Those of us that live in PP are all too familiar with the sight of partly built, abandoned high-rise apartment buildings. Within a ten minute walk of where I live, there are two. There are another two that have been completed and are open, but it is clear that barely anyone lives in them. We're talking 40-odd story middle-class style apartments.

As a result of these buildings springing up, other businesses opened up in the area, such as restaurants, bars and other entertainment venues, clearly aimed at the type of people who would rent one of these types of apartments, but it's rare to see customers in them. Maybe on a good weekend, you might see a dozen or so people in them, which is very low considering they have a capacity of 150 - 200 odd people.

I live opposite one of these types of bars which has recently closed down - gone bankrupt I assume. (Very rare to see anyone in there, it's right outside my window). They're in the middle of demolishing it at the moment. Funnily enough, just around the corner, they're building a new wine bar on some previously disused land. Have the new owners not bothered to do any market research on the area? Have they not even bothered to have a quick drive around to see how well similar bars in the area seem to be doing?

When I travel around Phnom Penh, I'm often amazed at how some businesses remain open, from supermarkets to coffee shops, to restaurants to bars etc. There just never seem to be enough customers in them for them to possibly be making a profit. As a result, there is a disproportionate number of businesses that close down and either quickly get replaced by other businesses, or remain boarded up. Sometimes the buildings get torn down and people just put up a 'Land for sale" sign. Is it easier to sell empty land than land with a property already built on it?

I get the feeling there is for too much optimism in the Cambodian economy by investors, either foreign or domestic. I understand that the middle-classes are rising in Cambodia, and the standard of living is improving for many, but no-where near at the rate some investors seem to think. Plus, even as the middle class grow, you are still dealing with a society which, at it's roots, still largely doesn't understand why anyone would pay extortionate prices for things they can get at the market for a fraction of the price. Spending the least amount of money you can is a type of thinking is ingrained in Cambodian society and will take a generation or two to change.

I know that the reasons for businesses failing, especially high-rise buildings being abandoned are much more complicated than the simplified reasons I've laid out here, but I do think that a large part of it is just that nobody ever seems to do any due diligence before opening businesses, and the notion of a burgeoning Cambodian middle-class seems to be incredibly overblown.