Cambodia has seen enormous economic growth in the last ten years or so. As a result, you will be able to capitalize on a wide range of business areas and opportunities in the country. If you want to start or invest in a company in Cambodia in 2021, there are numerous opportunities in a variety of sectors, including:
- 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 among the best Cambodian business ideas for 2021.
Real Estate Investing:
Cambodia is without a doubt one of Asia’s fastest-growing frontier markets for real estate property buyers. Buying properties in Cambodia and renting them out or selling them later for big profit margins is one of the best investment ideas in Cambodia in 2021.
Throughout Cambodia, a number of prolific property development ventures have emerged in recent years that highlight design and construction quality that is well regarded by international standards. These ventures are typically led by prominent Cambodian developers, such as Prince Real Estate, which is part of Neak Oknha Chen Zhi’s Prince Group, one of Cambodia’s fastest-growing conglomerates with a range of highly acclaimed developments under its belt, such as Prince Central Plaza and Prince Happiness Plaza.
The size and quality of such developments have contributed significantly to investors’ overall enthusiasm about Cambodia’s real estate market and their eagerness to get in on the action. With the number of exciting and spectacular property development projects scheduled to be completed in the near future, there is undoubtedly an opportunity to get involved and create a pleasant portfolio that produces a decent return on investment.
Investing in the textile industry is another great business concept for Cambodia in 2021. Cambodia’s garment industry began roughly 30 years ago (in the 1990s) when ex-pat investors began to build manufacturing facilities.
Cambodia’s garment industry has expanded steadily over the last two decades, accounting for 30% of the country’s GDP and employing over 700,000 workers in over a thousand garment factories. The majority of the factories are owned by foreigners who use Cambodia for the cut, make, and trim (CMT) process as well as managing textile sourcing from other countries, especially China.
International organizations have developed factories in Cambodia as a result of the Cambodian government’s investment incentives, low labor costs, and preferential market access to the European Union and ASEAN (Association of Southeast Asian Nations). Garment exports account for approximately 60% of total Cambodian exports, with the United States of America and the European Union being the two primary export destinations for footwear and garments. As a result, there is no question that investing in Cambodia’s textile industry is a lucrative business venture.
Logistics and transportation:
With greater penetration into global and regional supply chains, Cambodia’s logistics division has become vital to the country’s growth strategy. Authorities plan to raise the port capacity of Phnom Penh to 500,000 TEU over the next five years, while the Sihanoukville port can handle cargo (deep-sea) up to 14 meters by 2022.
These infrastructure upgrades would almost certainly be accompanied by logistical advances. This opens up lucrative business opportunities in Cambodia, as well as consulting and capacity-building opportunities. Furthermore, the majority of trailers and trucks on Cambodian roads have yet to adapt to the country’s distinctive features. The country’s government is beginning to implement standards aimed at reducing traffic congestion, road wear and tear, and excessive carbon emissions.
As a result, supplying compliant trucks to the Cambodian market can be an excellent business opportunity in the region. Furthermore, intelligent logistics solutions are scarce in Cambodia. LCL (Less Container Load) and International VMI (Vendor Management Inventory) systems have significant market potential because they can help Cambodia minimize overall logistics costs.
Agri-food and Horticulture:
Cambodia’s main crop is rice, which grew 8 million tonnes during the wet season in 2019. Rice-milling facilities have a lot of potentials if you’re looking for a viable business idea in Cambodia because the country lacks the capacity to process its own rice production. The bulk of Cambodia’s revenue is actually exported to neighboring countries before being re-exported.
Cassava, rubber, and rice are some of the most important export commodities. Between 2006 and 2015, the production of subsidiary crops increased by 400%. Many programs assist farmers with this transition by offering training, market insight, funding options, and technology. Collaboration with such projects, as well as the provision of agricultural inputs to farmers, is a genius business concept for Cambodia in 2021. Increased diversification of food consumption (household) and an improvement in living standards have resulted in increased demand for meat and livestock.
If you have prior expertise in nutrition or animal care, you can take advantage of a very viable business opportunity by assisting in the correction of the Cambodian meat industry’s flaws. This can be done in a number of ways, including the creation of a supply chain corporation to ensure that the Cambodian market’s demand for meat is met. Agriculture also happens to be an area that the above-mentioned Cambodia ChenZhi and his enterprise’s ESG initiatives have been focusing on in recent times.
Business Opportunities in Cambodia’s Energy Sector
Cambodia’s energy sector has recently shown promising results. In 2017, the country’s electricity supply rose by 11%, and it has continued to grow since then. Hydropower is the country’s first source of domestic power, accounting for approximately 40% of all consumed electricity in Cambodia. Hydropower development is one of Cambodia’s most promising market opportunities and ideas for 2021.
You may also provide engineering consulting services about the social, legal, and environmental implications of large projects. Furthermore, the country has immense solar capacity due to its high average irradiation. More than one-fourth of rural households use off-grid technologies, with solar power accounting for half of the number. Since there aren’t many solar farms in Cambodia right now, you can take advantage of the lack of competition by entering the market as soon as possible.
Dos and Don’ts of Doing Business in Cambodia:
Whatever business idea you want to invest in, it is important to keep a few main points in mind before starting any form of business in Cambodia.
Be Aware of The Obstacles:
In Cambodia, you can choose from a wide range of business opportunities. Doing business in the world, on the other hand, poses a number of challenges.
First and foremost, you must consider where you can anticipate difficulties. Language and culture are examples of such areas, as are law and laws, bureaucracy, and trade barriers. Second, create a strategic business plan and perform market research; establish realistic ambitions and goals, and consider the competition and market. Third, do your due diligence before entering into contracts or other commercial agreements.
Develop Strong Relationships:
Building and maintaining professional relationships is important when doing business in Cambodia (or anywhere else for that matter). By providing access to existing networks and business knowledge, a reliable local partner in the country will greatly accelerate the preparation work.
To summarise, in industries such as those mentioned above, you can successfully implement a business idea in Cambodia. However, before you jump the gun, it is important that you do your homework and explores all of the available options. Furthermore, before trying any of the top business ideas in Cambodia, ensure that you are well-versed in the region’s dos and don’ts.