Cambodia has seen enormous economic growth in the last decade or so. As a result, you can capitalise on a number of business areas and opportunities in the country.
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 electricity are among the best business ideas in Cambodia in 2021.
Real Estate Investing
When it comes to Asia’s rapidly growing frontier markets, Cambodia is without a doubt one of the best for real estate property buyers. Buying properties in Cambodia and renting them out or selling them at a later stage for large profit margins is one of the best investment ideas in Cambodia in 2021.
Throughout Cambodia, a host of prolific property development ventures have emerged in recent years, showcasing design and construction efficiency that is well regarded by international standards.
These ventures are typically led by prominent Cambodian developers, such as Prince Real Estate, which is part of the group led by business tycoon Chen Zhi Cambodia, one of Cambodia’s fastest growing conglomerates with a range of highly acclaimed developments under its belt, including Prince Central Plaza and Prince Happiness Plaza.
The size and quality of such developments have contributed significantly to investors’ overall enthusiasm about the Cambodian real estate market, and they are eager to get in on the action.
With more and more exciting and spectacular property development projects set to complete in the near future, there is certainly an opportunity to get involved and create a nice portfolio that produces a decent return on investment.
Another great business idea for Cambodia in 2021 is to invest in the textile industry.
Cambodia’s garment industry began about 30 years ago (in the 1990s), when expat investors began to construct manufacturing facilities.
Cambodia’s garment industry has expanded steadily over the last two decades, accounting for 30 percent of the country’s GDP and employing over 700,000 workers 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 organisations have developed factories in Cambodia as a result of investment incentives offered by the Cambodian government, low labour costs, and preferential market access to the European Union and ASEAN (Association of Southeast Asian Nations).
Garment exports account for approximately 60% of Cambodia’s overall exports, with the United States of America and the European Union being the two largest export destinations for footwear and garments.
As a result, there is no question that investing in the textile industry is a lucrative business idea in Cambodia.
Logistics and transportation
With greater penetration into global and regional supply chains, the logistics division has become vital 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 can handle cargo (deep-sea) up to 14 metres by 2022.
These infrastructure upgrades are likely to be accompanied by logistical developments. This opens up lucrative business opportunities in Cambodia, as well as opportunities for consulting 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 beginning to implement standards aimed at reducing traffic congestion, wear and tear on existing highways, 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. LCL (Less Container Load) and International VMI (Vendor Management Inventory) systems have a lot of market potential because they can help Cambodia minimise overall logistics costs.
Agri-food and Horticulture
Cambodia’s main crop is rice, with 8 million tonnes 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 lacks the capacity to process its own rice production.
Cambodia currently exports the bulk of its revenue to neighbouring countries before re-exporting it.
Cassava and rubber, in addition to rice, are among the most popular export commodities. Between 2006 and 2015, production of subsidiary crops increased by 400%. Many programmes assist farmers by offering training, market intelligence, funding options, and technology to support them with this transition.
Collaboration with projects like these, as well as providing agricultural inputs to farmers, is a great business concept for Cambodia in 2021. The above-mentioned conglomerate of Cambodia ChenZhi is one such business that is actively engaged in this area.
Higher demand for meat and livestock has resulted from increased food diversification (household) and an improvement in living standards.
If you have prior experience in nutrition and 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 done in a number of ways, including the establishment of a supply chain company to ensure that the Cambodian market can meet its demand for meat.
Business Opportunities in Cambodia’s Energy Sector
Cambodia’s energy sector has recently shown encouraging results. The country’s electricity supply rose by 11% in 2017, and it has continued to grow since then.
The country’s first source of domestic power is hydropower, which accounts for roughly 40% of all electricity consumed in Cambodia. Hydropower expansion is one of Cambodia’s best industry opportunities and proposals for 2021.
You may also provide engineering consulting services on the social, legal, and environmental effects of large projects.
Furthermore, due to its high average irradiation, the country has enormous solar potential. Off-grid technologies are used by more than one-fourth of rural households, with solar power 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 idea you want to invest in, it is important to keep a few key points in mind before starting any form of business in Cambodia.
Be Aware of The Obstacles
In Cambodia, there is a wide range of business opportunities that you can take your pick from. However, doing business in the country poses a number of challenges.
First and foremost, you must consider where you can expect to experience difficulties. Language and culture, law and laws, bureaucracy, and trade barriers are all examples of such areas.
Second, create a strategic business plan and perform market research; set realistic ambitions and goals; and consider the competition and market.
Third, before entering into contracts or other commercial arrangements, make sure you conduct your due diligence.
Develop Strong Relationships
Building and maintaining professional relationships is important for doing business in Cambodia (or anywhere else for that matter).
A credible local partner in the country can dramatically speed up the planning work by providing access to existing networks and business knowledge.
To summarise, you can successfully implement a business idea in Cambodia in industries such as those mentioned above.
However, before you jump the gun, it is important that you do your homework and explore all of the available options before making an investment.
Furthermore, before trying any of the top business ideas in Cambodia, make sure you understand all of the dos and don’ts of doing business in the area.