Over the past decades, Cambodia’s economy has grown at impressive speed, transforming the once impoverished nation into a high-potential business location. This development has increased wealth and prosperity among its inhabitants, giving them prospects that they would not have dreamt of before. However, in today’s blog, we will focus on the future rather than on the past: We have picked some aspects that will shape the future of the country’s economy and play an important role in foreign direct investment in Cambodia.
Better conditions for international cooperation thanks to ASEAN
Cambodia’s membership in ASEAN will proof extremely beneficial for the country’s trade relations: First, we can expect the cooperation (in terms of business as well as in other areas) between Cambodia and other ASEAN members to grow stronger, and second, we will witness ASEAN represent Cambodia in international consultations on free trade agreements, etc., giving the country a very strong negotiation power.
More staff with better qualifications
Many young Cambodians actively seek qualifications that will allow them to work in international companies. English language or IT skills classes, for example, are extremely popular now. In the past, foreign investors who do business in Cambodia often complained that it was difficult to find suitable human resources, but in the recent years, tremendous changes could be noticed. This trend will continue in the future, which means that recruiting qualified human resources will become easier.
Automation of processes
Factory automation is increasingly affecting Cambodia’s processing and manufacturing sector. This means that many current factory workers will at some point need to change their workplace. While some will remain in factory work and take over positions that are not handled automatically, others will seek opportunities in Cambodia’s growing service sector.
Even more diversification
Many efforts have been made to diversify Cambodia’s economy and this development will continue further. It provides particularly promising opportunities for business growth, especially products/services that cater to the needs of the growing middle class in the domestic market, as well as in the digital service sector (which we will both discuss below). In addition, other fresh investment and business ideas of investors who want to start a company in Cambodia,which add something new to the country’s economic landscape will be very welcome and might also attract interesting incentives (tax holidays, etc.).
Rising domestic purchasing power
Cambodia’s middle class is constantly growing, which means that domestic demand for quality goods and services is set to rise dramatically. Enterprises with such products and services certainly belong to the top businesses to start in Cambodia. There is a very wide spectrum of products that could be extremely promising, including imported quality household goods, vehicles, food, electronic appliances, lifestyle amenities, etc., as well as services which will attract interest among Cambodian consumers: Medical treatments, outbound tourism packages, insurance deals, etc. – demand for all of them is currently growing.
Excellent prospects for the digital service business
Cambodia’s digital economy faces a golden future. With many young computer-savvy professionals, Cambodia is transforming into a perfect location for digital based services, such as data processing, cloud or managed IT solutions, online troubleshooting, customer care, etc., serving domestic businesses as well as international companies that seek outsourcing solutions.
Local expertise will help you prepare for the future
Many of the changes in Cambodia are happening very fast. It is extremely challenging to keep up to date and to foresee future developments in the country, particularly when you are not local. However, with a local business consultancy, foreign investors can react fast to changes and anticipate both challenges and chances that are going to come up.
The expert team at LocaWize knows about the latest business news and changes to regulations. As our consultants are always up to date, we foresee upcoming market trends and developments, which means significant advantages for our clients who are doing business in Cambodia. Please contact us to see how we can support you with company registration, legal, accounting and tax services, trademark registration or anything else you need to succeed with your business in Cambodia!