Business interesting for Cambodia has been improved year by year. Many companies are building their infrastructures in Cambodia lately and many more are looking forward to run their businesses in this little country as well.
Speaking of interesting of the business, I’ve seen many Japanese technology companies such as Panasonic, Sony, Intel, Samsung and many more running their business in Vietnam and the flow of those are getting more and more, but not Cambodia. So, why not Cambodia?
The workforce is cheaper than Vietnam, many lands are waiting for rent, houses also cheaper and everything might be cheaper than in Vietnam, but yet they still choose Vietnamese as their first place of choice. So what is happening to them? Is it from them or from us (Cambodia)?
I don’t know what is happening exactly in Cambodia, but i do see some 3 important reasons for this flow-changing:
- Cambodia might have cheaper workforce, lands or whatever it might be, but corruption is the biggest reason that make they decided to move their target from Cambodia to Vietnam. In Cambodia, if you want to increase the speed of doing something such as business registration, or anything you might need to pay some extra-bills to some people that have power to help you and if you don’t, your registration might be take months of even years to be completed. The corruption is the most important that make they change their decision.
- Political stability: This might be very sensitive issue. Cambodia will have a national election in every 5 years period and once it comes, something bad will happen too. Truly speaking, currently, Cambodia is facing that issue with no way out. Every political parties claim that they have won the election and they will fight with each to take that PM’s desk and that can cause the big issue for business. Recently, there were so many third-party agencies ran their pilot observation they came to a conclusion that, with just one month after the national election in July, the business interest in Cambodia has dropped down 48% in total. That’s mean a lot to any businessman.
- Maturity of Cambodia business development: Cambodia has gone through so many problem. Civil war(1975-1979), post-Khmer-rough era (1993-1997). That problems are still begin until today. Cambodian government are very young in term of making interest to the business, market-partnership with another countries, security in business so on so forth.
That’s why many companies will have to think twice about running their business in Cambodia. They would rather spend a little bit more to the workforce in Vietnam or Thailand than taking high risk in Cambodia.
I don’t know if it right or wrong, this might need a very concrete observation or even have a very clear research.
I hope and wish that this little country will get pass the hardest time to really grow its business forward.