How to enter the Cambodian market

In 2025, exports to Cambodia totalled over AUD 540 million, making it one of the smaller, yet growing, export destinations in the region. Education-related travel, coal and agriculture are among Australia’s top exports to Cambodia, but other areas such as infrastructure, clean energy, and services also offer promising opportunities.

Market entry models for exporting goods and services

Choosing an appropriate market entry model is essential for businesses looking to export to Cambodia. Any choice should be informed by factors such as the overarching business strategy, target sector, and business size and maturity. Market entry models frequently evolve over time.

A. Direct exporting

In direct exporting, businesses sell directly to a Cambodian customer from Australia. Exporting directly to Cambodia requires a significant level of involvement in the export process, including market research, marketing, distribution, sales, product registration and approval, import-export licencing and receivables.

Direct exporting has some advantages, including:

• Greater control of commercial processes, including sales
• Better margins, as middlemen are avoided
• More direct customer relationships

While there are advantages, direct exporting may ultimately involve higher establishment costs in Cambodia, as employing dedicated in-house staff and other resources may be necessary to manage the complexities of exporting and sales. Businesses using this model may need to consider ways to offset these costs, including employing an agent or distributor to handle local product registrations, while still maintaining control over other aspects such as marketing and supply chain.

This approach will require businesses to engage with customers regularly to build awareness and understanding of the products they are selling on your behalf. In return, their understanding of the Cambodian market can be applied to product development, pricing and marketing. Selling directly to local retailers can generally cut commissions, reduce expensive travel and create an effective conduit to market.

B. Agents and distributors

Many Australian firms doing business internationally rely on agents or distributors. The roles of agents and distributors differ, and they can vary across industry. It is therefore critical that roles and responsibilities are clearly defined early in any agreement.

Agents: Agents act as representatives of suppliers and do not take ownership of the products they sell. They are usually paid on a commission basis, which provides an incentive for them to drive sales. Being based in Cambodia, they will often represent several complementary products or services. They can be retained exclusively as the sole agent for a company’s goods or services or as one of several for the exporter.

Distributors: Unlike agents, distributors buy the goods from exporters and then resell them to local retailers or direct consumers. In some cases, a distributor may sell to other wholesalers who then on-sell to retailers or consumers. Distributors may carry complementary and competing lines and usually offer after-sales service. They earn money by adding margins to product prices. Distributor margins are generally higher than agent fees because distributors have costs associated with carrying inventory, marketing and extending credit for customers.

Choosing an agent or distributor: Whether using an agent or distributor, building a close working relationship is essential. Due diligence when selecting an agent or distributor is important – ask for trade references and seek a credit check through a professional agency. It is best to meet any potential agents or distributors in Cambodia; this will give them a chance to demonstrate knowledge of the market and provide an early opportunity to build the relationship.

Time in market is an important consideration when choosing a distributor in Cambodia. As distributors have a high rate of closure, engaging an established distribution business reduces the risk of disruption to a business relationship. On the other hand, established distributors can lack the dynamism of younger companies.

C. Online Sales

E-commerce adoption in Cambodia is rising rapidly but still trails its neighbours. A nascent e-commerce market and growing numbers of young, digitally savvy consumers offer a modest opportunity to sell products and services online.

Government support for e-commerce is growing both within Cambodia and across the region. In 2019, the Cambodian Government enacted legislation to help regulate the e-commerce market and provide better consumer protections. In 2022, the Regional Comprehensive Economic Partnership’s (RCEP) e-commerce provisions came into effect. The RCEP harmonises rules for traders and provides a framework for both consumer and data protection, providing significant market opportunities to expand online sales.

Accessing digital consumers: As mobile internet access has become more affordable, penetration rose sat at 121 percent in 2025 (1.21 mobile connections per citizen). At 6.7 per cent of consumer spending per capita, digital expenditures in Cambodia is on par with the regional average. In 2024, e-commerce revenue in Cambodia was AUD 1.51 billion. Growth is expected to continue at 16.4 per cent per year, putting the market’s value over AUD 2 billion by 2025.

Increasing numbers of Cambodians are using their phones for digital banking, cashless money transfers, ride-hailing apps, food delivery and other payments. As more Cambodians use social media, platforms like Facebook and Telegram are increasingly becoming important sales channels.

Automobiles and vehicles lead consumer e-commerce spending in Cambodia (Figure 2). Toys, consumer electronics, health and apparelare also important e-commerce categories.

Figure 2: E-commerce monthly spending on consumer goods (2026), AUD million

Search engines: Search engines are often the first step to online product discovery. Google dominates the market, followed by Bing, Yahoo and Baidu.

Online sellers and marketplaces: The e-commerce market in Cambodia is fragmented compared to neighbouring countries. Chinese sellers are among the most popular: Taobao and AliExpress are two of the largest platforms, while Ubuy is popular for higher-end imported products. Cambodia’s online marketplaces are generally open to foreign sellers.

* by site traffic

Social media: Cambodia was home to 14 million social media users in 2025. Facebook and TikTok are the most prominent platforms, with 14.0 and 11.3 million users, respectively. Instagram is less popular, with 1.85 million users. In keeping with most social media platforms, Facebook, TikTok and Instagram usership is growing. With its increasing take-up, social media and messaging platforms are increasingly becoming used as commerce platforms in themselves. Telegram, WhatsApp or Facebook are the most popular platforms for transactions, with payments being usually received through a QR code bank transfer system.

Investment environment

Cambodia remains a frontier economy, but it offers incentives for investors and has joined several multilateral trade agreements. The combination of these factors has led to growing investor confidence in the market, albeit off a low base. From 1993 to 2024, FDI as a percentage of GDP in Cambodia grew from just two per cent to over 9.5 per cent. Net FDI inflows totalled AUD 6.899 billion in 2024, representing a 142 per cent increase from 2015.

Investment promotion in Cambodia is managed by the Council for the Development of Cambodia (CDC). In 2021, the Law on Investment was passed to provide incentives to attract more foreign investment. The CDC has identified agrifood, automotive, electronics, textiles, bikes and parts and furniture and plywood as priority sectors, but incentives are available in many others as well. The Cambodian Government is accessible and willing to work closely and directly with credible investors.

Corruption and weak regulation are important risks that businesses must consider when doing business in Cambodia. The country has made some progress in addressing these issues and has taken steps to stimulate foreign investment since signing the Paris Peace Accords in 1993. Businesses should ensure that they understand their environmental, social and governance obligations before entering the market. For support in navigating these obligations, businesses should consider engaging legal or advisory services to help navigate market entry.

The Cambodian Government provides a selection of incentives for investors in Qualified Investment Projects (QIPs).

QIPS are entitled to either:

• A full tax exemption for three to nine years, depending on the sector and investment activity and discounted rates for the six years following the exemption period; or, 
• The right to deduct capital expenditure (up to 200 per cent) of specific expenses incurred for up to nine years. 

QIPs are also eligible for: 

• Full exemption from export taxes,
• Full exemption from import duties (on construction materials, equipment and production inputs),
• Full exemption from value added tax for local production inputs,
• 150 per cent tax deduction on expenses related to research and development, innovation, training, employee welfare facilities and services and machinery upgrading.

To benefit from these incentives, companies must obtain an annual compliance certificate from the CDC. More specific incentives can be found through the Council for the Development of Cambodia.

Investment rules and regulations

Cambodia imposes relatively few restrictions on foreign investment. With the exception of property, foreigners can own 100 per cent of their business in any sector (see Section 4.1 Land and property rights for further details). The government guarantees restitution for losses incurred as a result of civil disturbances, states of emergency or government nationalisation.

Cambodia also offers a number of Special Economic Zones (SEZs) which provide logistical and administrative advantages to businesses such as easy access to transportation and shipping, affordable utilities and co-located government services. The quality of services offered across Cambodia’s SEZs vary and businesses seeking to take advantage of these zones should undertake due diligence. Between 2011 and 2023, SEZs had a total export value of AUD 39.65 billion.

In addition to offering incentives, the Cambodian Government’s 2021 Law on Investment also aims to streamline the foreign investment approval process. There is a fast-tracked application process for many business activities through the Council for the Development of Cambodia (CDC). Applications for natural resources exploration or extraction, infrastructure projects, environmentally-sensitive practices or investments greater than AUD 77 million require additional approval from the Ministry of Commerce (MOC). The CDC states that it aims to provide a decision on most basic applications within 20 days.

Market entry models for investing

Choosing an appropriate market entry model is essential for businesses looking to invest in Cambodia. A business’ size, sector and growth strategy will help determine which market entry model fits best. Investment models frequently evolve over time as businesses enter and expand in a market. Seek professional advice on the best structure for your business.

A. Representative office

Opening a representative office (RO) can be a useful and economical first step to explore business opportunities in Cambodia. ROs can help to promote the products or services of the parent company in a new geography and assess the business environment without establishing permanent operations.

A representative office must register with the Ministry of Commerce (MOC) and include the words ‘Representative Office’ before the company name. ROs are not permitted to conduct commercial activities or generate revenue. However, they are entitled to rent office space, employ local staff and appoint managers. ROs are subject to local tax rules.

Establishing a representative office in Cambodia

B. Branch office

Establishing a branch office (BO) in Cambodia allows a company to engage in commercial activities without establishing a separate legal entity. While BOs can carry out business operations such as importing, exporting, manufacturing, processing and construction, they are ineligible for incentives such as those offered to QIPs. A BO must have the same name as its parent company and include ‘Branch’ in front of its name.

Establishing a branch office in Cambodia

C. Partnerships

Forming partnerships is a common way for foreign businesses to enter the Cambodian market. Partnerships can be general or limited in nature. General partnerships do not need to be formalised through registration. Limited partnerships limit the liability of each partner to the extent of their capital contributions, but must be registered with the MOC.

Partnerships must be formed with at least 51 per cent Cambodian ownership and have an address in Cambodia. Under this arrangement, the right of Cambodian nationals to own property is extended to the business entity. Partnerships require an address and a company representative to be present in the country. Establishing a partnership in Cambodia follows the same process as wholly owned companies. The company will be considered a resident for tax purposes.

Establishing a partnership in Cambodia

D. Private limited company

In Cambodia, foreigners may incorporate limited liability companies without a Cambodian business partner. This can provide flexibility and greater market access to foreign businesses. Private limited companies (PLCs) are allowed to have between 2 and 30 shareholders but are not allowed to sell shares to members of the public.

PLCs are required to have at least KHR 4 million (AUD 1,542.77) in start-up capital deposited into a Cambodian bank prior to registration. To register, companies must also have an address and a representative in Cambodia. PLCs are considered foreign persons unless 51 per cent of their capital is owned by Cambodian nationals. Agents may be able to expedite the process of setting up a private company in Cambodia, but due diligence should be thoroughly carried out beforehand.

Establishing a private limited company in Cambodia

E. Public-private partnership

Public-private partnerships (PPPs) are usually long-term contractual arrangements between governments and private entities for the purposes of delivering a specific project or service. In Cambodia, Ministry of Economics and Finance (MEF) is responsible for overseeing all aspects of PPPs, including reviewing and approving applications, developing policies and managing development.

PPPs are approved for the delivery of infrastructure projects across a wide range of sectors. PPPs are also eligible to be approved as Qualified Investment Projects, making them eligible for several incentives.

Establishing a public-private partnership in Cambodia

Success in Cambodia requires businesses to tailor their product or service to the market. This should be based on detailed analysis of consumer trends, price consciousness, branding, marketing and advertising.

Cambodia’s per capita household income is growing rapidly but still trails most neighbouring countries by a significant margin (Figure 3). Traditional grocery stores and markets still dominate much of Cambodia’s retail landscape, but there are a growing number of retail and supermarket chains carrying a large stock of imported goods. E-commerce is growing, particularly in urban areas. The country is home to a relatively young population increasingly active in digital spaces.

In 2023, nearly one third of Cambodians shopped online multiple times each month. In keeping with global trends, the use of cash declined significantly with the COVID-19 pandemic as the adoption of digital payments and e-wallets increased.

Understanding the characteristics, aspirations and spending habits of Cambodia’s consumers is crucial for businesses looking to enter the market. Businesses entering Cambodia should adjust their value propositions to capitalise on emerging consumer trends. A majority of Cambodian consumers (76.5 per cent) consider sustainable living to be very important. Businesses can gain a competitive edge by tailoring their products and services to increasingly eco-conscious consumers.

Consumer trends in 2025

Figure 3: Median disposable income per household (2020-2030f), AUD, current prices

Price consciousness

At AUD 7,160, Cambodia’s median household disposable income is among the lowest in the region. In addition to having relatively low purchasing power, many Cambodians feel vulnerable to increases in the cost of living. Nearly one third of Cambodians say they are focused on reducing unnecessary expenses. Paying off debt and saving for home purchases are among the population’s top financial goals. Australian businesses should be aware that value for money is top of mind for many Cambodian consumers.

Branding

Branding is as critical in Cambodia as in any market, and companies benefit from researching and understanding the specific tastes of consumers in new markets. Twothirds of consumers tend to purchase products they are already familiar with. Although this presents a challenge for new entrants, social media and digital advertising have proven persuasive among Cambodian consumers. New brands in Cambodia can establish a positive reputation through targeted promotion campaigns and building consumer confidence.

For many consumer products in Cambodia and other ASEAN nations, Western brands may be less well- known than regional ones. However, Australian products are generally seen as high-quality by Cambodian consumers, and this reputation can be a significant advantage when entering the market. Therefore, Australian businesses should consider how to best promote the Australian origin of their products when entering new markets. Austrade’s Nation Brand toolkit provides a range of free branding assets for businesses looking to export.

Austrade’s Nation Brand toolkit provides a range of free branding assets for businesses looking to export.

Marketing

Trade marketing to distributors and retailers can be an effective way for businesses to promote their products and services in the Cambodian market. A trade show can be a useful starting point. They are effective ways to reach new clients, gain insights into the competitive landscape and network with other businesses. Cambodia hosts over 30 trade shows each year in sectors such as textiles, beauty products, agricultural equipment and mining technology. Cambodia’s rapidly growing economy and investment-friendly environment attracts many foreign businesses to these shows.

Sales promotions can also help establish new brands, especially among value-conscious consumers. Offering special discounts can be an effective way to increase sales and gain customer loyalty, particularly in sectors crowded with well-known local brands.

Marketing and promotional efforts, whether at trade shows, in sales promotions or online, should appear in Khmer to ensure accessibility for all consumers.

As with other types of marketing, it is important for content to be written or spoken in Khmer. It is legally required that the Khmer name of a business be displayed on all communications used for public purposes. It must also be larger than the English name (if included) and placed above it. 

Advertising is heavily regulated in Cambodia. In addition to a company name, all text in advertising material must appear in Khmer. If a foreign language is also used, it must be less than half the font size of the Khmer text. Prior to advertising any commercial goods or services, businesses must obtain an advertising license or permit from the relevant sectoral ministry. Businesses also require a compliance certificate from the Ministry of Commerce which certifies that the text in the advertisement complies with consumer protection and other laws. In general, advertising materials are prohibited from making misleading claims, using superlatives like ‘best’ or ‘superior’ and using text which violates any other laws.

Advertising and media

Cambodians typically rely on personal experience and word of mouth when purchasing products, but may also be swayed by social media advertising and other brand communications. Smartphones are ubiquitous and most Cambodian consumers have access to mobile internet. Similarly, nearly all Cambodians use social media and nearly two thirds rely on various platforms to learn about new products. Facebook has the largest potential ad reach, followed by TikTok (Figure 4). Along with LinkedIn, Reddit saw the largest growth in potential ad reach in 2025.

Figure 4: Digital advertising audiences in Cambodia (2025)

Digital payments

The Bakong, a digital payments system, created by the National Bank of Cambodia (NBC) has grown significantly in popularity since its introduction in 2020. 

QR payments have since become the most popular payment method across all purchase categories, recording a 20 percent increase on year-on-year transactions since 2024.

Despite this increased uptake of digital payments, Cambodia’s low rate of financial inclusion continues to create challenges for digital payments architecture. The economy remains highly cashbased, with only a third (32.6 per cent) of Cambodians holding a bank account with a financial institution in 2025 (Figure 5). However, as digital payments continue to grow, businesses should consider how these capabilities can be integrated into their business models, given the potential to make financial transactions safer, cheaper and more convenient.

Figure 5: Financial inclusion factors (2023), %

A well-considered market entry strategy requires a systematic approach that supports long-term success. This section distils the factors businesses should consider when formulating an approach to the Cambodian market into a series of key questions.

Asialink Business provides advisory services and capability training programs to help organisations understand and access opportunities in Asian markets. Should you have questions about any aspect of your Cambodia market entry strategy, please contact us.

Calibrating Ambition

• What is your company’s aspiration for the market?
• What are the challenges and risks you will need to mitigate?

Consumers

• What is the current or potential demand for your product or service in Cambodia?
• Who are the primary customers / consumers for your product or service in the market?
• How will you tailor your product or service to local preferences?

Competitors

• Who are your competitors in the market, and what is their offering?
• How does your product or service compare to competitors on price?

Sales, Brand and Marketing

• What is your unique value proposition for the market?
• What is the ideal mix of marketing and sales channels to reach your target customers?
• Is your marketing strategy aligned with your identified consumer base and value proposition?

Mode of Entry

• What is the right market entry model for your business?
• What are the specific geographies you should target?

Delivery Partners

• Does your team have the right mix of skills and expertise to support your market entry?
• What partnerships will contribute to your business’ success in the market?
• What external advice do you need to commission?

Operating Model

• What changes do you need to make to your business across areas such as operations, HR, finance and IT?

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