Cambodia possesses significant potential to emerge as a key player in Southeast Asia’s tech landscape. With a projected economic growth of over six per cent in 2024 and a growing startup ecosystem, the country aims to establish itself as a niche regional tech hub. Fintech, e-commerce, green tech, agri-tech, healthtech, and edutech are particularly promising sectors for entrepreneurs and investors (with 148 startups identified by Impact Hub Phnom Penh in 2024).
500 Angkor, what else? A growing network of young startups
Beyond the renowned Angkor Wat, Cambodia remains an underrated and overlooked market in Asia. The country has maintained an average GDP growth rate of six per cent over the past decade (2013 to 2023), surpassing the Asia Pacific average of 4.4 per cent.
This positive momentum is fueled by a business-friendly environment supported by conducive government policies and a young, digitally connected population (over 70 per cent of whom are under 30 years old). The entrepreneurial drive is particularly strong among the youth.
Historically, the tech ecosystem received support from NGOs like Impact Hub and government initiatives such as Khmer Enterprise partnering with 500 Global to create incubation programs like 500 Angkor for early-stage startups.
One challenge has been the scarcity of experienced talent among young founders and entrepreneurs, highlighting the need for support, coaching, mentoring, and frameworks for pre-Series A startup founders.
The tech ecosystem is still in its infancy, and this emerging and promising community requires nurturing to reach maturity, attracting more funding from a diverse network of regional and global investors.
Support from the private sector and private investors is crucial. Key players like Smart Axiata’s Fund managed by Mekong Strategic Partners, alongside other investors, have supported successful startups leading to the emergence of various ventures in Cambodia.
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Recognizing the need to bolster the tech ecosystem, I, as the Vice President of Overseas Cambodian Investment Corporation (OCIC Group), a significant private sector entity in Cambodia, pledged to organize support for the tech ecosystem. OCIC, a conglomerate involved in real estate, healthcare, education, retail, and hospitality, is committed to this cause.
Bringing Google to Cambodia: Why do I believe in Cambodia?
Driven by the belief that taking action is more impactful than mere complaints, OCIC’s founder, Dr. Pung Kheav Se, has been investing in startups across Asia, Europe, and the USA. Recognizing the potential of Cambodia, we embarked on a journey to position Cambodia on the regional tech stage, empowering the next generation for the digital economy.
In March 2024, the inaugural Cambodia Tech Catalyst event, co-organized by OCIC Group and supported by Google Cloud Asia Pacific, gathered over 500 participants from Cambodia’s tech ecosystem. Google’s presentation on generative AI advancements and cloud technology infrastructures for startups marked a significant milestone.
A dialogue with Camtech University students over coffee sparked the idea to bring Google to Cambodia, culminating in the success of Cambodia Tech Catalyst 2024, a testament to Cambodia’s ambition as a tech hub in Southeast Asia.
An emerging market producing emerging tech talents
As Cambodia sees an influx of diaspora talents returning post-COVID-19, individuals in their 30s and 40s bring back passion, resources, and skills to drive new ventures and opportunities in the country. The new educated generation in Cambodia displays a strong entrepreneurial spirit and startup mindset, with many students already venturing into startups.
The challenging profile of a successful tech startup founder is evolving in Cambodia, showcasing that success can be achieved at various ages and backgrounds. While it may take time for the young talents to return from overseas programs, their potential contribution to Cambodia’s progress is immense.
The ecosystem’s problems that we need to solve today for a scalable tomorrow
Challenges such as limited Venture Capital firms, the availability of senior talents, and the perceived market size constrain Cambodia’s tech ecosystem. To address these challenges, entrepreneurs need to demonstrate regional scalability and attract international investors, while also showcasing the sector’s strength and maturity to bolster investor confidence.
Efforts to address these hurdles, coupled with a focus on capacity building and scalable solutions, can strengthen Cambodia’s position as a global tech player. By fostering innovation, empowering talents, and creating collaborative environments, Cambodia can harness its tech potential on a global scale.
Building opportunities for Cambodia to successfully scale in the future
As both the public and private sectors enhance their support for the tech ecosystem, resources remain a critical need. Initiatives like launching an investment fund, establishing coding campuses, and creating innovation centers underscore the commitment to empowering talents and propelling Cambodia’s development.
By showcasing Cambodia’s tech ecosystem strategically on the global stage and attracting international players, the country can unlock underestimated opportunities and drive growth. With a focus on innovation and collaboration, Cambodia’s tech sector is poised for a transformative journey towards success.
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