Allen Dodgson Tan - Essential Cambodia: A Guide for Foreign Entrepreneurs, Investors and Managers

Essential

Cambodia

A Guide for
Foreign Entrepreneurs,
Investors and Managers

Allen Dodgson Tan

Synopsis

As a expatriate manager, entrepreneur, or investor, the Kingdom of Cambodia can appear a chaotic economy, full of potential and opportunity as well as tremendous uncertainty. You may hear horror stories of foreigners fleeced out of millions or of a corrupt bureaucracy that makes honest business impossible. The truth is far more exciting and potentially profitable.

In this book, I unveil the true nature of working and doing business as a expatriate in the Kingdom of Cambodia. I discuss the intricacies of the existing business landscape, from the local business tycoons who rule industries to the key factors that will determine success and failure. I reveal the critical cultural and practical insights you will need to be successful.

The knowledge shared in this book is the product of over a decade of experience and extensive interviews I conducted with Cambodian and foreign industry leaders who have been successful in the Kingdom. Going beyond the simple economic data, cliches, and regulations, readers will learn from real case studies and experiences that will prepare them for starting their venture in the Kingdom.

About the Author

Allen Dodgson Tan is an entrepreneur and two-term elected President of the American Chamber of Commerce (AmCham) Cambodia. He has successfully founded multiple businesses and organizations during more than a decade in the Kingdom. He led the team which won Cambodias first international technology product innovation award at the Consumer Electronics Show (CES) in 2016 and served as Advisor to the Ministry of Education on STEM education policy. Allen is an advocate for pro-trade and pro-American business policies in Washington DC, ensuring American policies allow businesses to succeed in the Kingdom.

As a Cambodian American, having one parent born in the United States and the other in the Kingdom, his unique perspective on the critical cultural nuances and strategies for bridging the cultural divide is incredibly useful for the foreign businessperson. Before moving to Cambodia, Allen served in the United States Army as a Bomb Disposal Operator (EOD), with more than 28 months of combined combat duty in Iraq and Afghanistan. Allen holds a Masters of Business Risk Management and Continuity from Boston University and a Bachelors in Business Administration.

Copyright 2022 by Allen Dodgson Tan

All rights reserved. No part of this book may be reproduced or used in any manner without written permission of the copyright owner except for the use of quotations in a book review. For more information, address: contact@unlockingcambodia.com.

First edition February 2022

Book design by Paul Palmer-Edwards
Illustrations by Chifumi
Photos by Jeff Perigois & Ly Song

ISBN 979-8-9854151-2-4

www.unlockingcambodia.com

Contents

This book is dedicated to Cambodias incredible youth, who have shown me the bright future that our Kingdom is sure to realize.

Preface

This book was born from my work with the American Chamber of Commerce in Cambodia, where I served two terms as the elected president and four years on the Board of Governors. During this time, I frequently found myself in consultation with foreign businesspeople working to succeed in the Kingdom. Many of them shared similar challenges stemming from issues around cultural understanding and how the local systems work.

Reflecting on these conversations, I realized that the best service I could offer would be to write a book that would help foreign investors and workers understand how to be successful in Cambodia. I believe that for Cambodia to be prosperous, it must be fully integrated into the global economy. This can only happen when foreign investors and workers can succeed in the Kingdom alongside their local counterparts.

In this book, I provide insights and tools to help you be successful in Cambodia. These include critical cultural factors alongside practical information on how local businesses and public institutions work behind the scenes. This information comes from my 11 years of experience living, working, and starting businesses in the Kingdom, coupled with more than 20 interviews with key foreign and local business leaders.

You will notice that the section dealing with how to set up your business is near the end and is one of the thinnest. This is intentionalthe difficulties most foreign workers and investors encounter are operational and have little to do with the technical legal aspects of setting up a business (for which there are already many guides). Learning how to manage operations as a foreigner will be your biggest challenge.

I caution every foreigner against getting suckered into the narrative that Cambodia is easy to understand with one-liners like everyone here is corrupt or everything is about the money. These shallow observations do little to advance the deeper understanding that you will need to be successful. Cambodian culture is full of subtext and nuance; it will take effort to learn these cues.

As a Cambodian-American, I walk in both worlds and share a perspective that benefits both cultures knowledge. Having been raised and educated in the United States with one Anglo-American parent, I can recognize the sometimes-subtle differences in thinking between cultures that frequently confuse our foreign visitors.

To be successful in Cambodia, you must accept things how they are, not how they should be. A foreign-owned business can set new standards and serve as an example for others but must always remember that they exist within Cambodian society and culture; the rules are different. Likewise, never forget you are not a localyou will find your success through the strengths and talents you have cultivated in your home country, not by doing things like a Cambodian. Keeping this delicate balance is tricky, but success is possible and extremely rewarding.

How To Use This Book

As you read this book, I recommend you skip around to the sections you find most interesting. Some sections are written as references to be skimmed and brought out when certain situations arise. In contrast, others are meant to be internalized so that they may help you overcome unexpected situational challenges.

In the back of the book there are many tables where I present original research. These were devised from the knowledge of what I wish I had known when I arrived. I suggest you read through them at least once, so you understand what is there.

This book is not designed to present every piece of technical information required for every type of business and industry. Such a book would not be a guide in the true sense. Instead, this book is designed to serve as the central hub of your learning journey, pointing you in the right direction for each inquiry so that you may gain the knowledge that you will require for your unique endeavor.

Likewise, this book cannot be the only thing you read to prepare yourself for business in Cambodia. I have put together a short, concise reading list that will offer you critical knowledge in the back. I strongly suggest you read all of them.

Your largest resource outside of this book are your new Cambodian friends and expats who have been successful (specifically those with whom you have no commercial relationship). Always remember that Cambodia is not your country or your culture. You are very welcome here as a guest and contributing member of society. Please make sure all your actions are respectful and work toward a more prosperous Cambodia.

Legal Disclaimer

The publisher and the author are providing this book and its contents on an as is basis and make no representations or warranties of any kind concerning this book or its contents. The publisher and the author disclaim all such representations and warranties. The publisher and the author also assume no responsibility for errors, inaccuracies, omissions, or any other inconsistencies herein.