The Epidemic Survival: three key strategies for businesses in Cambodia to “break the game”. As per the latest forecast by the Cambodian Ministry of Finance and Economics, Cambodia’s economic growth rate will reach 5.8% in 2022, while the world economic growth rate will recover to 4.4%. Judging on the current business environment and the circumstance in Cambodia, there is both an opportunity and a challenge for major companies. There are three key strategies to “break the game” and rise against the trend of the epidemic.
The Current Circumstance at a Glance
According to the latest statistical report by the Ministry of Finance and Economics, a total of 42,000 Chinese tourists will enter Cambodia in 2021, a decrease of 86.9% compared with the same period in 2020, in which the number of Chinese in Cambodia has dropped significantly.
Due to the need for epidemic prevention and control, China continues to implement strict and strict entry-exit policies. Meanwhile, Cambodia has not yet resumed the visa-on-arrival policy. Doubled with China’s strict inspection of entry and exit, some investors face inconvenience. In addition, some investors Because of the epidemic chose to leave Cambodia temporarily.
Along with the continuous advancement of the government’s epidemic prevention work in Cambodia, the vaccination rate has continued to increase. The government has launched an entry-free quarantine policy since November last year and encouraged investors to invest in Cambodia, in order to promote economic recovery.
In short, the impact on Cambodia’s macroeconomy during the epidemic, the foreign-funded enterprises in Cambodia were also greatly affected, but there are still many enterprises actively seeking development under the epidemic.
Looking for key development opportunities in the current situation of your business has to challenge.
Despite the impact of the epidemic, various companies in Cambodia are actively seeking development opportunities. Nowadays, the local e-commerce market in Cambodia is still in its infancy, and there is no such big company like Amazon or Alibaba. However, its demographic structure, logistics development, and the popularity of the Internet all indicate that the general trend of e-commerce has arrived. It’s a good time to get started investing in the field.
For instance, there is a good opportunity to provide more comfortable online shopping services under the epidemic situation. The combination of online and offline will be adopted, and offline stores will be opened in various communities. Customers only need to place an order and enjoy delivery instantly or in a short period of time. Door-to-door service, commodities include vegetables, meat, groceries, alcohol, etc. Furthermore, the increment of the delivery apps in Cambodia, especially in daily consumption products including foods such as Food Panda, Nham24, E-Get, and others, provide a good environment and circumstance for local businesses to grow with them.
Seeing this growing trend of the local delivery service and the sufficient internet environment in Cambodia, it’s a good chance to look for key development opportunities in the current situation your business has to challenge. Don’t wait, save your time and resize your target group in the domestic and refine what your value to contribute to there, package it and go relevant to the circumstance and grow.
Keep existing resources maintenance, stability control, and then seek growth.
According to data from the Ministry of Finance and Economics, Cambodia’s economic growth rate will be negative in 2020, and as per predicted in 2021 that the economic growth rate would increase again, yet it was continuously severely affected by the community epidemic, and the growth rate was only lower than that in 2020 burden.
In the past two years, the world economy has been hit by the epidemic, and Cambodia is no exception. As the epidemic continues repeatedly, the economic impact of Cambodia continues.
For example, in the tourism sector, China is the largest source of investment and tourists in Cambodia. Due to the impact of the epidemic, the number of Chinese people in Cambodia has dropped significantly. Therefore, companies still in Cambodia are beginning to seek localized development and transformation.
Today, the business environment of enterprises in Cambodia is facing challenges such as epidemic and public security, in which there is recommended that enterprises seek stable development by keeping existing resources maintenance, stability control, and then seeking for growth in 2022. Thus, they have to actively seek development opportunities with all parties as we also concluded in the previous point.
In brief, on the basis of existing resources and the current capabilities of the company, make adjustments and optimization preparations and invest in localized development strategies, which can also be combined with business goals.
Human Capital: Investing in local people if – for it – or when you want to keep your business on the right track in localization development.
Due to the impact of the epidemic, most companies are transforming to seek localized development. However, this is not a simple matter. Most of the above two strategies have not been able to sufficiently promote localization development. The following is the last strategy to assist companies to be more sustainable in Cambodia, accumulate and grow their human capital.
It’s not a new concept that many experts in the field of business management and leadership, consultation, and especially the investors own self, they are understanding about how the importance of human resources rolling in the company and accelerate for growth in domestics. So far, there are foreign companies expanding into Cambodia, the key to their success is left to human resources and management methods. In addition, there are various methods of hiring and managing human resources depending on the country or region, and multinational companies have to deal with them because they are unique to each location.
Moreover, there are many companies being forced to cut their employees due to the unavoidable impact of the epidemic. However, this is only a temporary solution and not a long-term strategy. If we look further, it is even more necessary to select appropriate talents for the current situation, prepare talent cultivation; likewise, plan before rain and storm, pave the way for the healthy development of the enterprise, and do a good job in the implementation of sufficient localization development in the future.
To conclude, human resources are the most important to the survival on how to ‘break the game’ for all time, limited to only during the epidemic today. Judging on-trend to figure out your business growth opportunity and keep your stability in the domestic marketing is good, but it’s very great to have a team of talent who will fulfill potential to make your business perform well and sustain. Consider on this, the basis of existing resources and the current capabilities of the company, make adjustments and optimization preparations and invest in localized development strategies, which can also be combined with business goals, and your people are your strong backbones.
