Cambodia has lately enjoyed high economy growth with an average of 7-percent GDP since 2011. The country attracts many investors with the “Factory of Asia” model of growth, deploying low-cost labor to manufacture products for export. In 2015, the country’s merchandise exports grew 14.1 percent to $8.5 billion meanwhile the shipments of garments and footwear increased 10.2 percent – both contributes 70 percent to total exports value. Once a predominantly agricultural nation, Cambodia saw the industry sector grow at 11.7 percent in 2015, the biggest overall contributor to its GDP.
Cambodia gains an increased foreign direct investment in the latest few years due to better macroeconomic policies, political stability, regional economic growth and an open investment market. The FDI was recorded at around 1.92 billion USD in 2016, a significant growth from 1.7 billion USD in previous year.
There are a lot of incentives for foreign investors. The authorities allow foreigners to fully own companies in Cambodia. Other incentives include tax holidays of up to eight years, a 20% corporate tax after such period, duty-free import of capital goods, and no restrictions on capital repatriation.
In 2016, the World Bank officially reclassified Cambodia as a lower middle-income country following the country’s continued rapid economic growth in the last decade. This graduation reduces its eligibility for foreign assistance and will challenge the government to seek new sources of financing in 2017.
The major economic challenge for the country over the next decade will be shaping an economic atmosphere in which the private sector can create enough jobs to address its demographic imbalance.
Market Research Cambodia is a growth strategy and innovation marketing consultancy focused on Cambodia and the Asia region affiliated with Solidiance. We perform research to support the Asia market growth expansion strategies of our clients and provide them with the insights and roadmap to capture a profitable market share in the region. Many of our clients in the in industrial, technology, green tech, and healthcare sectors can be found among the Fortune Global 500.
For several years now we have offered services in Cambodia that help our clients comprehend the market landscape, size the market, assess industries, identify and profile competitors, segment customers and distribution channels, analyze supply chains, locate production sites, determine investment feasibility, and find local suppliers. Our services put our clients on the path to growth and profitability in Cambodia.
Market Research Cambodia also helps clients to enter and win the Cambodian market which sees a more dynamic private sector. We get our hands dirty to address any of unfavorable business obstacles in Cambodia, like weak property rights or other issues.
By Market Research Cambodia | Posted June 3, 2017
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