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
Ho Chi Minh City, a COVID-19 hotspot in Viet Nam, received medical supplies from the Government of Cambodia to help them overcome the coronavirus disease (COVID-19) pandemic. The shipment, which arrived on 19 July, comprises of 1 million medical face masks, 100,000 N95 face masks, 100 five-liter oxygen generators and cash worth $200,000. Writing to Prime Minister Hun Sen, Viet Nam Prime Minister Pham Minh Chinh expressed his gratitude for the assistance, and emphasized that the donation is evidence of close friendship, solidarity and noble tradition of mutual support between the two nations
The second Mekong-U.S. Partnership Ministerial Meeting held on 2 August 2021 unveiled four flagship projects under the Mekong-U.S. Partnership, and noted the 8.5 million vaccine doses and over $58 million in U.S. COVID-19 assistance to the Mekong subregion countries.
A six-year, pioneering regional technical assistance initiative has boosted the capacity of health systems in Cambodia, the Lao People’s Democratic Republic (Lao PDR), and Viet Nam to respond to climate-induced health threats amid the coronavirus disease (COVID-19) pandemic, the Asian Development Bank (ADB) announced today.
Cambodia Prime Minister Hun Sen signed a sub-decree to upgrade the Preah Sihanouk province (“Sihanoukville”) to a multi-purpose special economic zone (SEZ) on 9 June. This decision aims to increase its economic potential to investors.
Cambodia’s Ministry of Tourism (MOT) and key tourism stakeholders from the country’s private sector, including the Cambodian Association of Travel Agents, the Cambodian Tourism Federation, the Cambodian Restaurants Association, the Cambodia Hotel Association, and the Pacific-Asia Travel Association, held a meeting on 2 June to discuss plans to open the country to vaccinated tourists traveling on package tours as early as October. Tourism brings in around 32.7% share of Cambodia’s gross domestic product.
A $97.9 million upgrade for Viet Nam’s National Highway 62 has been proposed to Viet Nam's Ministry of Transport. The renovation work will include road repairs and road widening of specific portions from nine to eleven meters to reduce the travel time from Ho Chi Minh City, Viet Nam, to Cambodia. The project is proposed to start in 2021 with scheduled completion by 2023.
The highway connects Vietnam’s highways No.1, N2 and the HCMC-Trung Luong-My Thuan Expressway. All three are major routes run from HCMC on through the Mekong Delta.
Thailand's Department of Highways noted that construction of the new Highway 3646 linking Thailand and Cambodia is already 70% complete. Full completion is expected by next February. Highway 3646 will connect Ban Nong Ian in Sa Kaeo, Aranyaprathet, Thailand, to Banteay Meanchey, Cambodia, via the Thailand-Cambodia Friendship Bridge.
The People’s Republic of China (PRC) has allowed Cambodia to export fresh mangoes directly to its market after the PRC’s General Administration of Customs (GACC) certified 37 mango plantations and five packaging factories as compliant with phytosanitary and packaging standards on 26 April. GACC experts from the Guangxi Zhuang Autonomous Region held a virtual inspection of mango plantations and steam treatments plants on 10 March.
Mr. Sun Chanthol, Cambodia Senior Minister and Minister of Public Works and Transport, has requested the Asian Development Bank (ADB) for further support for the development of Cambodia's cross-border facilities. Cambodia aims to ease logistics and boost transportation to expand within the Greater Mekong Subregion (GMS) and the ASEAN region.