Economy
Cambodia has consistently ranked among Asia's top-performing economies. As the country recovers from the social and economic impacts of the Covid-19 crisis, there is an expectation of a rapid return to the robust growth levels observed before the pandemic.
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Cambodia maintains a strong labor protection regime, and despite rising wages as the economy develops, the country remains competitive within the region. In response to global trade concerns, the government has implemented measures to reduce production and supply costs and stimulate further foreign investment.
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Cambodia's GDP dropped by 0.2% in 2020 but was projected to grow by 3.6% in 2021 and by 10.2% in 2022. The inflation rate stood at 2.9% in 2020 and was estimated to be 2.5% in 2021, with a forecast of 3.8% in 2022.
Banking System
Limited access to capital is one of the constraints of doing business in Cambodia. Commercial banks are the primary sources of funding.
Currency
The local currency, Khmer Riel (KHR), was introduced in 1980. The Cambodian economy is classified as partially dollarised, given that the US dollar circulates in conjunction with an official national currency, as opposed to fully dollarised economies where the dollar is the only legal tender. 80% of deposits and credits in the banking system are made in United States Dollars (US$).
Why Cambodia?
Investing in Cambodia offers numerous advantages. As a member of ASEAN, Cambodia enjoys regional trade benefits and increased market access. Since joining the WTO in 2004, the country has significantly enhanced its global trade integration. Investors benefit from duty-free or preferential export access to most developed economies, creating excellent export opportunities. Additionally, Cambodia boasts a favourable investment environment, making it an attractive destination for businesses. With some of Asia’s lowest labour costs and a dynamic workforce, Cambodia stands out as a competitive and promising market for investment.