Rocket Internet blames poor tax compliance for pullout
Rocket Internet, the successful German-based internet copycat, says that despite its interest in Cambodia’s e-commerce market, tax issues in the Kingdom had forced it to “reposition” its projects. In July, the company launched an online retail site, saying it planned to invest millions in the country’s nascent e-commerce sector. However, two weeks ago, it shut down its offices in Phnom Penh and began selling off equipment. In an e-mail to Economics Today, Rocket’s Johannes Setzer said the company was still very interested in the potential of the Cambodian e-commerce market, “yet we are dealing with the problem that a fully tax-compliant multinational company like Rocket Internet will struggle to remain price competitive in the long run in an e-commerce market where vast majority is not tax compliant. This situation convinced us that it is necessary to reposition our e-commerce projects in Cambodia.”
