Cambodia 20250120: Lively, Aspiring, Stabilizing
Mekong Memo Cambodia Weekly: Business, politics, finance, trade & legal news.
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Headlines:
Economy Cranks Up the Heat
River Region Gets a Facelift
Swedish Style Sweet Spot
ASEAN Integration Deepens
Green Scene for Climate Action
Tourism Innovation Drives Growth
Financial Infrastructure Gets Boost
Startup Ecosystem Comes Together
Security Cooperation With VN
Local Product Promotion Gets Creative
Updates To Foreign WP and HR Requirements
Demining Efforts Drag On
Human Rights Concerns Remain Dogged
Economy Cranks Up the Heat
The World Bank forecasts the economy to grow by 5.5% in both 2025 and 2026, following 5.2% growth in 2024. The government is sharing positive indicators almost entirely across the board, with garment, footwear and travel goods exports expected to rise 20% to $14 billion in 2024. Tourism is rebounding, with 7.2-7.5 million international visitors in expected through the end of 2025. LOLC Cambodia, a leading Microfinance institution, hit $1 billion in deposits, serving more than 530,000 customers through 83 branches.
Read more: Khmer Times (Growth Forecast), Khmer Times (Export Growth), Cambodia Investment Review (Banking Milestone)
River Region Gets a Facelift
The $13.5 billion Mekong Quay project in Arey Ksat is moving along well as a cornerstone development, turning 210 hectares of land into an integrated urban center with residential, commercial and tourism facilities. The project includes infrastructure investments including South Korean-funded bridges and plans for a Mekong River underground tunnel. Separately, a new Vietnam-Cambodia border gate pair opened at Thuong Phuoc – Kaoh Roka. Cambodia and Laos have set up working groups to talk about building a cross-border bridge linking Stung Treng and Attapeu provinces.
Read more: Cambodia Investment Review (Urban Development), Khmer Times (Border Gate), Khmer Times (Bridge)
Swedish Style Sweet Spot
HESTRA, a Swedish glove manufacturer, has inaugurated its first Cambodian factory in the Royal Phnom Penh Special Economic Zone. The $600,000 facility will create 200 jobs and is Sweden's first entry into Cambodia's glove industry. The confidence shown in Cambodia's manufacturing sector is expected to attract more Swedish enterprises.
Read more: Construction Property
ASEAN Integration Deepens
Senate President Hun Sen has spoken out with a call for ASEAN to work as a more unified bloc in international negotiations while voicing support for Malaysia's upcoming ASEAN Inter-Parliamentary Assembly presidency. The RCEP trade agreement continues supporting regional economic integration, with Cambodia beating the drum about its potential for improving overall ASEAN capacity and resilience.
Read more: Bernama (ASEAN Unity), Xinhua (RCEP Impact)
Green Scene for Climate Action
The Ministry of Environment has launched an Environmental Protection Strategic Plan 2024-2028 to manage climate change, pollution and biodiversity loss. The first Children's Climate Risk Index shows that nearly two million Cambodian children are facing climate-related threats. The EU-funded CAPFISH program is supporting fisheries sustainability, protecting mangroves and putting vessel monitoring systems in place.
Read more: IUCN (Strategic Plan), Vietnam News (Climate Risk), Phnom Penh Post (Fisheries)
Tourism Innovation Drives Growth
A new boat link connecting Thailand's Trat province with Cambodia's Kep and Kampot, along with Vietnam's Phu Quoc Island has launched in an important regional tourism connectivity development. Sihanoukville port has welcomed its first cruise ship of 2024, bringing nearly 1200 tourists. The government has further streamlined visa procedures and improved the e-visa systems to continue its support of tourism growth.
Read more: Travel and Tour World (Boat Link), Khmer Times (Cruise Tourism)
Financial Infrastructure Gets Boost
GuarantCo and Credit Guarantee Corporation of Cambodia signed a Framework Agreement including a $7 million portfolio guarantee to underwrite more SME lending, particularly for green transition projects. The agreement is in alignment with government goals to develop corporate and project bond markets while supporting sustainable infrastructure investment.
Read more: Cambodia Investment Review
Startup Ecosystem Comes Together
Connexion's Entrepreneur Forum and Founders Club event brought together more than 400 entrepreneurs, investors and industry leaders to discuss fundraising, scaling and innovation. The event was an opportunity to take a look at Cambodia's growing startup ecosystem and entrepreneurial talent while touting the country as an emerging innovation hub.
Read more: Cambodia Investment Review
Security Cooperation With VN
Cambodia and Vietnam recently took stock of and strengthened bilateral security cooperation, with a focus on border security and figuring out how to better work together on transnational crime. The countries agreed to improve coordination in managing illegal border crossings and repatriating citizens, showing a growing appetite for regional security collaboration.
Read more: Khmer Times
Local Product Promotion Gets Creative
Shell Cambodia and the Ministry of Commerce have penned a Memorandum to promote Cambodian agricultural and handicraft products at gas stations across the country. The three-year agreement is in support of government policy to increase domestic consumption and reduce imports through innovative retail channels.
Read more: Khmer Times
Updates To Foreign WP and HR Requirements
stricter rules for hiring foreign employees and human resources officers are coming into force. Under Notification 022/24, foreign workers must get an initial work permit before applying for a visa, requiring documents such as contracts, health certificates, and residence verification. Separately, Prakas 259/24 requires professional certifications for administration and HR officers, with employers covering training costs. These measures are intended to improve compliance and professionalism, but will undoubtedly create new burdens for business; the private sector is looking at proposals to try and get some of the regulations revised.
Read more: DFDL
Demining Efforts Drag On
The nation’s mine-free target has been drawn out to 2030, requiring $377 million in extra funding. About 2,000 square kilometres remain contaminated, a drop from 4,500 in 1992. The Cambodian Mine Action Center recently met with US Embassy officials to work on improving cooperation on demining activities, but the work almost seems to never end.
Read more: Khmer Times (Timeline Extension), Khmer Times (US Cooperation)
Human Rights Concerns Remain Dogged
Human Rights Watch's World Report 2024 does not put Cambodia in the best light. The report highlights continued restrictions on freedoms and persecution of dissidents even thought the country is being served by new leadership. Issues discussed in the report include flawed elections, harassment of government critics, targeting of labor organizations, and the ongoing operation of online scam centers despite claims of enforcement.
Read more: HRW
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