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Cambodia ‘among lowest in the world for tech startups’
Cambodia ranked number 176 in the world in an index measuring the best places in the world to launch a tech startup, according to the first Draper Innovation Index (DII).
Thailand ranked 71, Vietnam scored 160 and Laos 220. Two of the top three regions were in Asia, with Singapore ranking second and Hong Kong third. Draper’s index registers 228 countries and regions The DII analysed metrics including cryptocurrency friendliness, inbound foreign direct investments and venture capital momentum.
Richard Yim, founder of Demining Robotics, founded to empower people with “freedom to walk” through its Jevit robot, which successfully excavated its first explosive last year, said: “Cambodia should deserve a better ranking than 176. The time to build a minimum viable product and go to market in Cambodia is very short and can rival other countries around the world.”
Yim, 27, returned to Cambodia after studying mechanical engineering at the University of Waterloo, Canada’s answer to the Massachusetts Institute of Technology. “It is very hard to judge Cambodia in the tech startup space because many companies stay out of the public view and thus, on the surface, it seems to be a very undesirable place,” he said. “Cambodia is an exciting place to build technology companies. The ability to fast-track a product to market is very valuable alongside the direct access to a relevant government ministry to seek support and accommodation,” he added.
Yim believes Thailand and Singapore attract startups through various government initiatives, something which the Cambodian government will struggle to provide.
“Rankings like these signal to outside investors to look at places outside of Cambodia. There are unique benefits that Cambodia provides that other countries might not be able to match. Direct access to government officials and their support before launching a product or service is a rare benefit unmatched by many. Also, the young population in the country serves as a promising workforce hungry to leave an impact on the country and abroad.”
Kenneth Tang, managing director for Dynamic Technologies, said: “The ranking does not reflect how easy it is to set up a business in Cambodia”.
Dynamic Technologies is symbolic of the Kingdom’s position as a burgeoning tech hub. It offers end-to-end solutions in a broad array of industries ranging from banking to healthcare and is pushing for Cambodia’s entry to the ASEAN Smart Cities network. Tang said: “The barriers to entry in Cambodia are low. The country is accommodating when it comes to providing visas to visitors and open to non-Cambodians starting a business here. Relative to other places such as Silicon Valley, where you would end up paying someone about $100,000 for software development, you can get someone with equivalent skills for a price more suitable to a startup. It is important to remember that when starting a business in Cambodia, you could also possibly plug into the larger ASEAN network, whether that be Vietnam, Thailand or Laos.”
However, Sabay Digital Corp co-founder Mike Gaertner said while it is easy to set up a company in Cambodia, operating a company aimed at the global market may not be so easy, which may have resulted in the Kingdom’s low ranking.
He said there are many challenges to overcome before Cambodian companies enter the global stage and that there is a lot of room for improvement. That said, however, he believes that Cambodia will be a strong regional player as a tech incubator in the years to come.
Source: https://www.khmertimeskh.com/50832303/cambodia-among-lowest-in-the-world-for-tech-startups/