The streets of Phnom Penh like an air of brand new prosperity. Cambodia's capital, once reputed to be the garden city of Indochina, now suffers from almost incessant traffic jams during the day. Everywhere we destroy, we build, we enlarge. In fact, Phnom Penh resembles a gigantic building site, and projects - some with no real economic basis, others sometimes oversized - are multiplying. " We're going to build to the north-west of Phnom Penh a new eco-district around the future National Stadium where the 2023 South East Asian Games will be held, says Tourism Minister Dr Thong Khon. This district will be linked by a aerial metro with the city centre. "
It is true that Cambodia's growth is remarkableThe country is one of the most dynamic in the Association of South East Asian Nations (ASEAN). Since the start of the decade, GDP has grown by an annual average of just over 7 %. And there's more to come, as the World Bank expects up 6.9 % in 2017 and 2018, thanks to higher public spending and a boom in agriculture and tourism, offsetting the downturn in the construction and clothing sectors.
The World Bank expects GDP to grow by 6.9 % in 2017 and 2018, thanks to increased public spending and a boom in agriculture and tourism.
Of course, the GDP per capita remains one of the lowest in the ASEAN region, at $1,160 per person per year. This is five times less than the Thailand and half as much as the Vietnam. However, it should be noted that this GDP has tripled in the space of a decade! The Asian Development Bank (ADB) notes that the percentage of Cambodians living below the poverty line has fallen in 20 years from 50 % to 20 %. Signs ofemergence of a middle class are clearly visible in the streets of the Cambodian capital. Knight Frank, for example, has counted 72 projects for private residential buildings between now and 2020, representing an increase in the supply of flats of 641 %! In the same way, elegant restaurants are multiplying, along with gleaming shopping centres and their usual cohort of international brands, with consumerism becoming a driving force behind the kingdom's growth.
This growth is also based on the development of infrastructures that will enable the fruits of this new prosperity to be better distributed throughout the country. For the moment, it is mainly the capital Phnom Penhthe city of Siem ReapThe country's main beneficiaries are the capital, the gateway to the famous Angkor temples, and the coastal area around Sihanoukville and Kampot. The modernisation of the road network, with expressways to Vietnam and Thailand, is part of the plans, while on the north-south axis it is the rail network that is making progress. In 2016, after 15 years of interruption, trains ran between Phnom Penh and the coast. Air transport, three international airports are openmanaged by a Vinci subsidiary.
France has a relatively large presence in Cambodia. The community ofexpatriates to some 7,000 peopleSome fifty large companies and a hundred French SMEs have set up operations in the country. In addition to Vinci and its airports, Accorhotels is a major player in the tourism industry, with two establishments in particular SofitelEDF manages the electricity network. What's more, Phnom Penh has countless bakeries, craft shops and agri-food businesses that have their origins in France. France therefore has a real advantage to play in the services sector, probably more so than in that of major infrastructures, which are very often the main focus of our efforts.the prerogative of Chinese companiesThe Chinese and Cambodian governments have very strong ties with each other.
Cambodia is one of the most accessible countries in ASEAN for setting up a business. One of its greatest assets, and not the least, is the possibility of opening a subsidiary, or even a company, without necessarily needing to associate with a local person or company. Visit formalities are reduced to a minimumthe simplest form of long-term residence permit, with the introduction of a visa valid for up to three yearsCustoms duties and corporate taxes remain relatively low. The only fly in the ointment is a corruption not really systematic, but often very real.
The French community is estimated at 7,000 people. Some fifty major companies and a hundred or so French SMEs are also based in the country.
A presence in Cambodia is supported by a long tradition of cooperation with FranceThis tradition, which of course dates back to the colonial period, continued after independence thanks to the Francophilia of the royal family, particularly former King Sihanouk and now his son, King Sihamoni. It is true that Phnom Penh still offers a certain gentle way of life, a unique blend of Khmer and French cultures. The old colonial villas - at least those that have not been destroyed - are reminiscent of Provence or Normandy. And you can sometimes meet young Khmers who are delighted to sing Frère Jacques or Au clair de la lune to visitors. It's a relationship worth cultivating!
Testimonial
"We're seeing more and more businessmen".
Managing Director of Samsara Villa boutique hotel In Phnom Penh, within the walls of an old house that once belonged to a general in the royal army and has been transformed into an intimate luxury hotel, Coralie Romano offers some insight into the Cambodian business world. "Business travellers are becoming increasingly common. This is due not only to the fact that many of them come to sign contracts with government institutions, but also to the more conferences and congresses. Phnom Penh is in fact very well equipped with a wide range ofexcellent meeting rooms in hotels or at the international exhibition centre. It's easy to work with Cambodians, who have a real thirst for learning. What's more, they are a welcoming and extremely helpful people. Sometimes I'm spontaneously helped by Cambodians if I'm lost. Even though few people speak English well, which remains a problem. So it's best to use a GPS to get around town!"
Cambodia in figures
Four sectors are considered to be the pillars of the Cambodian economy. First and foremost, textiles and clothing which account for a third of GDP and 80 % of the country's exports; followed by agriculture which still generates a third of GDP, and then Tourism with almost five million international visitors a year. There has been a marked rise in the importance of the construction and real estate with a veritable rush of Chinese, Taiwanese and Korean investors.
3 yearsis the duration of the multi-entry visa that Cambodia has approved to attract more visitors. Initially planned for September 2016, its introduction has been postponed by a few months for technical reasons. It will make it possible to achieve a target of seven million visitors in 2020 instead of 4.77 million in 2015.
Kep, the Saint-Tropez of Indochina
It used to be called Kep-sur-Mer, and its seaside bungalows made it look like a tropical Deauville. Created at the beginning of the last century, the seaside resort of Kep, 160 km south of Phnom Penh, along the Gulf of Thailand, was initially reserved for French colonists, overwhelmed by the stifling heat of the capital. In the mid-1950s, Prince Sihanouk fell in love with the little resort and set his sights on turning it into the St Tropez of Indochina. The hills of Kep were then covered with villas inspired by the modern style of Le Corbusier mixed with traditional Khmer elements. A style that has gone down in history as the "New Khmer Architecture". "Phnom Penh's gilded bourgeoisie came here every weekend. They danced the cha-cha-cha, barbecued on the beach and cruised along the winding coast in convertibles.It's a real challenge," says Serge Rémy, who works with UNESCO and has been put in charge of a project to showcase Kep's heritage.
With the arrival of the Khmer Rouge in the 1970s, the seaside resort sank into decay and oblivion. The villas were gradually devoured by an invading jungle. From 300 villas New architectureToday, only around forty of them remain, many of them passionately restored by the French. Some have since become luxury hotels, such as Villa Romonea and Knai Bang Chatt Resort, two splendid properties saved from destruction.
The seaside town seems to be gradually regaining its status as a trendy destination. Admittedly, you can't dance the cha-cha-cha there any more, and you're unlikely to bump into Catherine Deneuve or Leonardo Di Caprio, but for a weekend, you can indulge in a certain nostalgia and contemplate the sea that so inspired Prince Sihanouk.
How to get there
There are no longer any direct flights between Paris and Phnom Penh since the closure of the Air France flight. But connections are still easy. The natural gateway is Bangkok, served directly by Air France or Thai Airways International. From Bangkok Suvarnabhumi, there are around fifteen daily flights to Phnom Penh or Siem Reap with Thai Airways/Thai Smile, Bangkok Airways and Cambodia Angkor Air. Other alternatives include flights via Ho Chi Minh City with Vietnam Airlines or via Doha with Qatar Airways.
Formalities : Valid passport. One-month visa on arrival with photo ID for 30 US dollars.
Time difference : +5 h in summer; +6 h in winter.
Currency : the Cambodian Riel, but the dollar is accepted everywhere, often more easily than the local currency!
1 euro = 4,501 Riels (June 2017).
Area code : +855
Address book in Phnom Penh
French Embassy in Cambodia1, boulevard Monivong. P.O. Box 18, Phnom Penh - Tel: +855 23 260 010 - Email: ambafrance.phnom-penh-amba@diplomatie.gouv.fr - Internet: www.ambafrance-kh.org
Business France For Cambodia, contact the Hanoi office (tel.: +84 4 39 44 58 00) or the Ho Chi Minh City office (tel.: +84 8 35 20 68 00) - Email: vietnam@businessfrance.fr - Internet: export.businessfrance.fr/cambodia
Sofitel Phnom Penh 26 Old August Site Sothearos Boulevard Sangkat Tonle Bassac - Tel: +855 23 999 200 - Internet : www.sofitel.com
Raffles Hotel Le Royal92 Rukhak Vithei Daun Penh Sangkat Wat Phnom - Tel: +855 23 981 888 - Internet : raffles.com
Samsara Villa Boutique hotelPhone: +855 23 219 136 - Internet: www.samsaravilla.com
Romdeng Restaurant (created by an NGO, a modern Khmer cuisine restaurant in a colonial house) #74, Street 174 - - Tel: +855 92 219 565 - internet : tree-alliance.org
Malis Restaurant (an address for contemporary Cambodian cuisine, considered one of the 50 best restaurants in Asia) 136 Norodom Boulevard - Tel: +855 15 814 888 - Internet: www.malis-restaurant.com
