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Headlines:
US Slaps Cambodia with 49% Tariff
Ream Naval Base Opens with Chinese Backing
Cross-Border Tourism Surges
First Green Bond To Be Issued
Japanese and Chinese Investment Grows
China Keeps Doubling Down on Local Ties
Demining Efforts Get Funding Boost
Cambodia-Vietnam Business Ties
Cambodia-India Relations
Real Estate Remains Flaccid
Financial Services Show Strong Growth
Infrastructure Projects Roundup
Green Energy Projects Get Funding
Education Gets Big Bucks, TLC
Ag Expo Preparation Underway
Economic Strategy Outlined
Digital Transformation Takes Off
US Slaps Cambodia with 49% Tariff
Trump's new 49% tariff on Cambodian imports is a grave threat to the country's export economy. The steep rate - highest in Southeast Asia - has Hun Manet scrambling to negotiate delays and offering to cut import duties on 19 US products from 35% to 5%. The hit could knock 0.8 points off Cambodia's GDP growth, though pre-placed orders mean limited impact through 2025, with bigger problems possibly coming around next year or the year after if US trade policy shifts toward other countries.
Khmer Times (Negotiation Offer), The Diplomat (Regional Impact), Khmer Times (Labor Impact), ABC (Economic Consequences), Khmer Times (PM Response), Khmer Times (Expert Criticism)
Ream Naval Base Opens with Chinese Backing
PM Hun Manet says that the expanded Ream Naval Base built with Chinese support will welcome warships up to 20,000 tonnes from friendly nations - with advance notice. The 787,673 sq meter facility includes a military port, 5,000-tonne dry dock, offices, dorms, and logistics infrastructure. Hun Manet was at pains to confirm Cambodia's sovereignty and rejected American concerns about giving China exclusive access. The opening (coincidentally?) comes right before Xi Jinping's planned visit.
Defence Blog (Chinese Involvement), Independent (Base Expansion), Khmer Times (Operational Details), Nikkei Asia(Xi Visit), Khmer Times (PM Statement)
Cross-Border Tourism Surges
Mekong region tourism is bouncing back strong. Cambodia brought in 6.7 million foreign tourists in 2024 - up 23% - while domestic travel jumped to 22.52 million, a more-than 20% rise. The country expects up to 7.5 million international visitors this year. The Mekong Tourism Coordinating Office is pushing regional teamwork through its GMS Tourism Plan 2030, focusing on sustainable tourism through Cambodia, Laos, Thailand, and Vietnam. Main projects include the Mekong Discovery Trail for eco-tourism and improved cross-border access. Angkor park welcomed 400,000 foreign visitors in Q1 2025 and was able to pull in almost $50 million in ticket sales last year.
Phnom Penh Post (Regional Tourism), Travel and Tour World (Community Tourism), Khmer Times (Angkor Visitor Stats)
First Green Bond To Be Issued
Yuanta Securities has launched Cambodia's first $50 million green project bond. The dual-tranche bond, partly backed by Credit Guarantee and Investment Facility, will hit the Cambodia Securities Exchange in three days, on April 10. It has so far drawn interest from a wide range of buyers including insurance companies, an export credit agency, international banks, and a local bank. The money will fund SchneiTec Group's solar energy expansion, in support of national energy independence and clean power goals.
Japanese and Chinese Investment Grows
Cambodia is pulling in big investments from both Japan and China. Japanese firm Regional Fish Institute is looking into biotech for aquaculture, and Smart Eden will distribute Cambodian agricultural products to 6,000 retail spots across France. The Japan-Cambodia Association is working to bring Japanese SME investments to Cambodia in the agriculture, tech, and environmental sectors. China keeps growing through projects like the Sihanoukville Special Economic Zone, which has created more than 32,000 jobs and topped $4 billion in annual trade. Chinese investments made up 80% of all approved projects in Q1 2025, with the CDC approving 172 total investment projects.
Smart Eden (Agricultural Exports), Phnom Penh Post (Aquaculture Investment), Khmer Times (Japanese Investment), Construction Property (Chinese Delegation), Khmer Times (SSEZ Development), Khmer Times (Investment Growth)
China Keeps Doubling Down on Local Ties
China keeps expanding its footprint in Cambodia across the board. Chinese medical teams have treated about 300,000 patients over the past three years. China Communication Construction Company has built more than 2,000 km of roads and created 30,000+ jobs. Chinese experts have restored temples at Angkor Archaeological Park, including Chau Say Tevoda and Ta Keo temples, with work continuing at Angkor Thom Royal Palace. China is also funding an $8 million Phase II expansion of the University of Kratie, now 70% complete. Both countries are figuring out how to increase the tempo of cultural exchanges, with 2025 named Cambodia-China Tourism Year.
Khmer Times (Medical Support), Khmer Times (Infrastructure Development), The Star (Angkor Preservation), Khmer Times (University Development), Khmer Times (Bilateral Relations)
Demining Efforts Get Funding Boost
The battle against landmines is gaining momentum with renewed international support. Japan committed about $11 million through two projects: $8.4 million for technical equipment and training, and $2 million for a Training Complex. Luxembourg pledged €2 million to the "Clearing for Results" project, joining Australia, New Zealand, and Korea as backers. Cambodia has become a global leader in landmine clearance, with 5,000+ personnel being able to destroy 4 million landmines since the 1990s. Still, an estimated 4-6 million pieces of unexploded ordnance remain in the ground.
Khmer Times (Japanese Funding), Khmer Times (Project Details), UNDP (Luxembourg Support), France24 (Clearance Efforts)
Cambodia-Vietnam Business Ties
Vietnamese investment in Cambodia continues to rise, with Vietnam now Cambodia's fifth-largest investor with 215 projects worth $2.94 billion. The Vietnamese Embassy and Vietnam-Cambodia Business Association held a business dialog recently, centered on improving Vietnamese investment. Major Vietnamese companies in Cambodia include Metfone, BIDC Bank, Angkor Milk, and Thaco Agri. Both countries say they intend to reach $20 billion in bilateral trade, but the processes of gathering business feedback, improving the investment climate, and building stronger cross-border business networks will be required to get there.
Cambodia-India Relations
India plans to set up a defense attaché position and open a defense office in the country. The two nations recently ran the CINBAX-I joint military exercise, which was intended to practice counter-terrorism skills. India helps train the Royal Cambodian Armed Forces. In education, they're expanding work on digital education, teacher training, and professional development. The partnership builds on ties dating back to 1980 and includes health, economic, and cultural cooperation.
Khmer Times (Defense Cooperation), Khmer Times (Educational Partnership)
Real Estate Remains Flaccid
The property market remains weak despite positive economic signs. While GDP growth is forecast at 5.5% in 2024 and 5.8-6.3% in 2025, residential property prices inched up just 0.45% nationwide. Phnom Penh condo prices dropped 2.21% to $2,650 per square meter, with total condo supply hitting 72,000 units. The government introduced first-time homebuyer tax incentives and pushed back capital gains tax to the end of this year. Rental yields remain attractive at 7.13-8.16%, but high vacancy rates and project delays plague the sector. In Sihanoukville, Deputy Governor Long Dimanche has been busy saying that security and social stability are required for attracting further investment.
Global Property Guide (Overview), Khmer Times (Sihanoukville)
Financial Services Show Strong Growth
The financial sector started 2025 with solid growth. Insurance premiums reached $72.43 million in the first two months - up 7.5% year-over-year - while total claims dropped 34.5% to $11.3 million. The industry now holds assets over $1 billion and makes up 1.17% of GDP. Wing Bank had a stellar 2024, with revenue jumping 73% and deposits growing 62%. The bank's total assets grew 52% while retail loans increased 26%. Digital adoption spiked with 23% more app users, and the bank was able to secure approval for an $88 million capital increase. Cellcard and the Ministry of Post and Telecommunications are reportedly working together to beef up digital security infrastructure.
Khmer Times (Insurance), Cambodia Investment Review (Wing Bank), Cambodia Investment Review (Cybersecurity)
Infrastructure Projects Roundup
The border ring road is 39.92% complete, crossing Mondulkiri and Ratanakiri provinces with 110 km of land cleared and satisfactory progress on concrete structures, drainage, and road embankments. The government is taking back unused island development projects from private companies while creating rules to designate islands for private development versus national defense. Water Resources Minister Thor Chetha and Rural Development Minister Chhay Rithisen inspected the Dang Kambet Reservoir irrigation project to improve water security and farming. Border Affairs Minister Lam Chea oversaw riverbank construction along the Cambodia-Vietnam border to stop erosion. Smart Axiata got a $50 million trade finance facility from CIMB Bank to improve network infrastructure and prepare for 5G.
Khmer Times (Border Road Progress), Khmer Times (Island Development), Khmer Times (Irrigation Project), Khmer Times (Riverbank Construction), Cambodia Investment Review (Telecom Development)
Green Energy Projects Get Funding
The Green Climate Fund allocated $40 million for its REDD+ program to cut deforestation and forest degradation emissions. The project focuses on better forest management, community support, and helping Cambodia reach carbon neutrality by 2050. The UN and government have both reported climate progress, with 292,000 hectares of community forests actively managed, 3,800 fishing vessels registered, and 3,000 tonnes of ozone-depleting substances eliminated in 2024.
Construction Property (Climate Funding), Khmer Times (Environmental Progress)
Education Gets Big Bucks, TLC
An $84 million Secondary Education project with the Asian Development Bank has gotten underway. The program will help 175,000 students in 259 schools, with plans for 414 new classrooms by 2028. It works in support of 35,000 disadvantaged students and includes climate-resilient buildings, STEM equipment, and modern libraries. The Sihanoukville Institute of Business and Technology, run by China's Wuxi Vocational Institute of Commerce, gives scholarships to about 80 Cambodian students yearly. The Education Ministry is working with SEAMEO to assess primary school learning through the Southeast Asia Primary Learning Metrics program, covering 195 schools nationwide.
Khmer Times (Education Project), Khmer Times (Vocational Training), Khmer Times (Learning Assessment)
Ag Expo Preparation Underway
Cambodia is gearing up for Expo 2025 Osaka, looking forward to the opportunity to show of top agricultural products including rice, cashews, Kampot pepper, and silk. The pavilion's design is inspired by Angkorian temples while following the expo's 'Saving Lives' theme with a nod to sustainability. Cambodian fruits are gaining traction in China, with four varieties now approved for the Chinese market since 2019. Te Zhong Shebei JianceYanjiu Yuan launched a Special Equipment Testing Center for industrial equipment safety to standardize quality checks and support Cambodia's growing industry by bringing production in line with international safety standards.
Khmer Times (Expo Preparation), Fresh Plaza (Fruit Exports), Phnom Penh Post (Testing Facility), Khmer Times (Cashew Production)
Economic Strategy Outlined
National economic policy is centered on seven approaches: sustained educational investment, industrial zone investment, public-private partnerships, regulatory flexibility, community-based development, diaspora talent engagement, and sustainable certification. Kampong Cham province's economy is expected to hit $2.86 billion by 2025, with GDP per capita reaching $2,478. The province maintains an 8.6% annual GDP growth rate and has seen big infrastructure improvements over the past decade.
Khmer Times (Economic Policy), Khmer Times (Development Goals), Khmer Times (Provincial Growth)
Digital Transformation Takes Off
The Civil Service Ministry met to discuss AI function configuration in government, following a March 26 government circular. The Ministry wants to define core and supporting AI functions for each ministry and assign implementation responsibilities. The Information Ministry and Metfone have inked a partnership to fight misinformation, with plans for anti-fake news messaging via mobile networks, integrating national TV channels into Metfone's OTT TV system, and free internet for national TV broadcasts.
Khmer Times (AI Implementation), Khmer Times (Information Partnership)
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