What are EuroCham’s main objectives for the coming years?

Our key objective is to strengthen the ties between European businesses and Cambodia. We focus heavily on advocacy, helping companies understand and navigate the local regulatory framework. Another priority is promoting sustainable business practices, in line with European standards. We also aim to enhance the visibility and attractiveness of Cambodia as a destination for European investors, showcasing the potential in sectors such as renewable energy, digitalization, and manufacturing.

What opportunities do you see for European investors in Cambodia?

Cambodia offers numerous opportunities, especially in sectors like renewable energy, manufacturing, agriculture, and digital services. The country is undergoing rapid growth, and with that comes a high demand for expertise and innovation, areas where European businesses excel. The government’s ambition to diversify the economy beyond traditional sectors, like textiles and tourism, presents a real chance for European companies to bring new technologies and sustainable business models to the market.

How does EuroCham support companies entering Cambodia?

EuroCham plays a pivotal role in guiding European companies that are looking to invest or expand in Cambodia. We offer comprehensive services, including market research, insights into local regulations, and connecting them with the right local partners. Additionally, we provide advocacy support, ensuring that businesses can engage with government bodies and navigate any regulatory hurdles. Our goal is to make the entry into the Cambodian market as smooth as possible, while also promoting business practices that are in line with international standards.

What are the main challenges foreign businesses face in Cambodia?

The primary challenges are related to understanding the local regulatory framework and dealing with bureaucratic processes, which can be quite different from Europe. Additionally, finding the right local partners and building a reliable supply chain can be difficult, especially for newcomers. However, Cambodia is making great strides in improving its business environment, and we’ve seen a lot of progress in recent years, particularly in infrastructure development and regulatory transparency. It’s an evolving market, and those who can adapt quickly will succeed.

How has Cambodia’s business environment changed in the past ten years?

The business environment has improved dramatically since I first arrived. There’s been a noticeable improvement in infrastructure, especially in terms of road networks, airports, and digital connectivity, which are crucial for attracting foreign investment. Regulatory frameworks are also becoming more transparent, with ongoing reforms aimed at making the market more attractive to international investors. Cambodia has really opened up in recent years, and there’s a growing focus on sustainability and modern business practices, which aligns well with European interests.

What is the government’s approach to tourism?

Increased flight connections and targeted marketing—focusing on beaches and food—can help attract new tourists. Tourism in Cambodia faces challenges, often being seen as an expensive satellite destination. High airfare and visa costs can deter potential visitors. Adjusting prices could make Cambodia more appealing to European and American tourists.

The Cambodia Tourism Board, recently established, combines public and private efforts. With a joint budget, it aims to improve marketing strategies and promote Cambodia as a prime tourist destination. The board consists of seven public and five private representatives focused on enhancing the country’s visibility.

Can you give us an overview of some recent activities?

We recently launched a skills gap assessment to identify missing skills in our member companies. We’re also conducting a business confidence survey every six months to track economic changes.

In the last quarter of 2024, we had several key events, including a Healthcare forum, a Green Business Forum & two ESG awards, which will feature discussions on various industries.

We transitioned from a printed white book to a digital platform called the “Live Advocacy Compass.” This site provides real-time updates on issues and recommendations across sectors. 

What is your message to potential investors?

Cambodia has one of the most liberal business environments in ASEAN. Investors can own 100% of their businesses across all sectors without significant barriers. The government actively promotes foreign investment and is ready to assist.

Though smaller than Vietnam and Thailand, Cambodia offers significant opportunities for diversification in Asia. The established business community and various sector opportunities make it an attractive destination.