Cambodia 20250113: Fundamental, In-depth, Indomitable
Mekong Memo Cambodia Weekly: Business, politics, finance, trade & legal news.
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Headlines:
Investment Climate Heats Up
Tourism Recovery Accelerates
Crypto Regulations Take Shape
Property Market Shows Signs of Life
Infrastructure Push Continues
Digital Government Services Expand
Agricultural Shifts from Rice to Pineapple
Carbon Credits Resume
Trade Relations Strengthen: JP, AUS
National Airline Rebrands
Sihanoukville Unveils New Economic Hub
LDC Graduation Approaches
Work Permit Deadline March 31
Anti-Fake News Campaign Launches
Investment Climate Heats Up
Cambodia pulled in nearly $7 billion in fixed asset investments in 2024, a 40% year-over-year increase. Manufacturing, agriculture, and infrastructure development dominated the investment flows. Two new tire manufacturing facilities are under development, with Sailun Group investing $93.5 million to expand its Svay Rieng facility and Zodo Tire building a $256 million plant targeting 6 million passenger car tires annually.
Read more: Khmer Times (Investment Data), European Rubber Journal (Sailun Expansion)
Tourism Recovery Accelerates
Cambodia recorded 6.7 million international tourists in 2024, a 22.9% increase from 2023. Thailand, Vietnam, China, Laos, and the United States were reported to be the top inbound tourism markets. The government reduced visa fees to help the numbers, with tourist e-Visas now costing $30 and regular e-Visas $35.
Read more: Travel and Tour World
Crypto Regulations Take Shape
The National Bank of Cambodia has drawn up new regulations for cryptoasset activities, categorizing them into two groups: tokenized traditional assets and regulated stablecoins (Group 1) and unbacked cryptoassets (Group 2). Commercial banks can engage with Group 1 assets with NBC authorization but are prohibited from Group 2 activities. The framework requires licenses for cryptoasset service providers.
Read more: Fintech News
Property Market Shows Signs of Life
Government intervention is helping to breathe new life into the housing development market. The National Bank and Ministry of Land Management are working to transfer homebuyers from developer payment plans to financial institutions offering lower rates and longer terms. A new inter-ministerial committee is focused on affordable housing through tax reductions and infrastructure support.
Read more: Phnom Penh Post
Infrastructure Push Continues
Construction of the 2.2km Mekong River Bridge in Kratie province has reached 77% completion. The Chinese-backed project will connect Snuol and Prek Prasab districts. The 180km Funan Techo canal linking the Mekong River to the Gulf of Thailand is still facing environmental scrutiny for impacts on biodiversity and agriculture. The story seems to continue to drag out, but this SCMP article is a good one on the latest in the saga.
Read more: Khmer Times (Bridge), SCMP (Canal)
Digital Government Services Expand
The Ministry of Industry has launched seven new digital public services for automotive products registration, metrology instruments, and conformity assessment bodies. This expansion builds on earlier digital transformation efforts covering SME creation and operational licensing.
Read more: Khmer Times
Agricultural Shifts from Rice to Pineapple
Battambang province farmers are switching from rice to pineapple cultivation in a search for higher profits. Around 500 households in Moung Russei District have transitioned to pineapple farming, covering 705 hectares. The country ranks 46th globally in pineapple production, with output expected to exceed 28,000 tonnes by 2026.
Read more: Fresh Plaza
Carbon Credits Resume
Cambodia lifted its suspension on carbon trading investments after strengthening environmental protection measures. The country previously generated $11.6 million from carbon credit sales between 2016-2020 and is exploring six new locations for carbon credit opportunities.
Read more: Khmer Times
Trade Relations Strengthen: JP, AUS
Bilateral trade with Japan reached $1.949 billion in the first 11 months of 2024. Australian trade showed strong growth with exports reaching $450 million, up 36% year-over-year. Total bilateral trade volume with Australia hit $547 million, marking a 20.95% increase.
Read more: Khmer Times
National Airline Rebrands
Cambodia Angkor Air has rebranded to Air Cambodia as of the first of January, a change in moniker as the airline tries to let the public know of its efforts to improve efficiency by improving aircraft utilization and expanding its route network. The airline ordered three ATR 72-600 turboprops through Chinese lessor HNCAL for delivery in 2025.
Read more: Cambodianess (Rebrand), Simple Flying (ATR Order)
Sihanoukville Unveils New Economic Hub
The ISI Special Economic Zone (SEZ), spanning over 800 hectares in Sihanoukville, Cambodia, was officially launched to enhance industrial and economic growth. With an initial investment of $50 million by ISI GROUP, the SEZ aims to attract local and foreign investors through advanced infrastructure and strategic partnerships. Endorsed by the Cambodian government, the project aligns with efforts to position Sihanoukville as an economic hub. Currently, Cambodia's active SEZs contribute significantly to exports and job creation.
Read more: Khmer Times
LDC Graduation Approaches
The planned graduation from Least Developed Country (LDC) status by 2029 is good news from an economic independence standpoint, but the transition will brings challenges such as reduced preferential trade access, loss of aid, and increased competition. The government has a “Pentagonal Strategy” that outlines measures to improve competitiveness, diversify exports, and integrate into global value chains. The main strategies are taking advantage of free trade agreements, promoting e-commerce, and being supportive of new industries. The government says it is committed to sustainable growth, expecting to guide Cambodia into a high-middle-income nation by 2030 and a high-income economy by 2050.
Read more: Khmer Times
Work Permit Deadline March 31
The Ministry of Labour set March 31, 2025, as the deadline for foreign employee work permit applications. Non-compliance penalties include fines up to KHR 12.6 million per employee for less than five workers, or KHR 63 million for five or more workers.
Read more: DFDL
Anti-Fake News Campaign Launches
The Ministry of Information is introducing the "Say No to Fake News!" campaign to combat misinformation and promote media literacy. Announced by Minister Neth Pheaktra, the initiative is said to be necessary in order to address the rising prevalence of fake news, which apparently saw a 14% increase in 2024. The campaign focuses on educating social media users, improving information security, and teaching responsible sharing practices.
Read more: Khmer Times
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