Are Hong Kong entrepreneurs ready to seize the opportunities in Cambodia?

While many businesses are struggling to cope with the rapidly changing environment in China, others are exploring new opportunities elsewhere, investing in new ventures and establishing their own plants around the Asia-Pacific region. From Hong Kong, it is possible to reach much of Asia in no more than four hours’ flying time. So, the city can be a real strategic hub connecting China with the rest of the region if people are simply ready to take full advantage of the opportunities which surround us.

Peter Cheng, executive director of Hanbo Enterprises, is a typical Hong Kong entrepreneur who has been working in the garment industry for more than 20 years. After setting up more than 10 garment factories in various parts of the world, he became a citizen of Cambodia and established his headquarters there instead of in China or Hong Kong. At first glance, it is not easy to see the advantages of such a move. But in September last year, I joined Peter and three other entrepreneurs - EMBA alumni of the City University of Hong Kong - to visit Phnom Penh. The main purpose was to prepare for an experiential course where students are required to identify business opportunities outside Hong Kong by visiting government officials, academic leaders and well known companies in another country, and by doing rigorous research.

Of course, the first impression of any country comes from the airport and the standard of services there. We expected to encounter a long process of checks and paperwork as in the past, but surprisingly, we passed through immigration in a couple of minutes. A sign saying “No money is necessary to be paid at this point” caught our attention - a friendly reminder to tourists that no extra fees will be collected. Indirectly, it tells you that steps are being taken to curb bribery and corruption.

Around 50 per cent of Phnom Penh’s population is under 24, and you can feel the whole city is full of energy. On our trip to the hotel, we saw youngsters everywhere, and at the Foreign Correspondents Club (FCC), a favourite gathering place right next to the royal palace, we were stunned by the faded black and white photos along the stairs leading to the upper level. These photos depict critical moments in the history of Cambodia and remind people of the cruelty of war.

Meeting with the deputy commissioner general of National Police was quite an experience for us. He is an expert on military matters and, more surprisingly, his personal assistant was originally from Shanghai and acted as a translator when necessary, supplementing our exchanges in English with phrases in Putonghua. It was a sign of the strength of the relationship between Cambodia and China.

Peter Cheng mentioned that security used to be a serious concern for foreign investors. When he started his first manufacturing plant, he had to hire a military policeman carrying a pistol as a bodyguard. Now, the situation has improved, though we were warned to safeguard our iPhones carefully and to remain generally aware of the people around us.