Cambodia 20250310
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Headlines:
Economic Growth Continues Apace
China-Cambodia Remain Tied at the Hip
Work to Support Digital Transformation
Smart City Development Gaining Momentum
Foreign Investment Opportunities Expand
Border Ring Road on Track
Trade Policy and Economic Integration
MRC Secretariat Water Resource Cooperation
Extra-legal Intellectual Property Protection
Agricultural Development: Cashews, Chilli
Insurance Development from a Low Base
Flight Numbers Grow, Connectivity Improves
Innovation and Sustainable Business Development
Formalizing the Informal Economy
Governance and Dispute Resolution
National SWOT Analysis Under Trump v2
Economic Growth Continues Apace
The economy should expect GDP to reach 5.9% in 2025, according to BMI forecasts. Prime Minister Hun Manet described the economy as being in a "multi-crisis transition phase," noting challenges including protectionist policies, trade wars, geo-economic tensions, and climate change impacts. The garment, travel goods, and footwear sectors continue to be the main industries driving domestic growth. Government data shows 8.5% industrial sector growth in 2024 with projected 8.6% growth in 2025, bringing industry’s value above $15 billion.
Read more: Fitch Solutions (Growth - Registration Req’d), Khmer Times (PM Statement), Khmer Times (Housing Recovery), Khmer Times (Industrial Performance)
China-Cambodia Remain Tied at the Hip
China-Cambodia economic relations continue to be crucial to the Kingdom. A delegation of 50 Chinese companies from Henan Province led by Vice Governor Li Fengzhi recently met with Cambodia's Deputy Prime Minister Sun Chanthol to explore investments. Chinese investment in Cambodia totaled $1.378 billion in 2023, with 414 new projects worth $6.9 billion approved in 2024. Chinese investments constitute 49.82% of total foreign investment, supported by RCEP, CCFTA, and Double Taxation Agreement frameworks.
Read more: China Briefing (Partnership Overview), Khmer Times (Delegation Visit), Khmer Times (Manufacturing Shift)
Work to Support Digital Transformation
Smart Axiata joined the GSMA Open Gateway initiative at MWC25 Barcelona, committing to implementing the standardized GSMA Open Gateway initiative to improve digital security, combat fraud, support better identify verification, and allow integration of digital services across networks. ByteDC Solutions and Huawei Technologies Cambodia formed a partnership to develop data center capabilities and sell cloud services, while Smart Axiata and Huawei Cambodia signed an MOU to develop B2B solutions for manufacturing, mining, and finance. The Health Ministry has asked for assistance from Vital Strategies to improve the nation’s digital health infrastructure, in advance of a plan to roll out nationwide Electronic Medical Record systems.
Read more: Tech Africa News (Smart Axiata Initiative), Cambodia Investment Review (ByteDC Partnership), Cambodia Investment Review (Smart-Huawei Alliance), Khmer Times (Digital Health)
Smart City Development Gaining Momentum
Siem Reap's Smart City Project is moving on to its second phase in August 2025, as the first phase is expected to be wrapped up by the end of May. This JICA-supported project began with identifying urban challenges and creating a smart city roadmap. Eight pilot projects were put in place, including waste collection improvements, illegal parking monitoring, tourism statistics digitization, document flow tracking, environmental sensor monitoring, tourism partnerships, smart waste management, and the Siem Reap Smart City Data Platform. Six of these pilots are now fully operational and expanding with the goal of making Siem Reap a model within the ASEAN Smart Cities Network.
Read more: Khmer Times
Foreign Investment Opportunities Expand
A Japanese business delegation fronting for 40 companies met with Cambodia's Council for Development to look into opportunities as Cambodia sees record Japanese investment activity. Japanese company registrations rose by more than a fifth with 88 new registrations from January to November 2024. Separately, Deputy PM Sun Chanthol also promoted investment opportunities to a California business delegation, centering his pitch on Cambodia's geographic location, renewable energy potential, political stability, and macroeconomic strength. Malaysia and Cambodia are setting up a Joint Trade Committee to improve bilateral economic cooperation, as trade volume between the nations grew more than 40% last year.
Read more: Phnom Penh Post (Japanese Delegation), Khmer Times (US Delegation), SME Asia (Malaysia-Cambodia JTC)
Border Ring Road on Track
A border ring road construction project that will run 250 kilometers across Mondulkiri and Ratanakiri provinces has been almost 50% finished. The $27 million project, funded through public contributions, began in October 2024 with expected completion by April 2027. Six military engineering units have cleared more than 1.4 million square meters of land and completed nearly 60 kilometers of road.
Read more: Khmer Times
Trade Policy and Economic Integration
Commerce Minister Cham Nimul chaired a Trade Policy Review Committee meeting to set up for Cambodia's upcoming third World Trade Organization review scheduled for March 26-28 in Geneva. The session included officials and technical experts from several ministries along with representatives from Cambodia's Geneva mission. The review evaluated Cambodia's overall trade policy framework and transparency as part of the WTO's standard review mechanism, supporting the country's economic integration efforts and trade policy development.
Read more: Khmer Times
MRC Secretariat Water Resource Cooperation
Cambodia's Minister of Water Resources and Meteorology Thor Chetha met with Busadee Santipitaks, the first female CEO of the Mekong River Commission (MRC) Secretariat, to improve cooperation on water resource management. Their discussion focused on improving flood and drought risk monitoring systems across the Lower Mekong River Basin, which includes Cambodia, Laos, Thailand, and Vietnam. Santipitaks, who is expected to serve from 2025-2027, will oversee that the MRC Strategic Plan 2021-2025 is implemented and will work on the development of the 2026-2030 plan. Both parties reinforced the importance of timely flood and drought notifications alongside improved regional water monitoring systems.
Read more: Khmer Times
Extra-legal Intellectual Property Protection
The American Chamber of Commerce Law Committee hosted a discussion on Cambodia's trade secret protection challenges, especially in light of the country's lack of formal legislation with current protections limited to Article 22 of the Trademark Law. Legal experts from Tilleke & Gibbins alongside the Intellectual Property Association of Cambodia were keen to discuss risks for businesses operating without legal safeguards. Major recommendations included implementing well-written NDAs, restricting access to confidential information, improving cybersecurity measures, and conducting regular employee training. While the Ministry of Commerce is drafting potential legislation, businesses are being advised to form proactive protection strategies.
Read more: Cambodia Investment Review
Agricultural Development: Cashews, Chilli
A new cashew processing facility operated by Kampu Nuts Agro Product Co. Ltd. is creating a measurable economic impact, processing 3,000-4,000 tonnes of cashew nuts annually with almost the full output being exported to China. The country is keeping its position as the world's second-largest raw cashew producer, with 850,000 tonnes produced in 2024. In Pursat province, the "Chilli Damnak Troyoeung" cooperative made up of 181 families is cultivating chilli over 52 hectares, supporting an important initiative aligned with the government's priority policy for modern agricultural community development.
Read more: Fresh Plaza (Cashew Processing), Khmer Times (Chilli Cooperative), Khmer Times (Vietnam Processing Relationship)
Insurance Development from a Low Base
The insurance sector in Cambodia is celebrating the formalization of cooperation between the Insurance Regulator of Cambodia and Korea Insurance Development Institute in a new MoU. The agreement allows for personnel exchanges, knowledge sharing, and programs like seminars and training initiatives. The main areas for collaboration include insurance statistics management, IT infrastructure, and capacity building. Cambodia's insurance market currently records a gross premium of $356.4 million in 2024, a 3.5% year-over-year increase, with insurance penetration at just 1.16% of GDP and per-capita insurance density of $21.
Read more: Khmer Times
Flight Numbers Grow, Connectivity Improves
Aviation reported a 5% increase in weekly flight movements across Cambodia’s three international airports in early 2025, totaling 1,324 movements. Phnom Penh International Airport leads with 942 movements, followed by Siem Reap Angkor International (346) and Sihanoukville International (36). The country's air network is currently made up of 31 airlines connecting to 34 cities in 12 countries. Several major carriers including Indigo Airlines, Etihad Airways, Turkish Airlines, and Emirates are planning to enter or expand services in Cambodian market. Cambodia and Germany are currently figuring out direct flight connections to coincide with the opening of the new Techo International Airport. Tourism Minister Huot Hak met with German tourism representatives during ITB Berlin to discuss direct flight connections.
Read more: Khmer Times (Flight Movements), Phnom Penh Post (Germany Flights), Phnom Penh Post (German Tourism)
Innovation and Sustainable Business Development
The Ministry of Industry, Science, Technology & Innovation and the Food Technology, Research and Innovation Platform have launched the Cambodia Enterprise Innovation Index Guidelines, a new framework to improve national innovation capabilities. The guidelines, supported by UNIDO and the European Union, are intended to improve Cambodia's Global Innovation Index ranking while promoting growth. The guidelines, endorsed by the Science, Technology, and Innovation National Council, are focused on assessing enterprise innovation capabilities, supporting green manufacturing, and improving productivity in alignment with UN Sustainable Development Goals.
Read more: UN Cambodia (Innovation Index), Khmer Times (MISTI Focus)
Formalizing the Informal Economy
The Ministry of Industry, Science, Technology & Innovation is continuing its campaign to bring much of the country's informal economy into the formal sector. Current data shows as many as 97% of SMEs operate informally, while only 16% of registered entities are engaged in production and industrial activities. The ministry's Informal Economy Onboarding Platform has seen 11,447 applications as of February 2025.
Read more: Khmer Times
Governance and Dispute Resolution
The National Authority for Alternative Dispute Resolution and Siem Reap Provincial Administration have formalized cooperation through an MoU to improve alternative dispute resolution mechanisms. The agreement establishes NAADR's authority to issue formal agreements for mediated disputes, provide technical training to provincial officials, and work on mediating community disputes. ESG expert Hassan Hajam has proposed that Cambodia implement an ESG-driven enterprise registration system to set itself up as a regional leader in sustainable investments, suggesting inter-ministerial cooperation for ESG strategies, incentives for ventures with positive impacts, and development of impact data collection mechanisms.
Read more: Khmer Times (Dispute Resolution), Khmer Times (ESG System)
National SWOT Analysis Under Trump v2
A recent SWOT analysis of Cambodia's foreign policy has shown strengths in national unity and pragmatic diplomacy, with weaknesses in intelligence capabilities and communication. The country faces potential threats from foreign interference and sovereignty disputes, while opportunities still exist through ASEAN and RCEP integration. As the second Trump presidency looms, Cambodia must figure out how to deal with potential protectionist policies including proposed 20% tariffs on Chinese imports and 25% on EU goods that could seriously hamper regional trade. Experts are saying that ASEAN-centered multilateralism is the answer to maintained regional autonomy.
Read more: Khmer Times (SWOT Analysis), Khmer Times (Trump Impact)
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