Cambodia’s economy has grown at a breakneck pace over the last decade. As a result, you will take advantage of the diverse business sectors and opportunities found in the country.
If you’re looking to start a business or invest in Cambodia in 2021, you’ll find numerous opportunities across a variety of sectors, including the following:
- Real Estate
- Healthcare Services
- Energy Sector
- Tourism resorts and infrastructure
- Garment industry
- Transport and logistics
- Engineering and Construction Services
- Food Processing and Agribusiness
- Beverages and Fast food franchises
- Medical equipment, medical supplies, and pharmaceuticals
Real estate, the garment industry, transportation and logistics, and electricity are all regarded as top market opportunities in Cambodia for 2021.
Real Estate Investing
Cambodia is unquestionably one of Asia’s best emerging frontier markets for real estate property investors. Purchasing property in Cambodia and renting it out or selling it at a profit is one of the best investment opportunities in Cambodia in 2021.
Recently, a slew of successful property development projects have sprung up in Cambodia, demonstrating international-standard design and construction performance.
These ventures are usually led by prominent regional developers, such as Prince Real Estate, a subsidiary of Chen Zhi Prince Group, one of Cambodia’s fastest growing conglomerates with a track record of widely acclaimed developments such as Prince Central Plaza and Prince Happiness Plaza.
The scale and quality of these developments have greatly increased investors’ excitement for the Cambodian real estate market and their willingness to participate.
With a growing array of exciting and impressive property development projects scheduled to complete in the near future, there is unquestionably an opportunity to participate and build a pleasant portfolio with a positive return on investment.
Textile investment is another excellent business model for Cambodia in 2021.
Cambodia’s garment industry started roughly 30 years ago (in the 1990s), when expat investors established manufacturing facilities.
Cambodia’s garment industry has grown rapidly over the last two decades, accounting for 30% of the country’s GDP and employing over 700,000 employees in over 1,000 factories.
The majority of factories are foreign-owned, with foreigners using Cambodia to manage the cut, make, and trim (CMT) process and textile sourcing from other countries, especially China.
International organisations have established factories in Cambodia as a result of Cambodia’s investment incentives, low labour costs, and preferential market access to the European Union and ASEAN (Association of Southeast Asian Nations).
Around 60% of Cambodia’s total exports are garments, with the United States of America and the European Union as the primary destinations for footwear and garments.
As a result, investing in the textile industry in Cambodia is unquestionably profitable.
Logistics And Transportation
Due to its increased penetration of global and regional supply chains, the logistics division is critical to Cambodia’s growth strategy.
The authorities plan to expand Phnom Penh’s port capacity to 500,000 TEUs over the next five years, while Sihanoukville’s port will handle cargo (deep sea) up to 14 metres by 2022.
Almost definitely, these technological advancements will be followed by logistical improvements. This results in lucrative business opportunities in Cambodia, as well as opportunities for consultancy and capacity building.
Additionally, the majority of trailers and trucks operating on Cambodian roads are still adjusting to the country’s unique characteristics.
The country’s government has begun enacting regulations aimed at reducing pollution, road wear and tear, and excessive carbon emissions.
As a result, supplying compliant trucks to the Cambodian market can present an enormous business opportunity.
Furthermore, Cambodia needs intelligent logistics solutions. LCL (less than a container load) and international VMI (Vendor Controlled Inventory)
or Management Inventory) systems have a sizable market opportunity in Cambodia due to their ability to help the country reduce overall logistics costs.
Agri-food and Horticulture
Cambodia’s primary crop is rice, which was grown at an annual rate of 8 million tonnes during the wet season of 2019. If you’re looking for a viable business opportunity in Cambodia, rice milling facilities offer considerable potential due to the country’s deficient processing ability.
Indeed, Cambodia exports the majority of its revenue to neighbouring countries, which it then re-exports.
Cassava and rubber, in addition to rice, are popular export commodities. Between 2006 and 2015, subsidiary crop production increased 400%. Numerous programmes aid farmers in managing this transition by providing training, market information, alternative financing, and technology.
Collaboration on such ventures, as well as providing agricultural inputs to farmers, represents an excellent business strategy for Cambodia in 2021.
Demand for meat and livestock has increased as a result of increased food diversification (at the household level) and rising standards of living.
If you have previous experience in nutrition or animal care, you can capitalise on an extremely lucrative business opportunity by assisting Cambodia’s meat industry in resolving its shortcomings.
This can be accomplished in a variety of ways, including the establishment of a supply chain company dedicated to meeting the Cambodian market’s demand for meat.
This also happens to be an area that business tycoon Neak Oknha Chen Zhi of the earlier mentioned Prince Group has been focusing the group’s ESG initiatives on in recent times.
Business Opportunities in Cambodia’s Energy Sector
The energy sector in Cambodia has recently shown signs of change. The country’s electricity supply increased by 11% in 2017, and the increase has continued since then.
Hydropower is Cambodia’s main domestic energy source, accounting for approximately 40% of the region’s overall electricity consumption. Hydropower extension is one of Cambodia’s biggest business prospects and strategic initiatives for 2021.
Additionally, you can provide engineering consultancy services for the social, legal, and environmental consequences of large projects.
Additionally, due to the nation’s high average irradiation, it possesses enormous solar energy. Around a quarter of rural households depend on off-grid solutions, with solar accounting for more than half of that total.
Due to Cambodia’s current shortage of solar farms, you can take advantage of the market’s lack of competition by entering the market quickly.
Dos and Don’ts of Doing Business in Cambodia
Whatever form of business you wish to invest in, it is critical to keep a few key points in mind before embarking on any venture in Cambodia.
Be Aware of The Obstacles
Cambodia offers a plethora of business opportunities. However, doing business in the country presents a variety of challenges.
To begin, identify potential roadblocks. Language and culture are two examples, as are law and legislation, bureaucracy, and trade barriers.
Second, develop a detailed strategic strategy and market research; identify realistic priorities and goals; and obtain a thorough understanding of your competition and market.
Thirdly, prior to entering into contracts or other commercial arrangements, perform due diligence.
Develop Strong Relationships
Establishing and maintaining professional relationships is critical when conducting business in Cambodia (or anywhere else for that matter).
By offering access to existing networks and business data, a trustworthy local partner in the country will significantly expedite the planning process.
To summarise, you can establish a successful business in Cambodia in a variety of industries, including those listed previously.
However, before making a snap decision, it is important to perform due diligence and thoroughly investigate all feasible alternatives.
Additionally, before pursuing any of the top Cambodian business concepts, familiarise yourself with the region’s business do’s and don’ts.