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Over the last decade, Cambodia’s gross domestic product (GDP) grew at an average rate of 8.2 percent. In 2013, the economy grew by over seven percent, and it is expected to continue to grow at a similar rate over the next two years. Despite the strong performance of the garment, tourism, and construction/real estate sectors, Cambodia remains an agrarian country. Approximately 80 percent of the Cambodian population is involved in agriculture on a full-time or part-time basis. The country is among the poorest in Asia, but it also receives substantial sums in foreign aid, both tied (to the donating country) and untied (to the international aid organizations such as the Asian Development Bank.
The United States is Cambodia’s largest trading partner, accounting for 33 percent of the country’s total exports. In 2013, Cambodian exports to the United States were valued at $2.77 billion. For the same year, U.S. exports to Cambodia were $241 million. Despite the big imbalance, the U.S. and U.S. products are well-known to Cambodians and appreciated by them.
The United States and Cambodia are signatories to a 2006 Trade and Investment Framework Agreement (TIFA) to promote greater trade and investment in both countries and to provide a forum for addressing bilateral trade and investment issues. The United States and Cambodia began exploratory discussions on a Bilateral Investment Treaty (BIT) in May 2013 and these discussions are ongoing. Cambodia is also a member of the Association of Southeast Asian Nations (ASEAN) and the Asia Free Trade Area (AFTA). This means that products made in Cambodia in U.S.-owned factories can ship to member countries duty free.
Market Challenges
Significant challenges to doing business in Cambodia commonly cited by the private sector include weak rule of law, poor infrastructure, high energy costs, corruption, and under-developed human resources.
Lack of respect for basic human rights, including media freedoms, freedom of expression, and freedom of assembly, continues to be a concern and has factored prominently in disputes over land rights. Limited enforcement of intellectual property rights, including the sale of counterfeit and pirated products, also remains a major concern for U.S. companies.
Market Opportunities
Cambodia offers potential investment opportunities in agribusiness and food processing; tourism infrastructure and resorts; education; architecture, construction, and engineering services; household goods and appliances; used cars and automotive parts; power generation equipment and power transmission infrastructure; fast food and beverage franchises; pharmaceuticals; and medical supplies and equipment.
The tourism business is booming thanks to the Ankor Wat temple complex near the town of Siem Riep. Ankor is the largest temple and it seems to have made it on to the bucket list of trendy travelers. During the past years, major hotel chains have opened properties there which are fully booked in the high season. The temples cover a huge area and a hired car is needed to visit some of the more interesting ones, including those with spooky giant carved faces and whose walls have become entangled with the surrounding jungle. En route to these temples, the visitor will encounter villages that have changed little over the millennia.
A better life beckons
Elsewhere, especially around the main tourist sites, pickup bands will play a tune. The musicians are amputees, victims of the country’s long civil war now declared over. The salting of land mines took a terrible toll and continues to claim victims, though the tourist areas have been cleared of them for some time. You may recall that Cambodia suffered under a crazy dictator Pol Pot who eliminated half the population including most of the country’s educated classes. The blood-letting ended when then North Vietnam invaded and drove Pot and his Khmer Rouge mass murderers into the jungles. The country still suffers from these horrors but a new generation is in place and its members want a better life.
Transportation to this area and to the capital Phnom Penh is good with daily flights from Singapore, Hong Kong, and Ho Chi Minh City. Inter-city transport is not so great. With many roads in poor repair, no doubt there’s a plan somewhere for upgrading infrastructure, which will create more business opportunity. Monitor the Asia Development Bank for news of upcoming tenders.
Market Entry Strategy
Working with a local partner, such as an agent or distributor, is the most effective way to reach Cambodian consumers. A local partner can facilitate and expedite market entry through market knowledge and established networks. The U.S. Embassy can help qualified partners for U.S. businesses. The Gold Key Service identifies and pre-qualifies local distributors and agents. There is a fee but it is nominal and small businesses get a discount, making it highly affordable. As part of the Service, you fly to Cambodia and meet the people that the Embassy has found and screened for you. Embassy staff will advise you throughout the process.
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| PBMF506030M1G1 bearing | 50 | 60 | 30 |
| PBMF405025M1G1 bearing | 40 | 50 | 25 |