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Cambodia Country Profile

Cambodia's free-market economy has one of the more impressive growth rates in the region. The Kingdom continues to attract foreign investment from many countries across Asia and increasingly from the US and several European nations.

Cambodia's free-market economy has one of the more impressive growth rates in the region. The Kingdom continues to attract foreign investment from many countries across Asia and increasingly from the US and several European nations.

Key Features of the Cambodian Market

  • The Kingdom of Cambodia has had an annual GDP growth rate of +7% over the last two decades (exception 2020/21 due to pandemic).
  • Post pandemic recovery is promising returning to a world top-ten GDP growth rate.
  • Cambodia is a nation with a population of over ~17 million with 25% residing in the urban areas of Phnom Penh, Preah Sihanouk, Seam Reap and Battambang.
  • Special economic zones are around Phnom Penh and Preah Sihanouk, a port city.
  • Two new international airports are under construction in Phnom Penh and Seam Reap opening in 2023/24.
  • Consumers crave new things (e.g. fashion, electronic gadgets, cars.
  • China, South Korea, Japan and ASEAN countries are main investors.
  • One third of all exports are tariff free to EU countries under the “Anything but Arms” (with some restrictions).
  • Excellent relations with the economic powerhouses Thailand and Vietnam with whom Cambodia shares borders.

SWOT Analysis Cambodia

Strengths

  • Fast growing market with a young urban population
  • Cambodia is a youthful country, with around 50% of its population aged under 25
  • Decades of stable government
  • Flexible policies aimed at attracting FDI
  • English widely spoken
  • Rapidly improving infrastructure
  • High internet adoption rate (fibre and 4G)
  • Low labour costs

Weaknesses

  • Skilled managerial and labour shortage
  • Weak enforcement of laws and regulations
  • Consumers have low purchasing power
  • The urban/rural income divide is concerning
  • Low level corruption

Opportunities

  • High-end consumer products
  • Health care
  • Education
  • Tourism/Entertainment
  • Renewable Energy
  • Waste/Wastewater Management
  • Transport
  • Fintech

Threats

  • Transition of power to the next generation of leaders
  • Rising costs effect mainly the rural population
  • Traditional values but tendency to seek “rich quick” solutions
  • Dominance of Chinese investment and migration

Our Experience

  • 30 years experience in Asia in top level managerial position (Siemens and Weidmueller)
    Partner GBP International and Asian Insiders executing hundreds of strategy consulting projects in Asia.

Our Reach

  • Wide knowledge of many industries such as electronics, telecom, machine tools, pharmaceutical/medical, ICT, transport, logistics, agricultural machinery.

Our Core Services

  • Market Entry
  • Market Expansion
  • Market Research
  • Strategy Development
  • Operational Support
  • Interim Management 
Partner - Cambodia

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