|
Cambodia, located in the Mekong region, is a politically stable country with a consistently high economic growth and a highly dollarized economy (US dollars are widely used and accepted). It has the youngest population in Southeast Asia and Cambodians are known for being some of the friendliest and most adaptable people that you will ever meet!
Read on to find out about the opportunities for exporting to Cambodia and if you want to hear more about the Cambodian market or any market in Asia Pacific, get in touch with the Export Support Service for Asia Pacific, we are here to help!
4 reasons why UK exporters should be considering Cambodia
- Growing demand for imported products and commodities from mass to luxury market , it is a transformative time for new products and services
- Cambodian income levels are rising across all socio-economic classes, means a growth in disposable incomes
- Cambodia imports more than it exports due to high domestic demand
- Cambodia has a favourable geographic location sharing borders with Thailand, Lao PDR and Vietnam with relatively easy access to international trade routes
What are the growing opportunities for UK sectors in Cambodia?
The top 5 UK exports to Cambodia are cars, animal feeding products, medicinal and pharmaceutical products, beverages and clothing. The total UK exports amounted to £132 million in the four quarters to the end of Q1 2022 (an increase of 55.3% or £47 million compared to the four quarters to the end of Q1 2021).
There are further opportunities for UK companies to cater to the country’s constant appetite for imported goods and services.
Agriculture
This sector is one of the key drivers of economic growth and important industries in Cambodia. Though this sector is export-oriented, mostly are raw produce (e.g. rice, maize, mango, cassava, and rubber). There are significant opportunities in the agro-processing and agri-tech space such as heavy machineries, tools and technology to enhance crop yields, quality fertilisers and pesticides. Other opportunities lie in skills training in the agri-workforce.
Consumer and Retail
There has been rapid urbanisation in the cities, and many mega shopping malls, community, and boutique malls have opened. There are more than a dozen large shopping malls in the capital (Phnom Penh) with more planned until at least 2023. With these developments and growing population create a bigger demand for more consumer products. Luxury retail group and new brand entrants entered the local market during the time of pandemic, for example, Bluebell group, H&M, and OVS. There is a growing demand for baby products, such as clothing, cleaning wipes and toys. Additionally, there are opportunities in affordable to luxurious homewares, like furniture and decors. There is also a rising trend toward a sustainable, eco-friendly and organic beauty and personal care products.
Food and Drink
Young and worldly, the consumers are always open to trying new food products and changing lifestyles have led to changes in Cambodians’ eating habits, too. Categories that are expected to show continued growth include convenience foods and prepared grab-and-go foods, beverages and alcoholic drinks, dairy products, nutritional food for babies and children at mass and premium market level.
Education and Training
There are huge opportunities for education and training development through transnational education (TNE) partnerships, course development and internationalisation of curricula, vocational education, and enhanced uptake of education technology. There is a need to seriously address skills gap and reform programme for public education system. Teachers’ development is also needed.
Healthcare and Pharmaceuticals
The Cambodian healthcare system is still limited and it is fundamental to improve this sector. There are vast opportunities for UK companies such as providing training and expertise in the health workforce, medical technology, laboratory technology and biomedical engineering. Cambodia imported about 90% of its pharmaceutical in 2019 and its demand is expected to grow further. Additionally, there are growing numbers of hospitals and clinics, and most of the medical equipment, medical supplies and consumables are exported into Cambodia, hence, there are great export opportunities in this space to look out for.
ICT and New Technologies
Cambodia enjoys some of the cheapest and fastest internet connection among its neighbouring countries and soon to experience greater connectivity as a major Cambodian service provider has teamed up with global communications giant to deploy its ultra-fast gigabit broadband internet. The country’s connectivity levels have now reached to 13.4 million users, an internet penetration of 78%. A rapid surge of mobile users, a drive towards Industry 4.0, and emerging opportunities to be found within e-commerce are thought to be driving this trend. Digital payment transactions have seen a significant rise and cashless payments are mainly opted in the capital and expected to boom in coming years.
Infrastructure
The Cambodian government is investing heavily in infrastructure, often partnering with other countries (China, Japan, South Korea, and the European Union), private corporations, and seeks international development aid to fund major infrastructure projects. The China-backed Belt and Road Initiative (BRI) in particular has contributed to the rapid development of the transport infrastructure, hydropower plants, airports, and ports in Cambodia. In addition, there are a number of projects underway in preparation of the SEA Games in 2023 so there are opportunities for UK expertise in a range of sectors from construction (including health & safety and associated training), architecture, engineering, sustainable development, urban planning, etc.
Renewable energy
Cambodia’s rapid economic growth and population have led to an enormous electricity demand. The country needs to develop its energy supply to meet growing demand whilst reducing its carbon footprint. There are huge opportunities in renewable energy, this includes the provision of equipment, research, and quality control such as maintenance and repair.
The strengthening trade relationship between the UK and Cambodia
Though there is no official trade agreement exclusively between UK and Cambodia yet, Cambodia is benefitting with UK’s Generalised Scheme of Preferences. The scheme provides duty-free, quota-free trade on everything but arms. UK’s GSP will be replaced by the new UK’s Developing Countries Trade Scheme (DCTS) that will be rolled out in early 2023. The UK government is continuously committed to strengthening its trade relationship with Cambodia.
Events
6 September, Opportunities in the Malaysian Healthcare and Life Sciences Sector
15 September, Toyko Game Show 2022
28 - 29 September, BYOND Mobile Thailand
28 September, Export Export Opportunities in Southeast Asia
11 - 12 October, BETT Asia
12 - 13 October, Ecommerce Export Asia
18 - 21 October, CEATEC: Toward society 5.0
22 - 29 October, Export Market Visit to Singapore
31 October, UK - Japan Nuclear Industry Forum
31 October - 4 November, DIT's International Trade Week
2 November, UK - Japan Digital Health Virtual Trade Mission
7 - 11 November, World One Health Congress
10 November, ASEAN Business and Investment Summit 2022
14 - 15 November, ASEAN Clean Energy Week
16 - 18 November, World Smart Energy Week Osaka
7 - 10 March, FOODEX 2023
15 - 17 March, World Smart Energy Week Toyko
Keep up-to-date with news from DIT in Cambodia
To keep up-to-date on this and more, do follow the UK in Cambodia Twitter and Facebook page.
And if you’re ready to start exporting to Cambodia or any market in Asia Pacific, get in touch with the Export Support Service for Asia Pacific, we are here to help!
Our sincere thanks to the DIT team for kindly sharing these business insights into Cambodia.
|
