Cambodia has experienced tremendous economic growth over the last ten years or so. As a result, you'll be able to take advantage of a wide range of business opportunities in the region.
There are numerous opportunities in a variety of sectors if you are looking for a business idea to start or invest in Cambodia in 2021, 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
In Cambodia in 2021, real estate, the garment industry, transportation and logistics, and energy are among the best business ideas.
Real Estate Investing
Cambodia is without a doubt one of the best places to invest in real estate in Asia's rapidly growing frontier markets. Buying properties in Cambodia and renting them out or selling them at a later date for huge profit margins is one of the best investment ideas in Cambodia in 2021.
A number of well-known property development projects have sprung up across Cambodia in recent years, showcasing design and construction quality that meets international standards.
These projects are usually led by well-known Cambodian developers, such as Prince Real Estate, which is part of Chen Zhi's Prince Group by Chen Zhi Cambodia, one of Cambodia's fastest-growing conglomerates, with a number of well-received projects under its belt, including Prince Central Plaza and Prince Happiness Plaza.
The size and quality of such developments have contributed significantly to investors' enthusiasm for the Cambodian real estate market and their desire to participate.
There is definitely an opportunity to get involved and build a nice portfolio that generates a good return on investment as more and more exciting and impressive property development projects are lined up to complete in the near future.
Garment
Investing in the textile industry is another brilliant business idea for Cambodia in 2021.
The garment industry in Cambodia began around 30 years ago (in the 1990s), when expat investors began to construct manufacturing facilities.
Cambodia's garment industry has grown significantly over the last two decades, accounting for 30% of the country's GDP and employing over 700,000 people in over a thousand garment factories.
Foreigners own the majority of the factories, which use Cambodia for cut, make, and trim (CMT) and to manage textile sourcing from other countries, particularly China.
As a result of investment incentives provided by the Cambodian government, low labour costs, and preferential market access to the European Union and ASEAN, international organisations have established factories in Cambodia (Association of Southeast Asian Nations).
The United States of America and the European Union are the two main export destinations for footwear and garments, accounting for roughly 60% of Cambodia's total exports.
As a result, there is no doubt that investing in the textile industry in Cambodia is a sound business decision.
Logistics and transportation
The logistics division has become increasingly important to Cambodia's growth strategy due to its increased penetration into global and regional supply chains.
Over the next five years, authorities plan to expand Phnom Penh's port capacity to 500,000 TEU, while the Sihanoukville port will be able to handle cargo (deep-sea) up to 14 metres by 2022.
These infrastructure upgrades will almost certainly be followed by logistical improvements. This creates lucrative market opportunities in Cambodia, as well as consulting and capacity-building opportunities.
Furthermore, the majority of trailers and trucks on Cambodian roads have yet to adjust to the country's peculiarities.
The government of the country is beginning to implement regulations aimed at reducing traffic congestion, road wear and tear, and excessive carbon emissions.
As a result, supplying compliant trucks to the Cambodian market could be a lucrative business venture in the region.
In addition, smart logistics solutions are scarce in Cambodia. LCL (Less Container Load) and International VMI (Vendor Management Inventory) systems have a lot of business potential in Cambodia because they can help the country reduce overall logistics costs.
Agri-food and Horticulture
The main crop in Cambodia is rice, which produced 8 million tonnes during the wet season in 2019. Rice-milling facilities have a lot of potential as a viable business idea in Cambodia because the country lacks the ability to process its own rice production.
The majority of Cambodia's revenue is currently exported to neighbouring countries before being re-exported.
In addition to rice, cassava and rubber are among the most popular export commodities. Between 2006 and 2015, production of subsidiary crops increased by 400%. Many programmes assist farmers with this transition by providing training, market intelligence, funding options, and technology.
Collaboration with such ventures, as well as the provision of agricultural inputs to farmers, is a fantastic business idea for Cambodia in 2021.
Increased food diversification (household) and improved living standards have resulted in increased demand for meat and livestock.
If you have prior experience in nutrition or animal care, you can take advantage of a very lucrative business opportunity by assisting in the correction of Cambodia's meat industry's shortcomings.
This can be accomplished in a variety of ways, such as by forming a supply chain company to ensure that the Cambodian market can meet its meat demand.
Business Opportunities in Cambodia's Energy Sector
Cambodia's energy sector has recently shown promising results. In 2017, the country's electricity supply increased by 11%, and the trend has continued since then.
Hydropower is the country's first source of domestic power, accounting for roughly 40% of all consumed electricity in Cambodia. Hydropower development is one of Cambodia's most promising business opportunities and ideas for 2021.
You could also provide engineering consulting services for large projects' social, legal, and environmental impacts.
Furthermore, the country has enormous solar potential due to its high average irradiation. More than a quarter of rural households use off-grid solutions, with solar technology accounting for half of the total.
You can take advantage of the lack of competition by entering the market quickly because there aren't many solar farms in Cambodia right now.
Dos and Don'ts of Doing Business in Cambodia
Before starting any type of business in Cambodia, it is critical to keep a few key points in mind, regardless of which business concept you want to invest in.
Read about the Cambodian economy - https://en.wikipedia.org/wiki/Economy_of_Cambodia
Be Aware of The Obstacles
In Cambodia, you can choose from a wide range of business opportunities. However, doing business in the country comes with a number of difficulties.
First and foremost, you must recognise the areas where you can expect to face challenges. Language and culture are examples of such regions, as are legislation and rules, bureaucracy, and trade barriers.
Second, create a strategic business plan and conduct market research; set specific objectives and goals; and learn about your competitors and market.
Third, do your due diligence before entering into contracts or other commercial agreements.
Develop Strong Relationships
In order to conduct business in Cambodia, it is necessary to establish and maintain professional relationships (or anywhere else for that matter).
By providing access to existing networks and business information, a dependable local partner in the country will significantly speed up the preparation work.
Conclusion
To summarise, in industries such as those listed above, you can successfully execute a business idea in Cambodia.
However, before jumping the gun, do your homework and research all of your options before making a decision.
Furthermore, before pursuing any of the top business ideas in Cambodia, make sure you are well-versed in the region's dos and don'ts.
