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Cambodia is a developing country that had a rapidly change in their society. This rapidly changes had draw attention from investors to start expanding their business opportunity into Cambodia. Even though Cambodia rapid economy changes gets insufficient notice from investors, but it presents many opportunities for the investors who willing to reach and proceed prudently. Cambodia is a low wages, liberal government policy in business and has ability to access to larger market with the ability to offers extensive opportunities for investment. To expand in Cambodia, it is the best opportunity for YTL as the stability of the Cambodia government and low wages of the employment. This can help YTL company to have a better establishment of its company in Cambodia.
For Cambodia economy opportunity, it is necessary for YTL Company to look at the context of Cambodia's relationship with the region of ASEAN (Association of South-Asian Nations). ASEAN play an important role in Cambodia in term of the country economy growth. Cambodia became the member of ASEAN since the year of 1999, with a political grouping of 10 countries with the total of 550 million populations and GDP under $600 billion, lead to the purchasing power parity (PPP) of $1.8 trillion. These facts will help YTL to expand their market in Cambodia, with a safe and stable economy situation and risk of return will be low. With a stable economy background, Cambodia can have a strong and powerful independent power producer corporation to involve in investing and this will ensure the smooth growth of the country economy smooth profit growth in long term.
Another reason that why YLT choose to expand their market into Cambodia as the existence of the AFTA (Asian Free Trade Area) roles. AFTA is the economic manifestation of area economic integration which helps provide Cambodia a phase-in period to protect their local company. In this aspects, when YTL expand their market in Cambodia market by exporting out their products and services to other countries, Cambodia government will help YTL corporation in term of reducing the tariff when export activities occurs. This will help YTL independent power producer to earn more as the tariff had been eliminate and YLP might have a more costs to expand more independent power producer in more region in Cambodia. This will help Cambodia and YTL corporation growth in term of profit and provide more incentive to Cambodia country.
Another factor that leads YTL Corporation to expand their new target market, Cambodia is due to the Cambodia Foreign Direct Investment (FDI) growth. Since the beginning of year 1990s, Cambodia FDI had attracted increase in their Foreign Direct Investment if compare to China and Vietnam. Cambodia improvement in political and macroeconomic situation had helped the country in the openness of the economy. This is the reason why YTL aim to expand their market of independent power producer in Cambodia as the dynamic increase in the FDI of Cambodia shown that this country have the potential market for YTL Corporation to establish their company growth in more Asian country. As Cambodia is a small country in Thailand, if YTL Corporation manages to establish well in this small region, there will be easier for YTL Corporation to have a large target potential target market in the future. Besides that, since Malaysian is the first country that to sign a bilateral visa exemption agreement with Cambodia in year 1992, this had help Malaysian investors, YTL Corporation, to be the first-mover and have a greater chances as the main investor in Cambodia. As the first-mover in expanding independent power producer in Cambodia, YTL Corporation will have the advantages in competitive and dominant market in Cambodia.
Elements that needed by YTL when expending business in Cambodia
The first element that YTL Corporation needs to understand is Cambodia beliefs in aspect of their history and business etiquettes. Cambodia history background will help YTL Corporation to have a well understanding about their potential market in term of how Cambodia develop their market form developing country to development country. Cambodia's history that consist of the economic growth, political changes and development of the country, the legal and regulation that being exist in Cambodia for few decade will help YTL Corporation to draw their time line to start up their expansion of market, the length of time to develop their independent power producer in Cambodia and the suitable way to maintain their market and have a grow of profit. Next, YTL Corporation need to have a clear guideline of the business etiquettes when they dealing their business with Cambodia citizens. By understanding the Cambodia business etiquettes, it helps YTL Corporation to have a closets resemblance in Cambodia business dealing.
As a new entrant in Cambodia market, it is crucial for YTL Corporation to follow the business style in Cambodia. In greeting, Cambodia usually greet their business partner by pressing their palms together in front of their bodies and bowing, which known as 'sompeah', just like the Eastern practice by shaking hands. Next is the language that being use when dealing business in Cambodia. Even though English is the International language that being recognize by worldwide, Cambodia still prefer to use their own language, Khmer, when dealing business with foreign company. Thus, YTL Corporation needs to empower or hire an expert translator for the sake of respect when dealing in Cambodia. Related documents and name cards should consists two languages, English and Khmer, as a sign of respect their culture. This sign will lead Cambodia think that YTL Corporation have the gratitude and sincere to deal business with them.
Cambodia's belief and religion is also a part of the necessity for YTL Corporation if they aim to enter Cambodia market. For a businessman, understand the Cambodia is equal to the facts that they need to understand the country religion. Thus, it is necessary for YTL Corporation to do their homework, a deep survey, before they start to enter into Cambodia market. Even though Cambodia is an Asian country like Malaysia, there do have different culture and beliefs in every country. In Cambodia, most of their citizen's religion is Baddish and they do have a strong belief in their religion. They will try their best to obey the guidance from their god and beliefs that what had been belief by their ancestor and passed through from generation to generation.