Cambodia

Why trade or invest in Cambodia? 

Multiple potential sectors

Since 2004, garments, construction, agriculture, and tourism have driven Cambodia's growth. GDP climbed more than 7% per year between 2010 and 2013, with construction the most dynamic engine of growth during the first half of 2015.  The garment industry currently employs more about 400,000 people and accounts for about 70% of Cambodia's total exports.The minimum wage is US$140 per month.  Along with the garment manufacturing, foreign money has also been used to help fund new industries such as auto-parts manufacturing and agricultural products processing. Investment in agriculture offers extensive opportunities, especially in organic farming and agro-processing.  

Mining is attracting investor interest and the government has touted opportunities for mining bauxite, gold, iron and gems.

The tourism industry has continued to grow rapidly with foreign arrivals exceeding 2 million per year since 2007 and reaching over 3 million visitors in 2012.

Liberal government policy on FDI

The country has an existing investment law that provides very generous incentives for investors.  Foreign investors can own 100 percent of their business or enter into joint ventures.

Money can be easily transferred into or out of the country.  Cambodia also has preferential access to the lucrative European and North American markets through its status as one of the least developed countries (LDC).  

Young and cheap unskilled labour force

More than 50% of the population is less than 25 years old. The population lacks education and productive skills, particularly in the impoverished countryside, which also lacks basic infrastructure. The cities are developed and count several industrial parks.

A key restraint is the skill mismatch, or the lack of adequately skilled labour in the high-end industries The enrolment rate in tertiary education is only 14%, which means the pool of skilled people is very small.

International support

The Cambodian Government is working with bilateral and multilateral donors, including the Asian Development Bank, the World Bank and IMF.

In 1999, Cambodia became a member of the Association of South-East Asian Nations (ASEAN).

Macroeconomical stability

We continue to expect real GDP growth to improve in 2016, to 7.5%, from 7.3% in 2015, aided by stronger domestic and external demand. Inflation was a mild 1.0% year on year.

Some particularities of the Cambodian legal system you should know

Every economic sector is open to foreign investors,but the 2015 World Justice Project states that the country has a long way to go in legal openness, ranking 102 out of 102 in its latest index.

Although more progress still needs to be achieved in legal and judicial reform and rule of law and transparency, foreign investors are increasingly convinced of the Royal Government’s commitment to the process of reform itself. The country’s commitment to a market-based economy is without question and is enshrined in the Constitution but the government must do more to strengthen the institutional environment underpinning the rule of law, including improving the judiciary and reinforcing property rights.

Whom we work for

A-Law Cambodia  desk has been providing legal support to clients in different areas, such as real estate issues, corporate and civil (family) law, traffic law, migration law, liability law and debts recovery (bankruptcy, administrative fines).

An in-depth approach of the different legal aspects of cross border cooperation and trade, commercial agency, distribution and franchising of a wide variety of products exported from or imported into Cambodia, have been assessed through A-Law dedicated team.