Cambodia 20260105
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Headlines:
Conflict Simmers Despite Ceasefire
China Mediates, ASEAN Sputters
Tourism Takes a Beating
Growth Slows on Conflict Fallout
Wind Power Plant Coming to Mondulkiri
EV Adoption Moves Toward Targets
Securities Market Eyes Institutional Investors
New Year, New Cybercrime Crackdown Promised
Drug Arrests Rise Despite Seizure Drop
Infrastructure and Governance
Conflict Simmers Despite Ceasefire
A fragile ceasefire between Thailand and Cambodia, agreed to on December 27, continues to hold. Thai forces are said to still be in disputed areas, reportedly occupying four villages in Banteay Meanchey province with shipping containers and barbed wire, blocking access for more than 6,000 residents. Cambodia is demanding immediate withdrawal of the Thai troops and has filed a formal protest.
Read more: Khmer Times (Violations), Arab News (Withdrawal Demands), Eurasia Review (Preah Vihear), Khmer Times(Status), Khmer Times (Displacement), Khmer Times (Reconstruction), Khmer Times (Full Impact), Khmer Times (Education), Khmer Times (Blocked Access)
China Mediates, ASEAN Sputters
China has set itself up as the primary mediator in the border crisis, sending Foreign Minister Wang Yi for shuttle diplomacy and hosting trilateral meetings in Yunnan Province. Beijing’s strategy appears intended to keep regional stability for its Belt and Road project while avoiding any attempts at finding a direct resolution, preferring to try and influence without obviously taking sides. ASEAN, led by Malaysia, tried mediation but failed to produce results because of divisions within the bloc what response is appropriate. The U.S. also tried intervention using tariff threats but got pushback from both countries. The Philippines takes the ASEAN chair in 2026, but few expect Manila to take a lead in the dispute, leaving the field to Beijing and Washington.
Read more: Eurasia Review (China Role), China Daily (Mediation), SCMP (ASEAN Chair), Khmer Times (Border Talks)
Tourism Takes a Beating
Thai arrivals to Cambodia crashed by about half in the first 11 months of 2025, falling to just over a million visitors. November 2025 saw a 90% drop, with only 17,172 Thai crossings compared to 188,487 in the same month the previous year. The Thai market collapsed from top position, and now trails both Vietnam (1,115,416 arrivals) and China (1,104,952 arrivals). The Cambodia Association of Travel Agents president Chhay Sivlin doesn’t see any reason that the trend of lower visitors would reverse any time soon. Oudom Consulting has come out with an estimate that tourism revenue losses for the second half of 2025 will be between $650 million and $1.25 billion (it isn’t clear how much rigor was involved in identifying figures that differ by about 100%). Between 150,000 and 250,000 tourism-related jobs have been lost or furloughed.
Read more: Kiripost (Thai Visitors), Cambodia Investment Review (Economic Impact)
Growth Slows on Conflict Fallout
Growth forecasts have been nudged downward to below 5% for 2025 from the 6.0% that was seen in 2024. The figures on trade with RCEP countries have been good so far - at last report they’re up almost 16% year-on-year. Exports to RCEP countries rose almost 6% ($8.85 billion), and imports rose just over 19% ($27.54 billion). The government has set a revenue target of more than $7.5 billion for 2026. Business leaders want the government to diversify its revenue beyond taxing business, they’re suggesting property tax reforms and capital gains taxes. Macroeconomic stability has held the line with foreign reserves worth about 7.5 months worth of imports, public debt is sitting at about 26% of GDP, and inflation ran about 2.7% through 2025.
Read more: AKP (RCEP Trade), Cambodia Investment Review (Revenue Target), Cambodia Investment Review (Growth Forecast)
Wind Power Coming to Mondulkiri
The government plans to commission the country’s first 150 MW wind power plant in Mondulkiri province this year. Dr. Praang Jalsa, General Director of Electricite du Cambodge, said the project will increase wind power capacity to 900 MW, moving the country closer to its goal of at least 70% clean energy by 2030 and carbon neutrality by 2050. Current energy resources total around 5,000 MW - 60% of that already comes by way of renewables.
Read more: Energies Media
EV Adoption Moves Toward Targets
The National Policy on Electric Vehicle Development (2024-2030) is pushing EV adoption. Registrations topped 10,000 by September, including 7,187 cars, 2,710 motorcycles, and 671 tricycles. This is a solid increase from the previous two years - at a similar time in 2024, 4,320 EVs had been registered and 2023 saw only 600 in the entire year. The government dropped import duties on electric motors from 15% to 0% and the tariff on batteries from 10% to 5% to improve local competitiveness. Infrastructure improvements include 21 charging stations as of mid-2025, and plans for a nationwide high-speed charging network. BYD has opened a new EV assembly plant in Sihanoukville.
Read more: Khmer Times
Securities Market Eyes Institutional Investors
The Securities and Exchange Regulator of Cambodia released its Post Securities Basic Market Guide on the last day of the year, and it emphasized institutional investors as necessary for stability and growth. Institutional investors help support market stability, confidence, innovation, and capital formation while reducing volatility and improving credibility by taking a longer-term view of the market than typical retail investors. SERC’s rules are intended to make sure that transparency, accountability, and efficiency are maintained to keep the institutional money coming.
Read more: Khmer Times
New Year, New Cybercrime Crackdown Promised
Senior Minister Chhay Sinarith, leading the National Information Technology Centre and the Ad-hoc Commission for Combating Online Scams, is saying more work needs to be done on cybercrime. He told officials to improve themselves by way of more training, better collaboration between the state and the private sector, and better cross-border enforcement collaboration.
Read more: Khmer Times (Cybercrime), Cambodia Investment Review (Online Scams)
Drug Arrests Rise Despite Seizure Drop
Drug-related arrests rose to 26,421 in 2025, but the Anti-Drug Department (does this imply the existence of a “Pro-Drug Department”?) said there has been a big drop in drug volumes seized: to 5.88 tonnes vs 2024’s nearly 15 tonnes. The primary source continues to be the Golden Triangle region (Myanmar, Laos, Thailand), but local manufacturing of drugs is also happening. The rise in arrests despite the drop in seizures seems to suggest either more widespread distribution networks or improved enforcement.
Read more: Khmer Times
Infrastructure and Governance
The Ministry of Rural Development reviewed 2025 rural road procurement outcomes this week, and Minister Chhay Rithisen commended his people for their good work and successes. The minister was keen to show off improvements in efficiency, transparency, and quality for the coming year’s procurement efforts. Reforms that were started in 2001 at the commune level and then later expanded to cities, districts, and provinces appear to have improved governance, transparency, and public service delivery.
Read more: Khmer Times (Rural Roads), Khmer Times (Decentralization)
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“Once you’ve been to Cambodia, you’ll never stop wanting to beat Henry Kissinger to death with your bare hands." -Anthony Bourdain