Cambodia Musings

It was great to get back to Phnom Penh after five years. While we worked in Cambodia during the pandemic years, it was all virtual. Here are some observations:

1. The existing airport has been updraded and looks functional, clean and is efficient. A new USD 1 billion airport is coming up 20 kilometers away and designed by Foster + Partners (https://www.fosterandpartners.com/news/construction-gathers-momentum-at-techo-international-airport-in-cambodia) and maintenance agreement signed with Singapore based SIA Engineering. A brand new airport has also been operational at Siam Reap. (https://asia.nikkei.com/Business/Transportation/Billion-dollar-airport-whets-Cambodia-appetite-for-Chinese-investment)
2. The skyline of Phnom Penh has changed with many high rise buildings. These are mostly constructed by firms with Chinese investments. With the slowing of the Chinese economy, the impact is felt. Many space on rent signages are visible. https://cambodiainvestmentreview.com/2023/08/24/cbre-cambodia-phnom-penh-real-estate-market-undergoes-profound-shift-in-2023-investors-urged-to-seek-accurate-data-driven-valuations/
3. More eateries and cafes have opened up, the look and feel is very contemporary. COVID 19 pushed cafe boom and there are many cafes open 24 hours. BROWN Coffee and Bakery has been the pioneer like Himalayan Java Coffee in Nepal. They have also inspired many to take up local #Khmer heritage and architecture in designing outlets. https://www.raintreecambodia.com/news/best-of-khmer-coffee-culture
4. Since 2010, when I first made a trip in connection with a due diligence of a resort property to acquire in Siam Reap for a client, many hotels have opened, many in the luxury hotel space including Shintamani Six Senses Hotels Resorts Spas https://www.travelandleisureasia.com/th/awards/luxury-awards-cambodia-best-hotels-2023/
5. There is a new government in place since August 2023, with Hun Manet as the Prime Minister taking over from his father Hun Sen. Many of the cabinet members are young with western education, but many have taken the positions held by their fathers. BowerGroupAsia has provided an assessment when the new government was formed. https://bowergroupasia.com/cambodias-new-government-of-young-western-educated-leaders-takes-shape/
6. The economy is projected to grow at 6.6% in 2024. From 1999 to 2019, Cambodia grew at an average 7.7 per cent driving a fivefold increase in per capita income from US$323 to US$1621.
7. Cambodia's foreign debt is USD 10 billion, a third of its GDP of USD 30 billion. Out of that 40% of the debt is to owed ot China. https://www.cnbc.com/2023/09/14/cambodias-new-pm-heads-to-china-for-his-first-official-trip-abroad.html
8. Two key issues determine how Cambodia will move ahead. First, whether the Chinese investments will return and economic activities will take pace. Second, if it does, then many analysts and business people feel, it will be the destination for investments and business with preference over Thailand and just behind Vietnam. beed management has been working on projects in Cambodia since 2016. #beedCambodia