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The Better Cambodia > Blog > News > Cambodia’s ICT Market Dynamics Bolster SME Growth
News

Cambodia’s ICT Market Dynamics Bolster SME Growth

Surya Narayan
Last updated: February 5, 2024 6:02 am
Surya Narayan
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In Cambodia, the fragmented landscape of the Information and Communications Technology (ICT) sector is presenting unique opportunities for Small and Medium Enterprises (SMEs) and local business initiatives. Experts in the field of technology suggest that this diverse market structure is fostering a competitive environment conducive to innovation, better services, and more affordable pricing models.

Research conducted by Mordor Intelligence, a global market analysis firm, revealed the absence of dominant entities within the nation’s ICT sphere, thereby creating an ideal scenario for healthy competition. The ICT domain in Cambodia encompasses a broad spectrum, including hardware, software, cloud services, and other technological solutions catering to various sectors such as banking, finance, insurance, telecommunications, e-commerce, and more.

Prominent entities in the Cambodian ICT sector include Smart Axiata, Viettel, Amazon Inc, Huawei, and IBM Corporation, with the market being segmented into Information Technology (IT) and End-User Verticals.

Aravind Sakthivel, an IT entrepreneur from Phnom Penh, shared with the Khmer Times that the competitive nature of a fragmented market leads to enhanced services, competitive pricing, and a surge in innovative offerings as firms aim to set themselves apart. He emphasized that such a market setup allows for an array of solutions tailored to diverse customer needs and encourages local ventures to flourish alongside international corporations, thereby stimulating entrepreneurship and economic advancement.

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Sakthivel also noted that the competitive landscape in Cambodia’s ICT market prevents any single entity from monopolizing the market, with relatively low entry barriers encouraging the proliferation of new players.

Echoing this sentiment, Ashok Kumar Gupta, an IT consultant based in Bangkok, pointed out that the balanced state of Cambodia’s ICT market is particularly beneficial for SMEs and local enterprises. He contrasted this with other regions where a few dominant players can stifle competition and lead to monopolistic pricing strategies, detrimental to local businesses, especially those transitioning to cloud-based operations.

The Cambodian government’s Digital Government Policy 2022–2035 outlines a strategic vision for digital technology advancement, incorporating short, medium, and long-term objectives aligned with international best practices. Recent achievements in the ICT sector, such as the introduction of a cybersecurity draft law and the launch of Alibaba’s cloud services in Cambodia, highlight significant steps towards a digitally inclusive and competitive marketplace, fostering a balanced digitalization across various economic sectors.

Source: Khmer Times

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BySurya Narayan
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Founder at The Better Cambodia | Communication Advisor to the Minister attached to the Prime Minister of Cambodia | Marketing Director at True North Lean
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