Cambodia: Exploring Opportunities in the Construction Sector
Cambodia: Exploring Opportunities in the Construction Sector
03 July 2017
source Cambodia daily
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http://sea-globe.com/construction-cambodia
edited by kcontents
Cambodia is enjoying robust economic expansion with annual GDP growth averaging more than 7% in the past decade. Besides garment manufacturing and tourism, the construction industry has emerged as one of the main economic driving forces of Cambodia in recent years representing around 9% of the country’s GDP in 2015.
In 2016, the Cambodian construction industry witnessed a boom year, driven by upbeat investment confidence. The total value of approved construction projects reached US$8.5 billion, more than double the US$3.3 billion in 2015, according to the Ministry of Land Management, Urban Planning and Construction of Cambodia (MLMUPC).
There is a broad based surge of construction activities across different sub-sectors, including infrastructure, residential developments, commercial centres and retail outlets. Not surprisingly, the construction boom is concentrated in and around Phnom Penh, the Cambodian capital and commercial hub. During a recent visit to the city, HKTDC Research noticed that a number of construction sites along main traffic arteries, with several large-scale residential and commercial complexes being built.
Looking ahead, Cambodia’s construction activities are likely to continue apace, as the Cambodian government pushes infrastructure development and demand for property remains high, owing to an expanding expatriate and middle-class population. Riding on this construction boom, Hong Kong companies engaged in the construction sector and related professional services may find Cambodia a market worth exploring.
Infrastructure as Key Development Focus
Cambodia’s central position in the Greater Mekong Sub-region (GMS) potentially makes it a key part of regional economic development, as it sits along the GMS Southern Economic Corridor, a key trade route linking Vietnam, Cambodia, Thailand and Myanmar. In order to take full advantage of regional integration, however, Cambodia needs to invest heavily in its transport infrastructure in order to improve cross-border connectivity and road links between rural and urban areas within the country.
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