Sunday, September 19, 2010

A Technology Boom in Cambodia?

Internet access in Cambodia ... albeit Chinese
Fixing CRT TV sets
Yahoo-Cambodia billboard
Fake iPhone

September 18, 2010

Andrew Froehlich
Technorati


I had the opportunity to visit several cities within Cambodia last week. Being a network engineer and interested in technology advancements in emerging countries, I decided to spend some time investigating the current economic and technological environment. I came away fairly optimistic that Cambodia might be the next Asian country to experience a technology boom.

As far as current technology in Cambodia, it's a bit of a mixed bag. The country as whole is still very poor compared to many other SE Asian countries including Thailand, Malaysia and Singapore. In fact, the only other country that has a lower per capita GDP is Myanmar (Burma).

In one market, I saw a shop that was gutting and repairing 10 year old tube televisions. This is a trade that I have not seen for at least 15 years. Also, there seem to be frequent power outages throughout the region. The outages did not last long but could prove to be disruptive for prospective businesses looking to invest in the area.

That being said, when I further explored Phnom Penh, the capitol city of Cambodia, I was surprised with the amount of signage that promoted Internet technologies. It would seem that in the capitol and other large cities that I visited, high-speed Internet was readily available at many hotels, coffee shops and even gas stations.

In addition, the cellular network within Cambodia is well developed, at least in the locations I visited. A company called Cellcard has built-out a 3G network in Cambodia's "key cities". When outside these cities, 2G Edge service blankets the country in most cases. In this regard, Cambodia is ahead of providing 3G services compared to neighboring Thailand who have been stuck in a political battle for years regarding the licensing of 3G frequencies.

Economically, while the vast majority of Cambodians are very poor, there has been recent investments from neighboring countries including China to develop factories for the manufacturing of electronics. I saw this first hand when looking at a iPhone 4G look-alike for sale at one of the local markets.

The phone's manual was written in Cambodian as opposed to Chinese or Laos. This typically means that the device was designed and made in Cambodia. It was a fairly sophisticated piece of technology so expect to see more and more electronics stamped with "Made in Cambodia" in the coming years.

Another key economic factor that may be in Cambodia's favor is the fact they they rely heavily on the US dollar. While the country has their own currency, the Riel, it very much is tied to the dollar and is actually the preferred currency all over the country. Because the dollar is weak compared to other Asian currencies, investments in Cambodia are becoming highly attractive.

Cambodia still has a long way to go to become a technological powerhouse. The good news is that they have many things going for them both technologically and economically. But don't just take my word for it. Cisco Systems also sees Cambodia as a growth market for technology. Just last month Cisco announced that they will be starting the Cisco Network Academy Program at a Technical University. Clearly, Cisco sees the future need for highly skilled network engineers in the very near future.

7 comments:

Anonymous said...

Naive commentary!!! Futuristic and superficial!

Anonymous said...

He got fucked up by Iphone

Anonymous said...

"Clearly, Cisco sees the future need for highly skilled network engineers in the very near future."

=Well...Dirt poor Cambodian people have a choice. Do they want to be highly skilled network engineers who make a boat load of money or do they want to be a garment factory worker who make one dollar a day?

I say be highly skilled network engineers! With time and given the right education and one day dirt poor Cambodian people will rise up to the level that of Thailand and Singapore and I agree with Andrew Froehlich after all he is a network engineer!

Anonymous said...

I agree with him, nowadays there are more and more cambodian IT engineers, this is because there are a lot of students interesting in IT. I witness at my telecom company. However, we don't have many people interested in mecanics and other technical skills. This is not good.

Anonymous said...

I totally disagreed with this visitor thinking Cambodia is a high tech in the future and other companies plan to invest in this corrupted country.

Hun Sen can only create Karaoke, sex workers, beer girls, and garment factory to Cambodia.

My evaluation to Cambodia is the current leaders can only find garment factory, not other sectors, because he is busy corrupted and killed people.

What investment does Cambodia bring nowaday? Even garment factory are pulling or shut their door out of Cambodia. The only things I see development in Cambodia is service and sell, not high tech manufacturing. Big hi tech companies won't invest in Cambodia because our leaders are corrupted.

They will invest in Vietnam and Vietnam won't allow Ah Hun Sen get the investment too because Hun Sen is their puppet.

Anonymous said...

Easy to dream of such article, but impossible to predict a country's future with such a dream, mr. network engineers!

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