Cambodia 20250414
Mekong Memo Cambodia Weekly: Business, politics, finance, trade & legal news.
News from Southeast Asia directly to your inbox every weekday.
The Mekong Memo is proudly presented by:
Horton International is your premier partner for executive search in Southeast Asia. Whether you're a small startup or a global corporation, our reliable and effective recruiting solutions are tailored to meet your unique needs. With extensive experience and offices across the region, we excel at overcoming recruitment challenges and securing top talent for your organization.
Click here to learn how Horton can make your life easier.
The Memo is published weekdays - Cambodia (every Monday), Myanmar (Tuesday), Laos (Wednesday), Vietnam (Thursday) and Thailand (Friday). The Thailand edition is free in its entirety; the others usually abbreviated for non-paid subscribers.
Please go to https://www.mekongmemo.com/account to select country editions you would like to receive without affecting your overall subscription status.
Headlines:
US Tariffs Cast a Long Shadow
NBC Joins Regional Payment Collective
Q1 Trade Surges 15.6%
EU-Funded Green Transition Initiatives
Green Finance Success with $50 Million Bond
Northeast Development Program Unveiled
Chinese Investment Continues to Grow
Textile Summit Prioritizes Sustainability
Digital Economy Expands Post-COVID
Infrastructure Development Accelerates
Royal Group and Chip Mong Form Partnership
Special Economic Zones Drive Foreign Investment
Sustainable Agriculture and Food Security
Climate Risk Threatens Stability
Tourism and Conservation Initiatives Expand
Wing Bank Drops Cash-Out Fees
US Tariffs Cast a Long Shadow
The United States has slapped a 49% tariff on Cambodian exports, threatening the country's export-driven economy where 70% of GDP comes from exports and the US represents the largest market at $9.9 billion. The tariffs could result in $4-5 billion in lost revenue, reduce GDP growth, and risk putting a severe crimp in the garment industry which operates on thin margins and employs 800,000 workers. Prime Minister Hun Manet has mounted a diplomatic response, reducing tariffs on 85 US products from 35% to 5%, while also sending officials for direct negotiations.
Read more: Khmer Times (Tariff Impact), Khmer Times (Government Response), SME Asia (ASEAN Discussion), Idaho Statesman (Mango Exports), Nikkei Asia (Garment Workers)
NBC Joins Regional Payment Collective
The National Bank of Cambodia has become the ninth ASEAN central bank to join the Regional Payment Connectivity initiative, to improve cross-border payment efficiency with QR code-based systems. The RPC, launched in 2022 by five founding members, has since expanded to include Vietnam, Brunei, Laos, and now Cambodia. NBC's entry came at the same time as the Malaysia-Cambodia cross-border QR payment linkage launch.
Read more: Khmer Times (RPC Initiative), The Star (Cross-Border Payments)
Q1 Trade Surges 15.6%
International trade volume reached $14.45 billion in Q1 2025, a 15.6% year-on-year increase. Exports grew by 9.8% to $6.87 billion, and imports rose 21.5% to $7.57 billion, creating a trade deficit of $697.83 million. The country's main trading partners remain China, US, Vietnam, Thailand, and Japan. The Asian Development Bank expects to see 6.1% economic growth for 2025, supported by garment exports and tourism recovery, despite concerns over US import tariffs.
Read more: Phnom Penh Post
EU-Funded Green Transition Initiatives
Two major EU-funded environmental initiatives in support of sustainable agri-food systems and plastic waste reduction have been launched. The Accelerating Sustainability in Cambodia's Agri-Food System is in support of sustainable agricultural practices, and PlasticSmart Cambodia addresses the plastic waste challenge, which currently makes up a fifth of municipal waste. The projects complement existing national campaigns.
Read more: Khmer Times (Green Initiatives), Asian News Network (Environmental Programs)
Green Finance Success with $50 Million Bond
SchneiTec Dynamic's $49.16 million green bond launch on the Cambodia Securities Exchange is still getting great press. The 15-year bond, guaranteed by CGIF, will fund a 60-megawatt solar power facility in Kampong Chhnang that’s expected to generate 130 GWh of clean electricity annually and reduce greenhouse gas emissions by 85,000+ metric tons. The project, which earned a 'Dark Green' rating from S&P Global, will create more than 450 green jobs and is in alignment with international and ASEAN green bond standards.
Read more: Cambodia Investment Review (Green Bond), Khmer Times (Finance Taxonomy)
Northeast Development Program Unveiled
Prime Minister Hun Manet has announced a development plan to support Northeast Cambodia’s development into a more self-sustaining economic center. The plan is to develop human capital, logistics, and connectivity in Kratie, Stung Treng, Ratanakiri, and Mondulkiri provinces. Measures include extending investment law incentives, waiving penalties for 2025 business registrations, and establishing a Northeastern Investment Promotion Working Group.
Read more: EAC News (Development Program), Khmer Times (Cybercrime Prevention), Vietnam Plus (Investment Boost)
Chinese Investment Continues to Grow
BYD Auto Industry Co Ltd plans to set up an assembly factory in Sihanoukville Special Economic Zone, with operations to begin in Q4. Chinese President Xi Jinping's upcoming state visit to Cambodia is expected to strengthen ties between the two countries, which Prime Minister Hun Manet characterized as "ironclad." China has contributed about $3 billion in grants and loans for infrastructure projects, with some of the biggest companies involved include China Road and Bridge Corporation, China Huadian, and Huawei.
Read more: Khmer Times (BYD Factory), Khmer Times (Bilateral Relations), Khmer Times (Strong Ties), CGTN (Continuous Growth)
Textile Summit Prioritizes Sustainability
The first Cambodia Global Textile Summit has brought together 470 industry leaders to try and crack challenges in the garment, footwear, and travel goods sector. The event brought together 34 global brands and 150 factories from 8 countries to talk on human rights, environmental due diligence, supply chain resilience, and textile waste management.
Read more: Cambodia Investment Review (Textile Summit), Focus Web (Worker Conditions), Apparel Resources (India Partnership)
Digital Economy Expands Post-COVID
The e-commerce market reached $1.51 billion in 2024, accounting for 6.68% of national GDP, with projections showing growth to $1.78 billion this year. The sector is dominated by social media platforms, with Facebook (11.65 million users) and TikTok (9.96 million users) leading the market. Top product categories are apparel, beauty/cosmetics, and food delivery, with QR code payments being the preferred transaction method. A star player in the success has been the National Bank of Cambodia’s Bakong system, a blockchain-based digital payment platform that processed $104.81 billion in transactions in 2024.
Read more: Phnom Penh Post (E-commerce Growth), ORF Online (Bakong System), Mobile World Live (Digital Infrastructure)
Infrastructure Development Accelerates
Several major infrastructure projects have started underway including the two-storey Morodok Techo Flyover ($36.8 million) and National Road 71C connecting Tbong Khmum and Kampong Cham provinces. The Phnom Penh-Sihanoukville Expressway, a $2 billion Belt and Road Initiative project, has reduced travel time from 6-7 hours to just 2 and a half hours, serving more than 12.5 million vehicles. The Lower Sesan II Hydropower Plant generates 1,970 gigawatt-hours annually, providing 20% of Cambodia's electricity supply with its 400-megawatt facility.
Read more: Khmer Times (Flyover), Global Times (Road Construction), Khmer Times (Expressway), Khmer Times (Hydropower)
Royal Group and Chip Mong Form Partnership
Two of Cambodia's largest conglomerates, Royal Group and Chip Mong, have entered into a partnership to push national economic development. The collaboration targets sectors including banking, energy, construction, real estate, hospitality, communications, food & beverages, and education. The partnership is said to be in aid of creating business synergies, driving infrastructure investment, and support of national objectives.
Read more: Cambodia Investment Review
Special Economic Zones Drive Foreign Investment
The nation currently sports 30 Special Economic Zones, pulling in foreign investment mostly from China, Japan, Thailand, and South Korea. The zones generated more than $5 billion in export value in 2024, with total FDI reaching $2.7 billion in 2023. Investors benefit from some big tax breaks including 9-year tax holidays, import duty exemptions, reduced profit tax rates, and VAT benefits, though challenges include infrastructure limitations and administrative bureaucracy.
Read more: ASEAN Briefing
Sustainable Agriculture and Food Security
The Council for Agricultural and Rural Development has released its Third National Strategy for Food Security and Nutrition (2024-2028), which is focused on reducing child stunting and child wasting. The strategy is centered on sustainable food systems, health systems, and nutrition-sensitive social protection.
Read more: USA-ASEAN (Agricultural Investment), Khmer Times (Nutrition Strategy), CGIAR (Rice Production)
Climate Risk Threatens Stability
A UN ESCAP report has identified Cambodia as one of 11 Asia Pacific nations most vulnerable to climate-related economic impacts. The report warns that Cambodia could face agricultural production losses of 10-13% and annual GDP reductions of 11% due to climate shocks. As a commodity-dependent, agrarian economy with limited fiscal capacity, Cambodia faces elevated risks, and requires government support for economic transitions, development of green industry competitiveness, and more work on regional economic cooperation.
Read more: Cambodia News
Tourism and Conservation Initiatives Expand
The Ministry of Environment is putting a sustainable tourism development plan into play for Khnong Phsar Mountain in Kampong Speu province under the Cambodia Sustainable Landscape and Ecotourism Project. The Tonle Sap Authority has announced a water quality monitoring initiative to identify and address pollution sources in the lake, which supports nearly 117,000 people in more than 26,700 floating households. iDE has launched a waste management project in Boribour district to protect the Tonle Sap Lake, with service provider Lam Samnang seeing a 400% increase in their customer base.
Read more: Khmer Times (Ecotourism), Khmer Times (Water Quality), Asian News Network (Waste Management)
Wing Bank Drops Cash-Out Fees
Wing Bank has eliminated cash-out fees across its network of more than 12,000 agents and branches throughout Cambodia. Led by CEO Dr. Dmytro Kolechko, policy chance is being presented as a way to increase financial inclusion despite sacrificing significant revenue. The bank's strong financial position, with a 73% revenue increase, 62% deposit growth, and total assets in excess of $2.5 billion, support the move. The program is the first zero-fee cash-out initiative in the local financial sector.
Read more: Cambodia Investment Review
That’s all for this week! Please don’t forget to share this with someone who would find it useful. Also, your voice matters to us. Feel we're missing something? Have additional sources to suggest? Don't hold back— hit reply and tell us what you think.
If you value the Mekong Memo, please consider buying (or gifting!) a paid subscription, sharing it on social media or forwarding this email to someone who might enjoy it. You can also “like” this newsletter by clicking the ❤️ below (or sometimes above, depending on the platform), which helps us get visibility on Substack.