Phnom Penh Economy
Double-digit economic growth rates in recent years have triggered an economic boom, with new hotels, restaurants, bars, and residential buildings springing up around the city. Phnom Penh's wealth of historical and cultural sites makes it also a very popular tourist destination. The main economy is based on commercial such as garments, trading, small and medium enterprises. The property business is booming since the past few years. Real estate is now getting very expensive. The two new sub-cities are under construction, where investors from Korea and Indonesia join with Cambodian investors. The investment project of Camko-city is estimated about more than 200 millions and will be finished in 2018.
Because of its budget airlines flying from nearby countries directly to Phnom Penh, the leisure and business travellers are coming to enjoy themselves or to look for investment opportunities in Cambodia. So also the hotel business is likely more and more improving.
As Kandal province is around Phnom Penh it serves as an economic belt of the capital. For instance Cambodia has become the sixth largest garment exporter in the world in 2007 (most of these factories are in Kandal Province). The industry created job opportunities for about 0.5 million Cambodians and generated some 0.3 billion U.S. dollars of monthly payment for the employees. Also agricultural exports flourished in 2007, as palm oil, peanuts, rice, pepper and other rural products became ever more popular in the international markets.
Finally, luxury real estate project like the Longing Resort in Kandal province was demolished on July 31, as it expanded its land illegally and in effect constituted menace to the safety of the capital. The Asia Development Bank put Cambodia's economic growth rate for the past year at 9.5 percent and nine percent in 2008, while the Cambodian government gave a conservative estimation of seven percent both in 2007 and 2008.
About Phnom Penh Economy
Phnom Penh's is Cambodia's economic centre as it accounts for a large portion of the Cambodian economy. Double-digit economic growth rates in recent years have triggered an economic boom in Phnom Penh, with new hotels, restaurants, bars, high rises and residential buildings springing up around the city.
The main economy is based on commercial interests such as garments, trading, and small and medium enterprises. In the past few years the property business has been booming as real estate is now getting very expensive in the city. Tourism is also a major contributor in the capital as more shopping and commercial centres open, making Phnom Penh one of the major tourist destinations in the country along with Siem Reap and Sihanoukville. According to the World Travel and Tourism Council, tourism in Cambodia made up 17.5 percent (US$2,053 million) of Cambodia’s GDP in 2009 and account for 13.7 percent of total employment. One of the most popular areas in Phnom Penh for tourists is Sisowath Quay, alongside the Tonle Sap River. Sisowath Quay is a 3-mile strip of road that includes restaurants, bars, and hotels.
The US$2.6 billion new urban development, Camko City, is meant to bolster the city landscape. The Bureau of Urban Affairs of Phnom Penh Municipality has plans to expand and construct new infrastructure to accommodate the growing population and economy. High rise buildings will be constructed at the entrance of the city and near the lakes and riverbanks. Furthermore, new roads, canals, and a railway system will be used to connect Camko City and Phnom Penh.\
Other projects include:
- Grand Phnom Penh International City (under construction)
- De Castle Royal Condominium (Under construction)
- International Finance Complex (Approved)
- Gold Tower 42 (On hold 32 floors)
- OCIC Tower (Completed)
- River Palace (Under construction)
- Vattanac Capital Tower (Under construction)
With booming economic growth seen since the 1990s, new shops have opened as well as western-style malls such as Sorya Shopping Center and the new Sovanna Shopping Center. Two international franchises have also opened up in Phnom Penh. Dairy Queen has already opened up inside Phnom Penh International Airport and Kentucky Fried Chicken (KFC) has opened up a restaurant on Monivong Boulevard and plans to open more soon. The same company that opened up KFC in Cambodia has now obtained franchise rights to open Pizza Hut in the country. In addition, Swensen's ice cream restaurants was also opened in Sorya Shopping Center.
Current tallest skyscraper in Phnom Penh is Vattanac Capital Tower standing in almost 200m height it sure to dominate Phnom Penh's skyline with its next door skyscaper-Canadia Tower(OCIC Tower). The tower are topped out in May 2012 and estimate to be complete in late 2012.
The Central market Phsar Thmei is a major tourist hot spot. The four wings of the yellow colored market are teeming with numerous stalls selling gold and silver jewellery, antique coins, clothing, clocks, flowers, food, fabrics and shoes. Phsar Thmei is also going under a major renovation project, with fresh paint on the exterior and interior, and the creation of newer stalls.