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Jul 27, 2026

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Phnom Penh Gets 10% US Tariff, Beating Rivals

Cambodia got a 10% Section 301 tariff in the USTR's final ruling, a notable two and a half points lower than the rate that was given to Vietnam, Thailand, Singapore, and the Philippines. The June proposal had put Cambodia in the higher tier, but three ministries worked to improve enforcement against forced-labor imports before the comment deadline, and the final list moved Cambodia, Indonesia, and Malaysia down to 10%. Deputy Prime Minister Sun Chanthol seemed delighted. He said he expects the pending Excess Capacity component to come in at 9% or less, which would keep the combined rate around 19% and within the trade agreement Phnom Penh signed with Washington last year.

Read more: The Star (tariff ruling), Kiripost (enforcement push), Cambodianess (Chanthol comments), Khmer Times (trade deal), Khmer Times (regional comparison)

Hun Manet and Hun Sen Go Shopping for Dollars

Prime Minister Hun Manet and Senate President Hun Sen spent the week hosting peeps with checkbooks - first a South Korean Chamber of Commerce delegation, then a US-ASEAN Business Council group of more than a dozen American companies led by Ambassador Brian McFeeters. The pitch is being made as exports to Thailand dropped to $357 million in the first half from $448 million a year earlier, and imports were reduced from $1.7 billion to about $1 billion as the border closure keeps grinding. Trade with South Korea, by contrast, was about $600 million last year, up almost 37 percent. Those numbers give Phnom Penh a talking point as it looks past its shrunken neighbor for capital for healthcare, energy, and the digital economy.

Read more: Cambodia Daily (investment targets), US Embassy (delegation companies), Khmer Times (mine contamination), CamboJA (displacement toll)

Tourist Arrivals Fall Almost 48% in First Half

International arrivals fell almost 48 percent to 1.75 million in the first half, according to the Ministry of Tourism. PATA Cambodia chapter chairman Thourn Sinan claimed the weak numbers were thanks to a wobbly global economy and neighbors outspending Phnom Penh on flights, visa exemptions, and packages. Researcher Chedy Tech thinks it’s down to the conflict in the Middle East and global inflation, which he says is pinching the wallets of those who might otherwise visit. The months-long Thai border closure, once a major overland funnel into Siem Reap and Phnom Penh, was unmentioned by both experts.

FBI's Patel Comes to Collect on the Scam Tally

Kash Patel met with Hun Manet at the Peace Palace after a stop in Bangkok to hold court at a summit with nearly 20 countries on scam centers, and Phnom Penh released its first full-year scorecard. Authorities say 2,773 suspects were sent to court in 268 cases, more than 600 locations were raided, and 21,102 foreigners were deported. Nineteen casino licenses were withdrawn and 30 more were suspended after a review of 195. Hun Manet told Bloomberg that he has removed a three-star general, a two-star general, and a one-star general because of scam links, as well as provincial governors and police commissioners. Phnom Penh will play host to an international conference in September, an FBI delegation is confirmed. The UN says that regional losses last year were up to $114 billion, about triple its estimate from two years earlier.

Read more: The Star (detention demographics), The Star (UNODC loss range), Khmer Times (center closures), CamboJA (bitcoin seizure)

LNG Exporters Circle First Gas Plant

Suppliers from the US, Canada, Australia, the Middle East, and Southeast Asia are getting in line ahead of the tender to fuel the 900MW Botum Sakor plant, according to Mines and Energy Minister Keo Rottanak. Price and supply stability will decide the winner. The first 450MW phase is expected online by the end of this year, and the second phase should roll out next year. The Japan-Korea LNG marker has topped $21 per million BTU as renewed Persian Gulf fighting and Qatar's force majeure extension at Ras Laffan tighten supply. Rottanak says renewables power almost two-thirds of the grid, and LNG picks up slack as part of the rest while the government works toward 70 percent “clean power” by 2030. Fuel tax and duty cuts that have been introduced to protect domestic users from price shocks are costing the treasury up to $60 million a month.

Read more: Cambodianess (construction timing), Energy Connects (fuel tax cuts), Oilprice (energy mix)

a large body of water with a city in the background — Photo by Siborey Sean on Unsplash

Chinese Megaprojects Clear Local Law, Flunks Global Standards

A study presented at an NGO Forum on Cambodia workshop found that the Lower Sesan 2 dam, Dara Sakor SEZ, and Funan Techo Canal all cleared the minimum local legal bar but fell short of IFC, UN, and OECD standards. Chinese money made up as much as 54 percent of investment capital last year. Researcher Sam Chanthy reported on persistent woes including limited public consultation, weak grievance (resolution) systems, and inadequate livelihood restoration for displaced residents. Deforestation and altered river hydrology were also raised as chronic problems, not one-off mistakes.

Soap Complaint Triggers Registration Pilot

A soap maker's registration ordeal has pushed Hun Manet to order a six-day licensing pilot for the industry. The pilot is part of an SME overhaul and comes as consumers continue to boycott Thai products. The Cambodia Chamber of Commerce says paperwork was never the real problem. Vice president Lim Heng wants better enforcement of import duties on finished goods and tax relief to steady raw-material supply for local manufacturers. Deputy PM and Finance Minister Aun Pornmoniroth have been tasked with chairing an emergency task force.

Kem Sokha's Travel Ban Lifted

A royal decree lifted Kem Sokha's five-year overseas travel ban three months after the Phnom Penh Appeal Court handed it down. The former opposition leader's first trip out of the capital will not be to a rally, instead he is heading to Banteay Meanchey to pass out 300 food packages for displaced families, then on to Oddar Meanchey to meet frontline troops on the Thai border. His lifetime ban on political activity, related to the Supreme Court's dissolution of his Cambodia National Rescue Party, will remain in place. A US trip to visit his daughters and get medical treatment is planned next.

Read more: The Star (royal decree), Khmer Times (pardon)

EU Building Codes Adopted

Cambodia has adopted 10 Eurocodes (the EU's structural design standards) after sustained lobbying by EuroCham's Real Estate and Construction Committee. Vice-chair Ross Wheble, who is the head of Knight Frank Cambodia, said the recognized code should lift construction quality, planning transparency, and foreign investor confidence. Wheble said the adoption is "the single biggest upgrade to the regulatory framework in a decade."

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