The report reveals potential for substantial digital transformation in Cambodia's credit landscape. Amid exponential economic growth, Cambodia presents unique opportunities for financial inclusion and modern credit services, such as credit cards and digital loans. By fostering responsible lending practices and leveraging technology, Cambodia can enhance its financial ecosystem and facilitate transition from a cash-dependent to a cashless society.

Cambodia's impending graduation from least developed country (LDC) status - expected as early as 2027 - brings both celebration and challenge. While indicating significant socio-economic development, it also means losing preferential trade benefits. Authors Pramila Crivelli, Stefano Inama, and Gerald Pascua propose that Cambodia must accelerate trade reforms, expand participation in free trade agreements, undertake domestic reforms, and capitalize on digitalization to ensure competitive market access and maintain its export performance post-graduation.

Amid Southeast Asia's promising economic growth, Cambodia's future economy lies delicately balanced on the evolving geopolitical dynamics, particularly the US-China trade tensions. Former US Ambassador to Cambodia, William A. Heidt, highlighted the opportunities and challenges Cambodia faces in this context during a recent talk at EuroCham Cambodia. With ASEAN's robust growth, shifting supply chains, and new trade agreements, Cambodia's economy could thrive, provided it navigates regional uncertainties and international influences adeptly.

In a significant political shift, Timor-Leste's pro-business party, the National Congress for Timorese Reconstruction (CNRT), has emerged victorious in the parliamentary election. Led by independence hero Xanana Gusmão, the party is keen to strengthen economic ties, particularly with ASEAN nations such as Cambodia. The victory could prompt more robust business alliances, open trade, and shared learning in sectors like tourism and aviation. Timor-Leste, an ASEAN observer state, anticipates this win could propel its pursuit of full membership, deepening its integration within the region.

The Cambodia Chamber of Commerce (CCC) inaugurated liaison office in Melbourne, Australia, will aim to boost bilateral trade and investment under the framework of the Regional Comprehensive Economic Partnership (RCEP). This strategic move, endorsed by the Victorian Government, is expected to strengthen ties between the two nations, facilitating business interactions, showcasing Cambodia's investment potential, and promoting direct communication and connection under the RCEP agreement.

Pernod Ricard Cambodge has partnered with the Institute of Standards of Cambodia (ISC) and the Ministry of Industry, Science, Technology, and Innovation (MISTI) to create safety standards for 'Sraa Sor,' the traditional Cambodian rice spirit. The collaboration not only aims to ensure quality and safe consumption but also seeks to celebrate Cambodian heritage and elevate the traditional drink's appeal among the younger generation, all while bolstering rural women's livelihoods and integrating small-scale producers into the formal economy.

A 2023 Visa Consumer Payment Attitudes Study highlights a significant increase in the use of QR codes for payments in Cambodia, even as cash remains the dominant payment method. While 86% of Cambodians still use cash, the adoption of QR code payments has surged to 68% in 2022. The study indicates a clear shift towards digital payments, with Cambodians embracing the ease and efficiency of QR code transactions.

The inaugural Joint Trade and Investment Forum, aimed at strengthening the £1 billion UK-Cambodia trade relationship, was recently hosted in Phnom Penh. Presided over by key officials from both countries, the forum provided a platform for discussing trade and investment strategies. A Memorandum of Understanding (MoU) was also signed to facilitate regular discussions and policy dialogues between the nations, a move seen as a significant step in fostering economic collaboration.

As the Regional Comprehensive Economic Partnership Agreement (RCEP) takes effect, Cambodia is poised to become a hub for foreign investors. Leveraging Cambodia's abundant raw materials and cost-effective environment, the RCEP opens vast global markets to investors. Experts at a recent forum, organized by the American Chamber of Commerce in Cambodia, delved into the transformative potential of this trade pact for Cambodia, and the new economic landscape it unveils.

In the wake of the pandemic, Cambodia is emerging as a robust prospect for Foreign Direct Investment (FDI), according to the World Bank's May 2023 Economic Update. The report emphasizes Cambodia's potential to balance growth and employment support with macro-financial stability. It also highlights the nation's fiscal capability to enhance spending on infrastructure and human development, advocating for the continuation of social support programs, and emphasizing the importance of export diversification and financial stability.

The World Bank predicts Cambodia's economic growth to accelerate to 5.5% in 2023, driven by expansion in agriculture, services, and manufacturing exports. The projection follows a recovery in 2022, marked by a 5.2% growth and rebound in sectors such as trade, travel, and hospitality. Despite the promising outlook, the World Bank cautioned about potential risks, recommending diversification in tourism and improved trade competitiveness for a sustainable economic future.

Cambodia Investment Review The Credit Guarantee Corporation of Cambodia (CGCC) and Cambodia Chamber of Commerce (CCC) have entered a strategic partnership to improve access to...