“Before embarking on the company registration process in Cambodia, it’s crucial to have a clear understanding of the type of business you intend to establish in the country. Factors like labor costs, taxation, and business licensing requirements vary depending on the nature of your business.
Currently, Cambodia’s business landscape predominantly centers around sectors such as garment manufacturing, light manufacturing, agriculture, construction, and tourism. However, the Royal Government of Cambodia has set ambitious goals to transform the nation into a middle-income economy by 2030. To achieve this, they are actively working on diversifying the economy beyond its traditional sectors like garment, footwear, and agriculture.
Foreign investors stand to benefit from the government’s diversification efforts and can receive substantial support when registering a company in Cambodia.
The manufacturing sector holds a pivotal role in Cambodia’s economy, contributing up to one-third of its GDP. Notably, Cambodia earned the distinction of being Europe’s leading supplier of bicycles in 2017, highlighting the industry’s robustness. With one of the lowest labor costs in Asia, Cambodia is an excellent fit for labor-intensive manufacturing businesses.
The garment and textiles manufacturing sector is a major driver of the nation’s growth, accounting for approximately 65% of its total merchandise exports.
Cambodia’s agricultural industry also plays a significant role, contributing 20% to the country’s economy. Recent years have seen steady growth in agricultural output, bolstered by government support. As part of this effort, materials, machinery, and equipment used in agricultural production are exempt from import duties in Cambodia, further enhancing the sector’s appeal for investors.”