The potential for developing a digital business in Cambodia is considerable.
GDP growth is predicted to be 1 trillion USD by 2025 in ASEAN countries. The question is, how much how that growth will Cambodia capture?
The incumbents are in the best position to take over the market if they act fast; however, a lack of digital skills and logistic infrastructure slows the adoption and investment of more complex IT solutions.
Many entrepreneurs view the logistic hurdles and low digital skillset as the main barriers to go digital.
Shortage of options in digital payment solutions and the lack of progress in digital regulation and clear guidance slows the adoption of online solutions.
Here’s a breakdown of the barriers to go digital reported by SMEs across Southeast Asia:
What does it mean for my business?
Based on those issues, the opportunity to go digital is more challenging for new players than in regional countries.
However, existing companies with an established supply chain, an understanding of the regulatory framework, and the existing payment system have a higher chance of entering the digital space and capturing market shares. These incumbents need to embrace technological changes before an outsider leads the way and becomes their competitor.
We encourage local market actors to find the right digital transformation partner to take advantage of new IT solutions adapted to the Cambodian context.