Phnom Penh, a new trendy business tourism hub in Southeast Asia
Phnom Penh by night, with the Central Market on the left - Source : Internet
Introduction
Phnom Penh has undergone a remarkable transformation in recent years, evolving from a city with a leisurely pace to a dynamic metropolis. The skyline of the Cambodian capital has changed dramatically over the past decade, with the emergence of hundreds of towers showcasing its economic boom. This rapid evolution is largely supported by massive investments, notably from China.
Liberal economic policy
Phnom Penh's appeal for business is largely based on Cambodia's very liberal economic policies. The country offers particularly favorable conditions for foreign investors, allowing them to invest freely without any local participation quotas and to repatriate their profits without constraints. This flexibility is a major advantage compared to other countries in the region like Thailand or Vietnam.
Phnom Penh river front view, with the Royal Palace - Source : Internet
Phnom Penh vs. Bangkok, Singapore, and Ho Chi Minh City: A quick comparison
Let's imagine these four cities as Asian restaurants. Each has its own specialty and atmosphere:
- Singapore is a Michelin-starred restaurant: everything is perfect, but it's also the most expensive. It's the place to go for very serious business.
- Bangkok is a giant night market: there's everything for every taste and budget. It's lively, but sometimes a bit chaotic.
- Ho Chi Minh City is a rapidly growing family restaurant. The cuisine is delicious, prices are attractive, but there's still some work to be done.
- Phnom Penh is a small local restaurant that is starting to make a name for itself. The cuisine is authentic, the atmosphere is warm, and the prices are very affordable. It's the ideal place for those looking for something authentic and wanting to be part of something new.
Sustained economic growth
Cambodia's sustained economic growth enhances its attractiveness. With a 5.3% GDP growth last year, the country shows one of the best performances in Southeast Asia. This momentum is expected to continue, making Cambodia an increasingly interesting destination for investors.
Vattanac Tower and its roof top - Source : Internet
Infrastructure development
Infrastructure development plays a crucial role in Phnom Penh's growth. A new major airport is planned for 2025, while new highways improve connections with other important cities in the country and neighboring countries. These projects, often funded by China, aim to position Cambodia as a regional hub.
In this regard, while the Chinese Belt and Road initiative has significantly boosted Cambodia's infrastructure, it has also raised concerns about debt sustainability and potential overreliance on a single economic partner. As Phnom Penh solidifies its position as a regional business hub, the government must carefully balance the benefits of foreign investments with the need to diversify its economy and protect its national interests.
Phnom Penh, bird view- Source : Internet
A cosmopolitan city
Phnom Penh has also transformed into a cosmopolitan city offering a pleasant living environment for expatriates and business travelers. The capital now boasts luxury hotels, a diverse culinary scene, vibrant nightlife, and modern shopping centers. This evolution contributes to its appeal for international businesses.
Local culture plays a significant role in the business climate in Phnom Penh, influencing professional interactions and the work environment in a unique way.
Curiosity and open-mindedness
First and foremost, we must highlight the curiosity and open-mindedness of Cambodians. According to Soreasmey Ke Bin, CEO of Confluences, "Cambodians are generally curious, very open to others. It's an asset." This cultural characteristic promotes intercultural exchanges and facilitates the integration of foreign companies into the local economic fabric.
Francophone heritage
Cambodia's Francophone heritage is also an important cultural aspect that influences the business world in Phnom Penh. Many ministers and government officials have studied in France, creating a strong cultural link that facilitates business relations with French companies. This Francophilia is reflected in a particularly active Franco-Cambodian Chamber of Commerce, one of the largest in Southeast Asia with over 170 members.
A unique advantage of Phnom Penh is its strong Francophilia. The city retains many traces of its French colonial past and maintains strong cultural ties with France. This affinity is evidenced by the presence of numerous French companies and facilitates business relations for Francophones.
Phnom Penh, between tradition and modernity - Source : Internet
New generation of entrepreneurs
We can also mention the emergence of a new generation of local entrepreneurs, educated abroad, who have profoundly transformed Phnom Penh and energized the private sector. This new generation brings an interesting fusion of traditional Cambodian values and a more international business outlook, creating an environment conducive to innovation and international partnerships.
Political stability
The country's political stability, though controversial from a Western democratic perspective, is presented as an advantage for business. This stability, rooted in the local political culture, offers a long-term visibility appreciated by foreign investors.
Human dimension
Despite its rapid development, Phnom Penh has managed to maintain a "human dimension" that reflects traditional Cambodian values of community and hospitality, creating a more personal and warm work atmosphere appreciated by many expatriates and foreign business people.
Safety and quality of life
Safety and quality of life in Phnom Penh have significantly improved. The city is now perceived as safe and pleasant to live in, maintaining, as we just mentioned, a human dimension appreciated by visitors despite its rapid development.
Phnom Penh, the Independance Monument - Source : Internet
A land of opportunities
Lastly, Cambodia positions itself as a "land of opportunities" for foreign companies. Its strategic geographical location, young and dynamic population, and aspiration to become an upper middle-income country by 2030 make it an attractive destination for investors looking to establish themselves in Southeast Asia.
Conclusion
All these elements contribute to making Phnom Penh an increasingly serious alternative to traditional business destinations in the region, such as Bangkok or Ho Chi Minh City.
With its blend of openness, stability, respect for tradition and aspiration to modernity, local Cambodian culture is shaping a unique business climate in Phnom Penh, combining flexibility, opportunities for growth and strong interpersonal relationships.
The city offers a unique combination of rapid development, economic opportunities, political stability, cultural richness, and quality of life, making it a must-visit destination for investors and business travelers.