Big wheel in Cambodia

When the Khmer Rouge snuffed out his original dream to become a doctor, Tong Norm shifted into business and today is poised to profit from growing auto industry. 

Published: 20 May 2013 

Bangkok Post 

Writer: Nithi Kaveevivitchai 

 If you have driven in Phnom Penh over the past few years, you probably have found yourself caught in traffic more than ever before, be it along Russian Boulevard, Norodom, Mao Tse Tung or any other major roads.

Yes, the signs of an emerging urban middle class in Cambodia are now evident. The country, which a few decades ago rarely made international headlines except for tales of atrocity, is now becoming an important corner of Southeast Asia.

Riding this new wave is Tong Norm, a Cambodian of Chinese descent from Phra Tabong (Battambang), who has been active in the trading business and economic development of the country for three decades, sometimes in the face of very daunting obstacles.

Everyone of his generation — he was born in 1956 — has memories of the brutal Khmer Rouge reign of terror of the late 1970s, with its forced labour, starvation, torture and executions. The ability to survive those desperate years gave many Cambodians a special reserve of strength, and Tong Norm says he used his to become a successful businessman when peace returned.

“I was born and raised in Cambodia. My father is a businessman from China. He used to do some trading business by buying commodity products from China to sell here in Cambodia. My business background is pretty much influenced by witnessing how my father worked,” Tong Norm told Asia Focus.

Although he was denied the chance to finish his medical degree when the country was plunged into civil war, Tong Norm still managed to pursue learning and obtain real-world knowledge by himself. Even during the years when his country was closed to the world, he managed to travel to many neighbouring countries and also the United States.

“I knew it was difficult to travel back then but I tried my best to do it, no matter what it would take,” he recalls. “I learned a lot from travelling to different countries. The exposure to new environments brought me many opportunities. This gave me the upper hand, something that others in the country were not able to do.”

Once the civil war ended, he started up a small firm and ventured into the cigarette and electronics businesses.

“Once the wartime period ended, things started to develop again. Cigarettes were in need as well as electronic items. Radios were becoming a very popular product. I saw these as big opportunities and that was how my first business began,” he said.

In 1995, Tong Norm moved from selling cigarettes to automobiles, as rising demand for cars was obvious, but mainly for second-hand products. As the country was just embarking on a development period, he decided to start by importing Korean trucks to be sold for commercial purposes.

In 2001 he registered Goodwill Trading Company and decided to venture into the passenger car market. The newly formed company started to import vehicles from the US and other countries. “It was a transition period in which people started to shift their demand toward vehicles for personal use.”

Currently, Goodwill Trading is one of the largest importers of second-hand automobiles in Cambodia, particularly from the United States. It holds a market share of 20-30% in the auto industry, having sold more than 8,000 units in 2012. The company has left the truck business and now focuses mainly on passenger cars.

According to Tong Norm, the automotive sector is one of the fastest growing industries in the country, as a car now is often the first major purchase for middle-class consumers. Lots of people now have more money to spend and the volume of car ownership is on a dramatic rise.

Earlier this month, the company signed a dealership contract with Chevrolet to help the American brand tap into the country’s growing market for new vehicles.

Reflecting on the business success he is enjoying today, Tong Norm said it would definitely be linked to the hardship he had been through.

“Doing business in Cambodia is never easy. You must be adaptable and ready to face new challenges at all times. Developing a strong heart that can withstand all difficulties is the important characteristic that I have earned from the war.”

As he looks to keep the business growing, training and hiring the right people are the company’s primary focus, he says. “Well-educated and quality team will make your life a lot easier. Training must be at the forefront of any business; we need to make sure that our employees are qualified for their given tasks.”

Discussing his passions and hopes he thinks are yet to be fulfilled, his response is unequivocal. “I would consider myself a family guy. I have three children; all of them are in our family business. Most of the decisions are now up to them, but they will come to me for advice from time to time. I wish that in the near future, we will be able to have a local assembly plant for Chevrolet in Cambodia.”

Tong Norm says he’s also been witnessing an encouraging change in the business environment in Cambodia, which is now becoming more liberal, and people are competing in a more fairly based system. If companies continue to focus on good products and services, success is never too far away in his view.

“Lots of things are changing in Cambodia. The customer perception toward new cars is one of them,” he says. “People are now starting to be concerned about the safety of their loved ones. After-sale service is now on the checklist when it comes to purchasing a vehicle."

“Though it may not be an immediate change, in the long run we are confident in our business and our latest venture.”