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Home > News & Events > Immediate Warning
There is a lot of risk in the construction industry in Kampuchea
Release time: 2018.01.11

[China foreign contractor engineering chamber of Commerce in January 4, 2018]International Business observation (BMI) thinks that from the risk return index of infrastructure market, Kampuchea is a quadrant of "high risk and high return". Although the growth prospect is very attractive, it will also be affected by a lot of operational, political and economic risks. In general, the Kampuchea infrastructure market ranked the top second in the latest Asia Pacific region risk return index.

(I) an overview of the risk return index


Kampuchea and Asia Pacific infrastructure risk return index score


Total score 100, the higher the score = the more attractive the market is. Source: International Business observation infrastructure risk return index

() global and regional ranking

Regional ranking (a total of 21 markets): 20

Global ranking (a total of 105 markets): 87

() the risk return index decomposition diagram


Kampuchea and Asia Pacific infrastructure risk return index scores

Total score 100, the higher the score = the more attractive the market is. Source: risk return index of international commercial observation infrastructure.

() the main features and the latest news

Kampuchea is one of the countries with the highest return score in the Asia Pacific region, indicating that the country's construction market has a huge potential for development in the next ten years. Rapid economic growth and a continuous increase in foreign investment will promote the increase of major infrastructure investment in all sectors.

Kampuchea is located in the center of Southeast Asia, located between Thailand and Vietnam the two less developed markets, at the same time "is China Belt and Road Initiative" initiative along the country. Favorable geographical location, coupled with relatively low construction and labor costs, Kampuchea's transportation, trade and manufacturing projects are expected to attract investment.

As a frontier market, the lower level of business environment in Kampuchea is lower than the average level of the business environment. Large infrastructure projects are mainly dependent on foreign investment, so the number of companies that qualify for certain contractual opportunities is limited. Contractors and investors may often encounter delays, and there is no good legal environment in settling disputes.

The politics of Kampuchea tend to be centralized. The opposition officials and media are being suppressed, which has an impact on the national risk index of the country's risk return index. Kampuchea's long-term and short-term political risk ratings are far below the regional average level, so investors must be prepared to deal with unexpected policies and political changes. (source: China foreign contracting engineering chamber of Commerce)


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