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Doing Business in Cambodia:
2012 Country Commercial Guide for U.S. Companies
INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2010. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.












Chapter 1: Doing Business In Cambodia
Chapter 2: Political and Economic Environment
Chapter 3: Selling U.S. Products and Services
Chapter 4: Leading Sectors for U.S. Export and Investment
Chapter 5: Trade Regulations, Customs and Standards
Chapter 6: Investment Climate
Chapter 7: Trade and Project Financing
Chapter 8: Business Travel
Chapter 9: Contacts, Market Research and Trade Events
Chapter 10: Guide to Our Services

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Chapter 1: Doing Business In Cambodia





Market Overview
Market Challenges
Market Opportunities
Market Entry Strategy

Market Overview

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In the decade prior to the global financial crisis in 2009, Cambodia was the 7th fastest growing economy in the world with double-digit average annual growth rates. After contracting 2.5 percent in 2009, the economy rebounded quickly by growing over 6 percent in 2010 and nearly 7 percent in 2011. The economy is expected to continue to grow by 6-7 percent in 2012. All of this positive economic growth, however, should be taken in context as Cambodia is still one of the poorest countries in Asia. The country is heavily reliant on foreign aid, with donor support accounting for over half of the government’s budget. Despite strong performance in the garment and tourism sectors, Cambodia remains an agrarian country. The agriculture sector employs approximately 80 percent of the Cambodian population.

Since Cambodia became the first least-developed country (LDC) to join the World Trade Organization (WTO) in 2004, trade has steadily increased. The United States is Cambodia’s largest trading partner. Approximately 83 percent of Cambodia’s total exports are destined for the United States -- primarily garment and footwear products. In 2011, Cambodian exports to the United States were valued at $2.714 billion. For the same year, U.S. exports to Cambodia were $185.8 million. The United States and Cambodia are signatories to a 2006 Trade and Investment Framework Agreement (TIFA) to promote greater trade and investment in both countries and to provide a forum for addressing bilateral trade and investment issues. Cambodia is also a member of the Association of Southeast Asian Nations (ASEAN) and the Asia Free Trade Area (AFTA).

Market Challenges

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Significant challenges to doing business in Cambodia commonly cited by the private sector include weak rule of law, poor infrastructure, high energy costs, corruption, and under-developed human resources.

Market Opportunities

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Cambodia offers potential investment opportunities in agribusiness and food processing, tourism infrastructure and resorts; education; architecture, construction and engineering services; household goods and appliances; used cars and automotive parts; power

generation equipment and power transmission infrastructure; fast food and beverage franchises; pharmaceuticals; and medical supplies and equipment. Market Entry Strategy

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Obtaining a local partner, such as an agent or distributor, is the most effective way to reach Cambodian consumers. The local partner can facilitate and expedite market entry with their market knowledge and established networks. In Cambodia, personal relationships can be the key to successful business transactions. Please refer to Chapter 3 of the Country Commercial Guide for further information on access to the Cambodian market.

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Chapter 2: Political and Economic Environment
For background information on the political and economic environment of the country, please click on the link below to the U.S. Department of State Background Notes....
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