How to Set Up a Supply Chain in Cambodia: A Guide for Importers and Exporters

As Cambodia emerges as one of Southeast Asia’s most dynamic frontier markets, the country’s trade and logistics capabilities are rapidly evolving. With its strategic location, young workforce, and pro-investment policies, Cambodia is becoming an increasingly attractive destination for companies seeking to establish cost-effective supply chains in the region.

Whether you’re a manufacturer exporting goods from Cambodia or an international firm looking to import products into the Kingdom, understanding how to set up an efficient supply chain is critical to your success.

This guide provides a step-by-step approach to setting up a supply chain in Cambodia, including tips on warehousing, customs, transportation, and working with reliable local partners like Cambodia-Agent.com.

Why Choose Cambodia for Your Supply Chain?

Cambodia’s competitive edge in logistics and supply chain development stems from several key factors:

• Proximity to Major Markets: Sharing borders with Thailand, Vietnam, and Laos, and with deep-sea port access to China and beyond, Cambodia is well-positioned for regional and international trade.

• Special Economic Zones (SEZs): These zones offer tax incentives and infrastructure support to exporters and manufacturers.

• Growing Infrastructure: New expressways, upgraded ports, and improved customs technology are lowering costs and shortening transit times.

• Cost Advantage: Cambodia offers competitive labor costs compared to its neighbors, especially for labor-intensive industries.

With these advantages, Cambodia is quickly becoming an integral part of global supply chains, particularly for garments, footwear, electronics, agricultural goods, and consumer products.

Step-by-Step Guide to Setting Up a Supply Chain in Cambodia

1. Identify Your Supply Chain Objectives

Before building your logistics operation, define your business goals. Are you:

• Exporting products manufactured in Cambodia to overseas markets?

• Importing goods to distribute or sell within Cambodia?

• Using Cambodia as a transit hub for cross-border distribution to ASEAN markets?

Knowing your objectives will determine your ideal warehousing location, logistics partners, and customs strategy.

2. Select a Strategic Location

Location is a major determinant of logistics efficiency. Cambodia offers several key hubs for logistics operations:

Phnom Penh

• Central administrative and business hub

• Home to Phnom Penh Autonomous Port

• Ideal for domestic distribution and light industrial activities

Sihanoukville

• Host of the Sihanoukville Autonomous Port (SAP) — Cambodia’s main deep-sea port

• Suited for large-scale imports and exports

Poipet and Bavet (Border Cities)

• Strategic for cross-border logistics with Thailand and Vietnam

• Popular with businesses using overland trade routes

Special Economic Zones (SEZs)

• Offer proximity to transportation infrastructure

• Provide customs and tax incentives

• Notable SEZs include Phnom Penh SEZ, Sihanoukville SEZ, and Manhattan SEZ in Bavet

3. Choose a Reliable Logistics Provider

Working with experienced freight forwarders, customs brokers, and 3PL companies is essential in Cambodia’s developing logistics market.

Look for providers that offer:

• Freight forwarding (air, sea, land)

• Customs clearance services

• Warehousing and inventory management

• Last-mile delivery and cargo insurance

Partnering with a trusted local agent like Cambodia-Agent.com ensures your shipments move smoothly and are compliant with all regulations.

4. Understand Import and Export Procedures

Cambodia’s import and export procedures are increasingly streamlined, thanks to digitized customs systems like ASYCUDA. However, documentation and processes must still be handled with care.

Common Required Documents:

• Commercial invoice

• Packing list

• Bill of lading or airway bill

• Certificate of origin (if claiming preferential tariffs)

• Import/export licenses (for regulated items)

Import Tariffs and VAT:

• Import duties range from 0% to 35%, depending on the product

• VAT is typically 10% on most goods

• Special exemptions apply under ASEAN trade agreements and FTAs

For exporters, Cambodia enjoys preferential trade access to markets like the EU (Everything But Arms program), China, and ASEAN, making it a compelling base for regional exports.

5. Set Up Warehousing and Inventory Management

Cambodia has seen rapid growth in modern warehousing facilities, especially near SEZs and urban centers. Options include:

• Public warehouses for general storage

• Bonded warehouses for deferred customs duties

• Cold storage for perishables and pharmaceuticals

When setting up your warehouse operation, consider:

• Distance to port or border

• Access to skilled labor

• Security and fire safety

• Inventory management software compatibility

A logistics partner like Cambodia-Agent.com can help you locate and lease warehouse space that aligns with your inventory turnover, product types, and seasonal fluctuations.

6. Optimize Your Transportation Strategy

Cambodia’s transport network is improving but still poses challenges. To ensure timely delivery:

• Use a combination of road, rail, and sea transport depending on your routes

• Consider the Phnom Penh–Sihanoukville Expressway for faster port access

• Track your shipments in real-time using GPS-enabled fleet management systems

For cross-border shipments, be prepared for border delays and paperwork verification. Choosing experienced cross-border logistics providers can reduce wait times and ensure document compliance.

7. Consider E-Commerce and Last-Mile Delivery

Cambodia’s digital economy is on the rise, making e-commerce logistics increasingly relevant. If you’re selling to Cambodian consumers:

• Use local delivery services that specialize in last-mile delivery

• Offer cash-on-delivery (COD), still preferred by many Cambodian buyers

• Ensure returns handling processes are in place

Integration with e-commerce platforms and using warehouse management systems (WMS) can significantly improve operational efficiency.

8. Comply with Regulations and Build Local Relationships

Success in Cambodia’s logistics sector depends not only on infrastructure but also on navigating local regulations and relationships.

• Register your business with the Ministry of Commerce

• Obtain necessary trade licenses

• Partner with reputable local agents for customs, taxes, and labor issues

Local relationships with officials, suppliers, and logistics operators are key to minimizing delays and avoiding compliance issues.

Common Challenges and How to Overcome Them

By working with on-the-ground experts like Cambodia-Agent.com, you can reduce risk and gain competitive advantage.

Why Work with Cambodia-Agent.com?

At Cambodia-Agent.com, we offer end-to-end support for your supply chain setup, including:

✅ Local and international freight forwarding
✅ Customs brokerage and compliance
✅ Warehouse sourcing and leasing
✅ Business registration and trade license assistance
✅ Cross-border logistics coordination

Whether you’re an importer bringing goods into the Kingdom or an exporter distributing regionally, our team ensures your logistics run efficiently and cost-effectively.

Conclusion

Cambodia is quickly becoming a strategic hub for trade and logistics in Southeast Asia. With growing infrastructure, favorable trade policies, and access to key regional markets, it offers enormous potential for global importers and exporters.

By taking a strategic, informed approach—and working with experienced local partners—you can build a resilient, scalable, and profitable supply chain in Cambodia.

📦 Ready to set up your supply chain in Cambodia?
Contact Cambodia-Agent.com today for a free consultation and logistics support tailored to your business needs.