Cambodia Investment Review
In episode of the Rising Giants Podcast (Episode 144), Richard, CEO of Quantum Engineering and Manufacturing, shared his perspective on the evolving trade environment, Cambodia’s manufacturing competitiveness, and the broader transformation underway in the country’s industrial and startup sectors. The conversation comes on the heels of the Trump administration’s proposed 49% tariffs on Cambodian exports to the United States — measures that have since been suspended, but which triggered widespread concern across local industry.
Speaking with host Max Thornton, Richard said the original announcement “sent a shockwave,” particularly because Cambodia was named directly. However, he added that the comparative impact would have been manageable if other manufacturing peers such as Vietnam and Bangladesh were also affected.
“If the tariffs had applied only to Cambodia, we’d be in a very different situation,” Richard said. “But because they were broadly applied, the impact becomes more about raising prices for U.S. consumers rather than disadvantaging any one country.”
Cambodia’s Stability and Industrial Strength
While the proposed tariffs dominated headlines, Richard emphasized that Cambodia’s longer-term appeal remains intact. He noted that political and regulatory stability, combined with ongoing digital government initiatives and Special Economic Zones (SEZs), continue to make the Kingdom an attractive destination for manufacturers.
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“Stability is Cambodia’s number one advantage,” he said. “We may not be the lowest-cost producer anymore, but when you look at what’s happening in countries like Bangladesh or Vietnam, companies are seeing Cambodia as the safer long-term bet.”
Quantum, which designs and manufactures industrial machinery, is one of several firms shifting Cambodia’s image beyond garment manufacturing. The company has installed equipment for major international clients including Toyota and Ford, building machines locally that are often assumed to be imported.
“We want to change perceptions,” Richard said. “Our machines are designed and built here, by Cambodian engineers. We’re not copying—we’re innovating.”
He added that the company is currently focused on expanding vertical integration and boosting exports, with plans to replicate its production model in other regional markets.
Post-Aid Reality and Founders Taking the Lead
The discussion also touched on the changing landscape for Cambodia’s startups, following the rollback of several U.S. development programs. Many NGO-funded incubators and accelerators are being discontinued, prompting debate on how local entrepreneurship should be supported going forward.
Richard, who previously participated in such programs, said this shift could ultimately be healthy for the ecosystem.
“A lot of startup support has been shaped by donor KPIs, not commercial viability,” he said. “When grants dry up, founders are forced to focus on real customers—and that’s a good thing.”
He pointed to the recent exit of delivery platform Nham24 as a positive example of what local founders can achieve. He also called for more successful founders to mentor and invest in the next generation of entrepreneurs.
“Programs need to be led by people who’ve built businesses themselves,” he said. “They ask the right questions and know what it takes to survive.”
Quantum’s own experience in launching consumer-facing electric vehicles showed how timing and market readiness matter. While the company intends to revisit B2C products, Richard said its current priority is scaling B2B operations and releasing essential industrial products like piping systems and valves.
Talent Development and the Path to High-Income Status
Cambodia’s young workforce was also a major focus of the conversation. With an average age of 27, Richard said the country has the potential to leapfrog regional peers—if it can align education with the needs of industry.
“We have the tools, we have the training centers,” he said, referring to the Cambodia-Japan Digitalized Manufacturing Center (CJDM). “But the public education system needs a mindset shift. Universities need to collaborate more and adapt faster.”
He warned that until engineering and technical education catch up, Cambodia could face a shortage of skilled labor in advanced manufacturing. However, he remains optimistic that the country is on the right track.
“The momentum is there. Cambodia is serious about reform, about attracting investment, and about preparing for the future,” he said. “If we stay focused, we can absolutely reach our high-income country target by 2050.”
