The International Business Chamber of Cambodia (IBC) hosted its flagship annual open meeting on January 15, 2025, at the Rosewood Phnom Penh. The event brought together key leaders from nine significant industries to discuss Cambodia’s economic trajectory and the challenges and opportunities awaiting in 2025.

Read More: IBC ‘Industry Views and Outlook for 2024’: An Overview of 10 Major Sectors in Cambodia (Part 1) 

Finance & Banking: Insights from Sothearoath Oeur, Credit Bureau Cambodia (CBC)

Sothearoath Oeur, CEO of Credit Bureau Cambodia (CBC), provided an overview of the financial sector’s current stability and areas for growth. He highlighted that credit demand has slowed but remained steady, with a 0.3% increase in the number of loan accounts and a 3.2% growth in outstanding balances. Total new loan disbursements reached around $30 billion, while active loan restructuring increased to $5.6 billion. There was a notable increase in non-performing loans, which rose to 7.4%.

Sothearoath emphasized the critical role of digital transformation in the sector. “Adopting technology to drive financial inclusion and offering innovative financial products will be pivotal for the industry’s growth in the coming year,” he said. However, challenges loom, particularly for small and medium-sized enterprises (SMEs), which continue to face barriers in accessing credit. Sothearoath also noted the potential for increased regulation in 2025, which could impact the operational strategies of banking and financial institutions.

Automotive: Opportunities and Challenges Shared by Ngorn Saing, RMA Cambodia

Ngorn Saing, CEO and Country Manager of RMA Cambodia, offered a detailed analysis of the automotive industry’s progress and obstacles. The sector has been gaining momentum, with new vehicle sales growing by 52% in 2024 compared to 2023. Electric vehicles (EVs) are increasingly popular, with market share jumping from 1% to 8%, driven by government tax reductions. Additionally, Chinese vehicle brands expanded their footprint, growing their share from 12% in 2023 to 29% in 2024 in the new car market.

Despite this growth, Ngorn highlighted several challenges. “The grey market continues to disrupt the sector by importing vehicles that avoid proper taxation, affecting foreign direct investment and job creation,” he explained. He also underscored the lack of a used-car restriction policy, which exacerbates the issue. On a positive note, Saing sees great potential for investment in assembly plants and local manufacturing. “If regulatory frameworks are addressed, we can encourage more investment in automotive production, create jobs, and even explore export opportunities for ‘Made in Cambodia’ vehicles,” he added.

ICT: Tackling Cybersecurity and Technology Growth with Simon Perkins, Cellcard

Simon Perkins, ICT Division CEO of Cellcard, delved into the pressing issues of cybersecurity and fraud in Cambodia’s technology sector. Perkins highlighted a concerning rise in scams, particularly through platforms like Telegram and the use of ‘fake base stations’ for SIM card fraud. “The growth of cybercrime is a reminder of the urgent need for robust security measures and customer education,” Perkins stated. He also flagged the growing importance of data centers as Cambodia’s demand for data storage and management expands.

Looking ahead, Perkins identified several opportunities for improvement, including enhanced customer awareness through rigorous registration processes and network upgrades to 5G technology. He also stressed the importance of collaborations, such as partnerships with the Global Anti-Scam Alliance, to combat fraud effectively. “Building IT resilience and adopting AI-based fraud prevention tools will be critical in 2025,” he noted.

Perkins also discussed the potential of a sovereign cloud in Cambodia, which would provide localized and secure data storage options for national and OTT (over-the-top) services.

Real Estate: Market Dynamics Addressed by Kinkesa Kim, CBRE Cambodia

Kinkesa Kim, Managing Director of CBRE Cambodia, provided a comprehensive overview of Cambodia’s real estate market, which continues to grapple with high commercial vacancy rates of 35%-40%. Sales prices and rental rates have dropped by 15%-30% compared to 2019, reflecting a challenging market environment. “While leasing transactions improved slightly in late 2024, prices have yet to show significant recovery,” Kinkesa observed.

Despite these hurdles, Kinkesa identified several opportunities for buyers and occupiers, including distressed property sales and potential growth in industrial real estate. “It’s a great time for buyers to capitalize on the market downturn,” she remarked. However, she cautioned that the doubling supply of Grade A office spaces in 2025 could intensify competition and exert further pressure on the market.

Looking to the future, Kinkesa highlighted the government’s incentives for the sector, which, while beneficial, are yet to generate significant new demand. She also pointed to the trend of retail properties undergoing reconfigurations and repositioning as businesses adapt to changing consumer behaviors.

Link to article: https://cambodiainvestmentreview.com/2025/01/27/ibc-industry-views-and-outlook-for-2025-an-overview-of-9-major-sectors-in-cambodia-part-1/