Cambodia 20250127: Sharp, Forward-thinking, Dogmatic
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Headlines:
Infrastructure Booming with New Developments
Investment Growth with New Initiatives
Growth in Exports, Rubber Demand, and Oil Imports
Digital Innovation Accelerates
Agricultural Irrigation Expansion
International Aid, Diplomatic Relations
Tourism and Aviation Growth
Something Bad is in the Air
Agricultural Production and Food Security Rise
SinoPac Swallows Amret
Green Energy Investment Expands
IOD Sees Strong Economic Outlook
Anti-Corruption Drive Continues
Tragic Charity Event Claims Lives
Infrastructure Booming with New Developments
The nearly complete Techo International Airport, with 94% of its construction finalized and a $1.4 billion investment, is expected to open in July. The recent launch of AirAsia Cambodia's first direct flight between Phnom Penh and Hanoi is a welcome addition to international flight options, while Cambodia and the Philippines are discussing expanded direct routes to improve bilateral tourism numbers. The Cambodia-Korea Friendship Bridge project has led to temporary shipping lane closures due to testing- good news for the progress of a vital link between Phnom Penh and Kandal province. The 800-hectare ISI Special Economic Zone officially launched in Banteay Meanchey province along the Cambodia-Thailand border. Located in Poipet city, the SEZ is expected to draw domestic and foreign investments in manufacturing, logistics, and tourism.
Read more: Construction Property (Techo Airport), Routes Online (AirAsia Cambodia), Khmer Times(Philippines), Construction Property (Bridge), Cambodia Investment Review (SEZ)
Investment Growth with New Initiatives
New private business centers are being planned in the UK and India to promote trade and investment. AmCham Cambodia wants to improve U.S. ties through workforce development and policy advocacy. A EuroCham survey scored Cambodia 6.51/10 for investment potential, citing challenges like infrastructure gaps but speaking positively of growth in agriculture and tourism. In Preah Sihanouk, $565 million in incentives were approved for 42 projects, including eco-tourism resorts and industrial parks, creating 7,308 jobs. The Philippines Women’s Business Council is looking for collaboration in agriculture, logistics, and tourism.
Read more: Construction Property (Business Centers), Cambodia Investment Review (AmCham), Khmer Times (Philippines Investment), Cambodia Investment Review (EuroCham), Khmer Times (Preah Sihanouk)
Growth in Exports, Rubber Demand, and Oil Imports
Garment exports rose 24%, thanks to demand for apparel, and car tire exports more than double with a rise of nearly 130% to $874.6 million, supported by regional trade agreements and increased domestic production. Despite an 8% decline in rubber export volume, revenue climbed 36%, reaching $671.7 million, as domestic tire manufacturing used more local rubber. On the import side, Cambodia spent $2.69 billion on oil and gas, a 12% increase, with rising costs for all of diesel, petroleum oil, and gas. The country also brought in vehicles worth $1 billion, up 11.6%.
Read more: Fibre2Fashion (Garment exports), Asia News Network (Rubber exports), Khmer Times (Tyre exports), Khmer Times (Oil imports)
Digital Innovation Accelerates
The National Bank of Cambodia has integrated VISA into the BAKONG tourist app, allowing foreign tourists to make digital payments at 4 million domestic retailers. Cambodia and the Philippines have inked an agreement to exchange experience and technology related to document verification platforms. The Ministry of Education has developed an AI tool for Khmer language translation.
Read more: Pattaya Mail (BAKONG), Khmer Times (Document Verification), Khmer Times (AI Translation), Marketing Interactive (Philippines Agreement)
Agricultural Irrigation Expansion
Agricultural irrigation capacity has expanded to 1,969,843 hectares, including 1,387,051 hectares for wet-season rice and 582,792 hectares for dry-season rice. The Ministry of Water Resources says it continues to develop irrigation systems, flood protection, and saltwater protection dams to ensure water security and support disaster mitigation.
Read more: Construction Property
International Aid, Diplomatic Relations
Japan delivered 29 medical incinerators worth $2.7 million to Cambodia's Health Ministry, the first project under their new Comprehensive Strategic Partnership. Japan also provided $3.3 million for voter information system upgrades and $11.7 million through KOICA for civil service training at the Royal School of Administration. The United States and Cambodia are celebrating 75 years of diplomatic relations, with both nations speaking highly of commitments to expand ties despite historical tensions. Both nations acknowledged their "long-standing, comprehensive and multifaceted partnership" as they adapt to a changing regional landscape.
Read more: Dawn (Medical Aid), Khmer Times (Voter System), Khmer Times (Civil Service), Khmer Times (US Partnership)
Tourism and Aviation Growth
Cambodia saw the arrival of 6.2 million air passengers in 2024. The country earned 20 ASEAN Tourism Awards. Partnerships are being chased to promote Cambodia internationally, including collaborations with Agoda for digital tourism and with ASEAN countries to support better training and connectivity. The Paul Dubrule School has been encouraged to expand training for ASEAN students. With 6.7 million international tourists in 2024, the government continues to focus on infrastructure and initiatives to keep up the pace of growth.
Read more: Khmer Times (Tourism awards), Khmer Times (Air passenger growth), Khmer Times (Tourism cooperation), Khmer Times (Agoda collaboration), Khmer Times (Tourism training)
Something Bad is in the Air
Air quality issues have been a hot topic across the region this week, and in Cambodia the bad air has prompted government warnings and calls for protective measures across Cambodia. Siem Reap has been rated "unhealthy" and Phnom Penh showed a little improvement to "moderate" levels. The Ministry of Health has come out with safety guidelines for citizens, especially the very old and the very young.
Read more: Khmer Times
Agricultural Production and Food Security Rise
Foodgrain production reached 39.4 million tonnes in 2023, a 6% increase over the tally reported in 2022. Paddy rice production hit 10.6 million tonnes (+3.9%), corn output grew to 1.2 million tonnes (+8.6%), and cassava production increased to 15.8 million tonnes (+7%). The UN's Joint SDG Fund is supporting food system improvements through policy frameworks, financing, and advocacy for improving nutrition access for youth in hard-to-reach areas.
Read more: Khmer Times (Production Data), UN Cambodia (Food Systems)
SinoPac Swallows Amret
SinoPac Bank's USD550 million acquisition of Amret Microfinance Institution is Cambodia's largest microfinance sector deal to date. The transaction involves purchasing an 80% stake initially, with plans to acquire the remaining 20% over the coming two years. The deal required approvals from several regulators including the National Bank of Cambodia and Ministry of Commerce.
Read more: Law Asia
Green Energy Investment
HK OASIS Power Energy Development got the go-ahead to build a 150-megawatt wind power plant in Mondulkiri province. The project, expected to be finished sometime next year, will connect to the national grid. Energy sector growth has pushed grid coverage to 99.88% of villages, and the government continues working on clean energy investments to reduce electricity costs.
Read more: Intellinews
IOD Sees Strong Economic Outlook
Stephen Higgins, Managing Partner of Cam-IOD, is expecting continued growth of 6-7% annually through 2025, maintaining Cambodia's position as one of Southeast Asia's fastest-growing economies. The main growth drivers are tourism recovery, exports, and growing domestic demand. Five factors necessary for future growth: manufacturing diversification, services sector expansion, infrastructure development, human capital strengthening, and sustainable development initiatives.
Read more: Cambodia Investment Review
Anti-Corruption Drive Continues
Former Takeo province police chief Suon Sokchea was sentenced to two years imprisonment for accepting a $5,000 bribe. In a separate case, Sok Songha, former head of the Anti-Drug Crime Office, faces 7-15 years in prison for alleged bribery and abuse of power.
Read more: Khmer Times (Police Chief), The Star (Drug Official)
Tragic Charity Event Claims Lives
Four people died and 16 were injured during a stampede at a Chinese Lunar New Year event in Phnom Penh when crowds rushed to collect lucky red envelopes containing cash. The incident occurred at a park where thousands had gathered for the envelope distribution. The injured were taken to a nearby hospital, though the exact cause of the stampede remains unclear.
Read more: UCA News
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