Many local sellers still have to pay the full cost of goods to overseas suppliers in advance, leaving them short on cash while waiting for weeks for stock to arrive. Experts and local entrepreneurs agree that financial institutions need to offer more accessible, digital trade finance solutions such as letters of credit and short-term loans to help small businesses thrive in a changing market.

Cambodia’s trade is accelerating, but for many small businesses, getting goods across borders is becoming increasingly complex and risky. As trade volumes rise, so do shipment delays, payment uncertainties and documentation challenges, leaving SMEs in urgent need of stronger financial support to keep pace.

According to the General Department of Customs and Excise, exports from January to April 2026 were valued at $11.1 billion, while imports stood at around $12.3 billion, bringing total trade to $23.4 billion, an increase of 19.9 percent compared to the same period last year. The surge in trade is creating new opportunities, but also putting greater pressure on businesses to manage payments, settlement timelines and working capital more efficiently. For small importers and exporters, this often means tying up cash for weeks before goods even arrive.

In 2025, trade value reached $65.2 billion, representing an 18.2 percent increase from 2024 despite global economic uncertainty, border tensions with Thailand and evolving US trade policy. Growth was largely driven by exports, which rose by about 16 percent in 2024 compared with the previous year.

Keen to expand, but financing remains a challenge

Mey Ing, who runs a wholesale and retail bags and accessories business on social media, has been importing from China and Vietnam since 2017. She now plans to expand into selling robotic coffee makers, but funding remains a key barrier.

A single machine costs around $5,000, and while bulk purchases would offer discounts, accessing sufficient capital is difficult. She hopes to secure short-term financing at lower interest rates, along with support in managing shipment risks and documentation.

She also hopes banks can help reduce currency conversion costs, as she currently relies on standard payment cards to pay overseas suppliers.

“Managing cash flow is the hardest part,” she said. “We continue spending during shipping, but we don’t earn anything until the goods arrive.”

She added that access to a letter of credit, a bank guarantee, would help build trust with suppliers and ease cash flow during the waiting period.

Similarly, Chour Sreyroth, an online retailer importing products from China, said she also faces cash flow challenges as she must pay suppliers in full before receiving goods.

“If a bank could offer a guarantee to my supplier, I wouldn’t have to pay before I get the product,” she said.

These challenges are not isolated. Across Cambodia and the wider Mekong region, SMEs face similar constraints.

A Mekong region study on trade finance covering Cambodia, Laos and Vietnam found that a significant share of imports is still settled through upfront cash payments. Only a small portion is supported by formal trade finance instruments such as letters of credit, documentary collections and import loans.

The survey also noted that few banks in Vietnam, and even fewer in Cambodia, are actively providing trade finance services, including guarantees and short-term working capital financing.

Hastening the adoption of trade finance

Josh Williams, Head of APAC Commercial at Surecomp, a digital trade and supply chain finance solutions provider, noted that despite strong trade growth in Cambodia, the use of intermediate trade finance by banks remains low, accounting for around three percent of total trade.

At the same time, SMEs and exporters are increasingly expecting faster, more digital financing solutions.

Williams said early adoption of modern trade finance could offer both commercial and strategic advantages, including stronger market positioning and deeper partnerships with institutions such as the Asian Development Bank and International Finance Corporation.

“Early, thoughtful adoption positions banks not only to capture immediate revenue but to define the market standard for the next decade of digital trade finance,” he said.

Wing Bank’s support for importers and exporters

To address these gaps, banks in Cambodia are increasingly positioning themselves as key partners in trade by offering tools that reduce risk and improve cash flow visibility.

Wing Bank is one such institution, providing trade finance solutions that support businesses across the trade cycle. These include Letters of Credit, Documentary Collections, Bank Guarantees and various working capital financing tools designed to facilitate secure and efficient trade transactions.

“These services are delivered in full compliance with international banking standards, ensuring that our clients trade with confidence, certainty and credibility,” said Chan James, Trade Finance Sales and Advisory Director at Wing Bank.

He added that handling trade transactions independently can expose businesses to operational errors, documentation disputes and payment delays, while banks help mitigate these risks through structured processes and professional oversight.

“Our involvement reduces errors, accelerates processing and protects clients from avoidable disputes or losses,” he said.

As part of its efforts to improve accessibility, Wing Bank is currently offering promotional pricing on selected trade finance services, including reduced fees and waived document handling charges.

As Cambodia’s trade continues to expand, having the right financial partner is becoming increasingly important for businesses navigating a more complex trading environment. Businesses that can better manage risk, cash flow and payment terms will be best positioned to grow in this evolving market.

[Powered by Wing Bank]

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Cambodian Prime Minister Hun Manet announced a new push to reduce the country’s dependence on imported products by strengthening local manufacturing and food processing industries. Speaking on May 27, the prime minister said Cambodia aims to cut imports of products such as milk, instant noodles, rice related goods, and sugar by encouraging more domestic production and expanding the capacity of local businesses.

The initiative reflects the government’s broader strategy to strengthen economic resilience and encourage consumers to place greater trust in Cambodian made products. Hun Manet also instructed relevant ministries to identify goods that can realistically be produced within the country, opening new opportunities for local industries and investors while supporting long term economic growth.

Government Targets Import Reduction

During his speech, Hun Manet stressed that Cambodia must gradually reduce its reliance on imported consumer goods by investing more heavily in domestic production capabilities. The government believes that producing more goods locally will not only strengthen the national economy but also create jobs and support local entrepreneurs.

Officials are now being tasked with reviewing which products can be manufactured efficiently inside Cambodia. The goal is to help consumers gain easier access to high quality Cambodian products while reducing the country’s import bill over time.

The prime minister explained that the strategy is part of a larger effort to build greater economic self sufficiency and improve national resilience against global market disruptions.

Quality and Food Safety Remain Key Priorities

Hun Manet emphasized that improving product quality will be essential if Cambodian goods are to successfully compete with imported products. He highlighted the importance of maintaining strong technical standards, food safety measures, and reliable manufacturing processes to increase public confidence in locally produced items.

According to the prime minister, consumers will only support domestic products if they meet proper safety and quality expectations. As a result, the government plans to work closely with local producers to improve production standards and modernize manufacturing systems where necessary.

The focus on food safety and product reliability is expected to become a major part of Cambodia’s industrial development efforts in the coming years.

Incentives Introduced to Support Local Businesses

To encourage investment in domestic manufacturing, the government has introduced a range of incentives aimed at helping local enterprises expand production capacity. These measures are expected to attract both Cambodian and foreign investors interested in developing local industries and reducing dependence on imported goods.

The incentives are designed to ensure that local businesses can increase production fast enough to meet growing consumer demand. Authorities believe stronger domestic industries will also help improve Cambodia’s supply chain stability and create more sustainable economic growth across the country.

Economic experts say the policy could create new opportunities for Cambodia’s agriculture and food processing sectors, especially as demand for locally produced goods continues to rise.

Building Confidence in Cambodian Made Products

The government’s latest strategy also focuses heavily on changing consumer perception toward locally produced goods. For many years, imported products have often been viewed as higher quality by consumers, particularly in urban areas.

Hun Manet said Cambodia must now work toward building greater trust in domestic brands by ensuring local products are safe, reliable, and competitively priced. Authorities hope that stronger local production will eventually allow Cambodian companies to compete not only in the domestic market but also across the wider ASEAN region.

The initiative forms part of Cambodia’s long term economic vision to strengthen industrial capacity and reduce vulnerability to external economic pressures.

Conclusion

Cambodia’s latest push to reduce imports and expand local production signals a major step toward strengthening the country’s economic independence. By focusing on quality, food safety, investment incentives, and domestic manufacturing growth, the government hopes to create a stronger and more resilient economy for the future. If successful, the strategy could help Cambodian businesses grow while giving consumers greater confidence in products made at home.

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Phnom Penh, Cambodia is moving closer toward a new era of regional trade and industrial growth as the Phnom Penh–Bavet Expressway takes shape as one of the country’s most important infrastructure projects. Designed to strengthen cross border connectivity between Cambodia and Vietnam, the expressway is expected to transform transportation, logistics, and investment opportunities along one of Southeast Asia’s fastest growing economic corridors. The ambitious project reflects Cambodia’s broader vision to modernize its infrastructure and position itself as a competitive gateway within the ASEAN region.

Stretching roughly 135 kilometers from Phnom Penh to Bavet city at the Cambodia Vietnam border, the expressway carries an estimated investment value of around USD 1.376 billion under a Build Operate Transfer framework backed by Chinese investment partners. Once completed, the route is expected to dramatically reduce travel times, improve cargo movement, lower transportation costs, and support the rapid expansion of manufacturing and trade activities across Cambodia’s southeastern provinces.

A Strategic Link in ASEAN’s Economic Corridor

The Phnom Penh–Bavet Expressway is more than just a transportation project. It forms a major part of the Southern Economic Corridor that connects Thailand, Cambodia, and Vietnam through one of mainland ASEAN’s most active trade and manufacturing routes.

As global manufacturers continue diversifying their supply chains across Southeast Asia, countries with strong transportation networks are becoming increasingly attractive for investment. Cambodia is positioning itself to benefit from this shift by improving overland trade routes that can support export driven industries, regional distribution centers, and cross border logistics operations.

The project is expected to strengthen Cambodia’s role within the ASEAN Economic Community while helping businesses move goods more efficiently between neighboring markets.

New Opportunities for Logistics and Industry

The expressway is also expected to unlock significant investment opportunities across multiple sectors connected to trade and industrial development. Logistics parks, industrial zones, bonded warehouses, smart transportation systems, and commercial real estate projects are all expected to benefit from the improved connectivity.

Bavet city, which has already emerged as one of Cambodia’s key border trade hubs, stands to gain considerably from faster access to Phnom Penh and Vietnam’s major manufacturing and port networks. Investors are closely watching the area as demand continues growing for industrial services, warehousing facilities, and urban development projects linked to cross border commerce.

In addition to the expressway itself, supporting infrastructure such as bridge connections and links to Phnom Penh Ring Road 3 will further integrate the corridor into Cambodia’s expanding national transport network.

Cambodia’s Long Term Infrastructure Vision

For Cambodia, the Phnom Penh–Bavet Expressway represents a major step toward long term industrialization and economic modernization. Government leaders and investors see infrastructure development as essential for improving competitiveness, attracting foreign direct investment, and supporting sustainable economic growth over the coming decades.

As regional trade volumes continue rising, modern transport systems are becoming increasingly important for countries seeking to strengthen their manufacturing capabilities and logistics performance. Cambodia’s growing focus on connectivity reflects its ambition to become a more investment ready economy within Southeast Asia’s rapidly evolving trade environment.

The expressway is also expected to improve mobility for businesses and travelers while encouraging greater economic activity between urban centers and border regions.

A Gateway to Regional Growth

Global investors increasingly view Cambodia as a promising destination for supply chain expansion and industrial relocation. The Phnom Penh–Bavet Expressway is expected to play a key role in supporting this momentum by providing faster and more reliable access to regional markets.

With stronger connections to Vietnam’s ports and manufacturing ecosystems, Cambodia could further strengthen its position as an emerging production base within ASEAN. Improved logistics efficiency may also help local businesses reduce operating costs and expand export opportunities across the region.

As infrastructure projects continue advancing, Cambodia’s economic future is becoming more closely tied to regional connectivity, cross border trade, and strategic investment corridors.

Conclusion

The Phnom Penh–Bavet Expressway stands as one of Cambodia’s most transformative infrastructure projects in recent years. Beyond improving transportation between Phnom Penh and the Vietnam border, the project represents a broader vision for economic integration, industrial growth, and regional competitiveness. As Cambodia continues investing in connectivity and modern logistics systems, the expressway is expected to become a powerful economic artery that supports trade, attracts investment, and accelerates the country’s long term development goals.

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