SWOT Analysis Cambodia & Country Profile

Key Features of the Cambodian Market & SWOT Analysis Cambodia

While sometimes overlooked, Cambodia remains one of Asia’s most interesting markets thanks to impressive GDP growth. Here are some key features foreign businesses will want to know as well as a SWOT Analysis of Cambodia. To better understand if you’re ready to enter the market, click here to take our Readiness Check.

The Kingdom of Cambodia has had an annual GDP growth rate of +7% over the last two decades with exceptions in 2020 and 2021 due to the 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. Approximately 25% reside 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.
A new international airport recently opened in Seam Reap while a new international airport in Phnom Penh will open in 2025.
Consumers crave new things, including fashion, electronic gadgets, and cars.
China, South Korea, Japan, and ASEAN countries are the 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.