Summary

Cambodia’s construction industry is expected to expand by 9.1% in real terms in 2021, following a decline of 6.7% in 2020. The industry’s output in 2020 was affected by the outbreak of the Coronavirus (COVID-19) pandemic, which weighed on investor confidence and construction projects progress. According to the Ministry of Land Management, Urban Planning and Construction, capital investment in the Cambodian construction industry, in US dollar terms, fell by 9.6% year on year (YoY) in the first three quarters of 2020, falling from US$6.5 billion during Q1-Q3 2019 to US$5.9 billion during Q1-Q3 2020. According to the Cambodia Constructors Association, the pandemic has led to a sharp decline in foreign investment on large construction projects, particularly from China and South Korea; however, the industry’s output was supported through domestic investment.

Prior to the outbreak of the pandemic, the Cambodian construction industry had been one of the main drivers of economic growth in the country, registering an annual average growth of 19% between 2015-2019, driven by rising foreign investment in the country. The onset of the pandemic has severely weighed on investor confidence, and this is reflected by a sharp drop in Foreign Direct Investment (FDI) approved in the country last year. According to the Council for the Development of Cambodia (CDC), the total value of FDI approved in 2020 fell by 12%, compared to 2019. Although this will affect investment in the short term, recovery in the remaining part of the forecast period will be supported by the government’s focus on creating a favourable and competitive investment environment through the new ‘Investment Law’, which is expected to come into effect by April 2021. Cambodia has been one of the main beneficiaries of the US-China trade war, as it has attracted investments from US as well as Chinese companies that have moved production there. The supply chain disruptions caused by the COVID-19 pandemic are expected to further help Cambodia in attracting greater investment along with the signing of the Regional Comprehensive Economic Partnership (RCEP) free trade agreement between Asia-Pacific economies.

GlobalData expects the construction industry to register annual growth in the range of 8.2-9.2% between 2022-2025, supported by investments in the infrastructure, commercial and residential sectors. The government approved over 4,000 construction projects in the first 10 months of 2020, 83.3% of which were residential construction projects. The industry’s growth over the forecast period will also be supported by the KHR243.2 trillion (US$59.9 billion) National Strategic Development Plan (2019-2023), which prioritizes the development of human resources, road, water, and electricity infrastructure. The government will provide 27.5% of the total funding required for the five-year plan, while the remaining 72.5% will be sought from the private sector. The plan will help achieve the country’s goal of becoming an upper middle-income country by 2030, and a high-income country by 2050.

This report provides detailed market analysis, information, and insights into Cambodia’s construction industry, including -
- Cambodia’s construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Cambodia’s construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Cambodia. It provides -
- Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Cambodia, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

- Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using GlobalData's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.