Today in Cambodia E-commerce is used more than ever, but why only today, and what growth prospects does this market have?
E-commerce and online-shopping in Cambodia have been steadily growing in the past few years. Some of the key drivers for such an evolution were the vibrant ecosystem of micro-entrepreneurs who are finding ways to sell goods online, the rapid adoption of smartphones, cheap data plans, and a widely available 3G network, the presence of young consumers looking to buy products online. Moreover, Covid-19 has highlighted the vital role that E-commerce can play in the pandemic.
E-Commerce roadmap in Cambodia
E-commerce has become a priority in the Cambodian Government agenda in recent years. Digitalization is considered an important potential source of future growth for Cambodia.
- In 2019, the Cambodian Ministry of Commerce officially promulgated the Law on E-commerce, to regulate all the commercial and civil acts performed using electronic systems.
- On the 25th of November 2020, the same Ministry of Commerce officially launched the national E-Commerce Strategy, a guiding map to digitize more and more the economic field.
- The new strategic framework is part of so-called Cambodia’s “Economy 4.0’’ comprises 10 chapters – strategy, policy and institutional coordination; legal and regulatory frameworks; SME regulations; information and communications technology (ICT) infrastructure; digital knowledge infrastructure; payment systems; domestic e-commerce logistics; cross-border trade; access to finance; and trade information and market support.
To outline the E-commerce strategy, the Ministry of Commerce has also released a dual-language video, in Khmer and English.
What growth prospects?
According to Statista’ s algorithm-based calculation
- The revenue in the E-commerce market in Cambodia is supposed to reach USD 222m by the end of 2021 and it’s projected to show an annual growth rate of 9%, achieving a total market value of USD 313m by 2025.
- User penetration is expected to be 32.9% in 2021 and to hit 44.1% by 2025.
- The market’s largest segment is represented by the fashion field, which is supposed to get to a segment value of USD 77m in 2021.
To move forward…
Cambodia still has some challenges ahead, such as the promotion of public awareness and common understanding of the E-Commerce and online world, enlarging the coverage and accessibility of the Internet, or improving the digital skills of young people and the current labor force. The potential for E-commerce is significant in Cambodia and the government’s steady effort in providing a legal and regulatory framework is a step in the right direction.
Article by Giulia Gregoris