Cambodia

V Chartered Accountants Co., Ltd., Cambodia – Global Accounting Alliance Member

Economic Overview & Business Opportunities

Cambodia has changed radically from a centrally planned economy to a market economy over the past ten years. Moving away from the earlier one-party state, it now has a democratic system of governance and sustainable peace after decades of civil war. With consistent support from the global community, all of this has led to rising productivity, while labor costs continue to be competitive. Today’s Cambodia is transitioning from being a pre-emerging to an emerging market.

Cambodia continues to enjoy robust growth, albeit at a slightly slower pace. Real growth in 2015 is estimated to have reached 7 percent, compared to 7.1 percent in 2014. The garment sector, together with construction and services, are the main drivers of the economy. Growth is expected to remain strong in 2016, as recovering internal demand and dynamic garment exports offset stagnation in agriculture and softer growth in tourism.

SMEs are backbones of Cambodian Economy, which is now on the development scheme of Cambodian Government for this mandate. There was a 29% increase in the total of SME factories between 2005 and 2011. The food, beverages and tobacco sector is by far the largest of all. There is no factory of basic metal industries in Cambodia. In manufacturing SMEs, the number of employees increased by 58.2% between 2005 and 2011. The food, beverages and tobacco sector accounts for approximately 68.5% in 2011.