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March 26 2026

CAMBODIA

Don't forget to enter this month's cultural quiz! Simply answer the question below to be in with a chance of winning a cross-cultural book.

Quiz Question: What is the name of the 12^th century Hindu temple, located in Cambodia that holds the Guinness World Record for the world’s largest religious monument?

Send your answers to mail@babelgroup.co.uk

Cambodia is a southeast Asian nation situated on mainland Asia. With a border to Thailand in the west and northwest, Laos to the northeast, Vietnam in the east and southeast and meeting the Gulf of Thailand to the southwest, Cambodian culture has been shaped by its vital location as a midpoint between Chinese and Indian cultures, and has had great influence on the histories, cultures and personalities of its Southeast Asian neighbours.

The national population is 17.5 million, smaller than many countries in the region. The capital city is Phnom Penh, located in the southern-central region and home to 2.5 million. Most Cambodians live in rural areas, however urban population is on the steady rise, which can be attributed to Cambodia’s better educated youth seeking less traditional jobs such as in corporations. Cambodia is noted for its relatively low cost of living, friendly culture and vibrant customs.

Roughly 90% of Cambodians speak the native Khmer language. While there are various dialects and distinct accents throughout the country, the language remains mutually intelligible to all speakers. Khmer is used in national media, education, governance and business operations. Khmer is one of the oldest written languages in southeast Asia, with a script derived from ancient south Indian alphabets. It is a non-tonal language, which distinguishes it from neighbouring Thai and Vietnamese, and it plays a central role in Cambodia’s national identity and cultural heritage. For anyone doing business in Cambodia, even learning a few basic Khmer greetings can go a long way in building rapport and demonstrating respect.

English proficiency has increased significantly since the 2000s and is now the dominant foreign business language. French influence has declined but remains present in legal, NGO and some diplomatic contexts.

Cambodia has an open and lower-middle-income developing economy. It was among the fastest-growing economies globally, averaging around 7% annual growth pre-Covid. Garments, footwear and travel goods account for the majority of exports. This has been predominately due to cheap labour costs and preferential trade agreements between Cambodia, the EU and the US.

Agriculture employs the largest share of the workforce, but services contribute the largest share of GDP, followed by industry. Construction and real estate have seen rapid growth since 2018 as Cambodia’s economy goes through an infrastructure boom, driven by both Government and foreign investment and the growing need for urbanisation. The financial services sector has also seen rapid growth recently, particularly in mobile banking, fintech startups and digital payment systems.

Tourism remains a significant contributor of Cambodia’s economy. There have also been discoveries of untapped gold, iron, copper and bauxite reserves in various regions across Cambodia. In 2021 the Cambodian government liberalised foreign investment across many sectors, including mineral mining, allowing foreign businesses to own 100% of their operations in the country.

Business culture in Cambodia

Cambodian culture is very collectivist, where maintaining group harmony and saving “face” is of the utmost importance, a trait shared by Cambodia’s closest neighbours. In a culture where individuals interest takes second place to the group interest, it’s important to take existing hierarchy into account. Cambodian business culture relies heavily on protocol, politeness and avoiding conflict to maintain harmony. Deference is shown by junior staff to the senior staff for major decisions and casual daily interactions. While hierarchy remains culturally important, nevertheless younger urban professionals increasingly expect participative management and skills development.

Businesses in Cambodia are heavily relationship focused. Use honorifics to address someone, “’Lok’ for a man, ‘Lok Srey’ for a woman. Respecting the hierarchy ensures you do not incur accidental offence and cause loss of “face”, understood to be the loss of dignity and reputation because of embarrassment or public criticism, which can have significant social repercussions.

Cambodian businesses tend to be quite risk-averse and cautious of change, likely influenced by past turbulence n Cambodian economic history. The most effective way for change to be accepted is when it’s perceived as being for the good of the group, with the value to the organisation clearly outlined in thorough proposal. The approach to time is relaxed in traditional and government contexts. In multinational firms, banking, and export manufacturing, punctuality expectations are tightening especially in Phnom Penh.

In Cambodia, the role of a manager is closely linked to hierarchy, respect, and relationship-building. Managers are generally expected to provide clear direction and maintain authority, as leadership tends to be more top-down than in less hierarchical societies. Age, seniority, and title carry significant weight, and employees may be reluctant to openly challenge decisions to preserve harmony and “save face.” At the same time, effective managers invest time in building trust and personal rapport with their teams, as strong relationships underpin loyalty and long-term commitment. A successful manager in Cambodia balances decisiveness with approachability, offering guidance and structure while fostering a respectful and supportive working environment.

In Cambodia, communication styles are generally polite, indirect, and guided by a strong desire to maintain harmony. A direct “no” may be softened or avoided, and non-verbal cues, such as tone, pauses, and facial expression, can carry significant meaning. Respect for hierarchy also shapes interactions, with more formal language typically used when speaking to senior colleagues. For international teams it’s important to understand that what may seem vague or non-committal can in fact be a culturally appropriate way of maintaining respect and positive working relationships.

Greetings are polite and often accompanied by a slight bow or the traditional sampeah gesture where both palms are pressed together in front of the body, with fingers pointing upwards followed by a slight bow of the head, particularly in more formal settings. Titles and honorifics are important, and seniority should be acknowledged in meetings and introductions. Business cards are exchanged with both hands as a sign of respect, and meetings may begin with informal conversation to establish rapport before moving to the agenda.

Social etiquette also plays a significant role in professional relationships. Modest dress and calm, courteous behaviour are appreciated in both corporate and social settings. When invited to a meal or social gathering, it is customary to show appreciation and respect toward the host, as hospitality is highly valued.

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