Two Business industry with great potential in Cambodia.

Cambodia is one of the hottest countries for investors in recent years. Open economic policies, dollar circulation and free foreign exchange, and a young labor attracted the attention of many overseas investors and companies . Cambodia had become the new tigers of Asia. In addition to previous observations of the global economic vision, this time let us talk about the development of Cambodia in the next decade.

With increasing population, population will reach to 20million in next

According to World Bank data, the early population growth in Cambodia was steady and slow. During the Khmer Rouge period,its caused a sharp decline in population. After the rebirth in 1980, Cambodia’s population grew rapidly. Today, Cambodia has reached 16.5 million population, with a young population and 75% of them under the age of 35. Cambodian Prime Minister Hun Sen said that the population of Cambodia will reach 20 million in the next decade (2030) then 25 million by 2050. The increase in population will have a major impact on social life, real estate, and medical care industry

Population of Cambodia in years(date from：World Bank)

Property demand is the basic demand in 30-44 year old generation.

The 30-44 years generation is afford to buy housing. Currently, the young generation in Cambodia is about 3.42 million, and will increase by 770,000 in 10 years. The increase in the number of young adults stimulates demand for housing. According to a report released by the Ministry of Land Planning and Construction , population growth will lead to housing demand. In 2030, the demand for housing will increase to 850,000 buildings. Every year, 50,000 housing units need to be provided, and at least 7 million people in the country will be gathered in  modern cities. Housing demand will make the real estate market hotter in the future, especially in modern cities, such as Phnom Penh.

More middle Classes people appears, more housing demand

In recent years, Cambodia’s economic performance has been remarkable, and the influx of foreign capital has promoted the country’s development. An average of 7% of its economic growth is remarkable. The people’s lives have improved and their income has increased. According to IMF data, Cambodia's per capita GDP in 2018 was $1,508, more than five times that of 2000. However, if the per capita income of Cambodia is based on purchasing power parity, its performance is even more alarming. Countries have different living standards and prices, and through the calculation of purchasing power parity, they can show the true consumption power of the people in the country. Since 1986, Cambodia’s per capita income based on purchasing power parity has grown by rapidly. In 2000, it has been rising rapidly. The IMF estimates that its per capita income will reach 6516 international dollars in 2024. After 10 years, people's purchasing power and consumption power will increase rapidly, which is no match today.

Capita GDP  V.S GDP(Data from：IMF)

In addition, the International Labour Organization assessed that Cambodian middle class accounted for 9.8% of the labor force in 2004, about 642,000. In 2008, it came to 16.1%, with 1.2 million people. In 2017, 31.6% of the working population was middle class, reaching 2.8 million people. The government plans to step into middle-income countries by 2030. By then, the number of middle-class classes in Cambodia with desire for better life will be increase, and Cambodia’s domestic demand for housing will soaring.

Improve the quality of medical services and market size for newly rich people

The Cambodian health care market is worth $1 billion and is growing at a double-digit rate each year. With the development of society, Cambodia's demand for advanced medical equipment keep increased year by year. In previous years, the Ministry of Health of Cambodia (MOH) was the largest procurement institution for pharmaceuticals, medical supplies and equipment. In recent years, the establishment of private hospitals has led to an upward trend in demand for advanced medical equipment. The middle class has sufficient financial resources to support its high-quality medical services, so the increase of this newly rich class is demand for better medical in Cambodia. After 10 years, the Cambodian people can enjoy a high level of treatment in the country and it is unnecessary for them to go to Thailand or Singapore for medical treatment.

Longevity, insurance and senior business opportunities are potential business.

The average life expectancy of the Cambodian people is 69 years, increased  11 years compared with 20 years ago. The Cambodia government estimates that there are currently 1.2 million elderly people over the age of 60, accounting for about 8% of the nation's population, and will increase to 11% by 2030. The extension of life expectancy and the increase in the elderly population will bring insurance and care needs.
There is no mandatory social health insurance system in Cambodia. Only 5% of people have private health insurance, and most of the insured are middle class. In order to prevent the burden of high medical expenses while the rise of the middle class, in the future life insurance and health insurance will be popular with great market potential. In addition to insurance, products and services for the elderly population, such as advanced care services, health foods, and daily necessities are business opportunities.

Soaring population,more middle class people,extension of life expectancy, both of them will change Cambodia. Mr.Deng Zhenyue, general manager of Hong Kong's Titan Stone Group believes that the next 10 years will be the “population dividend outbreak” in    Cambodia.

1. The housing market has just soaring, and the middle class has a great demand for housing.

2. Cambodia's domestic consumption

3. The quality of medical care is improved, and domestic medical care demand is booming.

4. The concept of insurance is popular and the market continues to expand.

5. Advanced products and services have great market.
At that time Cambodia will no longer like the 30-year-ago China in people’s mind, but an emerging developing country with huge economic vitality and business opportunities.