François Corbin, Vice-President of the Mouvement des Entreprises de France International (MEDEF International), will attend the France-Cambodia Business Forum in Phnom Penh on 8-10 july.
During the first edition of the event two years ago, Mr Corbin said during an interview a few days before the forum that the assets of Asean and Cambodia are still underestimated in Europe and France. However, he highlighted the success of companies that have established a first foothold in an Asean country to expand in the region. Cambodia offers a favourable framework for such a move.
ASEAN today represents the fourth largest GDP in the world. Have French and European companies fully grasped that the heart of the world economy in the coming decades will be in Asia?
I think most French companies have understood that most of the world's growth in the coming decades is likely to take place in Asia. The comparative size of the various countries naturally leads us to focus on developments in China and India. ASEAN is more fragmented, of course, but I think it is a particularly easy market to set up in. I'm also struck by the high success rate of French companies that have shown interest in the region. I have also noticed that when a company sets up its first business in an ASEAN country, it very often expands to other countries in the region, often with success.
In the same vein, what does Asean mean for Europe and European companies? What are the ambitions for a young market of 673 million people?
Asean has many assets, which I think are unfortunately not well known. These countries have opened up to the world in recent decades. They have strengthened their economic stability and attracted foreign investment, thus fostering the emergence of an ASEAN economy.
“ASEAN therefore has two major advantages. First, it provides a competitive base for production and exports, particularly in Asia. Second, it offers a growing and increasingly attractive domestic market.”
The expectations of the middle class are evolving, not only in terms of quantity, but also in terms of quality and safety. In this area, Europe, and France in particular, enjoys a particularly strong and favourable image. ASEAN is therefore a favourable export zone for many French companies. My mission is to highlight these advantages in order to encourage companies to take a closer look at the region. I would add that the questions currently being asked about the relocation of value chains should of course encourage companies to look even more closely at Asean.
Cambodia is often discussed in terms of corruption and human rights. But Cambodia is also modernising at full speed. How can we make Europeans aware of a different reality?
You raise the issue of corruption; it is an issue that cannot be ignored. I know from my own experience that a Western company can grow and prosper while applying rigorous ethical principles. In fact, I would say that it is a long-term advantage for a company to develop extremely strong practices in this area. So I don't think this issue will deter companies from setting up in Cambodia. Cambodia is developing and creating an attractive regulatory framework; I just believe that it is not naturally on the radar screen of decision-makers due to a lack of knowledge about the opportunities available there. So let's talk about it!
What do you think are the reasons for the reluctance of French companies to set up in Cambodia, a real gateway to Asean and Asia?
As I mentioned earlier, there is a lack of awareness of Asean among some of our companies. So I would say first of all that the problem is bigger than Cambodia itself. However, when a company decides to expand in Asean, the natural reflex is often to look at countries in the zone that have a larger market of their own because of their population. However, Cambodia's small size can be offset by a regulatory environment that is particularly favourable to the establishment of foreign companies, and by its geographical location close to two major markets, Thailand and Vietnam. And this is often not well known.
What assets should Cambodia be promoting to attract French and European companies?
Cambodia can highlight its favourable business environment and present itself as a simple, competitive and efficient gateway for exporting to ASEAN and, more generally, to Asia and the world.
How do you see economic relations between the two regions developing over the next 20 years?
One of the main priorities of French foreign policy in recent years has been to develop an Indo-Pacific strategy. This strategy recognises the growing importance of geopolitical, economic, environmental and maritime issues in this region, as well as the specific role of France, which has large territories and interests there. This strategy recognises the central role of ASEAN, particularly in its economic component. I myself have been involved on several occasions in explaining the benefits of this Indo-Pacific strategy for our companies.
I am convinced that the authorities of our country and our business community will therefore intensify their joint and synergistic approach in order to increase the mutual knowledge of the authorities and the business community.
Photos Christophe Gargiulo - Source: BMC.
Nota : For the sake of clarity and accuracy, some extracts have been modified
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