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Mekong Memo Cambodia Weekly: Business, politics, finance, trade & legal news.

Dec 29, 2025

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Headlines:

Ceasefire Holds, War Crimes Alleged

Hun Manet Say Ceasefire is Strategy, Not Surrender

China Hosts Trilateral as Powers Jockey

Angkor Bleeds Tourists

US Tariff Cut Saves Garment Sector

Wing Bank Promises $500 Million

Skills Fund Smashes Targets

Ceasefire Holds, War Crimes Alleged

Thailand and Cambodia signed their second ceasefire on December 27, ending three weeks of fighting that killed more than 100 people and has displaced more than hundreds of thousands of civilians. The agreement bans military movements and airspace violations - ASEAN will be monitoring the implementation. Thailand says it will release 18 detained Cambodian soldiers, but even as the guns fell silent, Interior Minister Sar Sokha accused Thai forces of war crimes in Banteay Meanchey province, claiming video evidence of tanks firing on evacuated villages. On December 26 alone, Cambodia says Thai artillery launched 360 shells into Chouk Chey and Prey Chan villages, destroying homes and temples. Prime Minister Hun Manet was blunt: the ceasefire does not mean surrender or any compromise on territorial integrity.

Read more: Al Jazeera (Ceasefire terms), NPR (Prisoner release details), Khmer Times (War crimes allegations)

Hun Manet Say Ceasefire is Strategy, Not Surrender

Prime Minister Hun Manet said the December 27 ceasefire is not a surrender or demonstration of a willingness to compromise territorial integrity. He sad the agreement prioritizes the safety and well-being of Cambodians while keeping forces in existing positions without shifting the line of the border. Cambodia will keep its rights according to international treaties. The Royal Government told relevant ministries to create safe conditions for refugees to get home while also sharing gratitude with international supporters including the U.S. and ASEAN.

Read more: Khmer Times (PM Statement), Khmer Times (CPP Position)

China Hosts Trilateral as Powers Jockey

Chinese Foreign Minister Wang Yi organized trilateral talks in Yunnan with his Cambodian and Thai counterparts, setting Beijing up as regional peacemaker. China promised about $2.8 million in humanitarian aid to Cambodia including tents, blankets, and food. US Secretary of State Marco Rubio called Hun Manet on Christmas Day, offering to support the dialogue. ASEAN foreign ministers met in Kuala Lumpur, Vietnam offered support, and Russia weighed in.

Read more: Reuters (China’s diplomatic role), SCMP (Humanitarian aid details), DW (US diplomatic engagement)

Angkor Bleeds Tourists

International arrivals fell 13.8% to 5.17 million in the first eleven months of 2025, with Thai visitors down 47% to just over one million as the border closure strangled cross-border tourism. Vietnamese arrivals dropped 7.3% to 1.11 million. Angkor Wat ticket sales fell 17% from June to November. Chinese tourists rose 43.5% to 1.1 million but couldn’t offset the hemorrhaging from Cambodia’s two largest traditional markets. Tourism makes up about a tenth of GDP, and the industry is fearful of long-term damage even after the shooting stops.

Read more: France24 (Tourist arrival statistics), Travel And Tour World (Economic impact on guides)

US Tariff Cut Saves Garment Sector

The US slashed tariffs on Cambodian exports from 49% to 19% by August, keeping a collapse of the garment and footwear sectors at bay for now. The sector employs 900,000 workers, and textile exports to the US brought in close to $5 billion in 2024 - 40% of total exports. Half of garment factories had faced high tariff risks before the reduction. Exports to RCEP countries hit $8.85 billion in the first eleven months, up 6% year-on-year. Total trade with RCEP reached $36.39 billion, up 15.7%, though imports grew faster than exports.

Read more: Khmer Times (RCEP trade figures), Fibre2Fashion (Tariff reduction impact)

Wing Bank Promises $500 Million

Wing Bank committed $500 million across three projects: $100 million to the Women’s Economic and Entrepreneurship Development Centre, $200 million in zero-interest trade finance through customs, and $200 million for innovation and small businesses. Women make up almost 88% of Cambodia’s informal workforce, and the government wants to bring millions of people into formal employment.

Skills Fund Smashes Targets

The Skills Development Fund trained more than 21,700 people by December, hitting 181% of its 2025 target. The $12 million program partnered with 495 factories, 66 training institutions, and 23 business associations. Women made up more than a third of trainees. A separate “My Skills, My Job” initiative placed 4,300 returning migrant workers. Higher incomes and productivity followed for both trainees and employers.

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