Doing business in Cambodia.

Cambodia is becoming a more attractive destination for business, supported by its open market economy, its location and a government push toward more transparent, accountable and efficient administration.

Cambodia is a WTO member and benefits from Most Favoured Nation status, along with preferential access to key markets under Generalised System of Preferences schemes, including the EU’s Everything But Arms initiative. These arrangements have historically given Cambodian exports duty-free access to a number of developed economies, though the EU partially withdrew EBA preferences in 2020 over human rights concerns – a withdrawal that specifically covers garments, footwear and travel goods, so this shouldn’t be treated as blanket duty-free access. Cambodia’s membership in ASEAN and the Regional Comprehensive Economic Partnership adds to its trade connections; RCEP brings together ASEAN members with China, Japan, South Korea, Australia and New Zealand, widening market access and cutting trade barriers.

Garments, footwear and agricultural products remain the backbone of Cambodia’s export-driven economy. Tourism, logistics, real estate, education and telecommunications round out a growing services sector, and new expressways, bridges and industrial zones are improving the country’s connectivity for foreign investors.

Hierarchy and seniority carry real weight in Cambodian business culture. Senior individuals are addressed by title, and respect is shown through body language and formal speech as much as through words. Trust tends to build slowly, over repeated face-to-face meetings, shared meals and networking events rather than a single pitch. Business cards are exchanged with both hands, and a small, thoughtful gift is a welcome gesture.

Patience matters. Decisions are usually made by consensus, with group harmony weighed more heavily than speed or individual assertiveness, so negotiations can take longer than in more transactional business cultures.

The bureaucracy has historically been a challenge, but that’s changing. Company registration, once a months-long process, can now take weeks or even days in some cases, and online platforms for tax filing, business registration and customs have cut a lot of the friction out of day-to-day operations. Some formalities remain, and foreign investors are still best served by working with local consultants or legal professionals who know the current rules around licences, permits and compliance.

Communication tends to be indirect, with a strong emphasis on saving face and keeping relationships smooth. Open disagreement or direct criticism is rare, especially in front of a group, and tone, expression and body language often carry more meaning than the words themselves.

Khmer is the official language, though English is increasingly common, especially among younger professionals and in the cities. Providing documents in both languages is a small gesture that signals real commitment to the local market.