Market Overview
Economy
Cambodia has been one of the top-performing economies in Asia. As the country emerges from the social and economic effects of the Covid crisis, a rapid return to the high levels of growth seen pre-Covid is now anticipated.
Cambodia will see some positive effects from the Cambodia-China FTA and the Regional Comprehensive Economic Partnership (RCEP, a mega-regional trade deal) in 2022-26. The latter will promote inward investment by reducing regulatory uncertainty and harmonising standards.
Cambodia has a strong labor protection regime, and while wages are rising with the development of the economy, the country still remains competitive in the region. In response to global trade concerns, the government has introduced a number of measures to reduce production and supply costs and encourage further foreign investment.
Banking System
Limited access to capital is one of the constraints of doing business in Cambodia. Commercial banks are primary sources of funding.
Currency
The local currency, Khmer Riel (KHR), was introduced in 1980. The Cambodian economy is classified as partially dollarized, given that the US dollar circulates in conjunction with the official national currency, as opposed to fully dollarized economies where the dollar is the only legal tender. Based on thze economic and monetary statistics report issued in November 2022 by the National Bank of Cambodia, 89% of the deposits of Cambodian residents and non-residents are denominated in foreign currency.
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Why Cambodia?
- ASEAN membership offers regional trade benefits
- WTO member since 2004 increasing trade integrations
- Duty free or preferential export access to most developed economies
- Favorable investment environment
- One of Asia’s lowest labor costs and a dynamic workforce
Investing in Cambodia | Seize the opportunity
2023 and beyond
English Version: Investing in Cambodia | Seize the opportunity
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