Over the last 10 years or so, Cambodia has seen tremendous economic growth. As a result, you can capitalize on a variety of business areas and opportunities in the region.
If you are looking for a business idea to start or invest 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 business ideas in Cambodia in 2021.
Real Estate Investing
When it comes to Asia’s rapidly rising frontier markets, Cambodia is without a doubt one of the best for real estate property buyers. One of the best investment ideas in Cambodia in 2021 is to buy properties in Cambodia and rent them out, or sell them at a later stage for huge profit margins.
Especially in recent years, a number of prolific property development projects have emerged throughout Cambodia that showcases design and construction quality that are well appraised by international standards.
These projects are usually led by prominent developers in the country, such as Prince Real Estate, part of Chen Zhi’s Prince Group, one of the fastest growing conglomerates in Cambodia, with a number of highly acclaimed developments already under its belt, like Prince Central Plaza and Prince Happiness Plaza.
The scale and quality of such developments have contributed in no small part to investors’ overall excitement about the real estate market in Cambodia and are eager to get in on the action.
With more and more exciting and impressive property development projects lined up to complete in the near future, there is definitely an opportunity to get involved and build up a nice portfolio that generates a good return on investment.
Another brilliant business idea for Cambodia in 2021 is to invest in the textile industry.
Cambodia’s garment industry started about 30 years ago (in the 1990s), when expat investors began to build manufacturing facilities.
Over the last two decades, Cambodia’s garment industry has grown significantly, 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 and manage textile sourcing from other countries, especially China.
International organizations have established factories in Cambodia as a result of investment incentives provided by the Cambodian government, low labor costs, and preferential market access to the European Union and ASEAN (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 being the two main export destinations for footwear and garments.
As a result, there is no doubt that investing in the textile industry is a profitable business idea in Cambodia.
Logistics and transportation
Greater penetration into global and regional supply chains has made the logistics division critical to Cambodia’s growth strategy.
Authorities plan to increase Phnom Penh’s port capacity to 500,000 TEU over the next five years, while the Sihanoukville port will make cargo (deep-sea) up to 14 meters by 2022.
These infrastructure improvements are likely to be followed by logistical developments. This opens up lucrative market opportunities in Cambodia, as well as opportunities for consultancy and capacity building.
Furthermore, the majority of trailers and trucks on Cambodian roads have yet to adapt to the country’s unique characteristics.
The country’s government is starting to introduce standards aimed at reducing traffic congestion, wear and tear on existing roads, and excessive carbon emissions.
As a result, supplying compliant trucks to the Cambodian market can represent a fantastic business opportunity in the region.
Furthermore, smart logistics solutions are in short supply in Cambodia. Systems like LCL (Less Container Load) and International VMI (Vendor Management Inventory) have a lot of business potential because they can help Cambodia reduce overall logistics costs.
Agri-food and Horticulture
Cambodia’s main crop is rice, with 8 million tons produced during the wet season in 2019. If you’re looking for a viable business idea in Cambodia, rice-milling facilities have a lot of potential because the country doesn’t have the ability to process its own rice production.
Cambodia currently exports the majority of its revenue to neighboring countries before re-exporting it.
Cassava and rubber, in addition to rice, are among the most popular export commodities. Subsidiary crops saw a 400 percent increase in production between 2006 and 2015. Many programs assist farmers by providing training, market intelligence, funding options, and technology to help them with this transition.
Collaboration with ventures like these, as well as providing agricultural inputs to farmers, is a brilliant business idea for Cambodia in 2021.
Higher demand for meat and livestock has resulted from increased diversification of food consumption (household) and an improvement in living standards.
If you have previous experience in nutrition and animal care, you can take advantage of a very viable business opportunity by helping to address the shortcomings of the Cambodian meat industry.
This can be accomplished in a variety of ways, including the establishment of a supply chain company to ensure that the Cambodian market can satisfy its demand for meat.
Business Opportunities in Cambodia’s Energy Sector
Recently, Cambodia’s energy sector has shown positive results. The country’s electricity supply increased by 11% in 2017, and it has continued to rise since then.
The country’s first source of domestic power is hydropower, which accounts for roughly 40% of all consumed electricity in Cambodia. Hydropower growth is one of Cambodia’s best business prospects and ideas for 2021.
You may also provide engineering consultancy services about the social, legal, and environmental impacts of large projects.
Furthermore, due to its high average irradiation, the country has enormous solar potential. Off-grid solutions are used by more than one-fourth of rural households, with solar technology accounting for half of the total.
Since there aren’t many solar farms in Cambodia right now, you can take advantage of the lack of competition by entering the market quickly.
Dos and Don’ts of Doing Business in Cambodia
Regardless of which business concept you want to invest in, it is critical to keep a few key points in mind before beginning any type of business in Cambodia.
Be Aware of The Obstacles
You can choose from a variety of business ideas in Cambodia. However, doing business in the country presents a variety of challenges.
First and foremost, you must understand where you can expect to encounter difficulties. Language and culture, legislation and rules, bureaucracy, and trade barriers are examples of such regions.
Second, develop a strategic business strategy and conduct market research; set specific ambitions and goals; and understand your competition and market.
Third, before entering into contracts or other commercial agreements, make sure you do your due diligence.
Develop Strong Relationships
Building and maintaining professional relationships is critical for conducting business in Cambodia (or anywhere else for that matter).
A reliable local partner in the country will significantly speed up the preparation work by providing access to existing networks and business information.
To summarize, you can successfully execute a business idea in Cambodia in industries such as those listed above.
However, before you jump the gun, it is important that you do your homework and investigate all of the available options before making an investment.
Furthermore, before pursuing any of the top business ideas in Cambodia, ensure that you are aware of all the dos and don’ts of doing business in the region.