What are some booming verticals in Cambodia and Laos?

Laos and Cambodia security market demands have been significant due to growth in the two countries. There are certain verticals, such as real estate and hospitality, that are especially booming, even though the technology used is still quite basic.
 
Cambodia and Laos have experienced significant growth over recent years. Investments in various projects, from infrastructure to real estate, have been quite noticeable. This, then, triggers Laos and Cambodia security market demands, which are not to be ignored.
 

Take Cambodia, for example. Growth forecast for security ranges from double digit to triple digit. “In my eyes, I can see 100 percent growth this year compared to last year,” said Kuy Channeth, Sales Project Manager at Cambodia-based V-SAFE.
 
“There will be growth for sure. Overall growth for security will be about 30 to 40 percent,” said Ye Wangfeng, GM of Loxu Digital, the exclusive distributor of Dahua Technology in Cambodia.
 
“The growth in the security market in Cambodia has been steadily positive. Major investors from China, Hong Kong and Japan have been the driving force for Cambodia’s economic growth, catering to domestic demand,” said Arin Alois Loy, Channel Business Manager for APAC at Milestone Systems. “People are buying new homes and consumer goods such as mobile phones and televisions. More products will be produced and retail sectors will expand, increasing the need for security.”
 
Laos is also a growth market as far as security is concerned, even though the country is relatively safe compared to other countries in the region. “Laos is probably one of the most peaceful countries on earth. There isn't really a need for security that comes from a fear of terrorist attacks or a vulnerability to the society that puts the country at risk. You really don't have that in this country. The security that we get is really from companies that require because it’s their standard operating procedure,” said Michael Billen, Managing Director of Eyetech Security Systems, a Laos-based systems integrator. “Yet the security market is still growing because the country is developing rapidly.”
 

Booming vertical markets

Security growth prospects are especially strong in sectors where more investments have been made. “Cambodia and Laos are seeing especially strong growth in manufacturing, infrastructure and tourism. End users, who are primarily foreign investors, have varying security demands, but ultimately all want to safeguard their investments,” Loy said. “Our leading video management software (VMS) was deployed in several major projects in 2018 alone. These projects include five-star hotels and government agencies.”

“I’m positive with the private investment in Cambodia. The commercial buildings, condominiums, casinos and hotel are all opportunities for SIs,” said Sovan Hok, GM of NKTECH Cambodia. “We are working on hotel, casino and commercial building projects.” 

“There are more projects coming from especially apartments and condominiums. This trigger demands for security solutions including fire alarms, CCTV, access control, intercoms and intrusion detection,” said Channeth.
 
However, the technology deployed in Cambodia and Laos is still very basic due to certain factors. “We see opportunities in growth of security market in Cambodia and Laos; however the primary growth is in basic CCTV surveillance solutions and the market is not yet ready for more sophisticated offering primarily due to budgetary constraints,” said Eric Lee, ASEAN Business Development Manager at FLIR Systems. “The network infrastructure is a barrier to deployment of more sophisticated solutions.”
 
“The percentage of IP-based video surveillance is about 15 percent here in Cambodia. The rest is analog. The network infrastructure is still immature here, which is why the IP ratio is low,” Ye said. “There is a lot of HD analog here.”