Cambodia Investment Review
Welcome to the inaugural edition of The Week That Was, your new weekly snapshot of all things business in Cambodia and the wider Mekong region. Tailored for expats, business owners, and investors, we’ll be breaking down the biggest business news, sharing a bit of expat gossip, and offering some forecasts on what to keep an eye on. Expect this every Sunday afternoon to keep you in the know.
The Never-Ending Pchum Ben?
Anyone else feel like this year’s Pchum Ben festival has been dragging on forever? While the annual event is a deeply cherished tradition, it’s been a logistical headache for many business owners. With local and expat staff alike taking off from Friday, September 27th, through to Monday, October 7th, that’s a whopping 11 days of downtime.
Adding salt to the wound, October has two more public holidays coming up, followed by the Water Festival in November, and then the traditional Christmas and New Year period in December. For businesses trying to make payroll every month, Cambodia’s famously packed holiday calendar (among the highest in the world!) makes life interesting. Despite repeated calls from business chambers to reduce the number of holidays, it seems change isn’t on the horizon. But hey, that’s Cambodia: sabay sabay, you learn to roll with it.
Mr. Chanthol Goes to Washington
Despite the holiday lull, the big news this week was H.E. Sun Chanthol, Cambodia’s Deputy Prime Minister and Minister of Public Works and Transport, leading a high-profile delegation to Washington, D.C. He wasn’t alone—joining him were Casey Barnett, President of AmCham and head of CamEd, and his predecessor, Devin Barta of AFH Flooring. Their mission? To woo U.S. investors, showcasing Cambodia as a prime destination for foreign direct investment (FDI). Early reports suggest the trip was a hit, with positive feedback from key American stakeholders.
Read More: Opinion – What Can Cambodia Possibly Offer U.S. Businesses?
However, the visit was somewhat clouded by the arrest of controversial journalist Mech Dara, an awardee of the U.S. Hero Award, who has been linked to the ongoing investigations into Cambodia’s scam center operations. The arrest sparked international media attention and drew criticism from NGOs and foreign embassies alike. With Mech Dara now facing legal proceedings in Cambodia, the timing of the arrest wasn’t ideal—casting a shadow over Sun Chanthol‘s efforts to highlight Cambodia’s investment potential. And this came just weeks after U.S. sanctions were imposed on Oknha Ly Yong Phat, President of the Cambodia Okhna Association, for alleged human rights abuses linked to forced labor in online scams. While investors are watching carefully, it’s clear there are challenges ahead for Cambodia’s image on the global stage.
Economic Outlook: A Mixed Bag
Shifting to the Cambodian economy, Kenichiro Kashiwase, the new IMF Cambodia country director, has given his first forecast, projecting a solid 5.5% GDP growth for 2024. However, he didn’t shy away from pointing out some concerns. Top of the list? Cambodia’s high levels of private debt and non-performing loans (NPLs). Official figures put NPLs at around 6%, but industry insiders quietly suggest the unofficial number may be much higher—especially when factoring in the financial strain on struggling property developers building condos and boreys (landed houses) that have leant off the book so to say.
And while Kashiwase brief mentioned a “rebounding tourism sector,” some in the industry aren’t convinced. They point out that much of the tourism data is inflated by short-term traders crossing over from Vietnam and Thailand. In reality, Cambodia’s tourism figures are still hovering at just 50-60% of pre-pandemic levels, with Chinese tourism—once the cornerstone of the sector—down a staggering 90% from 2019. With Huot Hak recently appointed as the new Minister of Tourism in a government reshuffle, it remains to be seen whether these changes can revive the sector. Meanwhile, Thailand and Vietnam are reporting record tourism revenues, leaving Cambodia playing catch-up.
Expat Leadership in Flux
Turning to the expat leadership scene, we’re still waiting on the official announcement of AmCham Cambodia’s new Executive Director. Word on the street is that a decision has been made, and we should hear something concrete next week. Whoever steps into the role will be following in the footsteps of Travis Mitchell, who recently left to lead AmCham Ho Chi Minh. By all accounts, Travis is settling in well in the bustling city of 12 million, and we wish him the best of luck as he finds his feet in Vietnam’s fast-paced business environment.
Meanwhile, there’s been movement in Phnom Penh’s hospitality scene. Paul Perrottet, General Manager of the TRIBE Hotel, has called it quits after two years at the helm, with a replacement expected by November. And over at the iconic Raffles Hotel Le Royal, Dagmar Lyons has taken over as General Manager from Dennis de Groot, who has moved on to head a hotel in the Maldives. Tough gig, right? Good luck, Dennis, sounds like a rough posting!
Banking Sector: Winds of Change
Finally, keep a close watch on Cambodia’s banking sector, which seems to be on the cusp of some significant leadership changes. No Lida has just been appointed CEO of the Credit Guarantee Corporation of Cambodia (CGCC), taking over from Wong Keet Loong, who led the corporation for the past four years. According to industry whispers, this is just the beginning of a broader shake-up, with as many as five top bank CEO positions potentially up for grabs in the coming months. With Cambodia’s banking sector navigating some of its toughest challenges since the global financial crisis, there’s no doubt this space will be one to watch.
Read More: No Lida Appointed as CEO of Credit Guarantee Corporation of Cambodia
That wraps up our first edition of The Week That Was! We’ll be back next Sunday with more insights and updates on Cambodia’s ever-changing business landscape. Got a tip or some insider gossip? Drop us a Telegram at +855 969 530 061—we’re all ears!
Rising Giants Podcast
Layheng Phan on Launching ‘KrubKrong’ and Digitizing SME Retailers
This week, the Rising Giants podcast featured Layheng Phan, Co-Founder and Chief Growth Officer of Krubkrong, to discuss the launch of her SaaS shop management system aimed at digitizing Cambodian SME retailers. Phan shared insights into her entrepreneurial journey and how Krubkrong is providing local businesses with an easy-to-use point-of-sale (POS) system and online store solution, helping them modernize and grow. She also highlighted the challenges of entrepreneurship and the importance of building a strong team culture.
Listen to the full episode here: Episode 136: Layheng Phan on ‘Krubkrong’ and Digitizing Cambodian SME Retailers.
Upcoming Events
Founder Connect: Global Perspectives on Scaling Businesses
Industry experts Michelle Lane Messina and Martin Lopez will share insights on scaling businesses globally, moderated by Vireak Chea, CEO of PillTech.
- ? Date: October 8
- ⌚️ Time: 5:00 PM – 7:30 PM
- ? Location: The Desk Flagship Daun Penh
? Register: BookMe Event Registration
AmCham Education Networking Night
AmCham Cambodia invites educators to its first Education Networking Night of the year. Enjoy two hours of complimentary drinks and food while networking with education professionals.
- ? Date: October 10
- ⏰ Time: 6:00 PM – 8:00 PM
- ? $25 for members, $30 for non-members
- ? Location: Caravan Hotel by EHM
? Register: AmCham Education Networking Registration
