As the world’s attention shifts to Southeast Asia, investors and entrepreneurs have been eyeing Cambodia for its potential business opportunities. But with so many sectors to choose from, which ones are worth investing in? Let’s look at some of the most lucrative industries in Cambodia today.
Agriculture
Agriculture remains one of the most important sectors in Cambodia’s economy, and it is also one of the top sources of employment. Rice is the primary crop grown in this country, but other crops such as corn, cassava, rubber, cotton, and soybeans are also produced on a large scale. In recent years, there has been an increase in agricultural exports due to improved infrastructure and better access to global markets.
The sector employs nearly 3 million people and contributes around 22% of the GDP every year. Rice remains the main crop, with other crops such as corn and cassava also popular among farmers.
Additionally, many agribusinesses have started to get involved in the sector, offering new methods for increased yields and better-quality products.
Tourism
Cambodia’s tourism industry has seen tremendous growth over the past few years thanks to its stunning natural beauty and diverse attractions. With luxury resorts popping up all over the country, visitors from all over the world flock every year for a chance to explore what this fascinating nation has to offer. As such, investing in this sector can bring about incredible returns if done correctly.
The country has a wealth of cultural heritage sites dating back to ancient times that draw tourists from all over the world and contributes significantly to the Cambodian economy.
Furthermore, its pristine beaches and jungles provide plenty of opportunities for adventure seekers.
In 2019, there were more than 6.6 million international visitors who came to explore what this beautiful country has to offer.
Manufacturing
Cambodia has seen steady growth in its manufacturing sector over the past few years due to increased foreign investments from countries like China and Japan. This sector provides jobs for hundreds of thousands of citizens each year. The garment manufacturing industry alone accounts for 80-percent of Cambodia’s exports and employs more than 600,000 people, primarily women.
Major industries include apparel production (which employs about 40% of workers), followed by electronics/electrical (20%), auto parts (10%), food/beverage (7%), and footwear (6%).
The government has also invested heavily in infrastructure, making it easier for manufacturers to move goods within and outside of the country. Consequently, there is no shortage of foreign investors looking to set up shop in this sector, making it one of the most lucrative options available.
Construction
Construction is another industry that continues to see growth in Cambodia due largely to increased investment from abroad.
This sector accounts for around 7% of GDP annually, with major projects including housing developments, roads/highways, bridges, schools/hospitals, airports/ports, hydroelectric dams, which provides plenty of job opportunities for the locals.
Investment interest in this sector is high as the returns can be quite remarkable.
Real Estate
Investors no need to look far for opportunities with high returns – the real estate sector in Cambodia is booming and offers a wealth of opportunities to both local and foreign investors. Many cities have seen rapid development over recent years as demand continues to rise, making it a great sector to keep an eye on.
The Cambodian government has taken steps over recent years to make it easier for foreign investors to enter the real estate market. These measures have made investing in Cambodia’s real estate sector much more attractive and profitable than ever before.
Real estate in Cambodia offers high returns on investments made by both local and foreign investors alike. Many cities have seen rapid development over recent years as demand continues to rise; Phnom Penh itself saw a 20% increase in real estate prices between 2018 and 2019 alone. Consequently, those with capital ready to invest, stand a great chance of seeing long-term gains through property investment.
Prince Real Estate Group, a business unit under the conglomerate Prince Holding Group, counts as one of the dominant players in Cambodia’s real estate sector. Led by Neak Oknha Chen Zhi, a prominent figure in Cambodia’s business community, the group offers a range of projects targeted at different segments of investors, from middle-class Cambodians looking to buy their first homes to large-scale commercial projects for foreign investors.
With an ambition to transform and build up more living and working spaces in Cambodia, Chen Zhi and Prince Group are also undertaking a massive township development dubbed Bay of Lights along the Sihanoukville coastline, estimated to span nearly 1,000 hectares.
The Bay of Lights township project will bring approximately USD $16 billion in investments to the country and set a new benchmark for sustainability in the Cambodian real estate sector.
The township project will be an integral part of the country’s economic and social progress. As the largest development in Cambodia, it will play an essential role in creating new job opportunities and providing high-quality housing and commercial space.
Summary
Investing in Cambodia can be a great way to capitalize on some lucrative business opportunities. From agriculture and tourism attractions to manufacturing and construction projects – there are plenty of sectors worth considering if you’re looking for an investment opportunity with strong returns on your capital.
Of course, it’s wise to do your research before committing any money or resources so you can make an informed decision. With careful analysis and planning, you, too, could benefit from taking advantage of these top business sectors in Cambodia today.
