From left: Philippines ambassador Flerida Ann Camile P. Mayo, commerce ministry secretary of state Tekreth Kamrang, Suon Sophal of the CDC investment board and Lim Socheat of the CCC at the Cambodia-Philippines Business Forum in Phnom Penh. Yousos Apdoulrashim
Cambodia’s primary exports in 2024 were textiles, electronic components, rice and solar panels.
During a recent forum, economists shared their insights into which other sectors of Cambodia are ripe for investment and why canny investors should make the Kingdom a top destination for their capital.
While addressing the “Cambodia-Philippines Business Forum”, held in Phnom Penh from January 22-23, Lim Socheat, vice-president of the Cambodia Chamber of Commerce (CCC), recommended five areas for Pilipino investors to consider: digital infrastructure, agri-processing, healthcare, education and clean water.
The forum was attended by officials from the Cambodian Ministry of Commerce ministry, the Council for the Development of Cambodia (CDC), the CCC and women business leaders from the Women’s Business Council Philippines.
“When I recommend digital infrastructure, it is because of the role of education, the role of e-commerce, the role of virtual meetings. That’s why there is so much demand for this kind of digital technology,” he said, adding that local investors might have limited capital to meet the Kingdom’s demand for digital infrastructure.
Socheat noted that agri-processing is considered one of Cambodia’s economic pillars, and as such, the seventh-mandate government has placed a focus on it, in order to supply the demands of the both the export and domestic markets.
He believed that with a population of 110 million, the Philippines would be an ideal export market, especially for mangos and cassava.
He explained that agri-processing enterprises pay almost zero tax, as they receive special incentives from the government.
“You pay almost zero tax for agri-processing factories. So, enjoy it. And Cambodia has no personal income tax. Enjoy both company profit and the money going to you,” he said.
“I'm lucky that I was born in a country that has no capital income tax yet and no personal income tax. Money in my pocket is mine, the government cannot take it,” he added.
He also noted the importance of developing the healthcare sector, although he acknowledged that standards are constantly improving in public and private medical facilities.
“When the economy grows, people's residual income also grows – and people are looking for better medical services. No matter how much the government invests, it cannot serve every living being,” he added.
In addition, Socheat urged the attendees to consider investing in the education sector, noting that there are currently thousands of Filipinos teaching at private schools in Cambodia.
As the Kingdom’s population increases, he pointed out that the clean water sector should also be an area of consideration.
Suon Sophal, deputy secretary-general of the CDC Cambodia Investment Board, highlighted many attractive incentives for foreign investors. They ranged from tax incentives and open, liberal investment laws, to what he called a “pro-business government”.
“Why should you invest in Cambodia? It is because we are a pro-business government. We have better long-term political stability compared to neighbouring countries. The World Bank said we are more stable than Thailand or Indonesia,” he said.
Flerida Ann Camile P. Mayo, ambassador of the Philippines to Cambodia, also spoke to the attendees. She shared how in the first seven months of her mission to the Kingdom she had seen a vast common ground on which the Philippines and Cambodia could build natural economic partnerships.
“Apart from centuries of friendly people-to-people ties, the deep sense of cultural affinity between Filipinos and Cambodia could be harnessed to bring commercial ties to the front and centre of our bilateral relations,” she said.
“For visionary Filipino entrepreneurs aiming to grow their business into a regional or global brand, the fast-growing Cambodian ecosystem should be a good place to start. Conversely, we hope that Cambodian conglomerates would be as interested in exploring the Philippines as a potential partner of choice,” she added.
The ambassador explained that the Philippines would make a good economic partner because it has a population of 110 million with very close family connections to a massive Filipino diaspora, whose overseas remittances comprise around 8.5% of GDP in 2023.
“We are in what is called a demographic sweet spot with a huge, young, skilled, dynamic and English-speaking workforce. Moreover, we are projected to be the world's 13th largest consumer market by 2030, with per capita GDP doubling to $6,500 in the same year,” she explained.
Tekreth Kamrang, commerce ministry secretary of state, said that Cambodia economic growth was measured at 6.0 and 6.3 per cent in 2023 and 2024 respectively, which paved the way for the country to graduate from Least Developed Country (LDC) status in 2029.
According to Kamrang, bilateral trade between Cambodia and the Philippines reached $89.85 million in 2023, but dropped slightly to $87.41 million last year.
“These figures reflect a positive and growing trade and economic partnership between the two countries. More needs to be done,” she said.
She highlighted the smooth process of business registration and widespread government support for foreign investment and improving the investment environment.
“Cambodia reaffirms our commitment to fostering an environment conducive to foreign direct investment. Our priorities centre on maintaining peace, ensuring macroeconomics stability and relentlessly improving the ease of doing business,” she said.
