Cambodia

Business Opportunities in Cambodia for UK Exporters
1. Introduction & Snapshot

Cambodia is a rapidly growing Southeast Asian economy with a population of over 17 million. Known for its garment exports, tourism, and agriculture, Cambodia offers UK exporters opportunities in manufacturing support, agritech, construction, and services.

The government has prioritised economic diversification, foreign investment, and digitalisation. For UK businesses, Cambodia represents an emerging market with favourable trade frameworks, low labour costs, and growth potential, especially for firms targeting niche manufacturing, sustainable development, and infrastructure projects.

2. Economic Overview

Cambodia’s GDP in 2023 was approximately USD 30 billion, with growth of 5–6% annually, among the highest in the region. Key features include:

Garment manufacturing: Accounts for the majority of exports to the US and EU.

Agriculture: Rice, cassava, rubber, and palm oil are significant.

Tourism: Angkor Wat and coastal regions contribute heavily to GDP.

Emerging services & digital economy: Mobile banking, e-commerce, and fintech are expanding.

3. Trade Relations with the UK

Cambodia maintains strong trade links with the UK, partly facilitated by the Everything But Arms (EBA) initiative for least developed countries.

UK exports to Cambodia: Machinery, vehicles, pharmaceuticals, IT services, and educational services.

UK imports from Cambodia: Garments, footwear, textiles, and agricultural products.

Trade volume: Modest but growing, with potential in manufacturing technology, education, and sustainable solutions.

4. Market Opportunities
Manufacturing & Garment Support

While Cambodia is known for garments, there is demand for automation, quality control, logistics, and packaging technologies. UK firms can help enhance efficiency and compliance with EU standards.

Agriculture & Agritech

Cambodia’s agricultural sector seeks modern irrigation, post-harvest technology, cold-chain logistics, and export compliance solutions. Organic and sustainable production is particularly attractive for foreign investment.

Infrastructure & Construction

Urbanisation is driving demand for roads, water management, housing, and smart city initiatives. UK expertise in project management, engineering, and sustainable construction is in demand.

Renewable Energy & Sustainability

Cambodia has potential in solar, hydro, and biomass energy. UK firms offering energy efficiency solutions, grid management, and ESG consulting have opportunities.

Education & Training

Cambodia’s young population creates demand for English-language programs, vocational training, and higher education partnerships. UK institutions can leverage their strong reputation.

5. Regulatory & Business Environment

Ease of Doing Business: Improving, but bureaucracy remains moderate.

Investment incentives: Tax holidays in special economic zones and incentives for renewable energy and industrial zones.

Legal system: Civil law with evolving commercial regulations; local legal guidance is recommended.

IP protection: Improving, though enforcement can be inconsistent.

6. Cultural & Consumer Insights

Business culture is relationship-driven and hierarchical; trust-building is key.

Meetings often start with informal discussions before formal negotiations.

Consumers are primarily price-sensitive, though urban middle classes show demand for quality goods.

7. Challenges & Risks

Regulatory unpredictability

Limited infrastructure outside urban centres

Competition from regional players (China, Thailand, Vietnam)

Currency and import documentation challenges

8. Case Study

UK firms have successfully provided garment industry compliance and training services, as well as solar energy and sustainable construction solutions, demonstrating that niche expertise and long-term engagement can succeed.

9. Practical Entry Tips

Partner with local distributors or agents.

Focus on high-value sectors: manufacturing support, agritech, education, renewable energy.

Leverage trade frameworks like the EBA.

Invest in relationship-building and cultural understanding.

10. Conclusion

Cambodia is an emerging but promising market for UK exporters. While challenges exist, the combination of growth, young population, and government focus on industrialisation and sustainability creates significant opportunities in manufacturing, agriculture, education, and energy sectors. UK exporters with long-term vision and local partnerships are well-placed to succeed.