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Headlines:
Border Tensions Up, Thailand Demands Evictions
Border Committee Meetings Set
Investment Approvals Up 73% YTD
Growth Forecast Slashed
Factories Race to Hire Returning Migrant Workers
Techo International Airport Launches Operations
Clean Energy Transition Faces Money Hurdles
U.S. Paints Cambodia as Sponsor of Trafficking
Infrastructure and Transport
Trade and Bilateral Relations Expand
Export Markets See Mixed Performance
Natural Disasters and the Environment
Labor Rights and Workforce Development
Political and Diplomatic Works
Border Tensions Up, Thailand Demands Evictions
Thai authorities in Sa Kaeo province ordered Cambodian villagers in the disputed border areas of Prey Chan and Chouk Chey to get out by October 3 and October 10, respectively, threatening to prosecute them under the 1941 Thai Forest Act. Governor Oum Reatrey of Cambodia’s Banteay Meanchey province filed a formal protest, saying that Cambodian citizens have lived there for decades, well before the 2000 border memorandum. Thai troops tried to survey Border Post No. 46 on September 30 but were blocked by unarmed Cambodian forces and local residents. Prime Minister Hun Manet is telling the international community about what he describes as Thailand’s tactics of territorial expansion. The Cambodian Ministry of Interior rejected Thailand’s claims at the UN, saying the areas are still under dispute and any enforcement of Thai law is in violation of the ceasefire agreement.
Read more: Khmer Times (Eviction Order), Khmer Times (Survey Blocked), CamboJA News (Protest Letter), Khmer Times (ASEAN Probe)
Border Committee Meetings Set
Cambodia is hosting three Regional Border Committee (RBC) meetings with Thailand’s military throughout October to talk about the ceasefire implementation and cooperation. The first meeting was to run from October 4 through to today in Koh Kong Province between Military Region 3 and Thailand’s Chanthaburi-Trat Border Defence Command. The second is planned to take place October 7-9 in Oddar Meanchey, and then a third round October 10-12 in Banteay Meanchey. Malaysia is leading an Interim Observer Team that visited on September 28 to evaluate previous attacks and look into reports of illegal landmine use.
Read more: Cambodianess (Meeting Schedule), Khmer Times (Armistice Discussions), Pattaya Mail (Landmine Reports)
Investment Approvals Up 73% YTD
The Council for the Development of Cambodia has given the go-ahead to 546 investment projects worth almost $8 billion so far this year, a 73% increase in project count and 47% growth in value when compared to the same period last year. The investments are expected to create about 376,000 jobs in manufacturing, infrastructure, agriculture, and tourism. China leads foreign investment with just over half of the total, followed by Singapore, Vietnam, and the US. Kampong Speu and Svay Rieng provinces drew the most projects, 125 and 122 respectively. Much of the growth can be credited to Cambodia’s participation in the Regional Comprehensive Economic Partnership Agreement (RCEP) and other bilateral trade deals it’s struck.
Read more: Khmer Times (Job Fairs), AKP (Investment Data), Cambodianess (Growth Analysis), Kiripost (Economic Impact)
Growth Forecast Slashed
The Asian Development Bank dropped Cambodia’s growth forecast for 2025 down from 6.1% to 4.9% and for 2026 from 6.2% to 5.0%, blaming border tensions with Thailand and uncertainty in the U.S. export market. The 19% tariff hammer brought down by the U.S. on Cambodian exports is creating headwinds, although garment exports jumped 22.2% in early 2025 as buyers stockpiled in advance of the increase. Service sector growth is expected to slow to 2.8% in 2025 as border tensions continue to keep tourists at bay. On the plus side, inflation dropped from 6% in January to 1.6% in June, and should run at about 2% through 2026. The fiscal deficit is expected to widen to $1.5 billion (3.1% of GDP) in 2025 on higher spending.
Read more: The Star (ADB Revision), Cambodianess (Trade Risks)
Factories Race to Hire Returning Migrant Workers
Foreign companies are scrambling to hire from the pool of more than 940,000 workers who have come back from Thailand over the past few months. Zhuhai Zhengchuan Plastics says it expects to triple its workforce by year-end, and Minebea Cambodia wants to add close to 1,000 workers. The Ministry of Labour says that around 220,000 returnees have already gained employment, and, despite the massive influx creating reintegration challenges, IOM Chief Nellies Ghusayni says the crisis can turn into an economic opportunity with proper coordination.
Read more: Khmer Times (Hiring Drive), Khmer Times (IOM Perspective), Nikkei Asia (Expansion Plans)
Techo International Airport Launches Operations
Techo International Airport officially opened on October 6, 2025, becoming Cambodia’s largest aviation port with an initial capacity of 15 million annual passengers. The airport, built by Cambodia Airport Investment Co., Ltd. in a joint venture with the State Secretariat of Civil Aviation and Overseas Cambodian Investment Corporation, started soft operations on September 9 with Air Cambodia flight K6 611 from China. It currently averages 130 flights and 15,000 passengers a day, served by 28 airlines. Etihad Airways launched the first direct flight from Abu Dhabi on October 4, and Turkish Airlines plans December service. The airport performed as a star during Super Typhoon Ragasa by hosting 13 redirected Cathay Pacific aircraft. The airport’s official inauguration is scheduled for October 20.
Read more: Travel Daily News (Inauguration), Khmer Times (Operations), Cambodia Investment Review (Typhoon Response), Khmer Times (Etihad Launch)
Clean Energy Transition Faces Money Hurdles
The garment sector is struggling as global brands are demanding 50% carbon cuts by 2030 and net-zero by 2050. Factories currently use 8% of Cambodia’s electricity ($350 million annually), but replacing biomass boilers with electric alternatives would push the bill to $650 million and increase energy use by an uneconomical 13%. Cambodia currently lags behind Vietnam and Bangladesh in offering corporate power purchase agreements and access to rooftop solar.
Read more: Kiripost (Sector Challenges), Cambodia Investment Review (Financing Facility), Cambodianess(Decarbonization Path), Cambodianess (Energy Efficiency)
U.S. Paints Cambodia as Sponsor of Trafficking
The U.S. State Department’s 2025 Trafficking in Persons Report designated Cambodia as a “state sponsor” of human trafficking for the first time, putting it alongside Afghanistan, China, Iran, North Korea, and Russia. The report says senior government officials profit from the forced labor of trafficking victims in online scam operations, with authorities intimidating victims and obstructing investigations to protect politically connected elites. Chou Bun Eng, Vice-Chair of the National Committee for Counter Trafficking, said the report is unfair and biased. Labor rights advocate Moeun Tola warned that the Tier 3 label could damage Cambodia’s international reputation and investment climate. Despite the blacklisting, Chinese FDI is expected to remain stable due to the strong connections between the two countries, though companies may face increased scrutiny from Western investors.
Read more: Khmer Times (Designation Details), The Guardian (Report Release), Cambodia Investment Review(Investment Impact), Khmer Times (Chinese Investment)
Infrastructure and Transport
The government needs $3.25 billion for river transport and water logistics in 23 projects under its 2023-2033 Comprehensive Intermodal Transport and Logistics System master plan. Sixteen short- and medium-term projects valued at $2.56 billion are planned to run from 2023 to 2027, and nine long-term projects will run from 2028 to 2033. Six projects have begun already, but ten are still on hold because of funding shortages. The Funan Techo Canal work remains underway, a groundbreaking took place on October 3 for the Kampong Cham Tourist Port, and the Phnom Penh-Bavet expressway development continues.
Read more: Khmer Times (Water Logistics), Travel and Tour World (Tourist Port), Construction Property (Expressway Technology)
Trade and Bilateral Relations Expand
Bilateral trade and tourism with China remain healthy. Vietnamese companies have invested nearly $3 billion in more than 200 projects, mostly in agriculture, but investment has slowed recently. Two-way trade with Vietnam hit $37.3 billion. Ambassador Nguyen Minh Vu has proposed connecting the (previously mentioned) Phnom Penh-Bavet expressway with Vietnam’s Ho Chi Minh City-Tay Ninh expressway to improve connectivity. Indonesia is pushing for trade with northeastern provinces, with over 60 Cambodian businesspeople registered for Trade Expo Indonesia from October 15-19. The U.S. hosted a high-level agribusiness roundtable looking at investment opportunities in rice processing, cashews, and agricultural machinery. Japan promised its continued support for 5G rollout via partnerships with NTT Docomo and Nippon Electric Company.
Read more: Khmer Times (China Trade), Khmer Times (Vietnam Investment), Asian News Network (Indonesia Push), Khmer Times (U.S. Agriculture), Khmer Times (Japan 5G)
Export Markets See Mixed Performance
Cambodia shipped $8.3 billion of goods to the U.S. from January to August 2025, but Deputy Prime Minister Sun Chanthol warned businesses against bypassing rules of origin that could put market access in jeopardy. The government issued two statutes in April requiring Origin Certification Letters for U.S. exports to prevent transshipments and fraud. Cambodia showed off its premium rice at ANUGA 2025 in Germany with 13 exporters; rice exports from January to August totaled 472,803 tonnes valued at $348 million, with the EU as the top importer. Bicycle and e-bike exports hit $408 million through August, up nearly 46%, with Denmark and Sweden the primary European markets. Cambodia has become the leading EU bicycle supplier with 24% market share, passing both China and Taiwan. Overall trade with Thailand fell sharply, with exports down 36.2% to $46.1 million in August and Thai border trade dropping 99.9% to just $310,000.
Read more: Kiripost (U.S. Compliance), Khmer Times (Rice Exports), Scandasia (Bicycle Boom), Khmer Times(Thailand Trade)
Natural Disasters and the Environment
Floods have hammered nine provinces as of today, affecting thousands. The National Committee for Disaster Management says that almost 17,000 hectares of rice have been affected and 1,680 hectares of crops destroyed. From July to September, floods killed 19 people, including seven women and 12 children, and damaged 12,319 houses, 62 schools, 13 pagodas, and 28 health centers. Water levels in Kratie province reached 21.66 meters on October 1, with forecasts predicting 21.97 meters by October 4. The Ministry of Health is asking for vigilance against waterborne diseases and snakebites in flood-affected areas.
Read more: Khmer Times (Flood Impact), Khmer Times (Death Toll), Khmer Times (Kratie Response), Khmer Times (Mining Pollution)
Labor Rights and Workforce Development
Better Factories Cambodia says there are widespread labor abuses in the garment, footwear, and travel goods sector, including cases of child labor in two factories that are using workers under age 15. Overtime violations rose to 59% of factories, and wage-related violations jumped to 22%. Twelve percent of factories failed to follow trade union protection laws, and 14% didn’t provide maternity leave.
Read more: Kiripost (Labor Abuses), Khmer Times (Skills Workshop), Khmer Times (Dispute Resolution)
Political and Diplomatic Works
National Assembly President Khuon Sudary has been invited as the only Asian speaker at the Paris Peace Forum on October 29-30, 2025, themed “A New Alliance for Peace, People, and the Planet.” She told French Ambassador Olivier Richard that the border dispute with Thailand is a result of Thailand’s rejection of the Franco-Siamese map and a 2000 MoU. Deputy Prime Minister Prak Sokhonn met with UN Secretary-General António Guterres, saying that Cambodia remained committed to a peaceful resolution and de-escalation. Prime Minister Hun Manet met with a Malaysian Senate delegation, thanking Malaysia for mediating the border dispute and re-emphasizing his commitment to a peaceful resolution. Finally, Timor-Leste’s new ambassador hailed the “genuine and supportive” relationship with Cambodia in advance of Timor-Leste’s formal admission as ASEAN’s 11th member later this month.
Read more: Khmer Times (Paris Forum), Khmer Times (UN Meeting), Khmer Times (Veterans Support), Khmer Times (Timor-Leste Relations)
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