Cambodia's economic growth has been among the world’s fastest during the past quarter century, driven by garment manufacturing, tourism, rice production, and construction. In 2015, the nation achieved lower middle-income status, and has now set its sights on attaining upper-middle income status by 2030. Cambodia has made significant progress in reducing poverty and achieving many other Millennium Development Goals. The country is also very active in GMS cooperation. National development priorities include ensuring stable, sustainable, and equitable economic growth; increasing employment opportunities; improving governance; and reducing poverty further. Although many challenges remain, the country’s development trajectory holds much promise for the future.
|Population||15.77 million (2020)||Average Annual Population Growth Rate||0.9% (2015-2020)|
|GDP at PPP (current international dollars)||73.9 billion (2020)|
|GDP per capita at PPP (current international dollars)||4,571 (2020)|
The high-performing agriculture sector of Cambodia has helped lift millions of people out of poverty during the past 2 decades. Higher yields, diversification, and increased farm wages have helped greatly. Although rice continues to be the most important crop, greater emphasis on vegetables, cassava, and maize are proving to be profitable. The country has benefited from agricultural investments and farming knowledge provided by its GMS partners. As agriculture remains central to Cambodia’s development strategy, the priorities include building farmers’ skills, increasing irrigation, and investing more in aquaculture and livestock. The country is also aiming to become a bigger global exporter of rice.
Cambodia has significantly increased its electricity generation in recent years by building new hydropower and coal-fired plants. However, the country still relies heavily on electricity imports from the Lao PDR, Thailand, and Viet Nam. The proportion of the population without electricity has rapidly decreased this past decade, but still remains high. Government targets include ensuring that all households have access to some form of electricity by 2020, and to grid-quality electricity by 2030. The country is also looking to increase the proportion of hydropower in the domestic energy production mix.
Cambodia is a biodiversity hot spot, rich in species and ecosystem diversity. Tonle Sap is the largest freshwater lake in Southeast Asia, supporting incredibly productive and diverse fisheries. The country’s environment includes a high proportion of natural forest, including the rain forest of the Cardamom Mountains—one of the region’s most species-rich habitats. In recent years, Cambodia has increased its efforts to prevent forest and biodiversity loss by banning economic land concessions and adding 1.4 million hectares of “biodiversity corridors” to its already extensive protected land areas. The country is also close to finalizing a comprehensive national strategy for guiding environmental sustainability efforts until 2023.
Human resource development is essential for achieving Cambodia’s goal of attaining upper-middle income status by 2030. Primary education is now nearly universal, and efforts are under way to improve vocational training and higher education as a means of accelerating industrialization. Cambodia has also strengthened its health system in recent years, resulting in significant improvements in the health of women and children. The country is looking to further expand its health coverage, and is working with its GMS partners to eradicate malaria and to more effectively manage emerging diseases.
ICT has played an increasingly important role in the impressive progress of Cambodia’s development over the past decade. Today, the vast majority of people in the country use mobile phones; and internet access continues to grow rapidly, with a quarter of the population now “online,” up from only 3% in 2011. A government priority is to continue enhancing the ICT sector, and efforts are under way to improve the country’s telecommunications infrastructure, including the extension of coverage to remote communities. Other goals include scaling up ICT use in education and stimulating more private sector investment.
Millions of tourists visit Cambodia each year to experience the country’s rich cultural and natural heritage. Angkor Wat and Phnom Penh continue to be the main tourist destinations, while the coastal areas and the unique Tonle Sap Lake are growing in popularity. In 2016, international tourist arrivals reached 5 million for the first time, twice as many as in 2010. Cambodia is working closely with other GMS countries to promote sustainable tourism as a means of achieving inclusive economic growth and poverty reduction.
Cambodia has made important strides toward improving its transport infrastructure in recent decades. New and better roads, seaports, and airports are helping to drive trade and socioeconomic development. The country’s main national roads have been significantly improved, and road linkages with GMS neighbors greatly enhanced. But more remains to be done. With support from its GMS partners, Cambodia needs to reinvigorate its railways to create a more efficient transport system, and to build stronger linkages with neighbors such as Thailand and Viet Nam. Other priorities include upgrading rural roads and furthering subregional connectivity by strengthening the road networks along the GMS Southern Economic Corridor.
Cambodia’s growing trade with its GMS partners—especially the PRC, Thailand, and Viet Nam—has helped the country achieve impressive economic growth in recent years. Two-thirds of Cambodia’s imports are from GMS countries (including petroleum and fabrics), and a large portion of Cambodia’s exports go to GMS countries (including agricultural products, garments, and timber). Working with its GMS neighbors, Cambodia is upgrading bilateral agreements to enhance cross-border transport and trade, including agreements to increase the exchange of traffic rights. In addition, the country now has automated customs-clearance systems, and is further developing paperless trade.
Although nearly 80% of Cambodians live in rural areas—the highest proportion in the GMS—the country’s urban centers are growing fast. Phnom Penh’s population has tripled since the turn of the century, and many towns in the Tonle Sap lowlands are also burgeoning. Tourism and trade are boosting growth in the port city of Sihanoukville, Siem Reap, and other towns. Cambodia is now looking to improve the streets, waste management facilities, and flood control systems in its urban centers.
GMS Program Officials and Contacts in Cambodia
- ROS Seilava (Mr)
Secretary of State,
Ministry of Economy and Finance
- SUON Sophal (Mr)
Department of Public Relations and Promotion of Private Investment
Council for the Development of Cambodia
A partnership between the Asian Development Bank (ADB) and Electricite du Cambodge (EDC), Cambodia’s national power utility, to develop a 100-megawatt (MW) National Solar Park reached a milestone with the park’s first 60 MW solar photovoltaic (PV) power generation plant connecting to the national grid. ADB President Masatsugu Asakawa marked the occasion with a visit to the solar park on 11 November, during which he initiated the start of power delivery.
The Asian Development Bank (ADB) has approved $32.5 million in financing to improve access to quality health services in Banteay Meanchey, a border province in northwest Cambodia that serves as a hub for departing and returning migrants, and those seeking employment in the province’s special economic zones.
The Government of the Lao People’s Democratic Republic is increasing its electricity exports generated from its hydropower projects to its neighbors in the Greater Mekong Subregion, including Viet Nam. Lao PDR and Viet Nam have signed MoUs targeting to export 8,148 MW from Lao PDR to Viet Nam by 2030. Lao PDR also signed contracts with Viet Nam Electricity (EVN) to implement 25 projects with a combined capacity of 2,180 megawatts.
Mr. Pairoj Chotikasathien, head of the Thai Labour Ministry’s employment department, shared that the Thai Cabinet has approved improved labor management measures to address the gap in migrant worker employment. These measures include (i) allowing documented workers to stay until February 2025; and (ii) allowing undocumented workers to register and work until the same date.
The Government of Lao People's Democratic Republic (Lao PDR) with assistance of the Mekong Tourism Coordinating Office (MTCO) virtually convened the 49th Meeting of the Greater Mekong Subregion (GMS) Tourism Working Group (TWG-49) on 12 May 2022. The meeting was attended by representatives of the National Tourism Organizations (NTOs) of the six GMS countries, MTCO, and the Asian Development Bank (ADB).
ADB is one of Cambodia's largest sources of official development assistance, with average annual lending of $329.8 million from 2016-2021. The bank's support is aligned with the Cambodia's National Strategic Development Plan 2019-2023.
This report compares the Regional Comprehensive Economic Partnership (RCEP) with other free trade agreements and suggests how policy makers can promote its successful implementation.
Cambodia and the Lao People’s Democratic Republic have reported a steady drop in average COVID-19 cases per day in April 2022, according to a report on “Vaccination Rates, Effectiveness, and Safety” by the Asian Development Bank (ADB). In Cambodia, the average COVID-19 cases per day dropped from 164 to 18.4, and deaths decreased from 1 to 0.06, marking a fall in case fatality rate from 0.43% to 0.35%. In Lao PDR, daily infection rates declined steadily, averaging at 986 for April 2022 from 1102 in March 2022, while average deaths per day plateaued between 1 to 3.
A proposed Asian Development Bank (ADB) project will help finance two standard ports that will boost the fisheries and tourism sectors of Cambodia’s Kep province.
A report by the Khmer Times shared provincial officials and ADB are working to establish the ports’ locations, according to Mr. Vao Sokha, Kep Deputy Governor.