Growing Opportunities for Russian Businesses in Cambodia
- Cambodia has a strong textiles and agricultural industry
- Is a member of ASEAN with Free Trade Agreements with China, India and RCEP
Cambodia and Russia shared respective messages to mark the 65th anniversary of the establishment of Cambodia- Russia diplomatic relations yesterday.
Despite the Coronavirus pandemic, cooperation between Cambodia and Russia has been smooth and both nations should look at increasing its potential, said Minister of Economy and Finance Aun Pornmoniroth. He especially mentioned the fields of economy, trade, investment, education, health and culture, which the government is ready to promote and expand more actively.
“Cambodia welcomes more investors to increase bilateral trade and boost economic growth”, he underlined.
The USSR was a former foreign donor and main economic partner of Cambodia from 1979 into the 1980s. However, after it became the Russian Federation, trade now lies behind China, the EU, the US, South Korea, Japan and Asean nations in terms of foreign assistance, trade, and investment.
According to the Ministry of Economy and Finance during his courtesy call on Pornmoniroth, the Russian ambassador emphasized his government will continue to assist Cambodia and its people, especially in the field of education and health, such as providing scholarships to Cambodian students to study in the Russian Federation, skills training, and technical assistance.
The ambassador, Anatoly Borovik, said many Russian companies, both large and medium, are interested and looking for opportunities
to invest and do business in Cambodia.
He believes in the future the volume of bilateral trade between Cambodia and Russia will continue to increase.
Cambodia and Russia have so far signed 51 agreements and memorandums of understanding to boost trade and investments in the financial sector, agriculture and elsewhere.
Last year, bilateral trade reached US$55.39 million. There has been a growing number of Russian tourists, with nearly 40,000 visiting pre-Covid in 2019, while some Russian investors operate hotels, restaurants, and a resort development in Preah Sihanouk province.
Cambodia has a large textiles industry, coupled with competitive labor rates. This is expected to receive a boost by providing low-cost finishing to more costly Japanese, Korean and Australian clients as part of the regional RCEP agreement that includes ASEAN nations.
As part of ASEAN, Cambodia also enjoys free trade access to China and India, in addition to the other nine ASEAN countries: Brunei, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. Our 2021 Doing Business in ASEAN guide refers and can be downloaded free of charge here.
Russian businesses interested in Cambodia may contact Maria Kotova at firstname.lastname@example.org.
Russia Briefing is written by Dezan Shira & Associates. The firm has 28 offices throughout Eurasia, including China, Russia, India, and the ASEAN nations, assisting foreign investors into the Eurasian region. Please contact Maria Kotova at email@example.com for Russian investment advisory or assistance with market intelligence, legal, tax and compliance issues throughout Asia.