Cambodia 20251020
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Headlines:
U.S. and U.K. Sanction Scam Networks
Cooperation Promised on Scam Crackdown
Techo International Airport Opens for Business
South Korean Death Sparks Diplomatic Crisis
Minimum Wage Increase Set for 2026
Tax Audit Reforms Target Investor Confidence
Union Registration Barriers Remain
Microfinance Delivers Handcuffs, Not Freedom
Infrastructure and Trade: Water, Mines, Rice, Gas
U.S. and U.K. Sanction Scam Networks
The U.S. and U.K. have both sanctioned the Prince Holding Group and Huione Group this week, for involvement in massive online scams and forced labor operations. U.S. prosecutors charged Chen Zhi, Chairman of Prince Holding Group, with wire fraud and money laundering. They also seized an astonishing ~$15 billion worth of bitcoin - the largest forfeiture action in DOJ history. Chen faces up to 40 years in prison if convicted. The U.S. Treasury fingered 146 people and entities associated with Chen, and British authorities froze $172 million in assets, including properties. FinCEN made a final ruling that cuts Huione Group off from the U.S. financial system, saying that it laundered proceeds from cyber heists linked to North Korea and facilitated “pig butchering” scams. The Huione Group is thought to have laundered at least $4 billion in ill-gotten proceeds since August 2021. Three U.S. Republican Congress members have introduced resolution H.R. 5490 with a call to put Cambodia on a “blacklist” for transnational crimes, and to sanction specific Cambodian officials and business leaders who are closely linked to high-ranking government officials. The resolution targets 43 people, including Neth Savoeun, Hun To, and Kok An.
Read more: NPR (Indictment), UPI (Sanctions), Silicon Angle (Bitcoin Seizure), MLex (Huione), NK News (North Korea Links), Cambodia Daily (Congressional Resolution), Firstpost (Trafficking Details), Maeil Business (Real Estate Affiliates), Straits Times (Deportations), Vancouver Sun (BC Links), VnExpress (Vietnam Cooperation)
Cooperation Promised on Scam Crackdown
Cambodia has committed to better cooperation with the U.K. and U.S. on scam issues, as the sanctions were put on Chen Zhi’s Prince Group. Interior Ministry spokesperson Touch Sokhak said that Cambodia (of course!) will follow the law, but will need more evidence before taking concrete action. The government has already made some moves, including crackdowns on 92 online scam centers, resulting in 3,455 arrests and the deportation of 2,825 foreigners. U.S. losses to online scams have reportedly ballooned to more than $16.6 billion. Independent research estimates that a shocking 200,000-plus people are involved in the Cambodian scam biz.
Read more: Cambodianess (Cooperation Pledge), ABC News (Government Response), Nikkei Asia (Expert Analysis)
Techo International Airport Opens for Business
The new Techo International Airport is being inaugurated today in a ceremony led by Prime Minister Hun Manet. Built on an investment budget of $2.3 billion, the airport will eventually have the capacity to support up to 50 million passengers. The Chinese-invested Siem Reap Angkor International Airport also celebrated its second anniversary on October 17, 2025, having managed 29,154 flights and served 2.73 million passengers as of September 30.
Read more: EAC News (TIA Opening), Xinhua (Siem Reap Anniversary)
South Korean Death Sparks Diplomatic Crisis
The torture and death of a South Korean student is causing a diplomatic rift and forcing uncomfortable talks. PM Hun Manet said that he felt “deep regret”, and promised that the remaining suspects will be arrested and safety will be improved for South Koreans. A South Korean government response team, led by Second Vice Foreign Minister Kim Jina, met with Hun Manet to discuss what, exactly, was being done to beat back cybercrime. South Korea has published a Level Four “no travel” advisory for parts of Cambodia (Bokor Mountain region in Kampot Province, Bavet, and Poipet). South Koreans in these zones will risk penalties under their Passport Act. The problem is big enough that South Korea is setting up a “Korean desk” in Cambodia to manage cases involving Koreans, and says it will increase its police presence from the current one officer and two liaison officers. Cambodia has already sent 64 South Korean citizens who were involved in cyber fraud home, about 60 more are currently detained and awaiting deportation/ repatriation.
Read more: Yonhap (PM Statement), AJC (Cooperation Agreement), Cambojanews (Korean Desk), Korea Herald (Diplomatic Talks), KBS World (Travel Ban), Malay Mail (Torture Case), Travel and Tour World (Border Towns), FTN News (Scandal Impact), Korea Times (Financial Sanctions), UPI (UN Cooperation)
Minimum Wage Increase Set for 2026
The government has set the minimum wage for the garment, textile, footwear, and travel goods sectors at $210 per month for regular employees and $208 for those on probation. The new numbers will become effective from New Year’s Day. The increase of a whole $2 is indicative of the government’s commitment to wage increases as it tries to walk the line between industrial competitiveness and worker welfare. The decision to raise salaries was made after consultations with the Ministry of Labor, the Garment Manufacturers Association in Cambodia, and labor unions, with unions asking for $232 and employers suggesting a smaller(!) increase (the article doesn’t make it clear if “smaller” means less than $232 monthly, or less than a $2 increase). Cambodia’s wages remain lower than those in Vietnam and Thailand.
Read more: ASEAN Briefing
Tax Audit Reforms Target Investor Confidence
Andersen Cambodia’s Tax Partner Laysym Sim gave a talk explaining new tax audit reforms at the 2025 AmCham Cambodia Tax Forum on October 14. The General Department of Taxation has introduced new standardized procedures for audits, including desk audits, limited audits, and comprehensive audits, as it tries to improve audit consistency and start using a risk-based assessment process. A new Unit of Special Tax Audit was set up to speed up resolutions for companies that have Gold Tax Compliance Certificates. The GDT’s revised Tax Audit Standard Operating Procedure now allows businesses 30 working days to raise objections about audit findings to the Ministry of Economy and Finance or to the Administrative Court.
Read more: Cambodia Investment Review
Union Registration Barriers Remain
The Ministry of Labor and Vocational Training seems committed to treating union registrations as an obstacle course, with applications often returned for minor clerical errors. Workers are the ones suffering because of unregistered unions that are unable to collect dues or properly represent members, leaving labor without any real legal protection. Since the Trade Union Law was introduced in 2016, the registration process has become increasingly difficult. It’s resulted in a rising number of employer retaliation cases. International reviews from the likes of the UN and the ILO have been critical of the registration process and asked for reforms to grease union approvals. As of August, there were 34 local unions and 3 federations still waiting for registration, with some applications already having been “in process” for more than four years. The European Union’s 2020 suspension of Cambodia’s trade benefits was connected to the need for credible improvements in labor rights. It doesn’t seem to have worked.
Read more: Sourcing Journal
Microfinance Delivers Handcuffs, Not Freedom
Human Rights Watch says that Cambodian microfinance institutions, supported by international investors like the IFC, are engaged in predatory lending. As of 2024, 3.8 million (mostly very poor) households in Cambodia held more than 3 million microloans totaling $18 billion. Predatory practices have caused huge problems for unsophisticated borrowers, including loss of land titles, hunger, forced labor, and debt-driven suicides.
Read more: Devex
Infrastructure and Trade: Water, Mines, Rice, Gas
A three-day water industry exhibition was run by the Ministry of Industry, Science, Technology and Innovation and the Cambodian Water Supply Association. They want to see the nation meet its goal of universal clean water access by 2030. As of Q3 2025, Cambodia’s clean water network served more than one and a half million homes, with just over a third of total production coming from private operators. Cambodia has asked Japan International Cooperation Agency (JICA) to continue mine clearance support through 2030. JICA has been supporting CMAC since 1998. The original goal to achieve a mine-free society by 2025 has had to be extended to 2030 because of challenges in the terrain and in the scale of contamination. Cambodia exported 596,341 tons of milled rice, bringing in $408.93 million through September. Europe was the recipient of nearly half of that total. Angkor Resources Corp. has found a second drill target for oil and gas exploration at Block VIII in Cambodia. The Central Bokor Lead is showing signs of a four-way closure at depths of between 900 and 1200 meters.
Read more: Cambodia Investment Review (Water Expo), Cambodianess (Mine Clearance), Cambodianess (Rice Exports), City Buzz (Oil and Gas)
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