We have all discussed the business potential of Cambodia before, and the rising flock of startups and investors coming to the country only back up our hunches. While we acknowledge that there is great room for infrastructure growth, the young market constantly serves as a reminder to how far it has come despite its drawbacks. Referring to an analytic article released last month by Bangkok Post, we sifted out the top five reasons why Cambodia acts as an attractive new hub for business ventures to embark upon.
Cambodia is one of Asia’s most liberalised economies.
In terms of foreign businesses, Cambodia has one of the most open systems. Official policies welcome foreign investors, often giving them the same rights and treatments as local corporations. Various investment incentives include low corporate tax rate, three-year tax holiday, 40% depreciation rate for tangible assets, exemption of customs duties, and repatriation of profits. With the exception of land, foreign ownership can span out to 100% for assets under the protection of the Asean Comprehensive Investment Agreement (ACIA).
There is an abundance of space and opportunities for everyone.
The nation’s land and natural resources will continue growing and expanding south, and we have been witness to the recent boom in property development and construction just for the year alone. This naturally generates business opportunities in property and retail sectors to sustain the consumption rate, with the latter slowly (but surely) taking a big share of the economic pie. Match the low-to-reasonable property cost to a high dollar idea, and you have yourself a definite business equation.
Foreign currency risk is moderate because of the “dollarised” economy.
In Cambodia, we juggle between the US dollar and the nation’s own riels. Using a currency from one of the world’s strongest country means that the economy exchange is almost independent of any adverse developments in the country. According to the World Bank, the economy has seen a fast grown during recent years, with more than 8% per year from 2004 to 2012. It does help that the nation is evolving from agriculture and light manufacturing profits to a higher domestic consumption that brings both strength and stability.
Agriculture and tourism are the two biggest growth engines.
The opportunities for the two sectors, especially the latter, is endless. An article from Focus Asean explored the rising number of Chinese tourists alone from January to April 2013, and found out that the numbers were up nearly 60% as compared to the same period in 2012. In addition, there are tons of startups looking to explore this area, and we look forward to all the new monikers we will soon be adding to our future traveling mobile apps list!
Everyone wants a piece of the “emerging” pie.
Why sit back and watch the growth of the nation as a bystander? Jump in, be part of the emerging scene, and mark your flag where it counts. The resources for startups and companies are only growing in numbers, and we are always highlighting the many exciting activities we hope to streamline towards collective advancement. Various international organisations have provided Cambodia with development aid, and we always look forward to seeing new faces make change happen.
If you are looking to be a part of Cambodia’s growth scene, we would love to hear from you! Drawing leverage from our great experiences with startups and individuals across their ventures, we are always excited to meet the upcoming boom of the nation’s additions. Drop us a line to start your journey with us in Cambodia today!
Article Credit: http://www.bangkokpost.com/business/news/413161/booming-cambodia-beckons-investors