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Indeed,while local operating conditions were of less concern when the economy was expanding at over 10%annually, the current period of slower growth means that foreign investors are likely to be countries withcomparatively weak business environments.


●Pharmaceutical Company Developments
In January 2010, Cambodia’s PPM reported that is to increase its focus on exports for revenue growthdue to challenging conditions in its domestic market. In an interview with The Phnom Penh Post,company President Hay Ly Eang said 15 new markets are being targeted, and that North Africa is apriority. PPM’s partnership with CERP Lorraine Répartition is fundamental to this strategic plan, giventhat the French distributor
has considerable expertise in handling sales in francophone countries. Inaddition to the plan to increase exports, PPM is seeking to move up the value chain. Senior management want to move into biotechnology and start making vaccines, despite conceding that they currently lack theexpertise, know-how and equipment. Investment funds are also likely to be lacking.

In June 2009, Vietnamnet Bridge reported that Vietnamese drugmakers were looking to enter theCambodian pharmaceutical market and that several drugmakers had already exported their products to thecountry. One Cambodia-based distributor, FD Pharma Company, claimed that sales of its Vietnammanufacturedmedicine exceeded US$1mn per year. Despite this, it reported that Vietnam’s reputation asa pharmaceutical exporter remained relatively low in Cambodia.

In January 2009, according to The Phnom Penh Post, an Indian investment group was planning to investapproximately US$1mn in Cambodia. The funds would be used to build a new pharmaceuticals manufacturing plant in the country, with a view to assisting the country in becoming less dependent onimports and curbing the amount of trade in counterfeit drugs.

●Pharmaceutical Wholesale
One of the leading importers and distributors of pharmaceuticals in Cambodia is Zuellig Pharma, asubsidiary of the regional player Zuellig (which is headquartered in Singapore).
The Cambodian office,established in 2003, is run by Zuellig’s Vietnamese arm and offers temperature-controlled storage and acomprehensive information technology (IT) network. Apart from importing and distribution, Zuelligoffers product registration facilities with the MoH. The company also has a sales representative teamwhich deals with product promotion.

A number of other companies deal with pharmaceutical and medical devices imports, both from the region and wider. These include Master Pharma, DEPOMEX and Hagan, to name but a few.