Cambodia 20250630
Mekong Memo Cambodia Weekly: Business, politics, finance, trade & legal news.
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Headlines:
Border Crisis Made Worse by Leaked Call
Fresh New Military Ties
Mining Takes Off
Special Economic Zones Power Exports
US-Cambodia Relations on the Upswing
The Belt and Road Delivers
Cross-Border Crime Update
Border Crisis Made Worse by Leaked Call
A leaked phone call between Thai Prime Minister Paetongtarn Shinawatra and former Cambodian PM Hun Sen has resulted in a diplomatic spat. Thailand closed all land border crossings and Cambodia has responded with trade restrictions, banning Thai fuel exports and farm products. Hun Sen's public release of a private conversation with Paetongtarn, has resulted in renewed political turmoil in Thailand. Prime Minister Hun Manet says that Cambodia will reopen borders within five hours if Thailand restores pre-June 7 checkpoint operations. The dispute has caused a disruption for more than a million Cambodian migrant workers in Thailand. More than 5,000 workers are returning daily over fears of a complete border closure.
Read more: Straits Times (Border Closure), Arab News (Hun Sen's Accusations), BBC (Cross-Border Restrictions), Telegraph (Leaked Call), Phnom Penh Post (Power Dynamics), Khmer Times (Worker Impact), SCMP (Migrant Workers), Cambodia News (Human Rights), iGaming Future (Casino Industry)
Fresh New Military Ties
Cambodia is working on improving military relationships by signing or renewing cooperation agreements with Japan, Vietnam, and the United States. The Japan agreement includes joint exercises, officer exchanges, and humanitarian drills with Japan's Ground Self-Defense Force. Cambodia formalized an agreement with Vietnam, setting ten guiding principles for engagement between Cambodia's 70th Infantry Brigade and Vietnam's 301st Infantry Division. The US Navy will make its first-ever port call at Cambodia's Ream Naval Base in August after recent visits by vessels from Japan, Vietnam, Russia, and China.
Read more: Cambodia Daily (Japan Cooperation), Cambodia Daily (Vietnam Agreement), Cambodia Daily (US Naval Visit), Khmer Times (US Defense Meetings)
Mining Takes Off
Mining revenues almost hit $100 million last year, almost doubling (80% increase) 2023 income. Gold production was 13 tons in the first ten months of 2024, with the Okvau Gold Mine producing 114,076 ounces and reporting 910,000 ounces of proven reserves. Cambodia is home to mineral resources including bauxite, iron ore, manganese, gold, limestone, marble, and salt. Major industry players include Emerald Resources and Aluminum Development Cambodia. The government has reasonably attractive investment incentives for the industry like tax holidays and import duty exemptions. The sector does have some issues though, including underdeveloped infrastructure and limited transportation access but holds promise as both a growth engine for Cambodia and a mining destination for ASEAN.
Read more: ASEAN Briefing
Special Economic Zones Power Exports
The country’s 44 Special Economic Zones accounted for almost one in every four dollars of exports in 2024. These zones have driven $32.6 billion in export revenue since 2011 and created 187,000 jobs. The country's total trade volume reached $55 billion in 2024, with more than $25 billion recorded in the first five months of 2025. The Sihanoukville Special Economic Zone alone is home to 202 companies employing 32,000 workers, and drove $4.07 billion in trade volume in 2024.
Read more: Construction Property (Export Growth), Khmer Times (Sihanoukville SEZ)
US-Cambodia Relations on the Upswing
Cambodia-US relations are showing positive momentum with more trade and defense co-op. Exports to the US were up about a quarter to $4.3 billion in the first five months of 2025, and total bilateral trade was $4.47 billion. The US is still Cambodia's largest export market by some margin, while US imports to Cambodia grew 25.6% to $120 million. US Deputy Assistant Secretary of Defense Andrew Byers recently visited Cambodia for meetings, discussing future military engagement including the aforementioned US Navy stop at Ream Naval Base.
Read more: Khmer Times (Trade Growth), Khmer Times (Tariff Talks), Khmer Times (Defense Meetings)
The Belt and Road Delivers
China-Cambodia trade through the Belt and Road continues to deliver results. The Phnom Penh-Sihanoukville Expressway has cut travel time from 5 hours to 1.4 hours, completely changing the way people and goods move between the capital and the coastal economic hub. Bilateral trade reached $15.1 billion in 2024, as with the United States, up about a quarter. China provides two thirds of Cambodia's electrical infrastructure, and officials are always delighted to talk about how the partnership follows the "Three No's" principle: no political conditions, no interference in internal affairs, and no exclusive dealings. Cambodia's GDP has kept its growth above 6.5% for five years, and poverty rates dropped from 28.2% in 2015 to 18.7% in 2024.
Read more: Khmer Times
Cross-Border Crime Update
Amnesty International says there’s still tons of human trafficking and forced labor in Cambodia's online scam industry, identifying 53 scam compounds and collecting testimony from 58 survivors from eight countries. Victims say they were recruited through fraudulent job advertisements on social media and forced to run online scams Cambodia itself reported that it lost $40 million to online fraud in the first half of 2024.
Read more: Business Human Rights (Amnesty Report), Tech for Good Institute (Fraud Statistics), Washington Times(Thailand's Measures)
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