Cambodia has launched a new five year strategy aimed at giving the country’s startup sector a stronger foundation for growth, innovation and investment. The National Strategy on Startup Development 2026 to 2030 was officially launched in Phnom Penh on August 11 by Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth, with the government seeking to build a more competitive and sustainable startup ecosystem that can contribute to the country’s long term economic development.

The strategy provides a common roadmap for government ministries, institutions, investors, entrepreneurs and other ecosystem stakeholders. It focuses on strengthening innovation and entrepreneurship, expanding access to business support and investment, encouraging the use of digital technology and artificial intelligence, and helping promising startups grow into scalable businesses that can compete in Cambodia and international markets.

Government Sets a Clear Direction for Startups

The launch ceremony and dissemination workshop were organised by the Digital Economy and Business Committee (DEBC) and the Techo Startup Center (TSC). Minister of Commerce Cham Nimul and Minister of Post and Telecommunications Chea Vandeth also attended the event, highlighting the cross sector importance of developing Cambodia’s startup economy.

Speaking at the event, Pornmoniroth, who also chairs the DEBC, said the strategy represents more than the introduction of a new policy framework. It also reflects the government’s commitment to supporting businesses, particularly startups that use digital technology as a core part of their operations.

“The strategy aims to strengthen Cambodia’s capacity and competitiveness amid growing regional and global uncertainty, while supporting the wider adoption of digital technologies, particularly advances in artificial intelligence (AI),” he added.

The strategy comes at a time when technology is becoming increasingly important across almost every part of Cambodia’s economy. Digital tools are now being used in education, business, public services and everyday life, creating new opportunities for entrepreneurs while also changing how companies operate and compete.

Digital Technology Seen as a Key Growth Driver

Pornmoniroth stressed that digital technology can help Cambodian businesses improve productivity and compete more effectively. For private companies, adopting new technologies can increase production efficiency, improve capacity and quality, lower operating costs and strengthen connections across supply chains.

These advantages could be particularly important for startups, which often need to grow quickly while working with limited resources. Access to digital tools, technology, investment and business expertise can help young companies test new ideas, reach customers and build products that are competitive beyond the domestic market.

Digital transformation is also becoming an important part of government reform. According to Pornmoniroth, technology can improve public service delivery by reducing bureaucratic procedures, increasing administrative efficiency and strengthening compliance. A more efficient public sector can also create a better business environment for entrepreneurs and investors.

Government Calls for Stronger Implementation

Launching the strategy is only the first step. Pornmoniroth called on ministries and relevant institutions to turn the national framework into concrete action plans that can deliver measurable results.

He also urged the DEBC to establish a strong monitoring and evaluation system supported by clear Key Performance Indicators (KPIs). Such a system will be important in tracking whether the strategy is producing practical improvements for startups rather than remaining only a policy document.

The Deputy Prime Minister also called on businesses, investors, development organisations, support institutions and other startup ecosystem participants to work closely with the ministries responsible for implementing the strategy. Greater cooperation, he said, will help create a stronger environment for startups to develop into competitive enterprises.

Cambodia’s Startup Ecosystem Is Growing

The government’s new strategy comes as Cambodia’s startup ecosystem has expanded considerably in recent years. According to Kong Marry, Secretary of State at the Ministry of Economy and Finance and Secretary General of the General Secretariat of DEBC, the number of startups and organisations supporting them has increased significantly.

“Start-ups have grown from 98 in 2022 to 256 as of May 2026, while the number of actors in its ecosystem has also increased from 153 to 245. In addition to these core players, new business support programmes have also increased significantly, from 108 in 2022 to nearly 500 this year,” he said.

The figures point to a rapidly developing ecosystem. Beyond the startups themselves, entrepreneurs now have access to a growing network of organisations and programmes offering training, acceleration, investment opportunities, competitions, international study tours and investor networking.

This expanding support structure could help address some of the challenges startups face during their early stages, particularly when they need technical expertise, business knowledge, market connections or capital to move from an idea to a viable company.

Startups Positioned as Part of Cambodia’s 2050 Economic Vision

Marry described startups as an increasingly important contributor to Cambodia’s economic development and linked their growth to the country’s long term economic ambitions.

“Startups have also emerged as a major driving force in national economic development and play an indispensable role in contributing to the realisation of Cambodia’s economic vision in 2050,” he said.

With this broader economic goal in mind, the government has developed the national strategy to address challenges facing the startup sector while making better use of its potential. The framework is intended to give ministries, institutions and ecosystem participants a shared direction for building a startup environment that is more inclusive, sustainable and capable of supporting long term growth.

The approach also recognises that startup development cannot depend on entrepreneurs alone. Government agencies, investors, business support organisations, technology companies, universities and other stakeholders all have roles to play in creating the conditions startups need to grow.

Four Targets Set for 2030

According to the Ministry of Economy and Finance, the National Strategy on Startup Development 2026 to 2030 will serve as a roadmap for building a stronger and more connected startup ecosystem.

The strategy aims to strengthen Cambodia’s links with regional and global innovation ecosystems while supporting broader national economic development. Its vision is built around three approaches: positioning the government as a developmental enabler, promoting ecosystem based startup development and fostering co evolution for startup development.

The strategy also establishes four key targets for the coming years. Cambodia aims to move its Startup Ecosystem Performance Index from the emerging stage to the expanding stage, support 300 startups through incubation programmes, help 100 startups secure investment and attract $30 million in startup investment.

These targets give the strategy measurable outcomes that can be tracked over the five year period. If successfully implemented, they could provide Cambodian entrepreneurs with stronger access to support, capital, technology and regional opportunities.

What Does the Strategy Mean for Cambodian Businesses?

For entrepreneurs and business owners, the strategy could mean more opportunities to access training, incubation, acceleration, investment connections and other forms of support. The growing number of programmes already operating in Cambodia suggests that the startup ecosystem is becoming more structured and accessible.

For investors, the government’s focus on startups could also create a larger pipeline of emerging companies seeking capital and partnerships. Attracting $30 million in investment by 2030 signals an ambition to make Cambodia a more active destination for startup investment and innovation.

For established companies, the growth of startups could create opportunities for partnerships, technology adoption, new products and services, and collaboration across industries. As digital technology and AI become more deeply integrated into the economy, startups could increasingly serve as a source of new ideas and solutions.

The Next Challenge Is Turning Strategy Into Results

The strategy gives Cambodia a clear five year direction, but its success will ultimately depend on implementation. Strong coordination between government institutions, entrepreneurs, investors and support organisations will be essential to achieving the targets.

The emphasis on measurable KPIs, investment, incubation and ecosystem development provides a foundation for monitoring progress. If these measures translate into practical support and better market opportunities, Cambodia’s growing startup community could become an increasingly important part of the country’s economic transformation.

Conclusion

Cambodia’s National Strategy on Startup Development 2026 to 2030 marks a significant step in the government’s effort to strengthen the country’s entrepreneurial and innovation ecosystem. With startups increasing from 98 in 2022 to 256 by May 2026 and support programmes approaching 500, the sector is already gaining momentum.

The next five years will be about turning that momentum into sustainable growth. By targeting 300 incubated startups, 100 startups receiving investment and $30 million in investment, Cambodia is setting measurable ambitions for its startup economy. The bigger question now is whether strong implementation and collaboration can turn these targets into real opportunities for entrepreneurs, investors and the wider Cambodian economy.

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Cambodia’s international merchandise trade reached $44.07 billion during the first seven months of 2026, marking a 21.3 percent increase from the same period last year. The latest figures from the General Department of Customs and Excise show that both exports and imports continued to grow strongly, although the country’s trade deficit also widened. China remained Cambodia’s largest trading partner by total trade volume, while the United States continued to provide the Kingdom with its biggest bilateral trade surplus.

The figures highlight a rapidly expanding trading environment in which Cambodia is selling more goods overseas while also importing more products from major international markets. From January through July, exports climbed to $20.81 billion, while imports reached $23.26 billion, pushing the overall trade deficit to $2.44 billion.

China Remains Cambodia’s Biggest Trading Partner

China continued to dominate Cambodia’s trade landscape during the first seven months of the year. Bilateral trade reached $13.63 billion, representing a 23.9 percent increase compared with the same period in 2025. China alone accounted for roughly 31 percent of Cambodia’s total merchandise trade.

Cambodian exports to China increased 24.2 percent to $1.10 billion, showing continued demand for Cambodian products in the Chinese market. However, imports from China were much larger, rising 23.8 percent to $12.52 billion.

That gap resulted in a bilateral trade deficit of $11.42 billion with China, making the country the largest source of Cambodia’s overall trade imbalance. Cambodia’s export coverage of Chinese imports stood at only 8.8 percent, underscoring the significant difference between the value of goods Cambodia sells to China and the value of goods it purchases from the country.

The US Delivers Cambodia’s Largest Trade Surplus

While China led Cambodia’s trade by volume, the United States remained the Kingdom’s most important surplus market. Trade between Cambodia and the US rose 32.2 percent to $9.42 billion during the first seven months.

Exports to the US jumped 30.6 percent to $9.05 billion, supported by strong shipments of garments, footwear and other manufactured products. At the same time, imports from the US more than doubled, increasing 87 percent to $377 million.

Despite the sharp rise in American imports, the overall value remained relatively small compared with Cambodia’s exports to the US. As a result, Cambodia recorded a bilateral trade surplus of $8.67 billion with the United States.

The export coverage ratio declined from 3,436 percent to 2,400 percent, but the US remained Cambodia’s largest single country source of trade surplus and an important contributor to foreign exchange earnings.

Trade With Vietnam Turns Positive

Vietnam also recorded notable changes in its trade relationship with Cambodia. Bilateral trade increased 8.2 percent to $5.35 billion during the first seven months of 2026.

Cambodian exports to Vietnam rose 12.4 percent to $2.73 billion, while imports from Vietnam increased at a slower pace of 4.2 percent to $2.62 billion. This helped Cambodia move from a trade deficit with Vietnam to a modest surplus.

Cambodia recorded a $112 million trade surplus with Vietnam, reversing the $84 million deficit recorded during the same period in 2025. The export coverage ratio also improved from 96.6 percent to 104.3 percent, suggesting that the bilateral trade relationship has become more balanced.

Three Markets Shape Cambodia’s Trade Outlook

The latest figures show that Cambodia’s trade expansion is being heavily influenced by China, the United States and Vietnam. Together, these three markets accounted for more than half of the Kingdom’s total trade during the first seven months of 2026.

The strong growth in exports and imports points to increasing commercial activity, but the wider national trade deficit also highlights the importance of maintaining a healthy balance between overseas sales and purchases. Cambodia’s large deficit with China remains a major factor, while the substantial surplus with the US and the newly positive balance with Vietnam provide important offsets.

As a result, any changes in consumer demand, investment flows, tariffs or trade policies in these three markets could have a significant impact on Cambodia’s trade performance during the remainder of the year.

US Cambodia Trade Ties Are Growing

Chea Chandara, President of the Logistics Supply Chain and Brokers Business Association in Cambodia, told Khmer Times that Cambodia’s economic relationship with the United States has strengthened significantly under the second term of US President Donald Trump.

He noted that the United States Trade Representative recently imposed a 10 percent tariff on Cambodian goods entering the US market under Section 301. “This rate is more competitive than the 12.5 percent applied to neighbouring countries such as Thailand and Vietnam.”

According to Chandara, Cambodia has also reduced import duties on a range of American products, with some commodities now subject to zero tariffs. These changes have encouraged traders to bring more American products into Cambodia, contributing to a reported 60 to 80 percent increase in imports from the US since the beginning of the year.

More American Products Are Entering Cambodia

Chandara said Cambodia’s imports from the United States were previously concentrated in a relatively small number of product categories, particularly vehicles. The range of American goods available in the Cambodian market has since expanded.

This growth in imports reflects stronger two way commercial activity between the two countries. Although Cambodia continues to record a very large surplus with the US, the increase in American products entering the local market suggests that trade ties are becoming broader rather than being driven almost entirely by Cambodian exports.

The development could also create more opportunities for Cambodian businesses and consumers to access products from the US, while providing American companies with greater exposure to the Cambodian market.

Chinese Investment Also Supports Export Growth

The relationship between Cambodia’s trade with the US and Chinese investment is another important part of the picture, according to Chandara. “Chinese investors dominate the country’s investment landscape, with the majority of projects concentrated in the industrial sector.”

He explained that Cambodia’s relatively small domestic market means many of these investments are primarily focused on producing and processing goods for export. The United States and European markets offer opportunities for manufacturers to reach larger consumer bases and potentially achieve higher returns.

This means Chinese investment in Cambodia’s industrial sector can also contribute indirectly to the Kingdom’s export performance, particularly when factories established in Cambodia produce goods destined for major Western markets.

Thailand Border Closure Creates New Market Opportunities

Changes in regional trade conditions are also affecting Cambodia’s domestic market. Chandara said the ongoing land border closure with Thailand has created additional opportunities for products from other major trading partners.

“With Thai products, which long dominated the Cambodian market, less available, both US and Chinese goods have gained greater access to local consumers, further supporting the rise in two-way trade,” he said.

The situation illustrates how regional supply disruptions can quickly influence Cambodia’s import patterns. With Thai goods less available through traditional land border channels, businesses and consumers have increasingly turned to products from other markets.

What Does the $44 Billion Trade Figure Mean for Cambodia?

Cambodia’s $44.07 billion trade volume in the first seven months of 2026 reflects strong momentum in both exports and imports. China remains the Kingdom’s largest trading partner by volume, while the United States stands out as the largest source of bilateral trade surplus. Vietnam, meanwhile, has moved into a modest surplus position for Cambodia.

The numbers also reveal an important challenge. Cambodia’s expanding trade activity is accompanied by a growing overall deficit, driven largely by the huge imbalance with China. At the same time, strong exports to the US and improving trade with Vietnam are helping offset part of that gap.

For businesses, investors and policymakers, the figures point to a Cambodian economy becoming increasingly connected to major global and regional markets. How Cambodia manages these relationships, strengthens domestic production and expands export opportunities will be important for maintaining sustainable trade growth in the months ahead.

Conclusion

Cambodia’s trade reached more than $44 billion in just seven months, demonstrating the continued expansion of the Kingdom’s international commerce. China remains number one by total trade volume, but the United States remains Cambodia’s strongest surplus market. Meanwhile, Vietnam’s shift from a trade deficit to a surplus adds another positive development.

The challenge now is to turn growing trade volumes into stronger and more balanced economic growth. As Cambodia deepens its links with China, the US, Vietnam and other international markets, investment, manufacturing and export diversification will remain key factors in determining how the Kingdom’s trade story develops through the rest of 2026.

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