INTERNATIONAL MARKETING

BUSINESS ENVIRONMENT OF CAMBODIA

PRESENTED BY:-AMLAN SAHA(11072)

INTRODUCTION
Cambodia ( Kampuchea), officially known as the Kingdom of Cambodia, is a country located in the southern portion of the Indochina 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.

INTRODUCTION(CONTD )
 With a population of over 14.8 million,

Cambodia is the 65th most populous country in the world. The official religion is Theravada Buddhism which is practiced by around 92% of the Cambodian population. The country minority groups include Vietnamese, Chinese, Chams and 30 various hill tribes.The capital and largest city is Phnom Penh, the political, economical, cultural center of Cambodia.

MAP OF CAMBODIA

POLITICAL PARTIES

 A political party is a political organization

subscribing to a certain ideology or formed around very special issues with the aim to participate in power, usually by participating in elections.  Cambodia is a one party dominant state with the Cambodian People's Party in power. Opposition parties are allowed, but are widely considered to have no real chance of gaining power.

POLITICAL PARTY (CONTD )

The Cambodian People's Party (CPP) is the major ruling party in Cambodia. The CPP controls the lower and upper chambers of parliament, with 73 seats in the National Assembly and 43 seats in the Senate. The opposition Sam Rainsy Party is the second largest party in Cambodia with 26 seats in the National Assembly and 2 in the Senate.

ASSEMBLY HALL & THE KING

MAJOR PARTIES
 Cambodian People's Party  Human Rights Party  Sam Rainsy Party  Norodom Ranarridh Party  Funcinpec  League for Democracy Party

LEGAL SYSTEM
The Universal Declaration of Human Rights (UDHR) and the International Covenant on Civil and Political Rights (ICCPR) which have been adopted by Cambodia and thus are part of the national law of Cambodia (Article 31 I Cambodian Constitution) state that every human being has a right to an effective remedy granted by an independent judicial body in case of a violation of his/her rights.The Cambodian Constitution (CC) also explicitly acknowledges the basic right to a judicial protection against all kinds of violations of rights no matter if the right is violated by third parties or by the government.

DEMOGRAPHY


Between 1874 and 1921, the total population of Cambodia increased from about 946,000 to 2.4 million. By 1950 it had increased to between 3,710,107 and 4,073,967, and in 1962 it had reached 5.7 million. From the 1960s until 1975, the population of Cambodia increased by about 2.2 % yearly, the lowest increase in Southeast Asia. By 1975 when the Khmer Rouge took power, it was estimated at 7.3 million. Of this total an estimated one to two million reportedly died between 1975 and 1978. In 1981, the PRK gave the official population figure as nearly 6.7 million, although approximately 6.3 million to 6.4 million is probably more accurate. The average annual rate of population growth from 1978 to 1985 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, life expectancy had increased by about 2.5 years since 1945. The greater longevity for females apparently reflected improved health practices during maternity and childbirth.

POPULATION
YEAR 2011 2010 2009 2008 2007 2006 2005 2004 POPULATION 14,701,717 14,453,680 14,494,293 14,241,640 13,995,904 13,881,427 13,636,398 13,124,764 GROWTH RATE +1.72% -0.28% +1.77% +1.76% +0.82% +1.80% +0.22% +3.67%

RELIGION(BUDDHISM)

CULTURE
Various factors contribute to the Cambodian culture including Theravada Buddhism, Hinduism, French colonialism, Angkorian culture, and modern globalization. The Cambodia Ministry of Culture and Fine Arts is responsible for promoting and developing Cambodian culture. Cambodian culture not only includes the culture of the lowland ethnic majority, but also some 20 culturally distinct hill tribes colloquially known as the Khmer Loeu, a term coined by Norodom Sihanouk to encourage unity between the highlanders and lowlanders. Rural Cambodians wear a krama scarf which is a unique aspect of Cambodian clothing

CULTURE (CONTD )
 The sampeah is a traditional Cambodian

greeting 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 been exchanged with neighbouring Laos and Thailand through the history. Angkor Wat (Angkor means "city" and Wat "temple") is the best preserved example of Khmer architecture from the Angkorian era along with hundreds of other temples that have been discovered in and around the region.

CUISINE
 Rice is the staple grain, as in other Southeast Asian

countries. Fish from the Mekong and Tonle Sap rivers is also an important part of the diet. The supply of fish and fish products for food and trade in 2000 was 20 kilograms per person or 2 ounces per day per person. Some of the fish can be made into prahok for longer storage. The cuisine of Cambodia contains tropical fruits, soups and noodles. Key ingredients are kaffir lime, lemon grass, garlic, fish sauce, soy sauce, curry, tamarind, ginger, oyster sauce, coconut milk and black pepper. Some delicacies are( ) (Num Bunhjok), ( ) (Amok), ( ) (Ah Ping).

MAIN CUISINE

SPORTS
 Football is one of the more popular sports, although

professional organized sports are not as prevalent in Cambodia as in western countries because of the economic conditions. Football was brought to Cambodia by the French and became popular with the locals. The Cambodia national football team managed fourth in the 1972 Asian Cup, but development has slowed since the civil war. Western sports such as volleyball, bodybuilding, field hockey, rugby union, golf, and baseball are gaining popularity. Native sports include traditional boat racing, buffalo racing, Pradal Serey, Khmer traditional wrestling and Bokator. Cambodia first participated in the Olympics during the 1956 Summer Olympic Games sending equestrian riders. Cambodia also hosted the GANEFO Games, the alternative to the Olympics, in the 1960s.

FOOTBALL & MARSHAL ART

DANCE & MUSIC

 Cambodian dance can be divided into three main

categories: Khmer classical dance, folk dance, and social dances.  Traditional Cambodian music dates back as far as the Khmer Empire. Royal dances like the Apsara Dance are icons of the Cambodian culture. Popular types of dances are Romvong, commonly danced at festivals. The Classic Music Era of Cambodia was during the 1960s to the 1970s featuring notable singers Sinn Sisamouth and Ros Sereysothea. However, during the Khmer Rouge Revolution many classic and popular singers of the 60s and 70s died of execution, starvation, or overwork

DANCE & MUSIC

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 other countries in the region. Most rural households depend on agriculture and its related subsectors. Rice, fish, timber, garments and rubber are Cambodia's major exports. The International Rice Research Institute (IRRI) reintroduced more than 750 traditional rice varieties to Cambodia from its rice seed bank in the Philippines. These varieties had been collected in the 1960s.

ECONOMIC ENV(CONTD )
 In 1987, the Australian government funded IRRI

to help Cambodia improve its rice production. By 2000, Cambodia was again self-sufficient in rice. However, few Cambodian farmers grow other crops, leaving them vulnerable to crop failure. In recent years, various international aid organisation's have begun crop diversification programs to encourage farmers to grow other crops. The recovery of Cambodia's economy slowed dramatically in 1997 98, because of the regional economic crisis, civil violence, and political infighting. Foreign investment and tourism also fell off drastically

TOURISM
 The tourism industry is the country's second-greatest source of

hard currency after the textile industry. Between January and December 2007, visitor arrivals were 2.0 million, an increase of 18.5% over the same period in 2006. Most visitors (51%) arrived through Siem Reap with the remainder (49%) through Phnom Penh and other destinations. Other tourist destinations include Sihanoukville in the south east which has several popular beach resorts and the area around Kampot and Kep including the Bokor Hill Station. Tourism has increased steadily each year in the relatively stable period since the 1993 UNTAC elections; in 1993 there were 118,183 international tourists, and in 2009 there were 2,161,577 international tourists.  Most of the tourists were Japanese, Chinese, Americans, South Koreans and French people, said the report, adding that the industry earned some 1400 million U.S. dollars in 2007, accounting for almost ten percent of the kingdom's gross national products.

TOURISM

INDUSTRIES
Industrial activity has traditionally centered on the processing of agricultural and forestry products and on the small-scale manufacture of consumer goods. Rice milling has been the main food-processing industry. Industrial expansion came to a virtual halt in 1970 with the outbreak of war. A few sectors (such as textiles and beverages) enjoyed a short wartime boom due to military orders, but losses in territory and transport disruptions had caused a rapid decline in activity by 1973. By late 1985 there were a reported 60 factories in the state sector producing household goods, textiles, soft drinks, pharmaceutical products, and other light consumer goods. In 1996, clothing industry exports more than doubled. The garment industry grew by 50% during this period. In 2000, industry constituted 20% of total GDP.

INDUSTRIES

TIPS FOR DOING BUSINESS

 

MEETING & GREETING:. As Cambodia is a hierarchical culture the business world follows suit in terms 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 ranking person, similarly you should have the most senior of your group greet them. . If groups are involved you should introduce people according to rank so that your Cambodian counterparts understand the dynamics of the group. . Handshakes are normal although be careful not to be too firm as this may be 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 and surname.

TIPS FOR DOING BUSINESS

 BUSINESS CARDS: . Business cards should be exchanged after the

initial introductions. . Have one side of your card translated into Khmer if possible. . Present your card so the Khmer side is readable to the recipient. . Use the right hand or both hands when offering or receiving a business card. . It is important to treat business cards with respect as the way you handle the card is indicative of the way you will treat the person.

TIPS FOR DOING BUSINESS

 BUSINESS MEETINGS: . Meetings do not stick to any schedule or agenda.

. Issues may be tackled separately and altogether if need be - once an issue 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 time should 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 reading between the lines is a necessary skill. . They will always consider the implications of making statements or using particular words especially if it involves anything negative as this draws in the issue of face. . In fact if Cambodians disagree with someone they would rather remain silent than make any comment. . If they disagree with an idea, they generally remain silent. . If unsure about statements be sure to double check.