Cambodia 20250707
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:
Temple Fight Heads to Court
Border Mess Crushes Trade
US-Cambodia Ties
Regional Powers Support: SG, AU, JP, UK
Digital Payments Go Regional
$200M Loan Program
Director Pay Gets New Tax Treatment
Human Trafficking Fight
Environmental Activists Get Prison Time
Island Gets Luxury Makeover
Korean Banks Face Abuse Claims
New Ships Connect the Mekong Region
Temple Fight Heads to Court
Cambodia is bringing in a heavy hitter for its border fight with Thailand. French legal expert Jean-Marc Sorel will present Cambodia’s case for four disputed areas, including three temples and the Mom Bei region, at the International Court of Justice. Cambodia’s case rests on old Franco-Siamese treaties from the 1890s and 1900s, but Thailand doesn’t want to go to court and says it prefers to hash it out through a Joint Boundary Commission instead. The inability to resolve the issue shows how toothless ASEAN can be at solving these sorts of issues - the bloc’s hands are tied by its own non-intervention rules.
Read more: Khmer Times (Legal Expert), Khmer Times (Treaty Framework), Jakarta Post (ASEAN Limitations)
Border Mess Crushes Trade
In addition to cutting off Thai electricity, internet, fuel, and gas imports, Cambodia has also banned Thai fruit and veggie imports, and it’s stopped all cargo crossing the border. The timing couldn't be worse - it's peak fruit season and Thai wholesale markets have seen sales cut in half. PM Hun Manet says he'll reverse everything within five hours if Thailand reopens its side, but in the meantime, Thai farms are hurting bad - both because of reduced sales and also the fact that four-fifths of their normal workforce are Cambodians, many of whom have returned.
Read more: Fruitnet (Fruit Trade Impact), Asian News Network (Cargo Transport Ban), Khmer Times (Strategic Imports)
US-Cambodia Ties
The United States ends its tariff break on July 9 for countries without trade deals. Without an agreement, some Cambodian exports will be assigned a crippling 49% tariff. Despite the tax issue, the US and Cambodia are this year celebrating 75 years of friendship. Trade is booming, and the mix of exports now goes well beyond clothes and shoes to include higher-value goods like solar panels and electronics. Aside from the current tariff issues, both sides are working to cut tariffs in general in advance of Cambodia’s graduation from least-developed country status in 2029. Cambodia has already reduced tariffs on 19 US products from 35% to 5%.
Read more: Khmer Times (Partnership Overview), Khmertimeskh (Trade Growth), Cambodia News (Tariff Negotiations), Read more: Cambodia Daily (Tariff Deadline)
Regional Powers Support: SG, AU, JP, UK
Singapore's PM Lawrence Wong just showed up to celebrate 60 years of friendship. Singapore is Cambodia's third-biggest foreign investor (mostly real estate, energy, and finance), and two-way trade was $4.83 billion last year. Australia is supporting a new five-year plan to build a better government, improve public services, and build the economy. Japan is helping train Cambodian deminers, who are now sharing their skills with Ukraine. The UK reports that there are now four British schools and a university campus in Cambodia.
Read more: Straits Times (Singapore), Cambodia Investment Review (Australia), Khmer Times (Japan), Cambodia Investment Review (UK)
Digital Payments Go Regional
Since April, Cambodia has connected the Bakong electronic payments system with Thailand, Vietnam, Malaysia, and Laos using their KHQR code standard. The National Bank upgraded to the most recent ISO standards so payments work smoothly across borders in an attempt to reduce fees and put Cambodia in the middle of ASEAN's digital economy.
Read more: Cambodia Investment Review (Payment Integration), Cambodia Investment Review (Banking Technology)
$200M Loan Program
Cambodia's credit guarantee agency has rolled out a $200 million program to help businesses grow. The agency will cover up to 90% of loan amounts for small, medium, and large companies in farming, industry, and services. The deal is open to businesses that are mostly Cambodian-owned, with a small 0.75% fee on the guaranteed amount. Banks will handle the actual loans, with the Ministry of Economy and Finance keeping an eye on the whole thing.
Read more: Cambodia Investment Review
Director Pay Gets New Tax Treatment
The tax office just changed how it will calculate amounts due on director pay. Directors will now be counted as employees if they check two boxes out of four. The determination will decide whether they pay regular salary tax as income or a 14% withholding tax.
Read more: Cambodia Investment Review
Human Trafficking Fight
Amnesty International spent 18 months digging into Cambodia's scam industry and says it found 53 compounds and talked to 58 survivors who described trafficking, torture, forced labor, and slavery. Authorities say they aren’t messing around, and they say the proof is in the fact that they've turned away more than 1,200 foreigners and kicked out almost 6,000 others this year due to sketchy travel plans, bad papers, or suspicious histories.
Read more: Khmer Times (Anti-Trafficking Efforts), Jakarta Post (Amnesty Report), Khmer Times (Border Enforcement)
Environmental Activists Get Prison Time
Five Mother Nature Cambodia activists just got 6-8 years in prison as the government claims they plotted against it and insulted the king. Long Kunthea, Ly Chandaravuth, Phuon Keoreaksmey, Thun Ratha, and Yim Leanghy were sentenced on July 2, 2024. They're stuck in prison with no bail while they appeal.
Read more: CIVICUS (Activist Sentences), Mongabay (Environmental Defense), Cambojanews (Bail Rejection)
Island Gets Luxury Makeover
A Polish-Swedish entrepreneur's company is betting big on Koh Rong Island. IM Capital Holding is building the Apsara Resort and planning a five-star beach hotel called Port Yves Palace for 2027. The development reportedly intends to combine Khmer style with European luxury with a focus on sustainability in an attempt to bring more global money to the luxury travel market.
Read more: Cambodia Investment Review
Korean Banks Face Abuse Claims
Korean Transnational Corporation Watch has caught KB Prasac Bank and Woori Cambodia Bank allegedly pushing predatory loans. Claims are that they went after vulnerable people, especially rural women and farmers, using strong-arm tactics, to push huge, high-interest loans backed by land. Borrowers ended up spending 60-70% of their yearly income just on interest. Bank staff allegedly barged into homes uninvited, shamed borrowers in public, and made threats.
Read more: Cambojanews (Lending Practices)
New Ships Connect the Mekong Region
Vietnamese shipping company Hai An Lines just launched new routes connecting Phnom Penh to other Asian ports. One route connects southern China, Vietnam, and Cambodia through multiple stops. Another improves connectivity with China's eastern Lianyungang Port. Hai An Lines now runs six routes in Asia, connecting China, Hong Kong, Singapore, Malaysia, India, and Cambodia.
Read more: Container News
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.