Cambodia 20250602
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:
Border Tensions Escalate with Thailand
Democratic Suppression Continues Unabated
Crypto Scam Network Exposes Government Links
Climate Vulnerabilities Threaten Economic Goals
US Trade Pressures Drive PV Rethink
Chinese Investments Reshape Border City
ASEAN Summit Strengthens Partnerships
Official Japan Visit Brings Opportunity
Northeast Investment a New Economic Pole
Health Challenges Mount
Media Cooperation to Combat Disinformation
Digital Economy Drives Financial Innovation
Anti-Corruption Efforts to Keep Financial Integrity
Military Cooperation Balances Regional Powers
Border Tensions Escalate with Thailand
A May 28 military kerfuffle between Cambodian and Thai forces on the border in Preah Vihear province has resulted in one Cambodian soldier's death, and caused a rise in diplomatic, military and nationalist tensions on both sides of the demarcation. Senate President Hun Sen has, naturally, re-asserted Cambodia's sovereignty over the disputed Emerald Triangle territory, backed by evidence showing Cambodian troops stationed there since before the Paris Peace Agreement. Prime Minister Hun Manet, directing operations from Tokyo, ordered troop mobilization while also saying that peaceful resolution through established diplomatic channels was the preferred way to go. Thailand announced border crossing closures and a Joint Boundary Committee meeting is being set to try to walk back the mess.
Read more: Khmer Times (diplomatic protest), Bangkok Post (military buildup), Star Malaysia (territorial claims)
Democratic Suppression Continues Unabated
Rather than relaxing, as some had hoped, the authoritarian grip has tightened under the Hun dynasty's transition from father to son, with the ruling party holding 120 of 125 National Assembly seats following the opposition CNRP's dissolution. Media censorship reportedly affects the vast majority of journalists, and civil society is saddled with systematic restrictions like the jailing of labor union leaders and the targeting of environmental activists. Three prominent dissidents recently lost court appeals, and environmental journalist Uk Mao is staring down 15 legal complaints despite being having already been released on bail. Cambodia ranks 141st out of 142 countries in the Rule of Law Index.
Read more: Eurasia Review (democratic suppression), IFEX (journalist persecution), UCA News (dissident appeals)
Crypto Scam Network Exposes Government Links
A massive cryptocurrency fraud operation that reportedly generates up to $19 billion a year has been revealed to have alleged ties to senior government officials, including the prime minister's cousin and the deputy interior minister. The scheme, primarily run by the Huione Group, allegedly used sophisticated money laundering techniques and forced labor while targeting victims through romance and financial scams. The US Treasury has identified Huione Group as a major money-laundering threat, while international watchdogs have released global alerts about the operation's reach beyond Southeast Asia.
Read more: Regulation Asia (industry report), Tron Weekly (government involvement)
Climate Vulnerabilities Threaten Economic Goals
Cambodia ranks 4th globally for flood risk and 23rd for heat-related impacts, with 80% of its land lying within the vulnerable Mekong River Basin. The country sees up to 64 days a year of temperatures in excess of 35°C, threatening the agricultural production that represents almost of quarter of GDP. These climate challenges are an often under appreciated risk to the goal of reaching upper-middle-income status by 2030 and high-income status by 2050. The government is doing its best to keep things on track by setting up intervention teams and developing climate strategies.
Read more: Khmer Times (climate ranking), Construction Property (emissions plan)
US Trade Pressures Drive PV Rethink
The photovoltaic industry is under pressure after a 3521% US tariff was set this April, threatening 250,000 jobs and possibly reducing overall GDP growth from 5.8% to 3.1%. As a result, the industry is working feverishly to shift from US markets to European and Middle Eastern destinations while upgrading capabilities from just manufacturing to also doing more R&D. Even though the outlook is grim, the industry was able to deliver more than $3 billion in US exports during the first four months of 2025, a 22% increase.
Read more: Khmer Times (industry pivot), Nikkei Asia (PM response)
Chinese Investments Reshape Border City
Bavet, a border city with Vietnam, has been transformed by Chinese money. Capital from mainland Chinese or Hong Kong companies reportedly makes up 80% of total investments. The city is home to about a dozen economic zones and projects like Wanli Tire's $500 million manufacturing plant, benefiting from its location and labor costs that average only $300-350 monthly. Chinese ownership now extends to more than 90% of Cambodia's garment factories, though rapid industrialization has put a strain on local infrastructure. The investment growth is a result of China's Belt and Road works and has only sped up as a result of recent US-China trade tensions.
Read more: KR Asia (Bavet transformation), Construction Property (investor interest)
ASEAN Summit Strengthens Partnerships
Prime Minister Hun Manet took advantage of the 46th ASEAN Summit in Kuala Lumpur to push forward several bilateral partnerships and lifted official relations with China to a "Cambodia-China Community of Shared Future." He has also locked in discussions for industrial development and increased flight connectivity. The summit included reportedly productive meetings with Malaysia on cybersecurity and digital economy cooperation, and with Middle Eastern nations that wanted to explore energy and fintech opportunities. Hun Manet also called for better regional integration, ASEAN unity, and support for Timor-Leste's membership bid.
Read more: Khmer Times (bilateral meetings), Khmer Times (regional integration)
Official Japan Visit Brings Opportunity
During Prime Minister Hun Manet's official visit to Japan, major Japanese companies showed off their investment plans. Minebea Mitsumi presented plans to finish up a new factory by the end of this year, and NTT DOCOMO said it wanted in on digital sector investments and JBIC focused on infrastructure and clean energy projects. The Japan-Cambodia Association presented three action plans to develop SME promotion, agro-processing investment, and digital industrial parks, including the setup of an Exclusive Special Economic Zone just for Japanese SMEs.
Read more: Khmer Times (company meetings), Construction Property (infrastructure focus)
Northeast Investment a New Economic Pole
The government has started up its SPIN Program 2025-2028, intending to make the four northeastern provinces of Kratie, Stung Treng, Mondulkiri, and Ratanakiri Cambodia's fifth economic pole. The program reduces minimum capital requirements to $100,000 and offers tax exemptions, streamlined procedures, and affordable financing for agriculture, agro-industry, and tourism. The provinces offer advantages including fertile soil for rubber, cashew, cassava, and pepper cultivation, plus the potential for eco-tourism, supported by infrastructure improvements in transportation and communications.
Read more: Khmer Times (SPIN program), Cambodia Investment Review (competitiveness strategy)
Health Challenges Mount
An alarming measles outbreak with 2,150 cases was reported in the first four months of 2025, blamed on declining vaccination coverage and rising vaccine hesitancy. Tuberculosis is also a growing threat that’s being managed through a €2.9 million intervention program led by KHANA. The project is expected to screen as many as 90,000 people a year. Cancer care infrastructure is also getting some help with the construction of the country's first Cyclotron Medical Center and the upgrade of Luang Me Hospital into a specialized cancer facility. Cancer diagnoses are expected to double by 2045.
Read more: Khmer Times (measles outbreak), IAEA (cancer infrastructure)
Media Cooperation to Combat Disinformation
Cambodia is taking a lead in efforts to combat disinformation through better collaboration between ASEAN and Chinese media organizations, building on its "Say No to Fake News" campaign launched in April 2025. The Ministry of Information reported 1,339 fake news cases in the first five months of 2025, following a 14% increase from 2023 to 2024. The plans include joint mechanisms for verification systems, ethical AI guidelines for media, and improved capacity-building programs across the region.
Read more: Khmer Times (case statistics), Khmer Times (regional cooperation)
Digital Economy Drives Financial Innovation
The e-commerce market is expected to grow to $1.81 billion by 2029. The main drivers of the expansion are KHQR payments, which processed more than 600 million transactions in 2023 and the blockchain-based Bakong platform that supported 75.6 million transactions in just the first half of last year. QR code payments are sweeping the nation with almost half of consumers preferring to pay that way. The banking sector hosted Cybersecurity Day 2025 to talk about the rise in online scams and to figure out how to raise the country’s digital defenses, as online banking now serves 60% of the population.
Read more: Fintech News (market growth), Khmer Times (cybersecurity focus)
Anti-Corruption Efforts to Keep Financial Integrity
Interior Minister Sar Sokha has promised to keep Cambodia off the FATF grey list after the country was finally able to get off of it in February 2023. The government says it has strict anti-money laundering measures in place and works to reduce online fraud and human trafficking through better application of the law. Having said this, two senior officials were recently charged for attempting to bribe authorities with $774,000 to secure the release of 43 detained Thai nationals, and of course the earlier story today (above) about crypto scams indicate there is still much work to be done.
Read more: Khmer Times (FATF commitment), Star Malaysia (bribery charges)
Military Cooperation Balances Regional Powers
The US Indo-Pacific Command's Admiral Samuel Paparo ran a diplomatic visit to commemorate 75 years of US-Cambodia relations, focusing on military education, peacekeeping, and medical cooperation, with the USS Savannah making the first US Navy port call in about eight years. Against that backdrop, however, Cambodia also wrapped up the "Golden Dragon" naval exercise with China, which simulated counter-terrorism operations using advanced military technology.
Read more: US PACOM (US engagement), Khmer Times (China exercise)
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.