Expanding into
Cambodia
Global expansion is a step to make for any business, regardless of what you wish to achieve. The opportunities that can come with an expansion can be both incredibly exciting as well as intimidating and confusing, especially when you consider all the registration procedures that need to be done and the documentation required.
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The Kingdom of Cambodia – known in the official Khmer language as Kampuchea – is a Southeast Asian nation bordering Thailand, Laos and Vietnam, with a coastline on the Gulf of Thailand. The economy is heavily dependent on tourism and textiles, which together made it one of the world’s fastest-growing economies in the 20 years up to 2019, according to the World Bank.
Growth averaged 7.7% during this period and rebounded post-pandemic with a rate of 5.2% predicted for 2023, as Cambodia seeks to reach middle-income status by 2030. Consumer demand is accelerating, fueling a rapidly-developing services sector. The tourism sector, boosted by a greater number of Chinese visitors after COVID restrictions were relaxed, has recovered strongly and is attracting Foreign Direct Investment (FDI).
Each new markets bring new challenges, and these can be worked through more efficiently and cost-effectively with the support of a Professional Employer Organisation (PEO) such as Bradford Jacobs, especially through our Employer of Record (EOR) framework.
This can be best utilised when businesses are just beginning their expansion process and require more information before committing to incorporating an entity and fully establishing themselves in that market.
Hiring Staff
in Cambodia
Both the World Bank and Asian Development Bank (ADB) rate the Kingdom of Cambodia as a robust economy and an attractive destination for Foreign Direct Investment (FDI). Cambodia has the potential to climb the ranks of South East Asia’s leading economies, where it was eighth with Gross Domestic Product of US$89 billion in 2022.
The ADB expects Cambodia’s economy to build on a strong recovery in 2022, boosted by a 7.3% growth in tourism which saw 2.3 million visitors compared with 200,000 the previous year, immediately post-pandemic. This had a positive knock-on effect in the services sector regarding hospitality and accommodation, local trade, transport and communications services.
Alongside tourism, textiles are the other main component of Cambodia’s economy but output was expected to slow in 2023 due to reduced demand from North America and Europe.
Strategically, Cambodia is well placed by bordering Thailand and Vietnam, the second and third largest economies in South East Asia. Cambodia’s ports on the Gulf of Thailand open global sea routes for international trade. Textiles, clothing, footwear and agricultural produce are the main categories on the exports list, while imports are dominated by refined petroleum, gold, cars and vehicle parts.
In October 2021, the government introduced the Law on Investment to establish an ‘open, transparent and predictable legal framework’ to attract FDI, including simplified procedures for investors.
Hiring Staff
in Cambodia
Both the World Bank and Asian Development Bank (ADB) rate the Kingdom of Cambodia as a robust economy and an attractive destination for Foreign Direct Investment (FDI). Cambodia has the potential to climb the ranks of South East Asia’s leading economies, where it was eighth with Gross Domestic Product of US$89 billion in 2022.
The ADB expects Cambodia’s economy to build on a strong recovery in 2022, boosted by a 7.3% growth in tourism which saw 2.3 million visitors compared with 200,000 the previous year, immediately post-pandemic. This had a positive knock-on effect in the services sector regarding hospitality and accommodation, local trade, transport and communications services.
Alongside tourism, textiles are the other main component of Cambodia’s economy but output was expected to slow in 2023 due to reduced demand from North America and Europe.
Strategically, Cambodia is well placed by bordering Thailand and Vietnam, the second and third largest economies in South East Asia. Cambodia’s ports on the Gulf of Thailand open global sea routes for international trade. Textiles, clothing, footwear and agricultural produce are the main categories on the exports list, while imports are dominated by refined petroleum, gold, cars and vehicle parts.
In October 2021, the government introduced the Law on Investment to establish an ‘open, transparent and predictable legal framework’ to attract FDI, including simplified procedures for investors.
The Main Sectors of the Cambodian Economy
The country focuses on the following key sectors, which all have a significant impact on the country’s economy:
The Main Sectors of the Cambodian Economy
The country focuses on the following key sectors, which all have a significant impact on the country’s economy:
Commercial Laws in
Cambodia
Commercial Laws in
Cambodia
