The Kingdom of Cambodia remains in consideration by many major economic drives as well as start-up business owners whether to start a business in Cambodia or neighboring countries. Among ASEAN nation-states, Cambodia is one of the newest ASEAN members, but ...Read more
The Kingdom of Cambodia remains in consideration by many major economic drives as well as start-up business owners whether to start a business in Cambodia or neighboring countries. Among ASEAN nation-states, Cambodia is one of the newest ASEAN members, but in the past years, the economic sector has grown unexpectedly, including tourism, agriculture, and garments industrial. Along with that, there are many positive reasons for business owners to invest or start a business in Cambodia. The following indications will provide clear information for investors positive clues to contemplate over the decisions to run a business in Cambodia.
Why should I set up my business in Cambodia over neighboring countries?
1. Cambodia is a market opportunity
In a developing country, like Cambodia, provide business owner a lot of opportunities to conduct and start-up business. As we can see, many products in Cambodia are imported from neighboring countries, especially Vietnam and Thailand. It is crucial to study business ideas from bordering countries and start-ups in Cambodia because the demand will be high for local consumers in the sense that the price will be lower than foreign products.
Related: 7 Reasons to Invest in Cambodia Property
2. Low Labor Cost
Cambodia’s labor cost is less than its neighboring countries and with this advantage, the business, which starts-up in Cambodia will have the opportunity to recruit plenty of people to work with a low labor cost in order to earn more profit and revenue.
3. The Growth of Economy
According to World Bank, economic growth in Cambodia remains strong because it reaches 7.1 percent in 2019. However, the Cambodian economy projected to negative growth of -2 percent, the worst decrease in the recent history of Cambodia. In this case, we still trust the growth on the post-pandemic since not only Cambodia, but the world economy has been struggled and led to declining as well.
Cambodia GDP Growth Forecasts
4. Government Stimulus
In March 2019, the Cambodian government announced a program of economic reform which introduced the strategy of several key money-saving initiatives for private business, including reducing shipping costs, port service fees, and electricity, and along with that a reform of railway operation management as well.
5. Dollar Economy
The dollar in Cambodia flows quite smoothly, and there is almost 80 to 82 percent of the business is using the dollar to facilitate the process of their economy. In this factor, it will be easier for foreigners to avoid currency conversion.
6. Youthful Workforces
There is a high number of youths in Cambodia who seeking the proper workplace. Having said that youth is a potential factor in the certain economy, including industrial, manufacturer, and relevant field. However, educational youth also graduate with unemployment status remains a bit high as well. Hence, the company can recruit more youth to work even easier.
Even though Cambodia is still on the list of developing countries, however, the potential of economic growth still goes on from badness to better. These are potential factors that worth considering starting up a business in Cambodia. In case we look at Cambodia as a whole, we will avoid starting, but if we break factors into pieces, the advantages are more than disadvantages.
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