Cambodia 20250526
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Headlines:
Beijing Backs Phnom Penh Air Defense
Scam Compounds Put Phnom Penh in Spotlight
Fast-Track Deal Expected to Cool US Tariffs
Rewriting The Growth Story: Garments to Chips
Investors Crowd in on "Open Door" Strategy
Big-Ticket Projects Redraw Transport Map
Ag: Farmers Aging, Durian Shipping
Riel Goes Regional as Banks Tighten Safeguards
Green Agenda Moves From Plans to Penalties
Reporting Brings Trouble for Journos
Siem Reap Meeting for ASEAN Disaster Playbook
New Routes in Anticipation of New Airport
Paperwork Gets Lighter for Importers
Hollywood Points Cameras to Phnom Penh
Beijing Backs Phnom Penh Air Defense
Cambodia has rolled out Chinese QW-3 Vanguard shoulder-fired missiles and the TH-S311 digital command net, its first mobile, laser-guided shield. The hardware is going straight into action with the Golden Dragon 2025 drills, where 2,000 Cambodian and Chinese troops are practicing counter-terror operations with drones, robot dogs, ships and attack helicopters. Commanders say the new gear lets units swat drones and cruise missiles at a range of up to six thousand meters (almost 4 miles) while sharing target data in seconds. Vietnam publicly reminded both partners that cooperation should stay within UN rules, showing that it is feeling a little unease over Beijing's growing Cambodian footprint.
Read more: Army Recognition (Missiles), Khmer Times (Exercise), The Star (Vietnam view)
Scam Compounds Put Phnom Penh in Spotlight
UN experts say that there are 350 Cambodian scam compounds still keeping 150,000 foreign workers trapped in online fraud that nets as much as USD 19 billion a year. A different study connects 28 ruling-party figures to the rackets and calls for sanctions (the government has strongly denied the accusations), while the South China Morning Post has painted a shocking picture of Cambodia as the hub of a “the world’s most powerful criminal network.” In addition to the official denials, Cambodia has joined Indonesia and Thailand in new data-sharing pacts to work on solving the organized crime problem.
Read more: CamboJA (UN alarm), SCMP (Network scope), CamboJA (Sanctions list), Jakarta Post (Regional pact)
Fast-Track Deal Expected to Cool US Tariffs
Washington's 49 percent duty on Cambodian garments and shoes is on hold for 90 days while negotiators work to hammer out a lower customs formula. Cambodia has offered to reduce tariffs on 19 categories of U.S. imports from 35 percent to 5 percent. Prime Minister Hun Manet said that the country shipped USD 3 billion in product to the US during Q1, up 22 percent from last year. A June round of talks in Washington could result in a longer reprieve, and US lawmakers have given some indictions that they want to see this resolved and that there is broader investment interest from the United States in Cambodia generally.
Read more: Khmer Times (Pause details), Khmer Times (Next talks), Construction Property (Congress view)
Rewriting The Growth Story: Garments to Chips
With Cambodia’s coming graduation from least developed country status in 2029 and garments still being responsible for 45 percent of exports, authorities are working hard on trying to support the electronics, agritech and services sectors to take on a bigger role in the economy. New plans include special economic zones to support semiconductor assembly, processed foods and organic crops. Analysts say a livelier startup scene could speed the changes if access to early-stage capital becomes more widely available.
Read more: Khmer Times (Diversification), Khmer Times (Skills), Khmer Times (Digital talent), Cambodia Investment Review (Startups)
Investors Crowd in on "Open Door" Strategy
The Council for Development approved 231 projects worth USD 3.4 billion for Q1, an 80 percent increase over last year. The Sihanoukville SEZ, home to 202 factories, was able to log an impressive USD 4 billion in trade last year, and officials are going to great lengths to remind investors that US, French and Japanese money is welcome alongside Chinese capital. New arrivals to Cambodia include Wanli Tire's USD 500 million plant and a new BYD EV line. To shore up governance, the Cambodian Institute of Directors has formed an oversight council to improve board member knowledge on best practices.
Read more: Khmer Times (PM stance), Khmer Times (SSEZ data), Khmer Times (Chinese inflows), Cambo Review(Governance)
Big-Ticket Projects Redraw Transport Map
Survey teams have staked 270 markers for the USD 1.16 billion Funan Techo Canal that will connect Phnom Penh to the coast. South of the capital, the new Techo International Airport is 96 percent complete and expected to fully open on 9 September 2025 after a safety review is wrapped up. Prime Minister Hun Manet said that Kampong Chhnang and Pursat are to be the next industrial hubs. The area has really opened up with the completion of National Road 10 (NR10). Japan's development institute wants rural SEZs on cleared minefields to plug farm output into the network.
Read more: Khmer Times (Canal), Khmer Times (Airport), Khmer Times (Industrial hubs), Construction Property (SEZ), Cambodia Investment Review (SEZ)
Ag: Farmers Aging, Durian Shipping
A recent survey shows just over half of Cambodian households now farm (54%), a reduction from 82 percent in 2013. The average plot size is 1.7 hectares. Rice still covers two-thirds of fields, but irrigation use lags and the farm workforce is quickly aging. The average yield of paddy rice nationally was reported to be 3.4 tonnes per hectare (compare with ~3 in TH and ~5 in VN). The data drop comes as Beijing has opened its USD 7 billion durian market to Cambodian orchards; Phnom Penh is in a race to register growers and packhouses to get shipments out the door and into Chinese markets as quickly as possible.
Read more: Phnom Penh Post (Census), Retail News Asia (Durian deal),
Riel Goes Regional as Banks Tighten Safeguards
The Bakong QR network is now able to process cross-border payments in Thailand, Vietnam, Laos and Malaysia, letting shoppers pay in Khmer Riel without dollar swaps. The National Bank says the ability supports both de-dollarisation and ASEAN integration. Banks came together for "Cybersecurity Day 2025," promising to share threat intelligence after a concerning rise in phishing and ransomware. Visa is also teaming up with the Industry Ministry to build credit scores for informal traders, hoping data plus secure rails will lead to more widespread SME lending.
Read more: Khmer Times (Bakong), Cambo Review (Cybersecurity), Khmer Times (Visa-SME)
Green Agenda Moves From Plans to Penalties
A new 2024-2033 climate plan is keeping carbon neutrality on track for 2050 but warns that GDP could shrink almost 10 percent without action. To rebuild forests, the Environment Ministry will distribute three million saplings next year and is finishing the country's largest nursery. Tough talk is backing the plan: the minister has already shut down shoe and mango factories for dumping untreated waste and has brought cases against 30 polluters, telling citizens he "carries a sword."
Read more: Phnom Penh Post (Climate plan), Khmer Times (Tree drive), The Star (Minister quote), Khmer Times (Shoe plant), Khmer Times (Mango plant)
Reporting Brings Trouble for Journos
Plainclothes officers arrested reporter Ouk Mao after he filmed illegal logging in Prey Lang, and prosecutors have charged him with incitement and defamation. The Information Ministry says he lacks proper credentials, while CamboJA and RSF say that the arrest is simply intimidation. Indigenous Kuy activists who recorded and reported 334 logging incidents face threats too, and an Asia Centre study shows female journalists being especially impacted by deepfakes and anonymous trolls. Cambodia is at 161 of 180 on RSF's press freedom index, and observers warn that if the intimidation continues, stories on the environment at at risk of extinction.
Read more: Radio Free Asia (Arrest), CamboJA (Ministry stance), ICT News (Indigenous pressure), CamboJA (Online abuse)
Siem Reap Meeting for ASEAN Disaster Playbook
Disaster bigwigs from ASEAN and Timor-Leste agreed to upgrade early-warning systems, pool relief stocks and update the ASEAN disaster treaty in time for its 20th anniversary. Cambodia's Kun Kim has asked for for shared satellite data and cross-border evacuation plans, and ministers are drafting support language for Myanmar peace efforts in order to keep aid corridors open. A ministerial statement on "global leadership in disaster resilience" is also being prepared for presentation at the next summit.
Read more: Khmer Times (Meeting), Khmer Times (Peace link)
New Routes in Anticipation of New Airport
Cambodia Airways launched direct Phnom Penh–Penang flights, and Malaysia's ambassador expects tourism and medical travel to rise. China's Ruili Airlines restarted weekly Wuxi–Sihanoukville service as Chinese arrivals hit 286,000 in Q1, up by more than half year on year. Both routes are feeding momentum and anticipation for the Techo International Airport, expected to be able to handle 15 million passengers a year from September. The government says the current airport will remain for public use, quashing rumors that the land would be put up for sale.
Read more: Khmer Times (Penang link), Big News Network (Wuxi route), Khmer Times (Airport date)
Paperwork Gets Lighter for Importers
Japan's customs bureau has trained 30 Cambodian officers to better be able to spot fake goods using demos from Toyota, Panasonic and JTI. The workshop is intended to support the curb of illegal trade and reassure investors that their IP will be safe in Cambodia. On the tax front, Double Tax Agreements with Laos and the Philippines are going to take effect next quarter, increasing the number of active DTAs to thirteen and giving exporters credit for taxes paid abroad. Talks with France, UAE and Myanmar to finalize similar deals are also nearly finished.
Read more: Khmer Times (Customs training), Khmer Times (DTA rollout)
Hollywood Points Cameras to Phnom Penh
Camwood Studios and LA-based The Studio say they will co-produce up to ten films and series in Cambodia for Netflix, Prime Video and HBO Max, using six local sound stages and crews. The deal syncs with Expo 2025 Osaka, where Cambodia's pavilion will pair Koh Ker temple holograms with the 333-metre J Tower 3 condo to promote the dichotomy of heritage and modernity. Cellcard, fresh off a 3 percent subscriber lift, says network upgrades will handle the extra streaming traffic. Officials are keen to pitch screen projects as the next leg of diversification.
Read more: Cambo Review (Film deal), Khmer Times (Expo), Cambo Review (Network)
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