Economy & Interview : Arnaud Darc, "France and Cambodia, there is significant potential for developing new partnerships"

In the run-up to the next France-Cambodia business forum, the CEO of the Thalias group, who is also chairman of the local section of France's foreign trade advisors (co-organisers), shares his hopes for the event, as well as a few thoughts on the "complicated" current economic situation.

Arnaud Darc, CEO of the Thalias Group, Chairman of the Association des Restaurants du Cambodge (CRA), Vice-Chairman of Working Group D (government - private sector) on law, taxation and governance and also Chairman of the local section of the French Foreign Trade Advisors...

How do you find the time to manage all these different responsibilities, and what are your motivations for this extensive involvement?

Managing multiple roles requires rigorous time management and a strong support team. I delegate effectively and make sure I prioritise my commitments. My main motivation lies in my desire to contribute to Cambodia's economic development and support the restaurant and hotel industry, while strengthening trade relations between France and Cambodia. This involvement allows me to have a positive impact on different spheres of our economy and society.

A few comments on the current morose state of domestic consumption and your appeal as President of the CRA?

The decline in domestic consumption is worrying for our sector. In 2023, Cambodia recorded a GDP growth rate of 5.2%, but domestic consumption remains affected by inflationary pressures. During our last meeting with the GPSF, I suggested to Neak Oknha Kith Meng that he advocate government intervention to stimulate the economy. My call also aims to raise awareness among industry professionals of the need to adapt, innovate and collaborate to overcome these challenges. We also need to work with the government to create a more favourable environment for boosting consumption.

A few words about your recent work with Working Group D?

Working Group D focuses on crucial issues such as taxation, law and governance. Recently, we've been working on proposals to simplify tax processes and improve transparency to encourage foreign investment. For example, French investment in Cambodia increased by 84% between 2018 and 2022, reaching €649 million. These efforts aim to make Cambodia more attractive to investors while ensuring sustainable economic growth.

A few details about your involvement in the organisation of the next France-Cambodia Business Forum?

The France-Cambodia Business Forum 2024, organised jointly with the CCIFC, aims to strengthen economic relations between our two countries. We are organising workshops, conferences and B2B meetings to enable French and Cambodian companies to forge fruitful partnerships.

"In 2022, trade between France and Cambodia amounted to €1,362.9 million, showing significant potential for the development of new collaborations."

We are also considering public-private partnerships (PPP) for infrastructure projects such as a wholesale market similar to the MIN at Rungis.

What about the economic aspect of the diplomatic upturn between France and Cambodia?

The improvement in diplomatic relations between France and Cambodia is opening up significant economic opportunities. This creates a climate of trust that encourages investment and trade. French exports to Cambodia in 2023 reached 170.9 million euros, representing an increase of 31% compared to 2022. We need to capitalise on this momentum to consolidate these relations and maximise the economic benefits.

Any thoughts on the economic mission to France in January 2024?

The trade mission to France in January 2024 was an enriching experience. We were able to make important contacts and explore new opportunities for collaboration. Exchanges with our French counterparts gave us a better understanding of the expectations and needs of potential investors. The lessons learned from this mission will guide our actions to attract more French investment to Cambodia, where French investment amounted to €649 million in 2022.

What will be the impact of the first France-Cambodia business forum in 2022?

The first France-Cambodia Business Forum in 2022 has had a positive impact, although some of these are still being assessed. Trade reached €1,362.9 million in 2022, a significant increase on previous years. The relationships established at the forum continue to bear fruit, but it's still too early to fully measure all the direct and indirect impacts.

Do you confirm the Kingdom's image deficit and do you have any suggestions?

Yes, Cambodia is suffering from an image deficit that is holding back the development of trade and investment.

"To remedy this, we need to improve communication on the opportunities offered by our country, strengthen transparency and ensure solid governance.”

Cambodia was ranked 143rd on the Human Development Index in 2022, indicating areas for improvement. Targeted marketing campaigns and active participation in international forums can also help to redress this image.

Other obstacles to a real boom in French investment in the Kingdom and suggestions?

Apart from the image deficit, obstacles include administrative complexity, lack of infrastructure and certain legal uncertainties. To overcome these challenges, we need to simplify administrative procedures, invest in infrastructure and guarantee a stable and transparent legal framework.

In 2022, Cambodia imported €1,192 million worth of goods from France, which shows the potential for improvement if these obstacles are removed. Collaboration between the private sector and the government is essential to create an investment-friendly environment.

Any optimistic indicators for the business relationship between the two countries?

Positive signs include the increase in trade, the growing interest of French companies in Cambodia, and joint initiatives to strengthen economic cooperation. In 2022, French imports from Cambodia accounted for €1,021.1 million, showing an active trade relationship. The active participation of both governments and private sectors in economic forums and trade missions are also encouraging indicators. Increased political and economic stability in Cambodia is also boosting investor confidence.

What are your expectations of the forum as a leader of associations and a businessman?

As head of associations and a businessman, I expect the forum to facilitate the creation of solid, lasting partnerships between French and Cambodian companies. I hope to see the emergence of new investment and collaboration opportunities that will benefit both our countries.

"In 2022, bilateral trade reached €1,362.9 million, and this forum should also serve as a platform to discuss current challenges and potential solutions to strengthen our economic relations."

During this forum, I will emphasise the importance of public and private investment to support Cambodia's economic development. More than ever, we need public-private partnerships for crucial infrastructure projects, such as a wholesale market and a convention centre in Phnom Penh, to boost business tourism and improve Cambodia's global competitiveness.

This forum is an opportunity for us to talk directly to the government about supporting these initiatives by working closely with the private sector. French-inspired companies have a major role to play in helping to secure a prosperous future for Cambodia.