Cambodia 20250623
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Headlines:
Border Clash Sparks Thai-Cambodian Crisis
Border Fight Heads to World Court
Trade Bans Hit Border Economy
Investment Boom Drives Growth
Manufacturing, GFT Report Strong Early Results
China, Japan Partnerships Bring New Projects
Digital Trade Growth
Vietnam-Cambodia Security, Trade
Agricultural Reforms for Fisheries, Cashews
Human Development Makes Strides
Water Management Gets Refresh
Trade Diversification Strategy Takes Shape
Energy Efficiency Market Ripe for Growth
Cultural Industries Get Policy Boost
Border Clash Sparks Thai-Cambodian Crisis
Border tensions between Thailand and Cambodia remain inflamed since a May 28 incident that left one Cambodian soldier dead in the Emerald Triangle. Cambodia has closed border checkpoints, banned imports of Thai produce (more details below), suspended Thai television dramas, and cut Thai internet services. The dispute is about colonial-era border lines from 1907. Cambodia has filed a case with the International Court of Justice, but Thailand doesn’t recognize the court’s jurisdiction (next story). A leaked phone conversation between Thai PM Paetongtarn Shinawatra and former Cambodian leader Hun Sen has made things much worse on the Thai side, causing political fallout in Thailand with a coalition partner now pulling support from the government.
Read more: SCMP (ASEAN Credibility), TheSun (Border Overview), Straits Times (Trade Restrictions), Business Standard (Tension Analysis)
Border Fight Heads to World Court
Cambodia has put its border dispute with Thailand forward to the International Court of Justice (ICJ) over claims to the Ta Moan Thom, Ta Moan Tauch, and Ta Krabei temple complexes, as well as the Mom Bei area. The government is attacking on three fronts: technical talks, legal proceedings, and military defense (as a last resort). Thailand is bellyaching about Cambodia’s decision to go to court as it says the move short circuits bilateral mechanisms and violates a year 2000 Memorandum of Understanding. Thailand rejects ICJ jurisdiction, and wants negotiations to take place through the Joint Boundary Commission. The dispute has historical roots in French colonial-era boundary demarcations.
Read more: UCANews (Legal Case), Khmer Times (PM Confirmation), Khao Sod English (Thailand's Criticism)
Trade Bans Hit Border Economy
The economy of the border regions has been built on migrant labor and trade partnerships, so this latest problem is wreaking havoc on the economies of both nations. Cambodia put a ban on all fruit and vegetable imports, torpedoing $1.87 billion in cross-border trade (January-May 2025), and Thai checkpoint closures have broken supply chains that cut off labor flows that both countries depend on. The fallout is brutal. Shortened border crossing hours mean agricultural workers are losing their jobs and fruit farmers say they can only stand by as crops rot in the fields. Tourism has taken also taken a hit, visitors are down by nearly half this month.
Read more: Khao Sod English (Economic Impact), Cambojanews (Import Ban), Travel and Tour World (Tourism)
Investment Boom Drives Growth
Cambodia has approved 290 investment projects worth $4.2 billion in the first five months of this year, a 90% increase in project numbers and 52% growth in investment capital compared to last year. Prime Minister Hun Manet has been trying to set Cambodia up as a prime investment destination, touting its political stability, favorable investment conditions, and youthful workforce. The country is still expected to reach upper-middle-income status by 2030 and high-income status by 2050.
Read more: Khmer Times (Investment Climate), Khmer Times (PM Statement), Cambodia Investment Review (Economic Outlook)
Manufacturing, GFT Report Strong Early Results
Exports are healthy so far this year; vehicle parts exports have already risen above $1 billion. The vehicle industry growth comes mostly as a result of tire manufacturing investments from companies like Tyrecorp Industrial and IRC Tire Asia Pacific in special economic zones. The garment, footwear, and travel (GFT) sector, with 1,538 factories and employing 913,000 workers, is Cambodia's main foreign exchange earner. It has reported $6.137 billion in exports so far, a 23.5% increase year-over-year.
Read more: Asian News Network (Vehicle Industry), Khmer Times (GFT Sector)
China, Japan Partnerships Bring New Projects
A new demining project called the "Lancang-Mekong Cooperation in Mine Action" received a $430,000 grant from the Chinese government, and be go to the benefit of 723 families directly and more than 55,000 households indirectly. The Securities and Exchange Regulator of Cambodia has signed an MOU with China's Chengmai County to increase Chinese investment in Cambodia's securities sector. Cambodia and Japan are also reportedly checking out potential spots for a new Green Special Economic Zone, with sites near Phnom Penh and in Pursat province under consideration.
Read more: Khmer Times (Mine Action), Khmer Times (Securities Cooperation), Khmer Times (Green SEZ)
Digital Trade Growth
The second Digital Trade Forum and Online Expo will take place this September, building on the 2019 E-Commerce Law and the ongoing 2025-2030 Digital Trade Strategy. Digital trade volumes rose from $1.28 billion in 2023 to $1.51 billion in 2024, with 2025 projections coming it at $1.78 billion. This growth is helping along ASEAN's wider digital trade growth, which is expected to reach $137 billion in this year. The forum will feature AI experts, youth debates, and Cambodia's new trade platform (cambodiatrade.com).
Read more: Phnom Penh Post
Vietnam-Cambodia Security, Trade
Vietnam and Cambodia report that anti-drug trafficking efforts have brought results. Trade between the nations reached over $3 billion in the first four months of 2025, a 7% increase over 2024. Vietnam is holding on to its position as one of Cambodia's top five foreign investors, with more than 200 Vietnamese projects valued at nearly $3 billion.
Read more: Khmer Times (Anti-drug Efforts), Vietnam News (Trade Cooperation), Khmer Times (Cashew Trade)
Agricultural Reforms for Fisheries, Cashews
The Senate unanimously passed a new fisheries law with 60 votes, bringing the country's fisheries management framework up to date. The law is detailed - 15 chapters and 104 articles, and will improve the protection of fishers, fishing communities, and aquaculture operators while improving resource management. The Commerce Ministry has evaluated its National Cashew Policy 2022-2027 (We had to read that twice! “National Cashew Policy”), supporting a cashew industry that covers 580,117 hectares of land and has produced nearly 600,000 tonnes for export so far this year. The Ministry of Agriculture has made assurances that food security remains stable despite the Thai import ban on agricultural products, with domestic production offsetting import losses.
Read more: Asian News Network (Fisheries Law), Khmer Times (Cashew Policy), Cambodia Daily (Food Security)
Human Development Makes Strides
Cambodia's Human Development Report 2025 shows 57% HDI growth since 1990, placing the country in the Medium Human Development category with an HDI of 0.606. Life expectancy has increased by a tremendous 15 years over the period. The Ministry of Health and UNICEF launched a Fast Track Roadmap for Improving Nutrition 2023-2030, to work on overcoming nutrition challenges as child stunting fell from 32% to 22% between 2014-2021. A joint forum by IDEA and Oxfam has called for protection for 240,000 domestic workers, calling for ILO Convention 189 ratification and social security benefits that include annual leave, minimum wage, and maternity leave.
Read more: UNDP (Human Development), Khmer Times (Nutrition Initiatives), Cambojanews (Domestic Workers)
Water Management Gets Refresh
Cambodia is creating its first national groundwater regulatory framework, to deal with critical water challenges. More than 50% of drinking water comes from groundwater during dry seasons, and is vital for rural/urban supply, irrigation, and industry. A recent national dialogue brought together the Department of Water Supply and Sanitation, the Ministry of Water Resources and Meteorology, the Stockholm Environment Institute, and the Asian Institute of Technology. Another report from Cambojanews shows how solar water treatment is getting traction in rural areas.
Read more: Kiripost (Groundwater Regulation), Cambojanews (Solar Water Treatment)
Trade Diversification Strategy Takes Shape
Cambodia is working to reduce its 37% export reliance on the US market, with RCEP success increasing exports from $6.3B in 2022 to $9.1B in 2024. Deputy Prime Minister Vongsey Vissoth wants more investors to take advantage of Cambodia's trade agreements, including RCEP and bilateral FTAs with China, South Korea, and the UAE. He also says that the country needs to diversify its sources of FDI. Cambodia needs to continue preparation for its graduation from LDC status in 2029 by getting US tariffs right, improving trade rule compliance, and developing the domestic bond market.
Read more: Khmer Times (Export Diversification), Khmer Times (Trade Agreements)
Energy Efficiency Market Ripe for Growth
The energy efficiency market, possibly worth $2 million a year, is expected to grow at 5.90% yearly to reach $2.6 million by 2029. The National Energy Efficiency Policy launched in April 2023 was designed to cut total energy consumption by 19% by 2030, with targets for reduction of up to 34%. The market is still in its early stages (demonstrated by the small numbers involved), but it needs more domestic development in both products and services. Strong demand potential is expected in energy auditing, monitoring, and technical upgrades; possibilities for international collaboration may be of interest.
Read more: Khmer Times
Cultural Industries Get Policy Boost
UNESCO and the Ministry of Culture and Fine Arts held a workshop to develop policies in support of Cultural and Creative Industries, bringing together more than 180 participants. Both parties want to firm up a national CCI policy that empowers artists and engages more youth and women. The UN praised Cambodia's commitment to preserving the legacy of the Extraordinary Chambers in the Courts of Cambodia, which has seen 250,000 in-person visitors and 515,000 outreach participants. Cambodia plans to set up a Legacy Institution to continue the ECCC's work in education and research.
Read more: UNESCO (Cultural Industries), Khmer Times (ECCC Legacy)
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