Cambodia 20250324
Mekong Memo Cambodia Weekly: Business, politics, finance, trade & legal news.
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Headlines:
Ream Port Opens with Japanese Visitors
Digital Tech Keeps Banking Fresh
Currency Promotion Supports National Identity
Techo Airport Almost Ready
Sustainable Tourism Gets Priority
Skills Gap Puts Economic Growth at Risk
Foreign Investment Growing
Trade Growth Improves Regionally
Digital Economy Growth Speeds Up
Manufacturing Sector Booming
Water Management Climate Programs
Natural Resource Conservation Efforts
Rural Development Via Model Villages
Financial Access, Debt Concerns Grow
Entrepreneur Ecosystem Plan For Growth
Admin Reforms For Gov’t Efficiency
Ream Port Opens with Japanese Visitors
Cambodia's Chinese-funded Ream Naval Base is expected to open April 2 under the leadership of PM Hun Manet. The Gulf of Thailand facility now has a new pier and dry dock. In an interesting twist, the government has invited a Japanese warship as the first foreign vessel to dock, trying to show the base is open to all. While China remains Cambodia's biggest investor and closest political ally, Cambodian officials insist they haven't given China exclusive military access. They say all friendly countries' warships are welcome. The U.S. has previously raised concerns about Chinese military access to the port and the implications that might have for regional stability.
Read more: Military.com (Port Opening)
Digital Tech Keeps Banking Fresh
The National Bank of Cambodia's Bakong Payment System uses blockchain tech, KHQR codes, and a tourist app to change how people pay for things. The system now connects with Thailand, Vietnam, Laos, South Korea, Malaysia, and Alipay, with six more countries on the way. The central bank just rolled out new crypto rules that sort assets by risk level and require service providers to get licensed. Meanwhile, J Trust Royal Bank has teamed up with Morakot Technology to create digital payment tools for small businesses.
Read more: Khmer Times (Bakong System), Khmer Times (Crypto Regulations), Cambodia Investment Review (Banking Partnership)
Currency Promotion Supports National Identity
The National Bank of Cambodia celebrated 45 years since bringing back the riel with a seminar demonstrating its role in Cambodia's sovereignty and economic growth. The currency is doing well – circulation grows 15% each year, loans are up 35%, and deposits have jumped 30%. The central bank continues to communicate that using the riel helps Cambodian economic independence and reduces reliance on the US dollar. They want to create a national strategy and set up a cross-ministry working group to promote the currency. The bank is pushing to cut USD dependency through policy incentives, financial education, different reserve requirements, and pricing government services in riel.
Read more: Khmer Times (Anniversary), Khmer Times (Dedollarization)
Techo Airport Almost Ready
The $1.5 billion Techo International Airport is 95% done and expected to open July 2025. Located 20 km south of Phnom Penh, the 2,600-hectare facility will be able to handle giant aircraft like the Airbus A380-800 and Boeing 747-800. This 4F-classified airport will initially serve 13 million passengers yearly, growing to 30 million by 2030 and 50 million by 2050. Tourism Minister Huot Hak says the airport will help Cambodia reach its target of 7.5 million international tourists in 2025. China Construction Third Engineering Bureau Group built the project, with British firm Foster + Partners handling the design.
Read more: Khmer Times (Tourism Targets), Independent (Construction Details)
Sustainable Tourism Gets Priority
Tourism Minister Huot Hak is also working to boost Cambodian tourism in other ways as well. Inbound traffic is already showing strong numbers – international visitors reached 6.7 million (up 22.9%) and domestic tourism hit 22.5 million (up 20.1%) in 2024. The country expects 7.2-7.5 million international visitors through this year. PM Hun Manet has called for full support of community-based tourism, calling on government ministries to help local communities manage tourism sustainably. He's asking financial institutions to fund these projects, pointing out they both improve local lives and protect natural resources.
Read more: Khmer Times (Growth Statistics), Khmer Times (Community Tourism)
Skills Gap Puts Economic Growth at Risk
A skills shortage is threatening to slow the local economy. The worst-hit areas include tourism/hospitality (food and beverage), manufacturing (mid and high-skill jobs), IT (AI, cybersecurity, data science), construction, and agriculture. The government has launched programs like TVET 1.5M to train a million and a half young people as well as the HoKa hospitality skills program. Experts say there is a need to update ICT teaching, create short-term skill programs, build public-private partnerships, bring on international help, and improve English language training. There is a little good news – national literacy is up to 85.6%, and bilingual literacy in Khmer and English has more than doubled to a perhaps surprising 11.7%.
Read more: Khmer Times (Skills Shortage), Cambodia Investment Review (Literacy Progress)
Foreign Investment Growing
The European Investment Bank has allocated €15 million into rural economic growth through the ASPIRE-AT program, helping 100,000 farmers, 25,000 families, and 500 agricultural cooperatives. Chinese companies Louis International and Hubei Cherizon are looking at industrial park management and battery manufacturing. The National Bank of Canada plans to modernize Cambodia's banking through ABA Bank, focusing on data systems, cybersecurity, and renewable energy. An Omani delegation explored agriculture, food processing, and green energy opportunities, while IKEA is thinking about entering Cambodia's retail market.
Read more: Khmer Times (European Investment), Khmer Times (Chinese Interest), Khmer Times (Banking Modernization), Khmer Times (Omani Investment), Phnom Penh Post (IKEA Plans)
Trade Growth Improves Regionally
A direct shipping route now connects China's Fangchenggang Port with Cambodia's Koh Kong Port, featuring cold chain capabilities that cut shipping time by half and lower logistics costs by more than 20%. This helps Cambodia's farm exports compete better – agricultural exports hit 11.7 million tonnes in 2024, a 39% jump. The Cambodia-China Free Trade Agreement, active since January 2022, has boosted two-way trade to $15.18 billion in 2024, a 24% increase that makes up 26% of Cambodia's total trade.
Read more: Asian News Network (Shipping Route), Khmer Times (China FTA)
Digital Economy Growth Speeds Up
Cambodia's digital economy is changing fast with new projects. TikTok launched money-making features for Cambodia's 10 million users – content creators with 10,000+ followers and 1 million monthly video views can now earn income. The government asked the platform to improve security and content monitoring. The US Chamber of Commerce plans to attract tech investments, focusing on telecom reform and digital infrastructure. Cambodia's ICT education initiative targets rural areas through Action Education and the Education Above All Foundation, giving schools computer labs and training 100 teachers in game development and coding.
Read more: Cambodia Investment Review (TikTok Monetization), Construction Property (US Investment), Khmer Times (Rural Education)
Manufacturing Sector Booming
The manufacturing has grown dramatically, with the number of factories rising from fewer than 50 in 1997 to more than 1,600 today. The workforce has jumped from 80,000 to over 920,000 workers. The government is about to implement an incentive policy focused on domestic assembly and production, intending to end import dependency while encouraging private investment. The plan includes incentives for investment projects, especially in fabric production, with goals to cut material imports by 20-40%.
Read more: Khmer Times (Factory Growth), Construction Property (Incentive Policy)
Water Management Climate Programs
Several projects tackling climate change and water issues have been launched. A joint water management project with South Korea, backed by the Mekong-Korea Cooperation Fund, is focused on rainwater harvesting and climate resilience. The Ministry of Industry, Science, Technology, and Innovation has teamed up with China's Ministry of Water Resources and UNICEF to improve climate-resilient water and sanitation, targeting SDGs 6.1 and 6.2 with focus on vulnerable groups and the 4 million Cambodians affected by climate risks. Ireland's Minister Noel Grealish has committed €800,000 to fund Oxfam's climate program in northern Cambodia, focusing on climate-smart farming and renewable energy.
Read more: Khmer Times (Korean Partnership), Construction Property (Water Services), Khmer Times (Irish Funding)
Natural Resource Conservation Efforts
Cambodia registered the Mekong Irrawaddy Dolphin Management and Conservation Area as state land in Kratie province, covering 21,966.51 hectares. This registration gives legal protection to the critically endangered Mekong dolphins against land grabbing and development. A major REDD+ project at Lomphat Wildlife Sanctuary is finishing its validation phase, expecting to generate carbon credits by conserving 134,730 hectares and reducing emissions by 252,319 tonnes of CO₂ equivalent yearly. The Environment Ministry admitted they face big challenges in forest protection, with only 1,300 rangers available to keep an eye on more than 7 million hectares of protected areas.
Read more: Khmer Times (Dolphin Conservation), Khmer Times (Carbon Credits), Khmer Times (Forest Challenges)
Rural Development Via Model Villages
The Ministry of Rural Development named 30 villages as Model Villages in 2025, using a tiered rating system. The program evaluates villages on five criteria: economy, society and culture, health and living environment, infrastructure, and governance. Three villages reached Three-Star status, sixteen got Two-Star ratings, and eleven earned One-Star designations. Minister Chhay Rithisen's program is to develop 230 Model Villages between 2025-2028, in an effort to diversify rural economies, provide skills training, create jobs, and boost household incomes. The Commerce Ministry is leading initiatives to promote local product manufacturing with an emphasis on quality standards.
Read more: Khmer Times (Model Villages), Khmer Times (Local Products)
Financial Access, Debt Concerns Grow
The Credit Bureau of Cambodia reports that 51% of Cambodian adults (5.04 million people) had debt as of late 2024, with total outstanding loans hitting $59 billion. Phnom Penh accounts for half of the national credit balance, followed by Kandal and Siem Reap Provinces. Just over 6% of loans are seeing serious repayment issues. Cambodia's microfinance sector has exploded, growing from 16 licensed MFIs in 2005 to 87 by 2023, with loan volumes rising to $9.5 billion. While microfinance gives financial access to marginalized groups, the rapid growth is raising questions about sustainability. The National Bank of Cambodia has introduced interest rate caps and tougher lending guidelines to try and protect borrowers.
Read more: Phnom Penh Post (Household Debt), Phnom Penh Post (Microfinance Concerns)
Entrepreneur Ecosystem Plan For Growth
Cambodia has introduced an Entrepreneurial Ecosystem Roadmap targeting six areas: Support, Policy, Markets, Culture, Human Capital, and Finance. The plan is intended to fix several problems in the entrepreneurial landscape including fragmented support programs, limited financing access, and weak diaspora engagement. The roadmap capitalizes on Cambodia's young population, growing digital economy, and potential in renewable energy, agriculture technology, and creative industries. Implementation partners include the Swiss Agency for Development and Cooperation, Korea International Cooperation Agency, and Swisscontact, with practical mechanisms in place to ensure it works.
Read more: Cambodia Investment Review (Ecosystem Roadmap)
Admin Reforms For Gov’t Efficiency
PM Hun Manet has begun an initiative to make government more efficient through administrative reforms. Instead of adding more ministries, his intention is to shore up existing structures and eliminate overlapping roles. Cambodia currently has over 230,000 civil servants, with 54,585 at the national level and 177,449 at local levels. The government is pushing administrative reforms through the National Committee for Sub-National Democratic Development to help achieve Vision 2050's goal of high-income country status. The reforms focus on sectors including education, health, and agriculture, while promoting cooperation between ministries and digital transformation.
Read more: The Star (Ministry Reforms), Khmer Times (Vision 2050)
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