PHNOM PENH, Sept. 15 (Xinhuanet) -- Cambodia is a difficult place to start a business in terms of time and money, according to a report of the World Bank and the International Finance Corporation(IFC).

    The report entitled "Doing Business in 2006" compared Cambodia's business environment to those of 155 other countries.

    And the report found Cambodia ranked 133 out of 155 countries in terms of having a favorable environment for starting new businesses. Cambodia lags behind 20th-ranked Thailand and 99th-ranked Vietnam, but leads Laos, which comes in at 147th, according to the World Bank and IFC report received on Thursday.

    The report, however, praised Cambodia cutting registration fee and reduced the minimum capital required to start a business.

    In August 2004, the Ministry of Commerce reduced the business registration fee from 635 US dollars to 177 dollars. The minimum capital requirement was also reduced from 5,000 dollars 1,000 dollars.

    Local newspaper Rasmei Kampuchea on Thursday quoted Adam Sack, IFC's general manager of the Mekong Private Sector Development Facility, as saying that while the country ranks 133rd on the scale, the government has carried out major reforms in its business sector in 2004 and 2005.

    But Adam Sack also said despite the reduction of fees and a decreased registration period from 30 days to 10.5 days, the country still has higher rates compared to neighboring countries. But it shows the government's commitment to improving the country's business climate, he said.

    Coralee McLeish, the economist who authored the report, said that over the last year, the Commerce Ministry's registrition reform was the only one completed by the Cambodian government.

    The needed reforms are not costly, but do require political will, said Coralee McLeish.

    Meanwhile, the World Bank and IFC report noted that poor countries like Laos and Cambodia are reforming far more slowly than rapidly developing nations in Eastern Europe.

    The annually published report gives policymakers the ability to measure regulatory performance in comparison to other countries, learn from the best practices globally, and prioritize reforms. Now in its third year, the report has already had an impact on business environment reforms around the world, the newspaper said.   Enditem