The sun rises and sounds reminiscent of storybook tales whisper notably. People, smells, colors, sounds and assorted charm overtake your senses and you feel a distinctive comfort and relaxation. You could be nowhere but Cambodia. This may not be the typical way to introduce a potential investment location, but that is because Cambodia is not a typical place. Cambodia seems to not only be a land that time forgot, but one that investors seem to have forgotten as well at least until now. With a 7.3% year over year (YOY) growth in the economy since 2012, “The Kingdom of Wonder” is really, well, wonderful.
Despite strong suggestions from organizations such as the United Nations and the International Chamber of Commerce, many steered clear of Cambodia to be sure. Cambodia has a troubled history but the country’s resilience has come through and Cambodia is investor friendly. After the Khmer Rouge was ran out of Phnom Penh by the Vietnamese in 1979, the “balancing” of a country literally torn in half, was predicted to take some time. Despite a labor force that would need to establish itself as competent and stand for its rights in a growing global market, to support sustainable growth in a prospectively booming country, Cambodia embraced change in a manner unprecedented. They were named the most open economy of the Least Developed Countries (of 49 LDCs). Being an LDC gives Cambodia preferential access to European and North American markets regarding trade of goods and services. Cambodia ranks on par with Japan as a more liberal market of Asia.
This consistent evolution of the economy in favor of foreign investor and democratic growth creates a comfortable climate that is easy to maintain confidence about.
What supports investment in Cambodia and What Economic Factors Matter Most?
Various publications have reflected on the strength and future potential of the Cambodian real estate investment market. With a strong, affordable and ethically employed labor force of hard working families, Cambodia is a great option for the international real estate investor. The global real estate investment community has responded to Cambodia’s growing economy with stable and staggering growth in sectors such as construction. In 2012 over $2.1BN in real estate development related projects received foreign investment– a 72% increase from 2011.
The total economy is on the rise and Cambodia is expected to be the second fastest growing South East Asian economy over the next two years, with GDP growth forecasted at 6.7% in 2013 and 7% in 2014. Of course record tourism numbers have many investors optimistic and opportunistic when approaching the potential for future foreign investment interest in Cambodia.
With global competition rife, it can be difficult to imagine an ideal place to invest in for your future. You want to look into places that you can trust, will return a reasonable profit and if you are lucky, a place you really enjoy visiting. The Kingdom of Cambodia covers these bases—part of the idealistic beauty of investing there is how lovely of a place Cambodia is to visit and to live.
Cambodia is a free and democratic state that benefits from an actively involved citizenry. Non-Government Organizations (NGO), expatriates, Khmer organizations and many others shape the future of friendly foreign economic policy. When you invest in Cambodian real estate, you are investing in a community that invests in itself. The high level of English literacy makes the Khmer people of Cambodia some of the easiest to work with and their gentle nature makes dispute solutions abundant to those who understand the power of respectful communication/problem resolution.