Harrison White
In the Cambodia Leadership Review’s Top 30 in Finance 2024 magazine, Harrison White speaks with Hugh Darwell Director, Business Development at accounting and professional services firm Acclime Cambodia to discuss the nuances of expanding into the Cambodian market.
Hugh, with substantial experience in the region, outlines effective strategies for international firms, Acclime’s growth tactics, and the importance of professional guidance in Cambodia’s evolving economic landscape.
Their conversation highlights the country’s initiatives to attract foreign investment and the opportunities for global businesses aiming to establish a foothold in Cambodia.
CLR: What has been your personal experience working in Cambodia and what have been the important milestones for the country to attract international companies and for them to establish a presence in Cambodia?
HD: I have been in Cambodia for nearly 5 years now and in that time, I have found it a great environment in which to work. I have been very impressed with the level of knowledge and skill, not only in the professional services areas in which Acclime operates, but also across the disparate industries in which our clients operate.
The New Law on Investment released in 2022 illustrated to foreign investors that Cambodia is very much open for business. The investment guarantees contained in that policy are very important in reassuring foreign investors that Cambodia is a safe place to invest.
Can you also talk about the Acclime expansion in the Cambodian market and what are the trends of accounting in a regional context?
Acclime established a presence in Cambodia in August 2020 through the purchase of a well-respected local accounting firm. We then upskilled our tax practice through the purchase of a boutique tax advisory practice in 2022. We have captured a share of the foreign investment market so that around 40% of our clients have offshore shareholders.
We see both accounting and general compliance in the region trending to stronger standards. This gives rise to the need for a professional firm like Acclime to guide companies through the intricacies of these hard to navigate markets in the region.
What advice would you have for international firms looking to enter Cambodian local market?
Foreign firms entering Cambodia need to be patient to build their business, once established. They need to understand the market and do their research first as to the demand in Cambodia for their products and/or services.
They also need advice from an experienced professional firm in Cambodia as to the most appropriate entity to use, process of setting up an entity, any licensing needed, any tax incentives available and then the compliance requirements once the company is set up. Depending on the industry, a JV partner may be helpful in gaining a foothold in the market.
If a JV being contemplated, comprehensive due diligence on the prospective partner(s) needs to be undertaken
How can Cambodian become more competitive in a rapidly growing region and continue to attract big international companies and drive more FDI into the economy?
Cambodia has historically not ranked particularly highly on the World Bank Ease of Doing business rankings. However, the Government is taking positive steps to eliminate red tape and drive more FDI. The New Law on Investment is an example, as is the Ministry of Economy and Finance portal through which incorporation documents are lodged. Opening of bank accounts is a very efficient process, unlike many countries in the region.
Further improvements could be made to reduce the time it takes to set up a company as moving to accept digital signatures. There are many well developed tech platforms for digital signatures which are being used in other economies very efficiently and the Government should be encouraged to look at these platforms for registration and licensing of companies.
Download Cambodia Leadership Review Top 30 Finance 2024 here.
