Signal Cambodia has the group's weakest Business Perception and falls well below peers on Public Governance

Summary

Cambodia and Lao PDR trail the other four growth markets, but the report shows their weaknesses take different forms. Both face structural and institutional constraints, with Cambodia ranked 73rd and Lao PDR 79th on Institutional Framework, and both have problems in long-term growth prospects. Cambodia's shortfall is concentrated in Public Governance, where it sits well below the developing-economy average. It also has the weakest Business Perception of the six. Lao PDR's institutional gap, by contrast, lies mainly in Investors' Rights, which suggests the two need different kinds of reform.