Business culture in Cambodia

Cambodia is an open market economy and has demonstrated excellent economic growth over the past decade. Although Cambodians do not expect foreigners to behave the same way as them or adhere to their standards of behavior, it is important to know how Cambodian culture influences the work environment and the entire process of doing business.

Like many other Asian countries, business relationships in Cambodia are based on personal relationships. Connections are important for making connections and establishing trust. It is recommended that you approach potential business contacts with a preliminary introduction or personal approach. Potential partners and clients in Cambodia are often more receptive to those who come with a recommendation or letter from a prominent government official or business contact. Although not absolutely necessary, small gifts with the company logo are welcome, as are invitations to lunch or dinner.

Greeting

The traditional greeting is a bow combined with bringing the hands together at chest level (similar to bringing the hands together for prayer). If someone wants to show more respect, the bow is lowered and the hands are raised higher. In most cases with foreigners, Cambodians use the Western practice of shaking hands. Women can still use the traditional Cambodian greeting.

A simple rule — respond with a similar greeting. Handshakes — this is normal, but be careful not to be too strong as it may be seen as aggressive. If men are dealing with women, they should wait and see if they reach out before doing so. Eye contact should be kept to a minimum.

Cambodians emphasize the importance of honorific titles, which vary depending on royal title, position, occupation, education and gender. In business negotiations, respect your partners by addressing them with the correct honorific title.

For high-ranking government officials who have the royal title "Ekudom", always address them with the royal title instead of "Mr."

«Windows» and "Neak Windows" — royal titles for businessmen. Always use them before saying the businessman's name. During a conversation, you can use "Lok Ohna" or "Lok Neak Ohna", equivalent to the word "Sir".

«Lok Chumteaw», equivalent to madam, — title for women. Always address women with this title to show respect and deference, even if you are not sure of their title.

Dress code

Cambodia — a tropical country poorly suited to formal Western business attire. However, at a strictly formal meeting, it is advisable for men to wear a suit and tie, and for women — dress or business suit. In less formal settings, business casual attire may be appropriate.

Business meetings

Punctuality is highly valued in Cambodian business culture. Arriving later than the appointed time may be considered disrespectful to the person you are meeting with.

Cambodians often engage in small talk before meetings. Since Cambodia is a country with a hierarchical culture, the business world follows suit in terms of protocols and behavior.

When you meet in a group, you will be introduced to the highest ranking person. Likewise, you should introduce the people on your team according to their rank. This will allow your Cambodian colleague to understand the hierarchy of your group. At a meeting, respect and deference are almost always given to the oldest person. The most senior person usually determines the length and flow of discussion at the meeting.

Meetings generally do not adhere to a strict schedule or agenda. They will continue until all participants feel that everything of interest has been satisfactorily discussed. Periods of silence throughout the meeting are acceptable and expected.

It is best to double-check the clarity of statements if you are not sure of the meaning of what was said. Cambodians use the term "yes" in different meanings, not all of which indicate agreement. Bargaining is usually expected. Many sellers offer a fair price for an item after some time spent haggling.

While English is becoming more common in Cambodia, foreigners should try to find out if their Cambodian counterpart speaks English fluently. Otherwise, it is recommended to use an interpreter to ensure smooth communication during the meeting.

Business cards

Business cards should be exchanged after the first meeting. If possible, translate one side of your business card into Khmer.

Hand the card so that the recipient can immediately read the Khmer side of it. Use your right or both hands when offering or receiving a business card.

It is important to treat business cards with respect because how you treat the card indicates how you will treat the person.

Business culture

Correspondence should be addressed to senior decision makers. Decisions often take quite a long time to think through as they are passed up and down the company hierarchy. Cambodians value personal contact when doing business. Social events, such as meals, help build trust between potential business partners.

Face concept

Face is an important fundamental concept in Cambodia. Face — it is honor, reputation, dignity and social significance. An employee will lose face if he is ever held accountable or told that he is doing something wrong in front of his colleagues. 

Any negative feedback should be expressed confidentially, calmly and as indirectly as possible. Suggesting improvements rather than criticizing is also a good way to continue the conversation.

Showing anger or losing your temper is seen as a serious loss of face not only for yourself, but also for those around you. If a Cambodian business person disagrees with someone, he will often remain silent rather than speak out so as not to tarnish someone's face. To save face, try to avoid an aggressive or demanding approach in business meetings.

Gifts and souvenirs

During the New Year, it is traditional to exchange small gifts at the first post-New Year meeting. When visiting, you should bring a small gift, such as a fruit basket or a bouquet of flowers. Avoid giving knives as gifts.

Gifts are usually wrapped in colored paper. Do not use white wrapping paper, as white symbolizes mourning.

When giving gifts, use both hands. Gifts are not opened upon receipt.

Attending events by invitation

You should attend events by invitation, especially formal ceremonies.

Come by invitation — means showing respect and honor to the host, even if you can only stay at the event for a short time.

Features of Cambodian communications

Verbal contact

• Indirect communication. Cambodians tend to have an indirect communication style. Questions are often expressed vaguely, especially if the topic is negative. Cambodians tend to avoid flat refusals and smile and nod to keep communication amenable. They also tend to respond indirectly to a negative topic or difficult question. Normal answer — say: “The same, the same, but different.”
• Agreement. In Cambodia, the word “yes” is may have different meanings. In addition to indicating agreement, sometimes “yes” is used. used to indicate that a person is listening, similar to a nod. It can also indicate that the person understands what is being said. Make sure you understand the context in which "yes" was said by paying attention to facial expressions and body language.
• Compliments. Modesty and humility are important features of Cambodian culture. Accordingly, compliments and praise are usually accompanied by a self-deprecating comment-response or polite disagreement.
• Humor. Cambodians are quite cheerful and love to laugh. Jokes are often told, but sarcastic humor is rarely used.

Nonverbal contact

• Physical contact. Physical contact in Cambodia is acceptable between people of the same sex, but is usually minimal.
• Personal space. The total distance between two people talking is an arm's length. When talking with a friend or close acquaintance, this distance is reduced.
• Pointing. Pointing is considered rude and accusatory. Some Cambodians may use their mouth to point at an object by kissing or pouting.
• Eye contact. Indirect eye contact is usually normal in most situations. Direct eye contact should be interrupted from time to time to soften the interaction; intense eye contact can be seen as a challenge to the other person. When Cambodians talk to a boss or someone older, they lower their eyes respectfully. Women can avoid direct eye contact with a man by focusing their gaze on the ground.
• Smile. Although Cambodians often smile in conversation, the meaning of a smile usually depends on the situation. Sometimes a smile can mean happiness or pleasure, and sometimes it can be a polite response to a statement or question they don't understand. In some cases, smiling is used as an attempt to hide awkwardness, embarrassment or sadness.