American University of Phnom Penh
ECON200‐Economics
Case Study 6
Market Structure: The Case of Cambodia
Background
Cambodia, a developing Southeast Asian nation, has undergone significant economic
transformation since the early 1990s. With a transition from a centrally planned economy to a
market-oriented one, the country has opened its markets to foreign investment and private
enterprise.
Cambodia’s market structure is a mix of perfect competition, monopolistic competition,
oligopoly, and monopoly, depending on the industry. Major sectors include:
Agriculture: Smallholder farming dominates, with many sellers offering similar
products such as rice, cassava, and vegetables—closely resembling perfect competition.
Retail and Food Services: Urban centers like Phnom Penh and Siem Reap feature a
wide variety of restaurants, cafes, and local shops. This reflects monopolistic
competition, where products are differentiated by service, quality, or branding.
Telecommunications: A few dominant players, including Metfone, Cellcard, and Smart
Axiata, compete in an oligopolistic environment. High barriers to entry and product
differentiation are common.
Electricity Supply: Electricité du Cambodge (EDC) largely controls distribution.
Despite some private involvement in generation, this remains close to a monopoly due
to government regulation and infrastructure control.
Government Role
The Cambodian government encourages private sector participation but also regulates certain
key sectors. Regulatory bodies like the Telecommunications Regulator of Cambodia (TRC)
and the Electricité du Cambodge ensure fair pricing and service standards, though transparency
and enforcement are sometimes questioned.
23 June 2025
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Dr. Bong Angkeara
Questions
QUEIONS
1. What type of market structure best describes the Cambodian agricultural sector?
Explain why.
2. How does monopolistic competition appear in Cambodia’s retail and food services
sector?
3. Why is the telecommunications industry in Cambodia considered an oligopoly?
4. What are the characteristics of a monopoly, and how does Electricité du Cambodge
(EDC) reflect this in Cambodia?
5. What role does the Cambodian government play in regulating these market
structures?
6. Suggest one way to increase competition in the Cambodian telecom market.
7. How might digital platforms (e.g., food delivery apps) change the competitive
landscape in the retail and food service market?
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2 of 2
Dr. Bong Angkeara
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