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Economy: Cambodia's economic outlook and prospects for some sectors in 2025

Writer's picture: Eco NewsEco News

An overview of nine major sectors in Cambodia.

The International Business Chamber of Cambodia (IBC) convened its annual general meeting on January 15, 2025, at the Rosewood Phnom Penh. The event gathered prominent leaders from nine key economic sectors to explore Cambodia's economic outlook and the prospects for 2025.

Cambodia's economic outlook and prospects for 2025

Finance and Banking by Sothearoath Oeur, CEO of Credit Bureau Cambodia

In finance and banking, Sothearoath Oeur, CEO of Credit Bureau Cambodia (CBC), provided an overview of the financial sector's current stability and areas for growth. He highlighted the critical role of digital transformation in the sector, which will be pivotal for the industry's growth in the coming year. However, challenges loom, particularly for small and medium-sized enterprises (SMEs), which continue to face barriers in accessing credit.

Tourism by Jacques Guichandut, Founder and Managing Director of All Dreams Cambodia

According to Guichandut, tourism recovery in Cambodia has grown by 4%, but there is still a disconnect between total arrivals and key tourist sites like Angkor Wat.

Only 1.4 million out of the projected 6.7 million international visitors for 2024 have engaged with flagship attractions.

Barriers such as underutilized infrastructure at Siem Reap's new airport and confusion caused by the E-Arrival card system remain. Opportunities lie in targeting new source markets such as the Middle East and India, as well as leveraging projects like the Techo International Airport to improve accessibility. Ecotourism and luxury wellness tourism are also poised to expand Cambodia's appeal.

Real Estate: by Kinkesa Kim, Managing Director of CBRE Cambodia

Kinseka Kim provided a comprehensive overview of Cambodia's real estate market, which continues to grapple with high commercial vacancy rates of 35%-40%. While leasing transactions improved slightly in late 2024, prices have yet to show significant recovery.

Looking to the future, Kinkesa highlighted the government's incentives for the sector, which, while beneficial, are yet to generate significant new demand. She also pointed to the trend of retail properties undergoing reconfigurations and repositioning as businesses adapt to changing consumer behaviors.

Automotive by Ngorn Saing, CEO and Country Manager of RMA Cambodia

Mr Saing offered a detailed analysis of the automotive industry's progress and obstacles. The sector has been gaining momentum, with new vehicle sales growing by 52% in 2024 compared to 2023. Electric vehicles (EVs) are increasingly popular, with market share jumping from 1% to 8%, driven by government tax reductions. Additionally, Chinese vehicle brands expanded their footprint, growing their share from 12% in 2023 to 29% in 2024 in the new car market.

Healthcare by Ms Pauline Tan of The Sing-Specialists Medical Centre

Uneven healthcare access drives demand for private sector solutions, particularly in rural areas, and the rising prevalence of non-communicable diseases (NCDs). The healthcare sector is increasingly turning to digital solutions like electronic medical records (EMR) and telemedicine to improve efficiency and access.

Standardizing specialist training and fostering partnerships between public and private providers will be crucial as competition between providers intensifies, driving innovation and service differentiation.

Energy by Dinah Kumar, Country Chair of TotalEnergies Cambodia

The energy sector transformation accelerates with renewables and EV projects, with 23 projects totaling $5.79 billion reviewed by the Royal Government of Cambodia (RGC) for 2024 to 2030.

The country is on track to achieve 70% clean energy by 2030, driven by solar, wind, and the construction of Cambodia's first EV truck assembly plant in Krakor District. However, concerns about reliance on biomass and the need for robust EV charging policies remain. Infrastructure investment and policy clarity are critical for supporting Cambodia's green transition.

Fast-Moving Consumer Goods by Mike Vongsykeo, Chief Operating Officer of S Liquor

The FMCG sector or embraces responsible advertising amid regulatory shifts, with initiatives such as responsible alcohol advertising and e-labels on bottles becoming industry norms.

Potential challenges include economic downturns, bans on alcohol advertising, and illicit trade. Investing in unique product experiences and adapting to consumer preferences will be key to navigating these challenges.

Manufacturin Sector by Devin Barta of AHF Products

The manufacturing sector faces pressures and uncertainty, with global tariff risks, supply chain disruptions, and shipping costs remaining concerns. Despite these hurdles, promising opportunities exist in diversifying supply chains and exploring other markets. Solar capacity charges and the introduction of satellite internet services are expected to play a transformative role in addressing operational challenges and boosting efficiency.

Information and communication technology by Simon Perkins, CEO of Cellcard

Mr Perkinsdelved into the pressing issues of cybersecurity and fraud in Cambodia's technology sector. Perkins highlighted a concerning rise in scams, particularly through platforms like Telegram and the use of 'fake base stations' for SIM card fraud.

He also flagged the growing importance of data centers as Cambodia's demand for data storage and management expands.

Looking ahead, Perkins identified several opportunities for improvement, including enhanced customer awareness through rigorous registration processes and network upgrades to 5G technology. He stressed the importance of collaborations, such as partnerships with the Global Anti-Scam Alliance, to combat fraud effectively in 2025.

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