Cambodia

Cambodia's free-market economy has one of the more impressive growth rates in the region. Cambodia offers preferential access to major international markets, a young labour force, relatively low corporate tax rates and one of the more business-friendly governments within Southeast Asia.

Cambodia's free-market economy has one of the more impressive growth rates in the region. Cambodia offers preferential access to major international markets, a young labour force, relatively low corporate tax rates and one of the more business-friendly governments within Southeast Asia. With a population of almost 17 million, Cambodia is a global leader in reducing poverty. Established as one of Southeast Asia’s “new tiger” economies, Cambodia was reclassified by the World Bank as a ‘lower-middle income economy’, having enjoyed three decades of sustained improvement, with GDP growth for 2023 at 5.2%.

Cambodia market entry services are a great way to put you in a position to succeed in a country that continues to encourage foreign direct investment. There are a range of foreign-friendly regulations in place, such as 100 percent foreign ownership of ventures and unrestricted rights to transfer funds back abroad. However, tapping into these requires local knowledge.

The country has recorded a more than seven-fold increase in GDP per capita since 1995 which saw Cambodia reach middle-income country status during the 2010s. More recently, the Royal Cambodian Government announced a goal to be classified as an upper-middle income economy in the near future.

Interestingly, Cambodia is becoming more integrated into the regional and global economy. This happening through ASEAN customs initiatives and bilateral free trade agreements such as the Cambodia-China FTA.

Why Cambodia?

The government rolled out a series of structural reforms aimed at improving the country’s export competitiveness, including streamlining customs payments, reducing compliance fees, expanding digitisation of public services, and a reorganisation of government regulation around exports and customs. This has made the market more appealing to overseas businesses.

Western brands are now increasingly visible on Cambodian streets. The country has been a beneficiary of the Regional Comprehensive Economic Partnership (RCEP) signed between ASEAN states and major Asia-Pacific economic partners with this representing a market of over 2 billion people.

The population of Cambodia is relatively youthful with rapidly growing levels of education, although there remains a skills gap requiring further national effort. Other challenges include high energy costs and challenges in local infrastructure.

Cambodia market entry services from Asian Insiders

Personal relationships are critical to successful engagement with government and industry are vital for those operating here. Cambodia market entry services from Asian Insiders will connect you with whom you need to know, support you in building and maintaining relationships and assist in the creation of a long-term plan that leads to success.

Click here to take our Readiness Check to see if you’re ready to enter Cambodia