Cambodia Investment Review
As Cambodia looks ahead to 2026, the pressures reshaping global trade, consumer behavior, and regional mobility are being felt most acutely in sectors closest to supply chains and end-demand. These dynamics were examined during the International Business Chamber (IBC) Open Meeting held on January 14 at Rosewood Phnom Penh, where industry leaders shared on-the-ground assessments of how garments, fast-moving consumer goods (FMCG), logistics, and tourism are adjusting to higher costs, changing buyer expectations, and evolving market access.
Part two of this series captures perspectives from senior executives operating at different points of Cambodia’s value chain, highlighting how execution, reliability, and strategic positioning are becoming decisive factors for growth in the year ahead.
Garments: Smaller Orders, Higher Expectations
Representing the garment industry, Jason Ma, Founder and CEO of Ealytex Global Inc., said the sector is navigating a fundamentally different buyer environment compared with previous cycles.
According to Ma, production costs are higher, order sizes are smaller, and international buyers are far more cautious and risk-focused than before. “Buyers today are less tolerant of mistakes and far more selective about who they work with,” he said, adding that expectations around delivery speed and communication have increased sharply.
In this environment, Ma emphasized that winning factories are those that can consistently deliver on time, maintain quality, and communicate clearly with clients. While margins remain under pressure, he noted that factories able to execute reliably still have opportunities to secure long-term relationships as brands consolidate their supplier bases.
Read More: ADB Analysis: U.S. Tariffs Pose Manageable but Uneven Risks for Cambodia’s Export Economy
FMCG: From Urban Saturation to the Next Growth Frontier
In the FMCG sector, Martina Palma, Chief Executive Officer of Decathlon Cambodia, described a market that remains structurally important to Cambodia’s economy but is undergoing a shift in where growth will come from.
The FMCG sector currently contributes an estimated 25 percent of Cambodia’s GDP and supports hundreds of thousands of jobs. Palma said growth is increasingly driven by urbanization, a rising middle class, and the rapid adoption of digital commerce. “The consumer journey is becoming more data-driven, with higher expectations around availability, pricing transparency, and personalization,” she noted.
While Phnom Penh is approaching saturation in several categories, Palma pointed to provincial markets as the next major growth opportunity. Expanding into these areas, however, will require improved logistics, better data sharing, and closer collaboration between the private sector and policymakers. She also highlighted growing pressure to localize supply chains and adapt multinational standards to local production realities.
Read More: Industry and Government Leaders Push for Responsible Marketing in Cambodia’s FMCG Sector
Logistics: Complexity Becomes a Competitiveness Issue
Logistics challenges were outlined by Rutger Heijsteeg, Managing Director of Maersk Cambodia, who described Cambodia’s logistics landscape as improving but still structurally complex.
Heijsteeg noted that while infrastructure projects such as airports, terminals, and road networks are progressing, logistics costs remain high and systems remain fragmented. “Cambodia is still seen as too expensive and too complex by many regional shippers,” he said, pointing to warehousing capacity, inland transport efficiency, and regulatory procedures as key pain points.
Addressing these issues, he added, would significantly improve Cambodia’s attractiveness for e-commerce, regional trade, and manufacturing sectors such as garments. Over the next 12 months, logistics efficiency is expected to play an increasingly central role in determining where investors allocate capital.
Tourism: Rebuilding Momentum Through Access and Image
Tourism-sector insights were shared by Daniel Simon, Managing Director of Rosewood Phnom Penh, who said the industry is rebuilding from a weakened base amid lingering perception challenges.
Simon pointed to border tensions, reduced airlift from key hubs such as Bangkok, and what he described as a negative external image of “Brand Cambodia” as factors weighing on recovery. “Tourism is rebuilding, but it is doing so on top of a smaller and more cautious market,” he said.
Despite these headwinds, Simon highlighted several positive developments, including renewed international marketing efforts, major events such as concerts at Angkor Wat, expanded visa waiver programs during the green season, and the gradual return of international flights. He emphasized that coordinated outreach, improved connectivity, and consistent media engagement will be critical to restoring confidence and sustaining growth through 2026.
Taken together, insights from garments, FMCG, logistics, and tourism underline a common theme: growth in 2026 will depend less on volume and more on execution. As Cambodia’s economy becomes more integrated into regional and global markets, businesses that can adapt to tighter margins, higher standards, and more demanding customers are likely to be best positioned to navigate the year ahead.
