Outsourcing To Cambodia

Cambodia, unfortunately well known for its killing fields and landmines is the new target of foreign companies looking to outsource.  For example, Tiffany & Co. just built a diamond polishing factory, Japanese manufacturers are aiming to make wiring harnesses for automobiles and touchscreens plus vibration motors for cellular device, while European companies are moving in with dance shoes and microfiber sleeves for sunglasses. The reason for so many companies getting a move on to Cambodia is simple, they want to stop relying on China so much.

For foreign investors, China is no longer the ideal place to go because blue collar wages have quadrupled within the last decade because of a factory construction boom coupled with decreasing numbers of young people going into the construction field. Due to China’s “One Child” policy and aging population, there has been a decline in the labor force. As a result, Cambodia is experiencing a positive effect of foreign direct investment, which rose 70 percent from last year, 2011 and is starting to raise millions out of poverty and destitution.

Written by Kevin Zhang


Bradsher, Keith. “Wary of Events in China, Foreign Investors Head to Cambodia.” The New York Times. The New York Times, 08 Apr. 2013. Web. 8 Apr. 2013. <http://www.nytimes.com/2013/04/09/business/global/wary-of-events-in-china-foreign-investors-head-to-cambodia.html?pagewanted=1&_r=0&ref=business&gt;.

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