process of Phnom Penh Water Supply (PPWSA) was challenging and time-consuming. PPSWA was eventually listed successfully in April 2012, raising around USD 20 million. Equity investment in PPWSA is considered safe because PPSWA is the only licensed water supply operator in Phnom Penh and Ta Khmao. PPWSA offers an indispensable service (clean water supply) and has no competitors in its authorized areas. PPWSA can set the price without worrying about losing customers. In other words, PPSWA is a monopoly.

Monopoly is the opposite of perfect competition. In a monopoly, there is only one seller of a particular product and many buyers. There are barriers to entry. A monopoly maximizes profit by producing outputs when the marginal revenue (an additional earning from selling one extra unit) equals the marginal cost, and by charging the maximum price consumers are willing to pay for that output. However, the pricing strategy of monopolies is usually under strict government regulation to ensure social welfare. Other firms operating in Cambodia that can be considered monopolies include Electricity of Cambodia (EDC), NagaCorp, CINTRI, and the company I am serving, Credit Guarantee Corporation of Cambodia (CGCC).

Oligopoly

If you ask Cambodian people which mobile network service they are subscribed to, chances are they are using either Cellcard, Smart, or Metfone. These are the three leading players in this industry, holding more than 90% of the market share. Cellcard, Smart, and Metfone fiercely compete with one another on all fronts—price, product innovation, and advertising. Several mobile network companies have tried entering the Cambodian market to compete with these players. Most of them withdrew, such as Beelines and QB. The mobile network industry is an oligopoly.

An oligopoly is a market in which a small number of firms dominate and compete. This industry is highly competitive, and entering it is extremely difficult. The strategy of one firm can influence the strategies of other firms. Because there are only a few players, they often cooperate to limit output and charge higher prices to maximize their shared profits. This behavior is called collusion, which refers to the cooperation among firms in an oligopoly to make joint decisions and act as if they were a monopoly.

Other oligopoly industries include grocery store chains (Lucky Supermarket, AEON Supermarket, and CHIP MONG Supermarket), the retailed petroleum industry (TOTAL, TELA, and CALTEX), and movie cinemas (Legends and Major Cineplex).

Firms operating in different market structures require different strategies to compete and operate. So, which market structure is the best? It depends. Each market structure has its pros and cons depending on the industry and the Government’s policy toward the industry.

Summary of Market Structure

Read and Download in PDF: Understanding Market Structure

 

CMA and CGCC Partner to Enhance Financial Inclusion and Promote Green Financing in Cambodia

Posted on by Sorn Chhorvyvatey

Cambodia Investment Review

The Cambodia Microfinance Association (CMA) and the Credit Guarantee Corporation of Cambodia (CGCC) have signed a Memorandum of Understanding (MoU) to advance financial inclusion and sustainability across Cambodia. The partnership, formalized during the CGCC Annual Seminar on “Innovation of Credit Guarantee to Promote Green Financing,” presided over by H.E. Ros Seilava, Secretary of State of the Ministry of Economy and Finance and Chairman of CGCC, aims to drive financial literacy, promote digital finance, and foster green financing initiatives.

Read More: Cambodia Microfinance Association Catalyzes Global Efforts in Sustainable, Inclusive Finance at 2024 AGM

Strategic Focus on Capacity Building and Green Finance

Under the three-year agreement, CMA and CGCC will collaborate on a range of initiatives to strengthen the capacity of micro, small, and medium enterprises (MSMEs), banking and financial institutions (BFIs), and stakeholders. Key areas of cooperation include:

  • Capacity Development: Joint training programs and workshops for BFIs, MSMEs, and stakeholders to enhance skills and knowledge.
  • Financial Literacy: Increasing awareness and accessibility of financial services among Cambodians.
  • Digital Financial Services: Promoting innovative solutions to improve financial inclusion.
  • Green Sector Initiatives: Encouraging sustainable practices in the financial sector to support environmental objectives.

“This partnership marks a significant step toward advancing financial inclusion in Cambodia. By combining our expertise and resources, we can create a more robust financial ecosystem that supports the growth of MSMEs and contributes to the country’s sustainable development,” said Oknha Hout Ieng Tong, CMA representative.

Enhancing Access to Underserved Businesses

The partnership will leverage CGCC’s credit guarantees to expand access to financing for underserved businesses, supporting their growth and integration into Cambodia’s financial system.

“We are excited to collaborate with CMA to enhance financial literacy and provide better access to financial services. This MoU is a testament to our shared commitment to fostering economic growth and sustainability in Cambodia,” said Mr. No Lida, Chief Executive Officer of CGCC.

By focusing on financial literacy and green financing, the partnership aligns with Cambodia’s broader economic development goals. Both organizations have committed to ensuring the confidentiality of shared information and the effective execution of initiatives outlined in the MoU.

Credit to: Cambodia Investment Review, Published on 24 January 2025