Booming platform economy offers convenience to consumers in Cambodia

Booming platform economy offers convenience to consumers in Cambodia

The rapid rise in the digital platform economy has given convenience to consumers in Cambodia, business insiders said on Friday.

Jack Lee, secretary of the Digital Economy Professional Association of the Chinese Chamber of Commerce in Cambodia, said e-commerce has become popular in Cambodia in recent years thanks to the rapid increases in internet users and digital payments.

He said the coverage rate of digital platform users in the Southeast Asian country varies across different e-commerce sectors.

“Mobile payments and social commerce have the highest penetration rate, exceeding 50 percent,” he told Xinhua.

“Food delivery and ride-hailing services mainly target urban residents, with a penetration rate of over 20 percent.”

Lee, who is also the chief executive officer of online marketplace Smile Shop, said growing internet and smart mobile penetration has given a boost to e-commerce and that Cambodia’s 4G internet coverage is more than 80 percent of the kingdom’s land area, providing a solid foundation for e-commerce growth.

“Many Cambodian businesses rely on Facebook, TikTok, and Telegram to sell products, making social commerce a dominant trend,” he said.

Lee said Chinese companies have invested in various digital platforms in Cambodia, including new media, food delivery, ride-hailing, e-commerce, digital payments, freight sharing, and online education.

He added that the “Copy from China” model plays a key role in the development of Cambodia’s e-commerce industry.

“The combination of China’s e-commerce model with localized operations has become the mainstream trend in the market,” he said.

Lee observed that Cambodia has experienced the rapid development of e-commerce in the last five years, transforming the kingdom from a traditional cash payment society into a cashless society with mobile payment solutions.

However, he said Cambodia needs further investment in logistics infrastructure to enhance e-commerce efficiency, as current delivery services still face challenges.

“In sum, Cambodia’s e-commerce sector is expanding rapidly, offering numerous economic and social benefits despite infrastructure and payment system challenges,” Lee said.

Cambodia currently has almost 19 million internet subscribers, exceeding the country’s total population of 17 million because some people have subscribed to more than one internet service, according to the Ministry of Post and Telecommunications.

Also, the country has registered approximately 30 million e-wallet accounts as of 2024, said the National Bank of Cambodia.

Xiao Lianhuo, chairman of E-GetS, a leading online service platform for food delivery, group purchase and e-commerce, said the company provides integrated digital services for users, merchants, and delivery men, and offers one-stop solutions across catering, clothing, entertainment, shelters, supplies, and travel.

“To date, we have served more than 2 million users, and the number is still growing rapidly,” he told Xinhua. “Our business has now expanded to four countries, namely Cambodia, Thailand, Laos, and Vietnam.”

Xiao said E-GetS has partnered with over 40,000 merchants, covering restaurants, supermarkets, and various small businesses.

“The increasing popularity of online shopping is largely due to the widespread adoption of the internet and mobile payment, which makes online shopping more convenient and time-saving with a wider range of choices,” he said.

Xiao said E-GetS has helped small restaurants attract more customers, connect consumers with local businesses, boost foreign economic and trade cooperation, and promote cashless payment.

“We have introduced China’s relatively mature e-commerce development model to Cambodia and cultivated a large number of e-commerce talents, which drive the dual development of internet technology and talents in the country,” he said.

Xiao said currently, the company has over 5,000 full-time employees across four Southeast Asian countries, including more than 3,000 in Cambodia.

Sao Vann Pagna, a 32-year-old private company employee in Phnom Penh, said purchasing products online is very convenient and saves time because there is no need to leave home for shops.

“Every day, I use E-GetS app to order food, drinks, groceries, and electronic appliances,” he told Xinhua.

He said he can also book bus or air tickets on E-GetS app.

“E-GetS app has given convenience to me because I can find almost all kinds of products I need on it by just clicking on my smartphone from home,” Pagna said. “Moreover, a payment process is convenient and delivery service is also fast.”

E-GetS deliveryman Sokmet Sereyvathana, 20, said he can make 400 U.S. dollars per month from this job, which is enough to support his family and daily expenses.

“I like this delivery job because it provides me with an income to support my family,” he said. “Every day, I deliver goods to between 15 and 20 customers.”

Another E-GetS deliveryman Bin Vichet, 32, said the job gave him an appropriate income for supporting his family.

“I can deliver goods to between 17 and 20 customers a day, earning an average of 15 to 16 U.S. dollars,” he told Xinhua.

khmertimeskh