Cambodia 20250721
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Headlines:
Cambodia and Thailand's Border Crisis
Cambodian PM Lays Down Border Demands
Border Fight Hammers Trade
Cambodia Brings Back the Draft
Scam Ring Busts the New Scam?
New Law Lets Government Strip Citizenship
Economy Shows Fight Despite Pressures
Trade Partners: RECP, IN, GB, CN, VN, AU
More EV Chargers, Motorbikes on the Horizon
Angkor Visitor Numbers Plummet
Dark History Gets Global Recognition
Plan to “Fix” the Informal Economy
Earthquake Preparation
The top three stories this week are all centered on the border, but there’s more interesting stuff below the fold… Have a great week ahead!
Cambodia and Thailand's Border Crisis
Border tensions between Cambodia and Thailand haven’t diminished since the May 28 incident near the Emerald Triangle that resulted in the death of one Cambodian. Cambodia wants ICJ intervention for four disputed territories (Ta Moan Thom, Ta Moan Toch, Ta Krabei, and Mome Bai), while Thailand keeps saying the issues should be resolved through the Joint Boundary Commission. Both countries say the other has ramped up military activities, with Cambodia claiming Thailand is building roads and deploying heavy weapons near border positions. Thai Foreign Minister Maris Sangiampongsa said they will host border talks on September 15 in Bangkok, while ASEAN has been called on to help mediate the issue.
Read more: East Asia Forum (Historical Context), Cambodia Daily (Military Alert), Thai Tiger (Border Talks), Khmer Times (ASEAN Mediation)
Cambodian PM Lays Down Border Demands
Prime Minister Hun Manet set three conditions for normalizing border relations with Thailand. He demands that Thailand first announce unconditional reopening of all border checkpoints with guarantees against future closures; all crossings must reopen at the same time; and operations must go back to the way they were pre-June 7 (6:00 a.m. to 10:00 p.m. for both people and goods). Cambodia promises to reciprocate within five hours of Thailand meeting these requirements. The PM asked for mutual military force adjustments and trust-building by reopening checkpoints. The conditions come after Thailand decided to unilaterally close crossings in what Cambodia claims is as a violation of its sovereignty and the human rights of its people.
Read more: Khmer Times (PM's Statement), Khmer Times (Policy Reaffirmation), Khmer Times (Diplomatic Approach)
Border Fight Hammers Trade
The border dispute has brutalized cross-border commerce, with 16 land crossings closed and Thai exports to Cambodia facing losses of up to 60 billion baht ($1.8 billion). Overall, border trade is expected to drop by 1%, with transportation costs increasing by 15%. Had Lek's seaside market has shrunk from more than 50 stalls to fewer than 10, and a container bottleneck at Thailand's Trat province has extended shipping times from 6-7 hours to 2-3 days. Cambodia has responded with a ban on Thai imports, targeting vegetables, fruits, and fuel products. The disruptions are pushing businesses to look for alternative transport routes and suppliers.
Read more: Bangkok Post (Market Impact), Sourcing Journal (Supply Chain Shifts), Pattaya Mail (Port Congestion), Laotian Times (Import Ban)
Cambodia Brings Back the Draft
Cambodia is going to re-introduce mandatory conscription next year and will require males aged 18-30 to serve for 24 months. The government says the draft, resurrecting a 2006 law that was never enforced, needs to happen to shore-up a deficit of military personnel. Cambodia's current force is 200,000 persons compared to Thailand's 350,000 headcount. The government will also put more money into the military budget, setting aside $739 million for 2025’s defense budget. Analysts say this decision could result in political misuse and will have unforeseen, negative economic impacts on the workforce.
Read more: Tempo (Implementation Details), Greenwich Time (Military Context), Euronews (Defense Budget), Cambodia News (Political Analysis)
Scam Ring Busts the New Scam?
Cambodian authorities say they’ve run a nationwide crackdown on cyber scam compounds, arresting more than 1,000. They say they targeted known scam centers after Prime Minister Hun Manet threatened officials with dismissal if they didn’t shape-up. Critics question whether the crackdown targeted all operations or just smaller compounds while avoiding ones with powerful political connections.
Read more: Cybernews (Arrest Numbers), Khmer Times (Government Action), Cambodia Daily (PM's Directive), Taipei Times (Taiwanese Arrests), X (Complaints), Jakarta Globe (Survivor Account), Cambodia News (Scale of Operations), The Diplomat (Financial Impact), The Diplomat (Political Connections)
New Law Lets Government Strip Citizenship
The CPP has made a constitutional amendment to Article 33, removing previous protections against stripping people of citizenship. The change, unanimously approved by both the 125-member National Assembly and the Senate, gives the government power to strip citizenship from anyone considered disloyal, or who “acts against national interests.” Critics say the amendment will be used to target political opposition figures, activists, journalists, and NGO workers accused of "conspiring with foreign powers,” which is a violation of international law and lacks judicial safeguards. Justice Minister Koeut Rith defended the amendment, saying it’s no different from citizenship laws in many other countries.
Read more: Constitution Net (Legal Analysis), Asian News Network (Parliamentary Approval), American Military News(Rights Concerns)
Economy Shows Fight Despite Pressures
Despite the recent surplus of less-than-favorable headlines, the economy is still showing some signs of life. More than 5,000 new enterprises were recorded setting up shop between August 2023 and June 2025, bringing the total from 40,300 to 45,656 - a 13.29% increase. This growth is in line with expected economic expansion of 5% in 2025 and 6% in 2026.
Read more: Khmer Times (Growth), Cambodia Investment Review (Pressure), Khmer Times (Response)
Trade Partners: RECP, IN, GB, CN, VN, AU
Cambodia is working on more trade with fellow RCEP member countries - it’s already hit almost $20 billion in the first half of 2025 (up 16.5%: exports grew 11%, imports 18.5%). The UK's Developing Countries Trading Scheme now offers duty-free imports from Cambodia, something that is expected to provide partial relief from US tariffs. Cambodia - India gem and jewelry trade has topped $250 million over the last three years. Cambodia and China have launched their first Investment and Economic Cooperation Working Group, to support work under the BRI. The Cambodia Chamber of Commerce is running a trade mission to Vietnam. Cambodia's Economic Growth Policy Dialogue with Australia showcased more than 70 years of diplomatic relations, including Australia's AUD $2 billion in cumulative development help.
Read more: Xinhua (RCEP Trade), Cambodia Ness (UK Trade Scheme), Khmer Times (India Trade), Asia Pacific (US-China Balance), Construction Property (China Partnership), Khmer Times (Vietnam Mission), Cambodia Investment Review (Australia Dialogue)
More EV Chargers, Motorbikes on the Horizon
Discussions with Malaysia are underway on EV charging infrastructure development, with Malaysian companies Petronas and TP Energy showing interest in plans for pilot charging stations along national highways. The Cambodia Chamber of Commerce and the Association of Indonesian Electric Motorcycle Manufacturers are looking for opportunities for electric motorbike manufacturing and technology transfer.
Read more: Khmer Times (Malaysia Partnership), Khmer Times (Indonesia Collaboration)
Angkor Visitor Numbers Plummet
Tourism was mixed last year, with overall visitor numbers reaching 6.7 million (8% increase from 2018) and Angkor Archaeological Park seeing a surprising drop from 2.59 million visitors in 2018 to just 1 million in 2024. The number of total visitors purchasing Angkor tickets dropped from more than 4 in 10 to just over 15%. There’s been a drop of 92.6% in Chinese tourists, and ASEAN countries now make up 63% of arrivals, but apparently have limited interest in Angkor. For perspective, Cambodia's total arrivals are only about a fifth of Thailand's tourism numbers.
Read more: Tourism Review
Dark History Gets Global Recognition
Three Khmer Rouge-era locations - Tuol Sleng Genocide Museum (S-21), Choeung Ek Killing Fields, and M-13 Prison - have been officially listed as UNESCO World Heritage sites. The UNESCO designation acknowledges national dedication to preserving historical memory and promoting reconciliation and will allow the sites to continue serving as an important reminder of the past, Cambodia's path to recovery, and its commitment to preventing future conflicts.
Read more: Khmer Times
Plan to “Fix” the Informal Economy
In an attempt to formalize the national workforce, a “Monitoring and Evaluation Framework for the National Strategy on the Development of the Informal Economy 2023-2028” has been published. The long-named strategy is being run by the Coordinating Committee on Informal Economy Development under Minister H.E. Hem Vanndy, and has support from Australia, the UNDP, and the ILO. The framework is intended to improve inter-ministerial coordination and allow for evidence-based policymaking in a sector that currently makes up almost 90% of the national workforce.
Read more: Cambodia Investment Review
Earthquake Preparation
EuroCham Cambodia hosted a forum on Cambodia's seismic preparedness in response to the recent 7.7 magnitude earthquake that battered Myanmar and rattled Thailand. The Ministry of Land Management, Urban Planning and Construction, together with the National Construction Laboratory and international experts, spoke about vulnerabilities in Cambodia's current building standards. The forum exposed a need to update national building codes, especially in light of rising urban density. Recommendations included structural health monitoring technologies, improving soil management, updating seismic design parameters, and creating better regulations to improve construction safety standards.
Read more: Cambodia Investment Review
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