From Telecommunications To E-Commerce: How Cambodia Is Fueling Its Economic Growth Through Technological Advancements.
Technology advancements in Cambodia have been growing rapidly in recent years. The country has made significant progress in the areas of telecommunications, information technology, e-commerce, digital government, tech startups and new technology.
Telecommunications
Cambodia has one of the fastest-growing mobile phone markets in the world. In January 2023, there were over 22 million mobile phone subscriptions in Cambodia. The government has also made significant investments in the telecommunications infrastructure, which has helped to improve internet access and speed. A prime example is the Hong Kong–Phnom Penh submarine fibre-optic cable network, a US$165 million project that is expected to be completed in 2024 and will provide Cambodia with high-speed internet access.
Mobile Cellular Subscriptions in Cambodia
Information Technology
The IT sector is growing rapidly in Cambodia. There are now a number of local IT companies, and the government is promoting the development of the IT sector as a key driver of economic growth. International companies expanding in Cambodia include Microsoft, IBM and Tata. Local companies include Haystack Labs, Mediapark and Atech Group.
E-Commerce
E-commerce is also growing rapidly in Cambodia. In 2022, the e-commerce market in Cambodia was worth over US$1 billion . The government is promoting the development of the e-commerce sector, and there are now a number of online shopping platforms operating in the country, including Tinh Tinh, Zalopay, Priceza and Shopee.
Digital Government
In 2022, the government launched the Cambodia Digital Government Policy 2022–2035, which sets out a vision for a ‘digital government to improve the quality of life and confidence of the people through better public service’ . The policy outlines several key areas the government is focusing on to improve digital government, including:
- e-Government: Improving the availability of e-government services, such as online applications for passports and visas, tax filing and education.
- e-Procurement: Moving to a fully electronic procurement system, which will make the process more transparent and efficient
- e-Health: Developing an electronic health record system, which will improve the quality of care and make it easier for patients to access their medical records
- e-Education: Providing more access to online education, including through the use of massive open online courses (MOOCs).
Individuals using the internet in Cambodia
• There were 8.86 million internet users in Cambodia in January 2021.
• The number of internet users in Cambodia increased by 1.1 million (+14%) between 2020 and 2021.
• Internet penetration in Cambodia stood at 52.6% in January 2021.
The Growth Of The Tech Startup Scene In Cambodia
There has been significant growth in the tech startup scene in Cambodia in recent years. This is due in part to the government’s support for the tech sector and the availability of a skilled workforce. Major startups include AMK Global, Emkash, BlocRice and Onetouch.
The Adoption Of New Technologies By Businesses In Cambodia
Businesses in Cambodia are increasingly adopting new technologies, such as cloud computing, artificial intelligence and blockchain.rms operating in the country, including Tinh Tinh, Zalopay, Priceza and Shopee.
The Key Factors That Are Driving Technology Advancements In Cambodia Include:
Government Support
The government of Cambodia is supportive of the technology sector’s development and has established a number of policies and initiatives to promote development. The government is also providing tax and other incentives to IT companies.
Young And Tech-Savvy Population
Cambodia has a young and tech-savvy population. The average age in Cambodia is 22 years old, and the majority of the population has access to the internet. This provides a large pool of potential users for technology products and services.
Low Labour Costs
Cambodia’s cost of living is less than most neighbouring countries and it has lower labour costs, which makes it an attractive destination for IT companies. The average wage in IT in Cambodia is between $300 (junior developer) and $1,000 (senior developer) per month, which is lower than the average wage in other countries in the region.
