Cambodia is one of the fastest-growing economies in the world, with a 6.9%, 2.4% and 4.0% CAGR over the past three years. Although it has had stable and consistent growth, the country did face some challenges in the previous era. However, this region’s government and established businesses in Cambodia are contributing and fueling the economy’s growth.
As explained in our top 5 industries to invest in Cambodia for 2023, establishing numerous businesses for different industries in Cambodia is a clear sign of how successfully businesses are growing here. Moreover, businesses boost also contributes to the overall real estate developments as the demand for commercial and residential properties to accommodate people and businesses is increasing too.
Therefore, this is the best time to invest in Cambodia. So you should step ahead, IPS Cambodia can help you find some of the best properties in Cambodia within your budget. But before that, let’s explore how SMEs and government are supporting the business in Cambodia and how this support is defining Cambodia’s future!
Stay tuned with us till the end to explore it all!
How are SMEs and Govt Helping Cambodia’s Growth?
Cambodia is a tourism hub, attracting 2.27 million tourists in 2022 and around 4.4 million in the first 10 months of 2023, but it is anticipated to soon rise as a business hub in the coming years. Cambodia has also launched its first ever responsible business hub in 2022, offering a variety of support services in the field of responsible business.
With so many businesses moving their branch to Cambodia, business opportunities are also rising. This is mainly because small business owners also establish their businesses in this region.
Not only SMEs but also the government are contributing to the overall growth of Cambodia’s future through national strategies, infrastructure investment, industrial development and tourism promotion. Here are some of the significant ways through which SMEs and government contribute to the economic development of Cambodia:
Increase in Job Opportunities
Small and medium-sized businesses are the most significant contributors to job creation across Cambodia. These new jobs that are being created benefit women, youth and rural communities. These SMEs are not only promoting training and skills development but also helping to boost productivity.
As more job opportunities come up, the chances to earn more become easier, helping people get a sustainable source of income. These SMEs are mostly startup businesses that help boost individuals’ entrepreneurship and innovation. As Cambodia moves to a positive economy, creating job opportunities will also help with economic vitality with a rise in demand for real estate in compliance with the Cambodia Property Law.
Sustainable Practices
Many SMEs in Cambodia also focus on sustainability, as they take up CSR to meet the national development goals. Some of the major sectors that are contributing to sustainable practices include manufacturing, agriculture and digital services.
As tourism in Cambodia is growing and people are relocating to Cambodia for business purposes, it is important to adopt green practices. Thus, most businesses are doing that to lead to waste reductions, thereby offering cost-effectiveness and better competition. Not only are these offering social benefits but also tax contributions.
Government Support
The government is also supporting the growth of SMEs in Cambodia. The government bodies are introducing a robust framework to simplify taxes and create a thriving environment for SMEs here. They have also established the SME Bank of Cambodia to prove the government’s commitment to making business establishments successful.
Over the years, the government in Cambodia has established several policies for the SMEs and various cluster zones. The government is offering not only financial support but also technical support. Thus, other services that will be offered to you include business advisory services, market access, and expanding the ecosystem for SMEs.
Focusing on Long-term Vision
Rather than short-term goals, most SMEs focus on a long-term vision for their company and the country. They focus on bringing value and diversifying the products and services. Furthermore, most of the SMEs in Cambodia are also integrating their businesses to position themselves in the global market.
Currently, Cambodia aims to become an upper-middle-income country by 2023 and a high-income country on a global scale by 2050. These companies are bringing about regional collaborations and digital transformation to bring a significant move for businesses.
Future Forecast for Cambodia’s Economic Growth
Cambodia is hailed as one of the fastest-growing economies in the world. In the past year, Cambodia has had slow economic growth but at a sustainable rate. As per the predictions of The World Bank in Cambodia, the country’s economy was supposed to reach 5.4% in 2023.
As of now, it is predicted that the economy will grow by 6%. Various factors will contribute to Cambodia’s economic growth, such as urbanisation, tourism, and increasing real estate prices. However, it is anticipated that Cambodia’s economic growth will be at a steady rate in the coming years. The growth of the private sector in this region will also contribute to economic growth.
Final Words
As businesses flourish in Cambodia, SMEs are also managing to thrive in that environment. The introduction of various government initiatives also leads to significant growth of the country. Thus, this may be one of the best times to invest in Cambodia.
With the thriving environment of Cambodia, the business landscape is sure to move towards a positive trajectory with government initiatives. So, investing in Cambodia can be a great option whether you want to generate high returns or derive a collaborative spirit.
So, if you’re planning for a big real estate investment in Cambodia, IPS Cambodia has your back. Contact us to know more!
KH