After years of civil war and political unrest, Cambodia has experienced 2 decades of new found political and economic stability. This positive development has laid the foundation for increased trust by both domestic and foreign investors, keen to take advantage of South East Asia’s next emerging market. As Cambodia’s infrastructure and economy had been neglected for the three decades leading up to 1996 there are many interesting and lucrative business opportunities still available.
With a population of 13 million people, half of which are under the age of 25, Cambodia has strong human resources with a young and increasingly educated work force. Many young professionals are proficient in English and motivated to keep up with international trends. Urban population has grown at a rate of over 5% annually since 1990 and the emerging middle class is providing stronger local buying power.
This potent mixture of stability and opportunity has established Cambodia as one of the most exciting markets in the region. The economy is driven by its five major sectors: Garment exports, services, agriculture, tourism and construction. Based on the consistent growth of these market sectors in recent years the Asian Development Bank has estimated Cambodian GDP growth for 2016 at 7.2%, second in Asia only to China, with the strongest growth expected in the construction sector. This is most visible in Phnom Penh, with a range of commercial and residential projects constantly changing its skyline. Figures from the ministry of land management reveal that investment in the capital has totaled 2.5 billion in 2014.
Cambodia’s growing reputation and improved foreign relations within the international community has opened channels for foreign corporations and investment groups to target this new frontier. This recent development has driven the local market to demand more quality goods and international standards when it comes to workmanship and finishing.
The demand for modern material and installation techniques has been met by mid-sized local companies along with international corporations who are now providing local architects, designers and developers material sourced from all over the world. This new availability of resources is driving Cambodia’s long term vision to be become a key player in the ASEAN community, as a modern infrastructure lays the foundation for additional foreign investment and continuous growth.
In addition to a thriving capital, Cambodia’s second cities and provinces provide a wide array of unique investment opportunities. Some of the major projects currently under development include:
• The $5 Billion Dara Sakor Seashore Resort, Koh Kong province,
• The $700 million DI Riviera, (Cambodia’s Marina Bay Sands) Diamond Island Phnom Penh
• The $400 million Olympic City, Phnom Penh
• The biggest construction contract given in Cambodia’s history a $11.2 billion investment to build a new railroad line that leads from a state of the art steel factory in Northern Cambodia to a modern port in the Koh Kong province.
With huge ambitions, a booming economy, the most welcoming business, investment and trade environment in ASEAN along with a rich history and culture dating back to the Khmer Empire of Angkor
Wat, Cambodia is quickly reestablishing itself on the business maps of the world.