Cambodian history has been plagued by wars with neighbouring countries such as Thailand and Vietnam, a century of French occupation and internal conflict. It gained its independence in 1953 and was then led by the violent communist Khmer Rouge but endured a second occupation by Vietnam in 1978 which led to a 13 year civil war.
Cambodia Today
In 1992 there were democratic elections and a new constitution approved but it was only in the early 21st century that the government worked in collaboration with the United Nations to set up tribunals to bring the leaders responsible for the ‘killing fields’ to justice. The people of Cambodia share a common pride in the country’s unique cultural and historical heritage and understanding these cultural, ethical and business values is essential to any organisation wanting to conduct effective business in Cambodia.
Cambodian Culture – Key Concepts and Values
Face – The concept of face is essential in Cambodian culture. The Cambodians will do anything to prevent loss of face, even if it means avoiding confrontation or telling others what they want to hear rather than dealing with immediate issue. Criticising someone in public and not staying true to promises are various ways that may cause people to lose face.
Collectivism – Cambodia is a collectivist society in which the needs of the group are often placed over the individual. Family, school, work group, country and community concerns will almost always come before business or individual needs.
Hierarchy – Cambodians have great respect for hierarchical relationships. Almost everything in Cambodian life is led by hierarchical position: parents are superior to children, teachers to students and bosses to subordinates. Your Cambodian counterparts will always ask you questions to be able to place you hierarchically to know how to behave.
Doing Business in Cambodia
Cambodia is still one of the world’s poorest economies dominated by wet rice agriculture. It is now seeing rapid growth due to the garment sector and tourism industry. The country benefits from its close proximity to very high growth economies such as Hong Kong and Taiwan and to the major Ocean trade routes. In 2004, Cambodia joined the World Trade Organisation which helped the country to increase its commerce and industry. Cambodia’s main challenge over the next decade will be creating enough jobs to address its demographic imbalance. More than half of the population is younger than 25 and most of them lack education and professional skills. However, Cambodia is seeking to end dependence on other nations and its natural resources and economic potential are drawing foreign investment. Taking advantage of this emergent economy requires a profound understanding of local social and business culture.
Part 1 – Working in Cambodia: Working practices in Cambodia
Structure and hierarchy in Cambodian companies
Working relationships in Cambodia
Part 2 – Doing Business in Cambodia: Business practices in Cambodia
Cambodian Business Etiquette (Do’s and Don’ts)
DO not offer knives to Cambodian people, as it expresses a desire to break the relationship.
DO use a low voice and moderate movements as loud voices and excessive hand gestures are perceived as very rude.
DO give and receive items with the right hand or both hands.
DON’T refuse tea or food when offered by your Cambodian counterpart. It is considered impolite.
DON’T touch a member of the opposite sex.
DON’T pass anything over someone’s head as it is the most sacred part of the body.
Cambodian Culture Quiz – True or False
1. Some Cambodians will not speak up even if they do not agree with their foreign counterparts in a business negotiation.
2. It is considered rude to point with your finger.
3. The main religion in Cambodia is Confucianism.
4. Pointing your foot at a person or an object is a mark of respect.
Cambodian Culture Quiz – Answers
1. True. Cambodian will always strive to save face.
2. True.
3. False. 90% of Cambodian are Buddhist.
4. False. It is considered very rude.
Cambodia Today
In 1992 there were democratic elections and a new constitution approved but it was only in the early 21st century that the government worked in collaboration with the United Nations to set up tribunals to bring the leaders responsible for the ‘killing fields’ to justice. The people of Cambodia share a common pride in the country’s unique cultural and historical heritage and understanding these cultural, ethical and business values is essential to any organisation wanting to conduct effective business in Cambodia.
Cambodian Culture – Key Concepts and Values
Face – The concept of face is essential in Cambodian culture. The Cambodians will do anything to prevent loss of face, even if it means avoiding confrontation or telling others what they want to hear rather than dealing with immediate issue. Criticising someone in public and not staying true to promises are various ways that may cause people to lose face.
Collectivism – Cambodia is a collectivist society in which the needs of the group are often placed over the individual. Family, school, work group, country and community concerns will almost always come before business or individual needs.
Hierarchy – Cambodians have great respect for hierarchical relationships. Almost everything in Cambodian life is led by hierarchical position: parents are superior to children, teachers to students and bosses to subordinates. Your Cambodian counterparts will always ask you questions to be able to place you hierarchically to know how to behave.
Doing Business in Cambodia
Cambodia is still one of the world’s poorest economies dominated by wet rice agriculture. It is now seeing rapid growth due to the garment sector and tourism industry. The country benefits from its close proximity to very high growth economies such as Hong Kong and Taiwan and to the major Ocean trade routes. In 2004, Cambodia joined the World Trade Organisation which helped the country to increase its commerce and industry. Cambodia’s main challenge over the next decade will be creating enough jobs to address its demographic imbalance. More than half of the population is younger than 25 and most of them lack education and professional skills. However, Cambodia is seeking to end dependence on other nations and its natural resources and economic potential are drawing foreign investment. Taking advantage of this emergent economy requires a profound understanding of local social and business culture.
Part 1 – Working in Cambodia: Working practices in Cambodia
Structure and hierarchy in Cambodian companies
Working relationships in Cambodia
Part 2 – Doing Business in Cambodia: Business practices in Cambodia
Cambodian Business Etiquette (Do’s and Don’ts)
DO not offer knives to Cambodian people, as it expresses a desire to break the relationship.
DO use a low voice and moderate movements as loud voices and excessive hand gestures are perceived as very rude.
DO give and receive items with the right hand or both hands.
DON’T refuse tea or food when offered by your Cambodian counterpart. It is considered impolite.
DON’T touch a member of the opposite sex.
DON’T pass anything over someone’s head as it is the most sacred part of the body.
Cambodian Culture Quiz – True or False
1. Some Cambodians will not speak up even if they do not agree with their foreign counterparts in a business negotiation.
2. It is considered rude to point with your finger.
3. The main religion in Cambodia is Confucianism.
4. Pointing your foot at a person or an object is a mark of respect.
Cambodian Culture Quiz – Answers
1. True. Cambodian will always strive to save face.
2. True.
3. False. 90% of Cambodian are Buddhist.
4. False. It is considered very rude.
