Get the latest business and investment news from Cambodia with the in-market experts. Our August issue covers:
- Cambodia’s political transition: What does it mean for businesses and investors?
- New government efforts towards MSME diversification
- Exciting potential of the E-commerce sector
- SBF delegation spurring confidence in local market
- Solid reserves demonstrating strength of the currency and economy
- FDI stability being among highest in the ASEAN
To find out more about Aquarii, get in touch with one of our team here, today.
This month’s issue contains a special two page insight into Cambodia’s political transition and what it means for businesses and investors, following the watershed National Assembly Election and the issuance of a new Prime Minister of the Kingdom of Cambodia by Royal Decree.
Find a snippet of below, or download the full PDF for free on the left of the screen.
What does Cambodia’s political transition mean for businesses and investors?
“It is a fundamental rule of thumb that every emerging market or frontier economy will have their own potential and opportunities, and that’s why they are attractive to international businesses and investors. But the critical factor for long-term business and investment decisions must incontrovertibly be, political stability.”
“If a country or destination market is not politically stable, then the business and investment risks go up exponentially. In fact, whereas certain developing countries or emerging economies have shown tremendous investment potential and offered numerous business opportunities, they are now mired in political turmoil or uncertainty, causing investment flight and loss of confidence by investors and businesses.”
How may Cambodia’s political transition change international narratives, especially regarding business and investment?
“The usual narratives and depiction of Cambodia by the international media and certain governments have mostly been anything but positive, and this has created and reinforced long-held misperception and outdated perspectives of the emerging economy among international businesses and investors. It is therefore not surprising that many continue to ignore or dismiss the factual realities: that the Kingdom has been politically stable for the past two decades plus, and has been one of the fastest growing economies in the world at 7.7% per year since 1998, according to the World Bank.”
“Cambodia’s economy grew by more than 8 times from USD 3.654b in 2000 to USD 29.96b in 2022, despite Covid-19 challenges and major disruptions in global supply chain and logistics. This is while bearing in mind that Cambodia is an open economy that is susceptible to external shocks on trade and investments.”
What’s next following Cambodia’s political transition for businesses and investors?
Those who understand econometrics will be aware that a youthful demography and a growing economy are strong indicators of a country’s longer-term socio-economic development. Well, Cambodia has a growing economy and more than 70% of Cambodia’s population are under the age of 35. Add to this the adoption rate of digitalization in Cambodia, which has been much faster and earlier than many other countries in the region, and it should become evident that its economic growth looks set to continue on an upward trajectory.