Cambodia Investment Review
In episode 98 of the Rising Giants podcast hosts Max Thornton and Dom Kalousek sat down with Thierry Tea, the CEO of Negocia Capital and Vice President at OCIC Group to take an in-depth look into Thierrys remarkable journey from his early years influenced by a family of entrepreneurs to becoming a leading figure in Cambodia’s emerging startup ecosystem over the last decade and his ambitious plans for the redevelopment and evolution of Koh Pich.
Thierry began the conversation by recounting his family’s history, which has deeply influenced his career path. “My parents and grandparents were entrepreneurs in Cambodia during the 1960s and 70s,” Thierry shared. “They always talked about the business in Cambodia before the civil war. The sacrifices they made because of the war, losing most family members and ending up as refugees in France, but still working their way up, instilled in me the entrepreneurial spirit from a young age.”
After completing his business education, Thierry faced several challenges, including racial and cultural barriers. “I wanted to work for Airbus and learn more about selling high tech industrial products such as aircraft. However, I was rejected from positions in China and Australia ironically both due to my Asian heritage,” he revealed. Despite these setbacks, Thierry found an opportunity in the Philippines. “I started as an assistant to the sales manager at Airbus. My first significant achievement (20 years ago) was selling a helicopter to an affiliate of San Miguel Group, one of the largest conglomerates in the Philippines, (currently building a new airport). That was a turning point for me,” he said.
Max Thornton then asked Thierry about the lessons he learned from his early days in Asia. Thierry responded with a detailed analysis: “It’s about understanding the customers’ needs, wants, and problems. Helicopters and Jets are not just flying machines; they are business enablers. They offer increased mobility and presence, and that’s the value proposition we provide to clients in Asia, factoring in all operational costs and more.”
Cambodia’s Economic Landscape Over the Past Decade
Reflecting on the changes in Cambodia’s economic landscape over the past decade, Thierry offered a nuanced perspective. “In 2013, Cambodia still was like the Wild Wild East for young entrepreneurs. The startup ecosystem was in its infancy, and the country was not really ready for rapid business development. However, today, the ecosystem has matured considerably,” he observed. “One of my biggest lessons is not to rush into deals. I made that mistake a few times in 2013/2014, and history shows that only a few startups from that period are still operating. I have learned to fail and lose money.”
Discussing the reasons startups often fail in Cambodia, Thierry emphasized the critical role of the team. “At the end of the day, it’s always about the people and how united the team is. Even if you have the best idea in the world, you still have to execute it,” he said. “Being agile is also key, as is getting constructive feedbacks, which can be challenging in Cambodia due to the lack of benchmarks or deep analysis on businesses.”
On the investment side, Thierry shared his insights based on his experience as a startup founder, an investor, and a mentor. “If you look at some of the very famous startup stories like Alibaba, Facebook, or Grab, they all had strong early strategic backers supporting them almost all the way until IPO or success. In Cambodia, we lack this kind of support, and we need to collectively do our part to improve the sharing within the ecosystem,” he stated.
Working With OCIC Group In Shaping the Evolution Of Koh Pich
Thierry also spoke passionately about his new collaboration in business development, asset management, transformation and innovation with OCIC Group since end of 2022, including redeveloping Koh Pich district, among other. “Ten years ago, I already wanted to contribute to Cambodia’s ecosystem, but I was not ready. Today, I’m very happy to be working with OCIC Group and its founder Neak Okhna Dr Pung Kheav Se, in crafting and shaping the evolution of Koh Pich. We’ve been focusing on making the district proudly Khmer again.”
“We worked on improving and adding green spaces, with already 2 Parks and an additional central park is in the plan. The boardwalk around the island has been completed and enjoyed by thousand of Phnom Penh residents for their every morning walks. The foot traffic has increased to 35,000 people in average per day during week ends” he elaborated. “We’re also diving deeper into tech sectors like AI, robotics, data analysis, coding, and cybersecurity for the next 30 years and preparing to turn the island into an urban oasis for startups and an one of the dynamic innovation of hub of the Kingdom.”
Read more: Koh Pich to rezone and take stock for next phase of sustainable growth
Discussing the experience economy for Cambodia’s growing middle class, Thierry said, “Cambodia is catching up with regional norms. Hence, in Koh Pich we are now creating more parks, entertainment spaces, and updating to more modern designs. We’re already seeing an increase in daily foot traffic, and leasing occupancy is up 30% year on year. The residents are increasing to above 15,000 and there is an encouraging start with more coffee shops for young Khmer that are full. As they say the market is always right, and we’re learning a lot from the clients and tenants feedbacks that we get.”
In the final segment of the interview, Dom Kalousek asked Thierry about his investment preferences. “If I could only invest in one sector over the next decade, it would be education. It impacts everything else and is a lifelong process,” Thierry Tea declared. When asked about the greatest advice he has ever received, Thierry shared wisdom from his parents: “In life, remember there is always someone less fortunate than us. In business, grit is very important to be able to pursue your goals.”
Thierry Tea’s comprehensive insights offer a compelling narrative of Cambodia’s burgeoning potential as a hub for innovation and entrepreneurship. His work on sustainability with OCIC Group and his deep understanding of the startup ecosystem and investment landscape provide a robust roadmap for Cambodia’s futurea future that is increasingly looking bright and promising.
