Cambodia has experienced tremendous economic growth over the last decade or so. As a result, you can capitalise on the region's diverse business sectors and opportunities.
If you're looking to start or invest in a business in Cambodia in 2021, there are numerous opportunities in a variety of sectors, including the following:
- 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, apparel manufacturing, transportation and logistics, and energy are among the best business ideas in Cambodia for 2021.
Real Estate Investing
Cambodia is without a doubt one of the best frontier markets in Asia for real estate property buyers. One of the best investment opportunities in Cambodia in 2021 is to purchase properties in Cambodia and rent them out or sell them at a profit later.
Recently, a slew of prolific property development projects have sprung up throughout Cambodia, showcasing design and construction quality that meets international standards.
These projects are typically spearheaded by prominent Cambodian developers, such as Prince Real Estate, which is a subsidiary of Chen Zhi's Prince Group, one of the country's fastest growing conglomerates, under Neak Oknha Chen Zhi Cambodia, with a track record of highly acclaimed developments such as Prince Central Plaza and Prince Happiness Plaza.
The scale and quality of such developments have contributed significantly to investors' overall excitement about the Cambodian real estate market and their eagerness to participate.
With an increasing number of exciting and impressive property development projects scheduled to complete in the near future, there is undoubtedly an opportunity to participate and build a nice portfolio that generates a healthy return on investment.
Investing in the textile industry is another brilliant business idea for Cambodia in 2021.
Cambodia's garment industry began approximately 30 years ago (in the 1990s), with the establishment of manufacturing facilities by expat investors.
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 factories are owned by foreigners who use Cambodia to conduct cut, make, and trim (CMT) operations and manage 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 access to the European Union and ASEAN markets (Association of Southeast Asian Nations).
Garment exports account for roughly 60% of Cambodia's total exports, with the United States of America and the European Union serving as the primary markets for footwear and garments.
As a result, investing in the textile industry is an unquestionably profitable business venture in Cambodia.
Logistics and transportation
Due to Cambodia's increased penetration of global and regional supply chains, the logistics division has become critical to the country's growth strategy.
The authorities intend to expand Phnom Penh's port capacity to 500,000 TEU over the next five years, while Sihanoukville's port will handle cargo up to 14 metres deep by 2022.
These infrastructure upgrades are almost certain to be followed by logistical enhancements. This creates lucrative market opportunities in Cambodia, as well as consulting and capacity building opportunities.
Additionally, the majority of trailers and trucks operating on Cambodian roads have not yet adapted to the country's distinctive characteristics.
The government of the country has begun implementing standards aimed at reducing traffic congestion, road wear and tear, and excessive carbon emissions.
As a result, providing compliant trucks to the Cambodian market can be an excellent business opportunity in the region.
Additionally, smart logistics solutions are scarce in Cambodia. Systems such as LCL (Less Container Load) and International VMI (Vendor Management Inventory) offer significant business potential by assisting Cambodia in reducing overall logistics costs.
Agri-food and Horticulture
Cambodia's primary crop is rice, which was produced at a rate of 8 million tonnes during the wet season in 2019. If you're looking for a viable business opportunity in Cambodia, rice milling facilities offer significant potential due to the country's inability to process its own rice production.
At the moment, Cambodia exports the majority of its revenue to neighbouring countries before re-exporting it.
Along with rice, cassava and rubber are among the most popular export commodities. Between 2006 and 2015, production of subsidiary crops increased 400%. Numerous programmes assist farmers with this transition by providing training, market intelligence, funding options, and technology.
Collaboration with such ventures, as well as providing agricultural inputs to farmers, represents an excellent business opportunity for Cambodia in 2021.
Demand for meat and livestock has increased as a result of increased food diversification (household) and an improvement in living standards.
If you have prior experience in nutrition or animal care, you can take advantage of a very lucrative business opportunity by assisting in the correction of Cambodia's meat industry's shortcomings.
This can be accomplished in a variety of ways, one of which is the establishment 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 demonstrated positive results. In 2017, the country's electricity supply increased by 11%, and has continued to grow since then.
Hydropower is Cambodia's primary source of domestic energy, accounting for roughly 40% of all electricity consumed in the country. Hydropower expansion is one of Cambodia's most promising business opportunities and ideas for 2021.
Additionally, you may provide engineering consulting services for large-scale projects' social, legal, and environmental impacts.
Additionally, the country has enormous solar potential due to its high average irradiation. Over a quarter of rural households rely on off-grid solutions, with solar technology accounting for half of the total.
Due to the scarcity of solar farms in Cambodia at the moment, you can capitalise on the absence of competition by entering the market quickly.
Dos and Don'ts of Doing Business in Cambodia
Whichever business concept you choose to invest in, it is critical to keep a few critical points in mind before starting any type of business in Cambodia.
Be Aware of The Obstacles
In Cambodia, you can choose from a variety of business opportunities. However, conducting business in the country poses a number of difficulties.
To begin, you must understand the areas in which you can anticipate encountering difficulties. Such regions include those defined by language and culture, legislation and rules, bureaucracy, and trade barriers.
Second, develop a strategic business plan and market research; establish specific ambitions and goals; and gain a thorough understanding of your competition and market.
Third, conduct due diligence prior to entering into contracts or other commercial agreements.
Develop Strong Relationships
It is critical to establish and maintain professional relationships when conducting business in Cambodia (or anywhere else for that matter).
A trustworthy local partner in the country will significantly accelerate the preparation process by providing access to existing networks and business data.
To summarise, you can successfully launch a business in Cambodia in any of the industries listed above.
However, before you jump the gun, it is critical that you conduct due diligence and thoroughly investigate all available options prior to making an investment.
Additionally, before pursuing any of the top business ideas in Cambodia, ensure that you are familiar with all of the region's business dos and don'ts.