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INTERNATIONAL MARKETING

BUSINESS ENVIRONMENT OF CAMBODIA

PRESENTED BY:-AMLAN SAHA(11072)

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INTRODUCTION

Cambodia ( Kampuchea), officially known as

the Kingdom of Cambodia, is a country

located in the southern portion of theIndochina Peninsula in Southeast Asia. With a

total landmass of 181,035 square kilometres

(69,898 sq mi), it is bordered by Thailand to

the northwest, Laos to the northeast,Vietnam to the east, and the Gulf of Thailand

to the southwest.

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INTRODUCTION(CONTD)

With a population of over 14.8 million,

Cambodia is the 65th most populous country

in the world. The official religion is TheravadaBuddhism which is practiced by around 92%

of the Cambodian population. The country

minority groups include Vietnamese, Chinese,

Chams and 30 various hill tribes.The capitaland largest city is Phnom Penh, the political,

economical, cultural center of Cambodia.

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MAP OF CAMBODIA

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POLITICAL PARTIES

A political party is a political organizationsubscribing to a certain ideology or formedaround very special issues with the aim toparticipate in power, usually by participating inelections.

Cambodia is a one party dominant state with theCambodian People's Party in power. Oppositionparties are allowed, but are widely considered tohave no real chance of gaining power.

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POLITICAL PARTY (CONTD)

The Cambodian People's Party (CPP) is the

major ruling party in Cambodia. The CPPcontrols the lower and upper chambers ofparliament, with 73 seats in the National

Assembly and 43 seats in the Senate. The

opposition Sam Rainsy Party is the secondlargest party in Cambodia with 26 seats in theNational Assembly and 2 in the Senate.

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ASSEMBLY HALL & THE KING

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MAJOR PARTIES

Cambodian People's Party

Human Rights Party

Sam Rainsy Party Norodom Ranarridh Party

Funcinpec

League for Democracy Party

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LEGAL SYSTEM

The Universal Declaration of Human Rights (UDHR) and theInternational Covenant on Civil and Political Rights (ICCPR)

which have been adopted by Cambodia and thus are part ofthe national law of Cambodia (Article 31 I CambodianConstitution) state that every human being has a right to aneffective remedy granted by an independent judicial bodyin case of a violation of his/her rights.The Cambodian

Constitution (CC) also explicitly acknowledges the basicright to ajudicial protection against all kinds of violationsof rights no matter if the right is violated by third parties orby the government.

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DEMOGRAPHY

Between 1874 and 1921, the total population of Cambodia increasedfrom about 946,000 to 2.4 million. By 1950 it had increased to between3,710,107 and 4,073,967, and in 1962 it had reached 5.7 million. From the1960s until 1975, the population of Cambodia increased by about 2.2 %yearly, the lowest increase in Southeast Asia. By 1975 when the KhmerRouge took power, it was estimated at 7.3 million. Of this total anestimated one to two million reportedly died between 1975 and 1978. In1981, the PRK gave the official population figure as nearly 6.7 million,although approximately 6.3 million to 6.4 million is probably moreaccurate. The average annual rate of population growth from 1978 to1985 was 2.3% (see table 2, Appendix A). In 1959, Life expectancy at

birth was 44.2 years for males and 43.3 years for females. By 1970, lifeexpectancy had increased by about 2.5 years since 1945. The greaterlongevity for females apparently reflected improved health practicesduring maternity and childbirth.

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POPULATION

YEAR POPULATION GROWTH RATE

2011 14,701,717 +1.72%

2010 14,453,680 -0.28%

2009 14,494,293 +1.77%

2008 14,241,640 +1.76%

2007 13,995,904 +0.82%

2006 13,881,427 +1.80%

2005 13,636,398 +0.22%

2004 13,124,764 +3.67%

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RELIGION(BUDDHISM)

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CULTURE

Various factors contribute to the Cambodian cultureincluding Theravada Buddhism, Hinduism, Frenchcolonialism, Angkorian culture, and modernglobalization. The Cambodia Ministry of Culture andFine Arts is responsible for promoting anddeveloping Cambodian culture. Cambodian culturenot only includes the culture of the lowland ethnicmajority, but also some 20 culturally distinct hilltribes colloquially known as the Khmer Loeu, a term

coined by Norodom Sihanouk to encourage unitybetween the highlanders and lowlanders. RuralCambodians wear a krama scarf which is a uniqueaspect of Cambodian clothing

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CULTURE (CONTD)

The sampeah is a traditional Cambodiangreeting or a way of showing respect to others.Khmer culture, as developed and spread by the

Khmer empire, has distinctive styles of dance,architecture and sculpture, which have beenexchanged with neighbouring Laos and Thailandthrough the history. Angkor Wat (Angkormeans"city" and Wat"temple") is the best preserved

example of Khmer architecture from theAngkorian era along with hundreds of othertemples that have been discovered in andaround the region.

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CUISINE

Rice is the staple grain, as in other Southeast Asiancountries. Fish from the Mekong and Tonle Saprivers is also an important part of the diet. Thesupply of fish and fish products for food and trade in

2000 was 20 kilograms per person or 2 ounces perday per person. Some of the fish can be made intoprahok for longer storage. The cuisine of Cambodiacontains tropical fruits, soups and noodles. Keyingredients are kaffir lime, lemon grass, garlic, fishsauce, soy sauce, curry, tamarind, ginger, oystersauce, coconut milk and black pepper. Somedelicacies are() (Num Bunhjok), () (Amok), () (Ah Ping).

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MAIN CUISINE

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SPORTS

Football is one of the more popular sports, althoughprofessional organized sports are not as prevalent inCambodia as in western countries because of theeconomic conditions. Football was brought to

Cambodia by the French and became popular with thelocals. The Cambodia national football team managedfourth in the 1972 Asian Cup, but development hasslowed since the civil war. Western sports such asvolleyball, bodybuilding, field hockey, rugby union, golf,

and baseball are gaining popularity. Native sportsinclude traditional boat racing, buffalo racing, PradalSerey, Khmer traditional wrestling and Bokator.Cambodia first participated in the Olympics during the1956 Summer Olympic Games sending equestrianriders. Cambodia also hosted the GANEFO Games, the

alternative to the Olympics, in the 1960s.

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FOOTBALL & MARSHAL ART

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DANCE & MUSIC

Cambodian dance can be divided into three maincategories: Khmer classical dance, folk dance, andsocial dances.

Traditional Cambodian music dates back as far as theKhmer Empire. Royal dances like the Apsara Danceare icons of the Cambodian culture. Popular types ofdances are Romvong, commonly danced at festivals.The Classic Music Era of Cambodia was during the1960s to the 1970s featuring notable singers SinnSisamouth and Ros Sereysothea. However, duringthe Khmer Rouge Revolution many classic andpopular singers of the 60s and 70s died of execution,starvation, or overwork

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DANCE & MUSIC

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ECONOMIC ENVIRONMENT

In 2010 Cambodia's per capita income in PPP is$2,470 and $1,040 in Nominal Per Capita.Cambodia's per capita income is rapidly

increasing but is low compared to othercountries in the region. Most rural householdsdepend on agriculture and its related sub-sectors. Rice, fish, timber, garments and rubberare Cambodia's major exports. The International

Rice Research Institute (IRRI) reintroduced morethan 750 traditional rice varieties to Cambodiafrom its rice seed bank in the Philippines. Thesevarieties had been collected in the 1960s.

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ECONOMIC ENV(CONTD)

In 1987, the Australian government funded IRRIto help Cambodia improve its rice production. By2000, Cambodia was again self-sufficient in rice.

However, few Cambodian farmers grow othercrops, leaving them vulnerable to crop failure. Inrecent years, various international aidorganisation's have begun crop diversificationprograms to encourage farmers to grow other

crops. The recovery of Cambodia's economyslowed dramatically in 199798, because of theregional economic crisis, civil violence, andpolitical infighting. Foreign investment andtourism also fell off drastically

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TOURISM

The tourism industry is the country's second-greatest source ofhard currency after the textile industry. Between January andDecember 2007, visitor arrivals were 2.0 million, an increase of18.5% over the same period in 2006. Most visitors (51%) arrivedthrough Siem Reap with the remainder (49%) through Phnom

Penh and other destinations. Other tourist destinations includeSihanoukville in the south east which has several popular beachresorts and the area around Kampot and Kep including the BokorHill Station. Tourism has increased steadily each year in therelatively stable period since the 1993 UNTAC elections; in 1993there were 118,183 international tourists, and in 2009 there were2,161,577 international tourists.

Most of the tourists were Japanese, Chinese, Americans, SouthKoreans and French people, said the report, adding that theindustry earned some 1400 million U.S. dollars in 2007, accountingfor almost ten percent of the kingdom's gross national products.

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TOURISM

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INDUSTRIES

Industrial activity has traditionally centered on the processingof agricultural and forestry products and on the small-scalemanufacture of consumer goods. Rice milling has been themain food-processing industry. Industrial expansion came to avirtual halt in 1970 with the outbreak of war. A few sectors

(such as textiles and beverages) enjoyed a short wartime boomdue to military orders, but losses in territory and transportdisruptions had caused a rapid decline in activity by 1973. Bylate 1985 there were a reported 60 factories in the state sectorproducing household goods, textiles, soft drinks,pharmaceutical products, and other light consumer goods. In

1996, clothing industry exports more than doubled. Thegarment industry grew by 50% during this period. In 2000,industry constituted 20% of total GDP.

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INDUSTRIES

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TIPS FOR DOING BUSINESS

MEETING & GREETING:-

. As Cambodia is a hierarchical culture the business world follows suit interms of protocol and behaviours.. Respect and deference must always be shown to the most senior person.

. When meeting a group you will be introduced to the highest rankingperson, similarly you should have the most senior of your group greet them.

. If groups are involved you should introduce people according to rank so thatyour Cambodian counterparts understand the dynamics of the group.. Handshakes are normal although be careful not to be too firm as this maybe construed as aggressive.. If men are dealing with women they should wait and see if they extend a

hand before doing so. Eye contact should be kept to a minimum.. Cambodians address people with the honorific title "Lok" for a man and"Lok Srey" for a woman with the first name alone or both the first andsurname.

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TIPS FOR DOING BUSINESS

BUSINESS CARDS:-

. Business cards should be exchanged after theinitial introductions.

. Have one side of your card translated into Khmer ifpossible.

. Present your card so the Khmer side is readable tothe recipient.. Use the right hand or both hands when offering orreceiving a business card.. It is important to treat business cards with respectas the way you handle the card is indicative of theway you will treat the person.

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TIPS FOR DOING BUSINESS

BUSINESSMEETINGS:-

. Meetings do not stick to any schedule or agenda.. Issues may be tackled separately and altogether if need be - once anissue has seemingly been resolved it may later be addressed again.. Meetings will continue until the attendees feel everything has been

satisfactorily covered.. Building a relationship on mutual trust is crucial so initially timeshould be invested in getting to know your counterparts.. Small talk should always be employed at the beginning of meetings.. Cambodians are very indirect communicators so some readingbetween the lines is a necessary skill..They will always consider the implications of making statements orusing particular words especially if it involves anything negative asthis draws in the issue of face.. In fact if Cambodians disagree with someone they would ratherremain silent than make any comment.. If they disagree with an idea, they generally remain silent.. If unsure about statements be sure to double check.

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