Cambodia 20250203: Reticulated, Crystalline, Bridging,
Mekong Memo Cambodia Weekly: Business, politics, finance, trade & legal news.
News from Southeast Asia directly to your inbox every weekday.
The Mekong Memo is proudly presented by:
Horton International is your premier partner for executive search in Southeast Asia. Whether you're a small startup or a global corporation, our reliable and effective recruiting solutions are tailored to meet your unique needs. With extensive experience and offices across the region, we excel at overcoming recruitment challenges and securing top talent for your organization.
Click here to learn how Horton can make your life easier.
The Memo is published weekdays - Cambodia (every Monday), Myanmar (Tuesday), Laos (Wednesday), Vietnam (Thursday) and Thailand (Friday). The Thailand edition is free in its entirety; the others usually abbreviated for non-paid subscribers.
Please go to https://www.mekongmemo.com/account to select country editions you would like to receive without affecting your overall subscription status.
Headlines:
IMF Economic Outlook and Growth Projections
Chinese Investment Dominates FDI Landscape
USAID Aid Suspension To Impact Development
ACLEDA Bank In Bond Issuance Success
Payment Integration Boosts EV Ecosystem
Microfinance Reforms and Responsible Lending
TrueMoney Claims Mastercard Awards
Real Estate Insurance for 2025
Mitigation Project Eases Capital’s Flooding Risks
Festive Road Safety and Public Order
Land Reform, Forest Protection for Sustainability
Air Quality and Enforcement Actions
Technical and AI Innovations in Education
Celebrations Grow Tourism Market
Diplomatic and Multilateral Relations
Environmental Challenges in Ag Production
New Auto Factories and Global Outlets
Government Housing for Veterans
IMF Economic Outlook and Growth Projections
The IMF has completed its latest consultation with Cambodia and its report shows the economy should grow just over 6% over the rest of this year. A new machine‐learning method was used to compare Cambodia’s growth path with those of other economies. Inflation is expected to rise from 0.5% to 2% next year. The report includes notes about challenges in the real estate sector and a need for fiscal reform as Cambodia moves toward middle‐income status. Policy makers are being called upon to improve spending efficiency and public investment management while making sure that credit growth doesn’t slow the recovery.
Read more: Cambodia Investment Review (IMF), Khmer Times (Growth)
Chinese Investment Dominates FDI Landscape
Reports show that Chinese direct investment continues to account for nearly half of Cambodia’s total FDI. Figures show that Chinese FDI has hovered between 48% and 56% since 2020. While Chinese government loans peaked in previous years and have been paused in the current quarter, private investments remain an area of action. Chinese tourism is on the upswing with visitor numbers on the rise. The ongoing reliance on Chinese capital is shaping the economic landscape and influencing investment flows - whether this is for the best or not remains to be seen. Officials say they are carefully watching these trends to balance foreign investment sources and manage economic vulnerabilities.
Read more: Construction Property
USAID Aid Suspension To Impact Development
The US government, on orders from President Trump, has imposed a 90-day suspension on most foreign aid grants, prompting stop‐work notices for local USAID subcontractors. Projects in health, food security, civil society, and anti‐trafficking programs are likely going to be delayed as small organizations figure out how to manage cash flow challenges. Local businesses that rely on timely disbursements may see operational disruptions. Government officials and donor representatives are taking a look at alternative funding channels to help bridge the gap during this review period.
Read more: Cambodia Investment Review
ACLEDA Bank In Bond Issuance Success
ACLEDA Bank has finished its first tranche of subordinated bond issuance, raising USD 85.8 million. The bond, underwritten by RHB Securities, comes with an 8.5% fixed annual coupon rate over a seven-year term. Regulatory approvals were secured from the National Bank of Cambodia and the Securities and Exchange Regulator. The transaction is the largest capital market deal in the country and will be supportive of the bank’s capital (in?)adequacy and portfolio diversification efforts.
Read more: Cambodia Investment Review
Payment Integration Boosts EV Ecosystem
ABA Bank and Charge+ Cambodia have signed an agreement to integrate digital payment systems for electric vehicle charging. The partnership links ABA’s PayWay platform with the Charge+ App, allowing users to top up their digital wallets using bank cards or KHQR codes. ABA Bank will also be offering low-rate financing for the installation of charging stations.
Read more: Cambodia Investment Review
Microfinance Reforms and Responsible Lending
A high-level dialogue between the National Bank of Cambodia and United Nations representatives has reviewed progress in microfinance sector reforms. Out of 22 identified priority actions, a few have been completed while others remain in progress. Discussions were centered on responsible lending practices, improvements in financial consumer protection, and the launch of new insurance pilot programs. The dialogue brought together regulatory bodies and financial institutions to improve loan restructuring frameworks and data transparency.
Read more: Cambodia Investment Review
TrueMoney Claims Mastercard Awards
TrueMoney Cambodia has received two Mastercard awards for Leadership in Prepaid Volume and Cross-Border Volume for 2024. The awards are in recognition of TrueMoney’s efforts to expand secure digital payment services through the Virtual Mastercard platform. The recognition comes as TrueMoney continues to improve its digital financial services and offer Cambodian users access to secure, streamlined payment options.
Read more: Cambodia Investment Review
Real Estate Insurance for 2025
The real estate insurance market is getting new products and better coverage options. The sector now offers property, liability, landlord, title, and construction insurance to protect investments in real estate. Government decrees and industry reforms are helping to modernize the market, and a new online platform for land transactions is helping grease efficiency. The changes are expected to protect investors against title defects and other risks as property values rise.
Read more: Khmer Times
Mitigation Project Eases Capital’s Flooding Risks
A water diversion and flood mitigation project across Phnom Penh and neighboring provinces is almost finished. Once online, the system will divert 700 cubic meters of water per second, reducing flooding in the capital by 65%. The main components like as earthworks and hydraulic systems have been finalized in targeted areas and is expected to improve water retention and stabilize water flow during heavy rains, protecting residents. Local agencies are monitoring progress and making sure that the project meets public safety standards through the coming rainy season.
Read more: Khmer Times
Festive Road Safety and Public Order
Authorities say they have increased measures to improve road safety for Lunar New Year celebrations. The National Road Safety Committee has set guidelines that include no drunk driving, adherence to speed limits, and careful driving practices. Phnom Penh Police have issued an order to stop the sale of firecrackers and fireworks temporarily to prevent fire hazards. Local enforcement teams have been sent out to monitor traffic and public order as large gatherings are expected.
Read more: KHMertimes (Road Safety), KHMertimes (Firecracker ban)
Land Reform, Forest Protection for Sustainability
The government has introduced a program to allocate land to landless citizens while protecting state land and forests. Applications will open this month, and the will include improvements in land measurement, registration, and title issuance. The government will specifically provide three hectares of land to 1,000 poor families in Stung Treng province. A National Steering Committee watching over these efforts says that they are working towards transparency and proper implementation.
Read more: Khmer Times
Air Quality and Enforcement Actions
Recent monitoring has shown that air quality across the land has improved a little after several days of hazardous pollution. Most regions now report PM2.5 levels below the 50 μg/m³ standard. In response to reports of illegal discharges, the Ministry of Environment has suspended a company that discharged toxic waste into a river. Officials say that they will continue to watch air quality and say that citizens should follow government updates.
Read more: Khmer Times (Air quality), Khmer Times (Enforcement)
Technical and AI Innovations in Education
The education system is getting a technical transformation through artificial intelligence. The Ministry of Education, Youth and Sports held discussions with Finnish experts on work-based learning and technical education reforms. Separately, Thailand’s Chulalongkorn University is supporting work to integrate AI into school curricula to help teachers with digital lesson planning.
Read more: Khmer Times (Technical Education), Khmer Times (AI in Education)
Celebrations Grow Tourism Market
The cultural scene has been especially active during the Lunar New Year period as traditional lion and dragon dances take over the streets of Phnom Penh. Government officials have sent New Year messages to leaders in neighboring countries to shore up cultural ties. The Cambodia-China Friendship Association says it foresees a rise in Chinese tourist arrivals in 2025. Efforts are also underway to improve facilities for Muslim tourists as part of work to broaden the visitor market.
Read more: Hyperallergic (Art Vision), Khmer Times (Tourism Forecast), Khmer Times (Cultural Performance)
Diplomatic and Multilateral Relations
The chairmanship of the G77 and China shifted from Cambodia to Peru in Geneva. Cambodia has backed Germany’s bid for a non-permanent UN Security Council seat. Negotiators in the Gulf of Thailand are awaiting parliamentary approval to form a joint technical committee to try to resolve longstanding overlapping maritime claims.
Read more: UNCTAD (G77 Chair), Khmer Times (UN SC Bid), Khmer Times (Maritime Dispute)
Environmental Challenges in Ag Production
The agricultural sector is seeing new methods and as it manages environmental challenges. A pioneer in durian cultivation is introducing farming techniques that will allow growth on non-traditional land. Authorities are working to improve water supply for dry-season rice crops by improving irrigation systems. Satellite data shows that rice stubble burning continues to create hot spots that are hammering air quality and soil health. Industry stakeholders say they continue to explore innovations to support productivity while reducing harmful practices.
Read more: Phnom Penh Post (Durian farming), Khmer Times (Irrigation), Khmer Times (Stubble burning)
New Auto Factories and Global Outlets
Cambodia is drawing moneyinto manufacturing as a locally owned firm has announced the launch of a new aluminum factory. Chinese electric vehicle manufacturer Hozon Auto has opened its first Neta outlets in both Brazil and Cambodia. The expansions offer opportunities for both domestic consumption and export markets. Business leaders are hopeful that these initiatives will further diversify the economy and modernize production capabilities.
Read more: EIN Presswire (Factory opening), Just Auto (EV outlets)
Government Housing for Veterans
Prime Minister Hun Manet and First Lady Dr. Pich Chanmony have overseen the construction of 65 new houses for veteran families in Kampong Thom province. The houses, built on social land concessions, come with complete facilities and each family has been given one hectare of land. Senior officials held inspections and handed out essential supplies during the visit as part of ongoing efforts to improve social welfare and to offer support to veterans.
Read more: Khmer Times
That’s all for this week! Please don’t forget to share this with someone who would find it useful. Also, your voice matters to us. Feel we're missing something? Have additional sources to suggest? Don't hold back— hit reply and tell us what you think.
If you value the Mekong Memo, please consider buying (or gifting!) a paid subscription, sharing it on social media or forwarding this email to someone who might enjoy it. You can also “like” this newsletter by clicking the ❤️ below (or sometimes above, depending on the platform), which helps us get visibility on Substack.