Cambodia 20250616
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Headlines:
Cambodia-Thailand Border Blowup
PM Sees 6.3% Growth, WB Says 4%
Trade Talks on The Horizon as July 10 Nears
Big Infrastructure Plans Afoot
Climate Change: Hitting Back
AI Rollout & Rules
France a Longstanding Strategic Ally
China Ties Grow Deeper
Tourism Takes Flight, UNESCO Gets a Call
Skilling Up the Workforce
Cybercrime is a National Threat
Fake News Fight Sparks Press Freedom Fears
Tackling Land Disputes
Health System Gets Booster
Food, Farms, and Labor Getting Stronger
Legal Scene: Global & Local
Cambodia-Thailand Border Blowup
A fatal border incident on May 28, which cost the life of a Cambodian soldier, has blown up into a full-on diplomatic crisis. Cambodia has put sweeping retaliatory measures in place, including bringing a stop to Thai internet bandwidth purchases, banning Thai media content and kickboxers, and blocking agricultural imports. Thailand has responded by restricting border checkpoint hours, closing several crossings, and threatening electricity cuts to border areas. The dispute is centered around four contested areas including Ta Moan Thom Temple and the Mom Bei region. Provincial governors have prepared evacuation plans for border communities, and bilateral trade is already feeling the pinch. Though diplomatic channels are still open through the Joint Boundary Commission, strong nationalist rhetoric from both sides keeps gumming up any real solutions. Cambodia is bringing the dispute to the International Court of Justice (ICJ) - France says it will share historical documents that back Phnom Phen’s claims. Thailand says it has a preference for bilateral negotiations and rejects jurisdiction of the ICJ, but the case is moving ahead with or without Thailand's participation
Read more: Khmer Times (Retaliation Measures), Khao Sod English (Diplomatic Context), Khmer Times (Trade Impact), Khmer Times (Legal Preparation), Khmer Times (French Support), Japan Times (International Context)
PM Sees 6.3% Growth, WB Says 4%
Prime Minister Hun Manet says that he expects Cambodia's economy will grow 6.3% in 2025, hitting a per capita income of $2,924. His number is much higher than the World Bank's forecast of just 4%. The World Bank says its number is lower because of worries about changing trade policies and difficulties in the real estate sector. In Q1, exports rose 11.6% thanks to gains in the garment, footwear, and travel goods industries; international tourism also helped as arrivals rose 16.1%. From January to May, 290 new investment projects worth $4.2 billion were launched, almost double the total over the same period last year. Most of the new investment came from China (62% of the total), followed by domestic Cambodian investors (23%). The projects are expected to create more than 200,000 jobs country-wide.
Read more: Khmer Times (Growth Projections), Vietnam Plus (World Bank Outlook), Cambodia Daily (Investment Data)
Trade Talks on The Horizon as July 10 Nears
In July, Cambodia is going to be facing trade negotiations with the United States as the 90-day provisional reduction window closes and tariffs on its exports will rise to 49%. Cambodia sent $8 billion worth of goods to the US in 2023, but it needs to balance economic interests with US beef about democratic governance. For the United States, the trade dispute is more than dollars and cents, in addition to the governance issues, it also need to play friendly in order to counter China's regional influence. Despite the problems, regional trade is growing well. From January to May 2025, trade with RCEP member countries reached $16.47 billion, a number that’s up 16.3% year-on-year. Trade with Thailand was only $1.87 billion; mostly exports of raw materials and imports of processed goods.
Read more: The Star (US Negotiations), Xinhua (RCEP Trade), Khmer Times (Thailand Trade)
Big Infrastructure Plans Afoot
Infrastructure development continues. The Techo International Airport, featuring a 4,000-meter runway, a 20-gate passenger terminal, and a 118-meter control tower, is scheduled to open for September 2025 operations. The Funan Techo Canal is working toward November construction, with technical teams finishing up survey work in Kandal and Takeo provinces. The $1.156 billion project has been set up as a public-private partnership, 51% owned by Cambodian entities and 49% by Chinese investors. Germany has doubled down on its commitment to Cambodia's rural infrastructure through the RID4CAM program, which has already delivered more than 2,000 kilometers of roadways and 92 concrete bridges, with plans to add 520 more kilometers of climate-resilient roads.
Read more: Cambodia Investment Review (Airport Development), Khmer Times (Canal Project), Construction Property(German Support)
Climate Change: Hitting Back
Cambodia is facing possible GDP losses of up to 9.8% by 2050 due to climate change, according to a new Climate Change Strategic Plan 2024-2033. That's a big hit, if it comes to pass. The country is putting mitigation measures into place including renewable energy expansion, improved energy efficiency, and putting a stop to deforestation. Conservation International Cambodia has begun a reforestation project around the Tonle Sap Lake, expecting to plant 118,000 seedlings and 92,000 seeds over more than 200 hectares by the end of this year. Cambodia has also signed the UN Convention on Conservation and Sustainable Use of Marine Biological Diversity to position itself for access to marine genetic resources and participation in marine biotechnology development. All of this is in alignment with national commitments to hit 70% renewable energy by 2030 and carbon neutrality by 2050.
Read more: Khmer Times (Economic Impact), Khmer Times (Reforestation), Khmer Times (Marine Biodiversity)
AI Rollout & Rules
The financial sector is starting to use AI technologies by focusing on AI applications in credit assessment automation, fraud detection, cybersecurity monitoring, and the use of customer service chatbots. Current laws lack explicit AI guidelines, so the National Bank of Cambodia is working to share revised technology risk management standards. Officials are also working to figure out what the essential workforce skills will be for AI integration, emphasizing human-centric skills like critical thinking alongside technical digital competency. Administrative services are being made more efficient through the transition of government procedures to a digital platform, reducing bureaucratic burden for both citizens and businesses.
Read more: Cambodia Investment Review (Financial Sector), Khmer Times (Workforce Skills), Vietnam Economic Times (Digital Government)
France a Longstanding Strategic Ally
Cambodia and France are working towards a strategic partnership by 2026 after recent discussions between Prime Minister Hun Manet and French President Emmanuel Macron. The partnership is expected to cover aspects of trade, defense, energy infrastructure, and cultural exchanges. Bilateral trade has been healthy of late, rising 8.3% to €1.48 billion in 2024. France has promised €215 million through its Development Agency to support vocational training, energy, and clean water production projects. President Macron also said that he plans to visit Cambodia in 2026 to attend Cambodia's hosting of the 20th Francophonie Summit. In the water sector specifically, France and the EU have furthered their support with a €275 million commitment from AFD for 2025-2027, with 70% of that total being allocated to water infrastructure development and rural access.
Read more: Khmer Times (Strategic Partnership), Khmer Times (Economic Cooperation), Construction Property (Water Sector)
China Ties Grow Deeper
Cambodia and China are improving their science, technology, and innovation cooperation through eight joint research projects in food science, biotechnology, artificial intelligence, and data science. Ministers Hem Vanndy and Yin Hejun have endorsed the Lancang-Mekong Cooperation Innovation Corridor and signed a Letter of Intent on AI cooperation. In the maritime infrastructure scene, Sihanoukville Autonomous Port has entered an agreement with China's Jiangyin Port to develop the Preah Sihanouk Special Economic Zone, expected to play host to 300 companies and 80,000 jobs. Cambodia-China bilateral trade reached $5.69 billion in the first four months of 2025, a 27% year-on-year increase. The relationship between the two nations is also seen in Cambodia's manufacturing sector, which is diversifying beyond garments with growth in electronics and automotive parts exports.
Read more: Khmer Times (STI Cooperation), Fibre2Fashion (Port Agreement), ASEAN Briefing (Manufacturing)
Tourism Takes Flight, UNESCO Gets a Call
The Ministry of Tourism is juggling several events to make the most of the "Cambodia-China Tourism Year 2025," including international music and arts festivals that are expected to support more Chinese tourism. The events are intended to bring more than a million Chinese visitors throughout the year, with Q1 data showing promising growth of 30% at Angkor. Aviation developments are afoot in advance of the opening of the Techo International airport. Emirates Airlines has begun new direct flight services to Cambodia, running three weekly flights to Siem Reap and daily flights to Phnom Penh via Singapore. Tourism Minister Huot Hak has asked Korea’s Asiana Airlines to begin direct routes to Siem Reap and Preah Sihanouk provinces. The Techo International Airport has a three-phase capacity expansion plan that is supposed to allow it to eventually deliver services to 45 million passengers annually. UNESCO World Heritage status is also being sought for three historical Khmer Rouge sites to improve their role in educational tourism.
Read more: Khmer Times (Chinese Tourism), Travel and Tour World (Emirates Flights), UCA News (Heritage Sites)
Skilling Up the Workforce
A National Technical and Vocational Education and Training (TVET) Day was held on June 15-16 at the Koh Pich Convention and Exhibition Centre, bringing together 70,000 participants. The event, themed "TVET Creates Job Opportunities and Builds Hope for Youth," was a showcase of progress in technical training and helped to promote TVET education's role in development. The event is part of a national policy to develop skilled human capital towards a vision of "every citizen has at least one skill for life." As mentioned previously in this edition of the Memo, officials are also preparing the national workforce for the future of Artificial Intelligence integration by identifying essential skills in two main areas: human-centric skills (like critical thinking and creativity), and technical digital competencies (like data interpretation and basic coding). This strategy sets AI up as an enabler rather than a replacement for human workers, with an expectation that this will lead to more inclusive growth in both urban and rural communities.
Read more: Khmer Times (TVET Day), Khmer Times (AI Skills)
Cybercrime is a National Threat
A Harvard University study has brought the enormous scale of Cambodia's cybercrime industry to light, reporting that it generates $12.5-$19 billion annually (roughly 60% of the country's GDP!). The indusrty involves approximately 150,000 workers in Phnom Penh and 24 other provinces, bringing together sophisticated cyber scamming techniques with human trafficking. Five people have pleaded guilty in a money laundering operation connected to Cambodia-based "pig butchering" cryptocurrency investment scams, having laundered $36.9 million that was stolen from U.S. victims. The Huione cryptocurrency platform continues to operate through mirror sites despite a US Treasury blacklisting. The platform has been identified as being connected to North Korean money laundering operations, and its resilience is indicative the challenges in shutting down these networks. The ongoing criminal activity is creating increasingly fraught diplomatic tensions with neighboring countries and also steadily increasing the possibility of international sanctions.
Read more: Asia Financial (Industry Scale), The Record (Money Laundering), NK News (Ongoing Operations)
Fake News Fight Sparks Press Freedom Fears
The Ministry of Information continues its anti-fake news campaign with the "Say No to Fake News!" project, featuring LED billboards and partnerships with Facebook and TikTok. The Ministry reported nearly 1,400 fake news cases in the first five months of the year so far, and has threatened legal action against those responsible. More than 90 cases of fake news have been identified that relate to the May 28 border incident with Thailand, with 50 or so of those cases allegedly undermining Cambodian military morale. Despite its ostensibly noble intentions, the campaign has drawn criticism for threatening press freedom, as Cambodia's national press freedom ranking has dropped to 161 out of 180 countries. Critics say that the fake news initiative serves as a tool for government control over the media to suppress dissent. Along those same lines, two Cambodian environmental journalists were recently ambushed and shot at while working to investigate illegal logging in Prey Lang Wildlife Sanctuary, an unfortunate reminder of the risks that are faced by media professionals.
Read more: UCA News (Press Freedom), Khmer Times (Border Coverage), RSF (Journalist Safety)
Tackling Land Disputes
The Ministry of Land Management, Urban Planning and Construction has announced that it intends to resolve all land disputes during the 7th National Assembly term. Minister Say Samal has plans to expedite land registration and title card distribution. Further to that plan, the Ministry has already distributed 800,000 land title cards and finished systematic land registration in 13 provinces. A parallel project is managing land disputes within the Angkor Archaeological Park, focusing on 114 local villages while striking a balance between UNESCO World Heritage site preservation and community needs. Separately, ninety indigenous families from various ethnic groups are still looking for compensation for losses caused by the Lower Sesan II Hydropower Dam in Stung Treng province. The dam displaced nearly 5,000 people when it flooded their villages in 2017.
Read more: Khmer Times (National Initiative), Khmer Times (Angkor Park), Camboja News (Dam Compensation)
Health System Gets Booster
The World Health Organization has promised to provide technical assistance to improve Cambodia's digital health capabilities to improve digital health functions, integrate public health services, and restore basic health services. The assistance will be focused on developing health, technical, and financial strategies to improve health systems and finally deliver universal health coverage. Cambodia has been able to secure a position on the UNAIDS Programme Coordinating Board for the 2026-2028 term in recognition of its progress in HIV/AIDS response. The country has reduced its HIV rate from 3% in 1996 to just 0.5% in 2024, hitting 92-100-98 results against the UN's 95-95-95 targets. (Note: the numbers represent 95% of people with HIV to know their status, 95% of those aware to receive antiretroviral treatment, and 95% of those treated to achieve viral suppression)
Read more: Khmer Times (WHO Support), Khmer Times (UNAIDS Position)
Food, Farms, and Labor Getting Stronger
The Third National Strategy for Food Security and Nutrition (2024-2028) has been launched with support from WFP, UNICEF, FAO, and the WHO. The country has finalized its National Food Fortification Strategy 2025-2030, which features a Japanese-funded project to distribute fortified rice. In the banana export sector, Chinese-owned Cambodian Banana Agricultural General Co Ltd says it plans to increase its Cavendish banana exports to China from 20,000 tons in 2024 to 30,000 tons in 2025. The broader Cambodian banana sector includes 21,000 hectares of Cavendish farms, with 15,000 hectares producing about 400,000 tons annually. The country exported 260,000 tons of bananas in 2024; China received 95% of them. IDEA and Oxfam are pushing for Cambodia's ratification of ILO Convention No. 189 to improve protection for domestic workers and bring them under the protection of national social protection frameworks.
Read more: Relief Web (Food Security), Fresh Plaza (Banana Exports), Khmer Times (Worker Rights)
Legal Scene: Global & Local
European law firm Kinstellar has hung a shingle in Cambodia via a merger with two local firms - Sok Siphana & Associates and Sethalay Law Office. The new combined entity, Sok Siphana Sethalay in association with Kinstellar Southeast Asia, will be home to 40 professionals including 30 lawyers in both Phnom Penh and Siem Reap offices. The firm is expected to spend most of its efforts working on corporate and commercial legal services and features a dedicated Chinese client desk. The Cambodian expansion follows earlier Southeast Asian growth through a Vietnamese joint venture.
Read more: Global Legal Post
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