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The study examines the investment climate and productivity in Cambodia by sector, including constraints to business environment and international comparisons. The survey upon which it is based examines firms in both the formal and informal sectors for the first time, which allows comparisons between survey responses for the two groups. The findings show that corruption remains a major concern and is closely linked to prevalence of uncompetitive practices, and the proportion of firms paying informal fees has not diminished. A second constraint to business practices in the country is associated with electricity, which remains a major concern of firms regardless of size and export orientation. In contrast, customs and trade regulations have dropped dramatically as a constraint. This improvement is likely a reflection of the automation of Customs and border processes, culminating in the roll-out of the ASYCUDA customs automation software to major borders crossings and checkpoints.