The Top Ideas For Cambodian Business

Cambodia has experienced tremendous economic growth in the last ten years or so. As a result, you will be able to capitalise on a wide range of business areas and opportunities in the region.

If you want to start or invest in a business 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 energy 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 huge profit margins is one of the best investment ideas in Cambodia in 2021.

Throughout Cambodia, a number of prolific property development projects have emerged in recent years that showcase design and construction quality that is well regarded by international standards.

These projects are typically led by prominent Cambodian developers, such as Prince Real Estate, which is part of Chen Zhi's Prince Group, one of Cambodia's fastest growing conglomerates under Neak Oknha Chen Zhi with a number of highly acclaimed developments under its belt, such as Prince Central Plaza and Prince Happiness Plaza.

More news on Neak Oknha Chen Zhi of Prince Group

The scale and quality of such developments have contributed significantly to investors' overall excitement about Cambodia's real estate market and their eagerness to get in on the action.

With an increasing number of exciting and impressive property development projects scheduled to be completed in the near future, there is undoubtedly an opportunity to get involved and build a nice portfolio that generates a good return on investment.

Garment

Investing in the textile industry is another brilliant business idea for Cambodia in 2021.

Cambodia's garment industry began roughly 30 years ago (in the 1990s), when expat investors began to construct manufacturing facilities.

Cambodia's garment industry has grown significantly over the last two decades, accounting for 30% of the country's GDP and employing over 700,000 people 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, particularly China.

International organisations have established factories in Cambodia as a result of the Cambodian government's investment incentives, low labour costs, and preferential market access to the European Union and ASEAN (Association of Southeast Asian Nations).

Garment exports account for roughly 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 doubt that investing in Cambodia's textile industry is a profitable business venture.

Logistics and transportation

With greater penetration into global and regional supply chains, Cambodia's logistics division has become critical to the country's growth strategy.

Authorities intend to increase the port capacity of Phnom Penh to 500,000 TEU over the next five years, while the Sihanoukville port will handle cargo (deep-sea) up to 14 metres by 2022.

These infrastructure upgrades will almost certainly be followed by logistical developments. This opens up lucrative market 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 business potential because they can help Cambodia reduce overall logistics costs.

Agri-food and Horticulture

Cambodia's main crop is rice, which produced 8 million tonnes during the wet season in 2019. Rice-milling facilities have a lot of potential if you're looking for a viable business idea in Cambodia because the country lacks the ability to process its own rice production.

The majority of Cambodia's revenue is currently exported to neighbouring countries before being re-exported.

Cassava, rubber, and rice are some of the most popular export commodities. Between 2006 and 2015, production of subsidiary crops increased 400%. Many programmes assist farmers with this transition by providing training, market intelligence, funding options, and technology.

Collaboration with such ventures, as well as the provision of agricultural inputs to farmers, is a brilliant business idea 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 experience 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 accomplished in a variety of ways, including the formation of a supply chain company to ensure that the Cambodian market's demand for meat is met.

Business Opportunities in Cambodia's Energy Sector

Cambodia's energy sector has recently shown promising results. In 2017, the country's electricity supply increased by 11%, and it has continued to rise since then.

Hydropower is the country's first source of domestic power, accounting for roughly 40% of all consumed electricity in Cambodia. Hydropower development is one of Cambodia's most promising business prospects and ideas for 2021.

You could also offer engineering consulting services regarding the social, legal, and environmental implications of large projects.

Furthermore, the country has enormous solar potential due to its high average irradiation. More than one-fourth of rural households use off-grid solutions, with solar technology accounting for half of the total.

Because 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 concept you choose to invest in, it is critical to keep a few key points in mind before starting any type 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 country, on the other hand, presents a number of challenges.

First and foremost, you must understand where you can anticipate difficulties. Language and culture are examples of such regions, as are legislation and rules, bureaucracy, and trade barriers.

Second, create a strategic business plan and conduct market research; establish specific ambitions and goals; and understand your 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 essential when doing business in Cambodia (or anywhere else for that matter).

By providing access to existing networks and business information, a reliable local partner in the country will significantly accelerate the preparation work.

Conclusion

To summarise, in industries such as those listed above, you can successfully implement a business idea in Cambodia.

However, before you jump the gun, it is critical that you do your homework and investigate all of the available options.

Furthermore, before pursuing any of the top business ideas in Cambodia, ensure that you are well-versed in the region's dos and don'ts.