Cambodia country Overview
imported goods
Cambodia is located in SE Asia; bordering with Thailand, Vietnam, and Laos. Capital: Phnom Penh Population and Size: 181.0135 km sq. 16.2 million (0.21% of world’s population) Government standing: Parliamentary Constitutional Monarchy Norodom Sihamoni Chief of State (Since 2004). Hun Sen is the Prime Minister. Country capital: Phnom Penh, Khmer is the official language. Currency: Cambodian Riel (KHR) 1KHR= 0.00025USD
Cigarettes, Petroleum Products, Construction Machinery, Gold, Pharmaceuticals Products, Motor Vehicles.
exported goods
Clothing (knits), Footwear, Timber, Tobacco, Rubber, Rice.
business etiquette - When meeting a group you will be introduced to the highest ranking person, similarly you should have the most senior of your group greet them. - Handshakes are normal although be careful not to be too firm as this may be construed as aggressive. - If men are dealing with women they should wait and see if they extend a hand before doing so. Eye contact should be kept to a minimum. - Use the right hand or both hands when offering or receiving a business card. - It is important to treat business cards with respect as the way you handle the card is indicative of the way you will treat the person. - Cambodians are very indirect communicators so some reading between the lines is a necessary skill. - If they disagree with an idea, they generally remain silent. - Showing emotions is considered a negative behavior. Anger, impatience or frustration should be hidden as it would lead to a loss of face. - Avoid prolonged eye contact. - Be sure to speak clearly, slowly and to avoid use of slang, adages and colloquial sayings.
Main Suppliers Roo Hsing Garment Co. Ltd. New Orient Garment Co. Ltd. Wineam Corporation Cambodia
Top expOrts sold to usa Total Volume 2016: $2.92 B Knit Sweater (12% , $423 M, 6110) Women’s Knit Suits (8.9% , $234M, 6104) Knit Baby Garments (7.1% , $208 M, 6111) Leather Footwear (4.1% , $119 M, 6403)
Top countries to export US (22%), UK (9.3%), Germany (9%), Canada (5.4%), Japan (7.1%), China (4.4%), Thailand (4.5%).
Recovering from the Cold War and Vietnam War, Cambodia is still very dependent on foreign loans and aid to rebuild their economy. Under the new leadership of Prime Minister Hun Sen, there have been many motions to support Human Rights, Labor Activist, and many others.
37%
Lead times to savannah and LA 20% Live in poverty
There are many pressing social issues occurring in Cambodia, the leading issue being human trafficking. Cambodia is ranked 14th in the world and is most commonly seen as forced labor or sex trafficking. But that is not all. Cambodia also has very high rates for people with HIV/AIDS.
important dates Pchum Ben Day 1st Week of October
Royal Ploughing Ceremony 2nd Week of May
Monsoon Season September – November
King Sihanouk’s Birthday Celebration October 31st
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Elastic rubber for knits are the biggest export for Cambodia. Cheap labor that is growing more available. Location and accessibility of materials.
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Poor working conditions and unenforced labor laws. Infrastructure- high energy costs, insufficient supply of electricity. The cost of doing business is high due to Government procedures. Risk of impacting human trafficking and poor human rights.
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Many different countries are investing in different ways to strengthen the Cambodian Government.
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Very dependent on foreign country investments in Cambodia. Reliance on raw materials that they can greatly impact cash flow and trade
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Labor and production costs are cheap The ports are easy to access for shipping routes The ports are conveniently located by other countries to access materials The country is going through many investments to improve infrastructure
Sihanoukville $2.9 - $4.9K (35 - 40 days) $4.5 - $6.2K (38 - 42 days)
Phnom Penh $2.3 - $2.5K (34 – 40 days) $4.5 - $6.2K (38 – 45 days)
Provincial Port $2.5 - $4.5K (35 – 40 days) $4.0 - $6.9K (40 – 50 days)
Usa relations with cambodia - From the backlash of the Cold War, Vietnam War era, and the leadership of Khmer Rouge, the United States and Cambodia have had a strained relationship. Since then both countries have made efforts to make peace. - The United States supported $1.8 billion for Cambodia’s military assistance, and another $500 million to help with the countries social & economic issues. - Cambodian citizens gained approval under the administration of President Obama, who was the first president to ever visit the country.
Trade agreements - While the US does not have a trade agreement enforced, there is an initiative that was formed for both countries to communicate a dialog of ongoing agreements. This is called the Trade and Investment Framework Agreement (TIFA), which was signed in 2006. - Cambodia is part of the ASEAN Free Trade Area (AFTA) - Free trade agreements with Australia, New Zealand, South Korea, Japan and China.
risks
BenefIts - - - -
Sihanoukville on the Gulf of Siam Phnom Penh on the Mekong River The Provincial Port of Koh Kong
Have access to internet
While most Cambodian people own a cellphone, only 37% of people have access to the internet. It is also found that 63% of Cambodian people are nearly or completely illiterate (2016). GDP standing of $36.6 Billion, with 7.3% growth (2012) and ranked 117th. Textiles and tourism are the two leading industries to generate economic wealth, with agriculture remaining stable for rural areas.
Main ports
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Poor infrastructure and technology Unsafe and unregulated working conditions No trade agreement incentives for United States Substantial amount of corruption and political instability A lot of child labor, force labor, and human trafficking occurring
Country Infographic | Madison Daley | FASM420 Global Sourcing | Professor Donald Levy