Guidance

Overseas business risk: Cambodia

Updated 11 April 2022

Cambodia’s is one of the fastest growing economies in Southeast Asia with an average of 7% GDP growth in the first two decades of this century. In 2020, the economy contracted by 3.1% due to COVID-19 but is forecast to return to 2.2% growth in 2021. UK-Cambodian bilateral trade is circa £800 million in a range of sectors including manufacturing, financial services, tourism and agriculture. As an emerging market with a young population and growing middle-class, UK companies are finding exciting export opportunities in diverse sectors.

1. Political

The Cambodia People’s Party (CPP) has been the ruling party for the last four decades. . The main opposition, the Cambodia National Rescue Party (CNRP), was dissolved in 2017, court proceeding linked to the dissolution continue in 2021. Incidents of politically-motivated violence have fallen in recent years, and while political disputes could trigger protests, these would be broken up rapidly by the security forces. The next local and general elections will take place in 2022 and 2023. It is therefore possible that political tensions will increase in the run-up to these elections as campaigning begins.

2. Economic

Cambodia’s economic growth contracted in 2020 by 3.1% primarily due to the effects of COVID-19 on the global economy and tourism. Only the agriculture sector has seen growth in 2020. However, the longer-term trajectory is that Cambodia’s economic activity continues to expand at a robust pace. Construction, tourism, agriculture and manufacturing are the long term drivers of growth. Economic growth is projected to rebound in 2021 by 4% and secure a full recovery in the mid-term. Cambodia ranks144th on the Ease of Doing Business Rankings.

Cambodia retains a stable macroeconomic outlook with Government debt at manageable levels. External debt is 28.5% of GDP. Microeconomic data has been impacted by COVID-19 with private debt rising and international remittances dropping. Human Development and poverty reduction have both seen reversals in the last twelve months contrary to the longer term trend of improvements.

Visit World Bank pages for the latest Ease of doing Business rankings.

3. Business and Human Rights

The United Nations Office of the High Commissioner for Human Rights (OHCHR) Cambodia Country Office is the oldest field presence of OHCHR. It has been through several transformations and traces its origins to the United Nations Transitional Authority in Cambodia (UNTAC). The independent UN Special Rapporteur for Human Rights, Dr Rhona Smith (UK) has completed her term. Her replacement is expected to be approved by the Human Rights council in February. Please see OHCHR pages for more information on human rights issues in Cambodia.

4. Bribery and Corruption

Bribery is illegal. It is an offence for British nationals or someone who is ordinarily resident in the UK, a body incorporated in the UK or a Scottish partnership, to bribe anywhere in the world. In addition, a commercial organisation carrying on a business in the UK can be liable for the conduct of a person who is neither a UK national or resident in the UK or a body incorporated or formed in the UK. In this case, it does not matter whether the acts or omissions which form part of the offence take place in the UK or elsewhere.

In 2020, Cambodia was ranked 160th out of 180 countries in Transparency International’s corruption perception index (CPI).

5. Terrorism Threat

Please read the information provided on the terrorism page of the Foreign and Commonwealth Office (FCO) Travel Advice.

6. Protective Security Advice

There is a moderate threat from violent crime in Cambodia. Street crime presents the greatest risk followed by aggravated burglary. Most crime directed against foreigners is opportunistic, for example, bag snatching, and there are periodic spates of muggings targeted at expatriates.

Please see FCO Travel Advice for more information.

7. Intellectual Property

Intellectual Property Rights (IPR), as intangible assets, are a key factor in the competitiveness of your business in the global economy. IPR can protect your innovation from competitors and can also be an important source of cash flow though licensing deals or selling IP. IPR infringement can lead to loss of business, revenue, reputation and competitive advantage unless you take steps to protect your IP both in the UK and abroad.

Cambodia is a member of the World Trade Organisation (WTO) and is thus a signatory to the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) which sets international standards for various aspects of IP. It is also a signatory to a number of international intellectual property (IP) treaties administered by the World Intellectual Property Organisation (WIPO).

7.1 IP top tips for businesses:

• businesses are encouraged to learn more about IP issues relevant to their specific industry sector and to consider defensive measures early in their plans to enter the Cambodian market
• certain objects, such as logos, can be protected as both a copyright and a trademark – this can give an extra route to enforce IP rights
• Cambodia works under a “first to file system”, meaning the first person to file an IP right will own that right when granted. This means an earlier user may find they are infringing a later filed registration
• Cambodia is part of the ASEAN Patent Examination Co-operation (ASPEC), a regional patent work-sharing programme among 9 participating ASEAN Member States (AMS). The purpose of this programme is to share search and examination results between the offices to allow applicants to obtain patents faster and more efficiently. ASPEC is free of charge and operates in English
• useful information can also be found at the Intellectual Property Office, a UK Government agency providing free and impartial advice on protecting and registering your IP in the UK and abroad via the International IP Service (IIPS). The IIPS has country specific information on the top IP issues for business in market as well as sector specific support and details of IP outreach events
• the UK Intellectual Property Office has IP attachés based in Singapore with specific focus on providing support and advice to UK companies in Cambodia

8. Contact

Contact the Department for Business and Trade’s (DBT) team in Cambodia for more information and advice on opportunities for doing business in Cambodia.