Cambodia's economy has maintained 7 per cent gross domestic product growth over the last few years, and construction and real estate are squarely positioned as the new drivers of growth. Construction joins the garment and tourism sectors as major contributors to the economy. The industrial sector, which includes construction and manufacturing, is projected to grow 9.7 per cent, according to the Asian Development Bank’s Cambodia outlook released in March.
This high growth in the construction and real estate market has seeped into firms providing raw materials, products and services that are facilitating this rise. Among the key players in this sector is Bosch, which supplies high-quality power tools and security systems to property developers in Cambodia.
“In the past, the expectations of a power tool were affordability and to perform basic functions of drilling a hole or cutting a metal bar,” said Andre de Jong, managing director for Bosch in Cambodia. “Today, our users are looking for more efficient power tools that can get their job done effectively and efficiently while keeping them safe. However, they remain very price sensitive.”
“Bosch therefore offers German quality power tools at varying price options,” said de Jong.
Bosch, which also offers automotive parts, large thermal boilers and heating solutions, as well as components for driving and controlling machinery in Cambodia, has seen a strong double digit growth since the company set up its local office in 2010.
Power tools, such as impact drills, power saws and bench top tools, have been a major contributor to the company’s growth in the Kingdom, according to de Jong.
“The construction sector in Cambodia is growing at a good pace, which also translates into increasing demand for construction tools,” de Jong said. “Bosch has manufacturing facilities in Southeast Asia, which provides an ease in the distribution of our products into Cambodia,” he said, adding that the upcoming ASEAN Economic Community integration will make these products more affordable and easily accessible.
Rising expectations from end consumers have pushed property developers to invest in making buildings safer and more secure. “Cambodians returning from work and study overseas have been influencing the consumer market in Cambodia. They bring with them their experiences abroad and expect new technologies and reliable products that match international standards,” said de Jong.
Bosch’s security equipment portfolio includes surveillance cameras, fire alarms and public address and conferencing systems, which are already installed in various hotels, resorts, airports, condominiums and office buildings in Cambodia.
“For companies, the rising consumer expectation sets the bar higher. To stay competitive, companies in Cambodia need to constantly offer more innovative products,” said de Jong. To keep its technological and competitive edge, Bosch invested around $6 billion last year in research and development.