Market Overview
Economy
Cambodia has been one of the top-performing economies in Asia. As the country emerges from the social and economic effects of the Covid crisis, a rapid return to the high levels of growth experienced before the pandemic is anticipated.
From 2024 to 2028, Cambodia will benefit from Free Trade Agreements (FTAs) with China and South Korea, as well as the Regional Comprehensive Economic Partnership (RCEP), a major regional trade agreement.
The country boasts a strong labor protection regime, and while wages are rising in line with economic development, Cambodia remains competitive within the region. In response to global trade challenges, the government has implemented various measures to lower production and supply costs, thereby encouraging further foreign investment.
Sustainability
Cambodia is one of the ASEAN countries with the lowest levels of CO2 emissions (measured in metric tons of CO2 emissions per capita).
As part of the Kingdom's commitment to sustainable and inclusive economic growth, the Ministry of Environment launched the five-year Partnership for Action on Green Economy (PAGE) Cambodia on May 12, 2023.
Prominent examples of Cambodia’s commitment to green-economy objectives include the National Strategic Plan on Green Growth (2013-2030) and the Long-term Strategy for Carbon Neutrality (LTS4CN), which was submitted to the UN Framework Convention on Climate Change (UNFCCC) in 2021.
Cambodia has pledged to reduce greenhouse gases by up to 42% and to reduce deforestation by 50%. At COP28 in 2023, the country made additional commitments to increase the use of clean and renewable energy by 2030. However, achieving these climate goals will be challenging due to the expansion of manufacturing activities and limitations in renewable energy resources and financing.
