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Headlines:
Rule of Law and Human Rights Under Pressure
Scam Compounds Spark Regional Crisis
Energy Gets $82.5M Boost
Economic Growth Slows
Investments Point to Rising Confidence
New Instruments Support Market Depth
Digital Banking Gets Traction
Migrant Worker Returns Strain Resources
Infrastructure: Airport, Canal
Diplomatic Balancing Act on Display
Export Performance Firm
Tourism and Hospitality Expand
Crackdowns Target Illegal Operations
Trade Deals and Partnerships
Rule of Law and Human Rights Under Pressure
International legal and human rights organizations are raising their voices about the state of governance in Cambodia. Three major groups - Lawyers’ Rights Watch Canada, the International Commission of Jurists, and the International Bar Association’s Human Rights Institute - have collected ongoing violations, including the strangulation of civic spaces, abuse of the judicial system, and the arbitrary detention of land rights defenders, labor leaders, opposition politicians, and journalists. They say the judiciary isn’t independent, and this results in unfair trials and overcrowded prisons. Recent constitutional amendments and changes to the Nationality Law are also getting attention as they leave open the possibility of the politically motivated stripping of citizenship without due process. The recent fights with Thailand have not done anything to ease restrictions on freedom of expression, and now journalists are facing charges of treason. The ask is for the UN Human Rights Council to renew the Special Rapporteur’s mandate for continued monitoring.
Read more: ICJ (Legal Framework), Khmer Times (Cybersecurity), Kiri Post (Securities Tech)
Scam Compounds Spark Regional Crisis
Cambodia has become the epicenter of a massive forced labor and human trafficking operation that is straining diplomatic relations across Asia. Amnesty International released a 242-page report showing 53 detention sites where foreign nationals are being held, tortured, and forced to work in online scam operations. The report, based on interviews with 58 victims and data from 365 cases between 2023 and May 2025, shows a pattern of abuse including electric torture and brutal beatings. South Korea called Cambodia’s ambassador in for a chat after the number of kidnapping cases jumped from as few as 10 a year to 330 as of August, following the death of a Korean college student who was reportedly kidnapped and tortured. A Singapore-based company, Changting Network Technology, is under investigation for recruiting job seekers under false pretenses and sending them to work. Amnesty International wants the compounds closed and the perpetrators and corrupt officials prosecuted.
Read more: Korea JoongAng Daily (Amnesty Report), Channel NewsAsia (South Korea Response), The Straits Times(Singapore Investigation), Travel and Tour World (Travel Alert), Korea JoongAng Daily (Korean Desk), Business & Human Rights (Telegram Response), Biz Chosun (Legislative Criticism)
Energy Gets $82.5M Boost
The Asian Development Bank has set aside $82.5 million for the second phase of Cambodia’s Energy Transition Sector Development Program. The program is designed to support regulatory reforms to improve energy efficiency and bring more private investment. A revolving fund will allow access to finance for local SMEs to take advantage of energy efficiencies. The program will set Minimum Energy Performance Standards for electrical appliances, starting with air conditioners, and has a goal of getting to a 70% renewable energy contribution to the power mix by 2030. A third phase is expected in 2027 to further the regulatory framework and tighten up technical standards. The first phase, approved in 2022, set the foundation with policy measures for efficient and renewable energy development.
Read more: Vietnam Plus (ADB Funding), The Asset (Energy Standards), Fibre2Fashion (SME Support), Cambodianess(Clean Energy Week)
Economic Growth Slows
The World Bank dropped its 2025 growth expectations to 4.0% from 5.5%, saying it foresaw diminishing external demand and low levels of diversification. More than 88% of Cambodia’s workforce is in informal employment, which limits productivity and access to social protections. The World Bank wants East Asia and Pacific countries to invest more in skills development, job creation, and digital infrastructure to avoid rising poverty. Automation is going to reshape labor markets and is likely to (problematically) displace low-skilled workers. The government is doing what it can to create more vocational training programs for high-value industries and expand digital-related projects to support employment. GDP per capita is expected to rise to nearly $3,000 by the end of this year from $2,713 at the end of last year.
Read more: Cambodia Investment Review (World Bank Warning), CamboJA News (Labor Risks), Cambodia Investment Review (Financial Literacy), CamboJA News (Tariff Negotiations)
Investments Point to Rising Confidence
Nearly $8 billion dollars have been committed to 546 new projects so far this year, a 73% increase in project numbers and a 47% rise in investment capital over last year. September alone saw the addition of 55 new projects with promises of about $467 million, business that’s expected to create 37,000 jobs. Of the new projects, 38 are outside special economic zones, and 17 are within them. The Council for the Development of Cambodia has already, this year, beaten the total number of investment projects registered in all of 2024 by 132 projects. China remains the top foreign investor.
Read more: Construction Property (Project Numbers), Cambodia Investment Review (China Investment), Cambodianess (Japan Loan)
New Instruments Support Market Depth
ACLEDA Bank held an official subordinated bond listing ceremony on October 8 at the Cambodia Securities Exchange. The bank listed a subordinated bond valued at 400 billion riel (~$100 million) with a coupon rate of 7.5% pa. RHB Securities (Cambodia) was the lead underwriter. As of June 2025, ACLEDA Bank said that its sitting on assets of $11.55 billion and savings deposits of $8.98 billion, and serves almost 6 million customers. The Securities and Exchange Regulator of Cambodia signed a Memorandum of Understanding with the Khmer Artists Association on October 8 to promote financial literacy and increase public participation in the local securities market. The agreement will use the influence of artists to try and communicate important financial concepts to the general public.
Read more: Cambodia Investment Review (Bond Listing), Cambodia Investment Review (RHB Underwriting)
Digital Banking Gets Traction
The ASEAN+3 Macroeconomic Research Office issued the ASEAN+3 Financial Stability Report 2025. The National Bank of Cambodia’s Bakong payment system was shown off as a model to improve financial inclusion within the region. As of 2025, the rise in e-wallets and mobile payment accounts has made Cambodia a player in the regional payments landscape. The assessment credits Cambodia with a stable financial foundation backed by well-capitalized banks and ample liquidity. Phillip Bank won the Best Digital Transformation Initiative in Banking 2025 award from International Finance, with recent successes including a redesigned mobile app and Cambodia’s first fully digital mobile bancassurance platform.
Read more: Cambodia Investment Review (AMRO Report), Nikkei Asia (Dollar Independence), Cambodia Investment Review (Phillip Bank)
Migrant Worker Returns Strain Resources
Nearly 900,000 Cambodian migrant workers have come back from Thailand since July, more than tripling the 260,000 who made the trip during the COVID-19 pandemic. The newcomers are straining rural economies, job markets, and social safety nets, with many returnees having few resources and lacking any land that they could farm. The Ministry of Labour and Vocational Training says there were only 190,000 open jobs in August, most of them in the cities, but a study from CENTRA reports that 70% of returnees have settled in rural areas. Civil society groups are raising the alarm, and telling anyone who will listen, that without quick government action, returnee households risk falling into deeper poverty, which could lead to ongoing cycles of unsafe migration.
Read more: Kiri Post (Returnee Crisis), Khmer Times (Job Offices), CamboJA News (Factory Layoffs)
Infrastructure: Airport, Canal
The Techo International Airport in Phnom Penh will officially be inaugurated a week from today, on October 20, following more than a month of operational flights. Roughly $2 billion was spent on the airport’s initial construction, starting from January 7, 2020, during the COVID-19 pandemic, and it is ranked ninth among global architectural projects for 2025 based on its design. The Funan Techo Canal project that is expected to connect Phnom Penh to the Gulf of Thailand is expected to really get under steam next month, with a budget that’s been scaled back from an initial $1.7 billion to $1.156 billion.
Read more: The Star (Airport Opening), CamboJA News (Canal Compensation), Travel and Tour World (New Routes)
Diplomatic Balancing Act on Display
On October 10, two Chinese People’s Liberation Army navy ships and one Australian navy ship docked at the same time in Sihanoukville. Chinese ships Qi Jiguang and Yimengshan pulled up for a five-day visit to improve cooperation with China, and Australian ship HMAS Ballarat docked for four days in an effort to shore up Australian relations. The visits show there’s still a desire for diversified partnerships as the U.S. and China continue to jockey for position. Cambodia also promised to improve military cooperation with Japan during a meeting on October 7, promising better cooperation on transnational crimes, including human trafficking and the illicit drug trade.
Read more: Kiri Post (Dual Docking), China Daily (Chinese Visit), Yahoo News (Naval Ships), Cambodianess (Japan Cooperation)
Export Performance Firm
Exports topped about $22 billion in the latest report from the General Department of Customs and Excise. The current top five export markets are the United States, Vietnam, China, Japan, and Canada, and the top export items are garments (including footwear), travel goods, bicycles, car tires, and agricultural products. Cambodia took in imports of $24.61 billion over the same period. Monsoon rains during May-October are leading farmers to expect good rice output this year, with harvests possibly coming in at more than 10 million tonnes for the year. Kampong Thom province is now Cambodia’s largest cashew production area, with local government putting its back into promoting productivity and improving export quality.
Read more: The Hans India (Export Growth), Azernews (Export Data), The Star (Rice Harvest), Kiri Post (Cashew Production)
Tourism and Hospitality Expand
The Cambodia-China Tourism Year 2025, launched in April, has already seen happy results, with a near-50% increase in Chinese visitor numbers compared to last year. Estimates are that more than a million Chinese tourists will arrive by the end of the year, as both governments are simplifying visas and promoting improved flight connectivity. Turkish Airlines is expected to launch a new route to Phnom Penh on December 10, and IndiGo will introduce direct flights from Kolkata to Siem Reap, the first-ever direct air link between India and Cambodia. Frasers Hospitality has agreed to a contract for Fraser Residence BKK1 in Phnom Penh, expected to open Q2 2027 with 88 keys.
Read more: Travel and Tour World (China Tourism), Travel and Tour World (Turkish Airlines), TTG Asia (Frasers Hospitality), Travel and Tour World (Religious Tourism)
Crackdowns Target Illegal Operations
Prey Veng provincial police arrested 64 people linked to loan sharking at interest rates of 80% to 85%. The National Bank of Cambodia specifies a maximum loan interest rate of 18% annually. Authorities in Preah Sihanouk province grabbed 290 foreign nationals on October 5 for illegal residence and employment, including 216 Pakistanis, 68 Bangladeshis, and 6 Nepalese. The Ministry of Environment discovered that MESCO GOLD (CAMBODIA) LTD, an Indian-owned gold extraction company, is guilty of releasing liquid mercury waste into the O’Tray river system.
Read more: CamboJA News (Illegal Lending), Cambodia Daily (Lending Arrests), Cambodia Daily (Foreign Nationals), Cambodia Daily (Gold Company)
Trade Deals and Partnerships
Air Cambodia will order ten Boeing 737-8 aircraft with an additional ten options as part of a trade deal to mollify the United States. Deputy Prime Minister Sun Chanthol said that the purchase is the first of Boeing aircraft for the country. The EU-backed CAPFISH-Capture project, wrapping up in December, has worked to put the fisheries sector in the spotlight for global recognition. The project supports 22 enterprises to keep up to international standards and has introduced CamTrace, a digital traceability tool for nine companies. An upcoming DG SANTE audit in 2026 will decide which Cambodian companies will qualify for the EU export list. Cambodia is bringing its science and innovation agenda into alignment with the broader ASEAN 2035 Vision, with the Committee on Science, Technology and Innovation working towards improved regional collaboration.
Read more: CH-Aviation (Boeing Order), Cambodianess (EU Fisheries), Cambodia Investment Review (ASEAN Vision), Cambodia Investment Review (Affordable Housing)
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