Cambodia Basic Information

The Kingdom of Cambodia is a constitutional monarchy headed by a king. Executive power is exercised by the government, based on a bicameral parliament. Cambodia is one of the poorest countries on the Asian continent and among the least developed countries of the Association of Southeast Asian Nations (ASEAN), largely a legacy of political and economic developments in the 1970s and 1980s. The country is still a significant recipient of foreign development aid.

Cambodia is home to an estimated 17 million inhabitants, with a GDP per capita of roughly 5 thousand. USD. The current account has been in a moderate deficit for a long time. The Cambodian economy emerged from the pandemic in 2020 with a drop in GDP of 1.7% and increased unemployment, especially in the most affected service sector (tourism and hospitality). In 2021, the economy as a whole grew by 1.6%, starting from 2022 a return to the previous growth rate of 6-7% is expected. Agriculture still plays an essential role in the country, however, the growth of the economy is mainly driven by the growing export of goods from the clothing and footwear industry in the long term. The newly adopted investment law, the recently signed free trade agreement with China, or South Korea, and also the creation of a free economic zone within the framework of the Regional Economic Partnership (RCEP) should ensure an increased inflow of foreign direct investment into the country and further growth of foreign trade in the future. On the other hand, within the next few years, Cambodia is expected to move out of the category of least developed countries in the world and thus no longer benefit from preferential access to developed markets. To increase Cambodia’s competitiveness, it is necessary to implement structural reforms, which are part of the government’s economic recovery plan. This is mainly about reducing the costs of doing business, logistics and energy and eliminating the inflexibility of the labor market. that within the next few years, Cambodia will move out of the category of least developed countries in the world and will no longer benefit from preferential access to developed markets. To increase Cambodia’s competitiveness, it is necessary to implement structural reforms, which are part of the government’s economic recovery plan. This is mainly about reducing the costs of doing business, logistics and energy and eliminating the inflexibility of the labor market. that within the next few years, Cambodia will move out of the category of least developed countries in the world and will no longer benefit from preferential access to developed markets. To increase Cambodia’s competitiveness, it is necessary to implement structural reforms, which are part of the government’s economic recovery plan. This is mainly about reducing the costs of doing business, logistics and energy and eliminating the inflexibility of the labor market.

Compared to its neighbors, Cambodia is a relatively small market, and it can therefore be an interesting addition for Czech companies operating in the Southeast Asian region. The area of ​​agriculture and related processing industries, including food, water management, environmental protection and healthcare, is particularly promising. The redevelopment of tourism in the post-pandemic era could bring opportunities in improving civil aviation infrastructure. In general, there are opportunities for Czech exporters in Cambodia where they can help with infrastructure development and offer experience and know-how, including opportunities for training and training of professional specialists. Cambodian culture and behavior are not very different from elements of traditional East Asian cultures. Building a personal relationship and trust is important, personal dealings are preferred.

Basic information about the territory

Subchapters:

• System of governance and political tendencies in the country
• Foreign policy of the country
• Population

The system of governance and political tendencies in the country

As of 2016, the Kingdom of Cambodia is classified as a lower-middle-income country by the World Bank, but remains in the category of Least Developed Countries (LDCs) with preferential trade treatment to developed markets in the United Nations classification. According to the UN Human Development Index, Cambodia is currently in 143rd place out of a total of 186 monitored countries (2022). The country has a well-developed private business sector and new legislation is further improving conditions. In the case of the public sector, however, the low availability of state capital and dependence on development and credit aid from abroad remain an obstacle. The country’s ongoing challenges include corruption, low levels of public infrastructure, insufficient law enforcement, bureaucratic processes, high electricity prices and a lack of qualified personnel. Hun Sen has been the Prime Minister of Cambodia since 1985, who is also the chairman of the ruling Cambodian People’s Party (CPP). After a court decision to dissolve the largest opposition political party, the CNRP, in 2017, the ruling CPP had no serious power rival in the country. In the 2018 National Assembly elections, it won with a clear margin of almost 77% of the vote and occupied all 125 seats in the National Assembly, controlling the Senate and the overall composition of the government. For the upcoming 2023 National Assembly elections, the Candlelight Party (CP), which is largely the successor to the CNRP, is emerging as the main challenger. Check equzhou to learn more about Cambodia political system.

Head of State (King): Norodom Sihamoni

Prime Minister: Hun Sen

Members of the government:

• Permanent Deputy Prime Minister and Minister Responsible for the Council of Ministers: BIN Chhin
• Deputy Prime Minister and Minister of the Royal Palace: KONG Samol
• Deputy Prime Minister and Minister of the Interior: SAR Kheng
• Deputy Prime Minister and Minister of National Defense: TEA Banh
• Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation: PRAK Sokhonn
• Deputy Prime Minister and Minister of Economy and Finance: AUN Pornmoniroth
• Deputy Prime Minister and Minister of Territorial Development, Urbanization and Construction: CHEA Sophara
• Deputy Prime Minister and Minister of National Assembly-Senate Relations: MEN Sam An
• Minister of Agriculture, Forestry and Fisheries: VENG Sakhon
• Minister for Rural Development: OUK Rabun
• Minister of Trade: MR Sorasak
• Minister of Industry, Science, Technology and Innovation (Formerly Ministry of Industries and Crafts): CHAM Prasidh
• Minister of Mining Industry and Energy: SUY Sem
• Planning Minister: CHHAY Than
• Minister of Education, Youth and Sports: HANG Chuon Naron
• Minister of Social Affairs, Veterans and Youth Rehabilitation: VONG Soth
• Minister of the Environment: SAY Sam Al
• Minister of Water Resources and Meteorology: LIM Kean Hor
• Minister of Justice: KOEUT Rith
• Minister of Health: MAM Bunheng
• Minister of Public Works and Transport: SUN Chanthol
• Minister of Culture: Phoeurng Sackona
• Minister for Women Affairs: ING Kanthaphavi
• Minister of Labor and Vocational Education: ITH Sam Heng
• Secretary of State for Civil Aviation: MAO Havannall
• Minister Attached to the Prime Minister: EK Sonn Chan
• Minister Attached to the Prime Minister, Secretary General of the Development Council: SOK Chenda Sophea
• Minister Attached to the Prime Minister: CHHIENG Yanara

Foreign policy of the country

Cambodia is a member of most major international organizations, including the United Nations, the World Trade Organization and specialized UN agencies. Among regional institutions and organizations, it is a member of the ASEAN association, of which it is the chairman country in 2022, and the Asian Development Bank (ADB). The European Union is the largest provider of grant-aided development assistance and, thanks to the Everything But Arms (EBA) Generalized System of Tariff Preferences (GSP), is one of the largest markets for Cambodian exports. This continues to be the case despite the warning of a partial withdrawal of the EBA in 2020, which the EC took as a result of the deteriorating political situation in the country. In contrast, European investments in Cambodia are very limited (only about 2%) and significantly below the Asian average. The mutual trade balance between the EU and Cambodia has been unbalanced for a long time. Check recipesinthebox for Cambodia defense and foreign policy.

In recent years, economic dependence on China, which is the largest provider of foreign direct investment, has been deepening. At the same time, China holds approximately 44% of Cambodia’s foreign debt. Cambodia’s relations with its regional partners within ASEAN have primarily an economic context. Economically, within the Southeast Asian region, Cambodia is primarily oriented towards neighboring Vietnam and Thailand. However, the outlets for Cambodian exports are mainly western markets (EU and USA). The country is a significant supporter of multilateralism and international cooperation, which is due to its predominant dependence on foreign trade and development cooperation.

Population

• Population: 17.1 million (2022 estimate)
• Density: 97 inhabitants/km2
• Population growth: 1.4%
• Urban population: 24.2% Areas with the largest population: Phnom Penh (13.9%), Kandal (7.8%), Prey Veng (6.9%) and Siem Reap (6.6%)
• National composition: Khmer: 97.6%, Cham: 1.2%, Chinese: 0.1%, Vietnamese: 0.1%, other: 0.9%
• Religious composition: Buddhist: 97.9%, Muslim: 1.1%, Christian: 0.5%, other: 0.6%