Cambodia is seeing a meaningful shift in business sentiment, with growing confidence driven by the government’s aggressive crackdown on online scam operations. According to the latest AmCham Business Outlook 2026 report, 89% of businesses surveyed believe the government’s actions are either effective or somewhat effective, while only a small minority remain unconvinced. This marks a turning point after years of reputational challenges tied to the rapid rise of cyber scam networks across the country. Prime Minister Hun Manet’s firm stance on eliminating these operations is now being viewed as a strong signal that Cambodia is serious about creating a safer and more transparent business environment.

A long shadow from the scam economy

Between 2015 and 2025, Cambodia became widely associated with industrial scale online scams, alongside neighboring countries like Myanmar. These operations ranged from phishing schemes to romance scams and cryptocurrency fraud, often targeting victims across the globe. The consequences went beyond law enforcement concerns, affecting the country’s image and key sectors such as tourism. Many industry players reported a drop in regional tourist arrivals as safety concerns and negative perceptions took hold. The AmCham report estimates that the tourism sector could take an average of 2.7 years or more to fully recover, highlighting the depth of the damage caused by the scam economy.

Stronger enforcement begins to reshape perception

In response, the Cambodian government has stepped up enforcement in recent months. Authorities have carried out coordinated raids on suspected scam compounds, tightened oversight of suspicious businesses, and increased collaboration with international law enforcement agencies. There is also a stronger focus on regulating foreign owned operations and protecting trafficking victims forced into scam activities. While many businesses describe the short term economic impact as neutral, they are increasingly optimistic about the long term benefits of these actions.

“The short-term disruption is outweighed by the long-term gains,” the report suggests, noting that decisive action against illicit industries signals a commitment to sustainable and responsible economic development.

International cooperation strengthens credibility

Experts point out that one of the key reasons behind the improved sentiment is Cambodia’s growing international cooperation. Thong Mengdavid highlighted that the current crackdown is different from previous efforts because it is more deeply integrated into global enforcement frameworks.

“Cambodia has expanded collaboration with key partners such as the United States (coordination with agencies like the FBI), South Korea (through joint task forces and victim protection mechanisms), and the United Kingdom (notably through coordinated sanctions and financial investigations targeting scam-linked networks) and China as well as Vietnam. The crackdown helps reframe Cambodia from being seen as a hub of transnational cybercrime to a state actively addressing the issue and credible,” Mengdavid said.

He also emphasized the importance of Cambodia’s participation in regional agreements.

“Secondly, Cambodia’s participation in regional and multilateral initiatives, such as its ratification of the Hanoi Convention on combating online scams in October, signals a shift toward institutionalised, rules-based cooperation. Taken together, the survey result is understandable—the crackdown has likely improved business sentiment and Cambodia’s external image in the near term,” he added.

Business leaders see long term opportunity

From the private sector perspective, the crackdown is already helping to restore trust. Vichet Lor believes the government’s consistent approach to tackling illegal activities is key to rebuilding Cambodia’s global reputation and attracting investment.

“Strengthening law enforcement and pursuing social justice on a consistent basis will further enhance Cambodia’s international reputation and attract more foreign investors to the country. Prime Minister Hun Manet’s resolve to fully eradicate scam centres in Cambodia and transform the pockets of black economy to white economy is a resolute stance that sends a strong signal to the international community that Cambodia is a safe place for investing now and in the foreseeable future,” he told Khmer Times.

A cautious but positive outlook

Despite the progress, challenges remain. Rebuilding trust on the global stage will require consistent enforcement, transparency, and continued collaboration with international partners. Still, the survey results show a clear shift in sentiment, with nearly nine in ten businesses acknowledging improvement. Cambodia is now on a path toward repositioning itself as a safer destination for both tourists and investors, with reforms playing a crucial role in shaping its economic future.

Conclusion

Cambodia’s crackdown on online scams is beginning to deliver tangible results, not just in enforcement but in perception. With 89 percent of businesses backing the government’s efforts, confidence is returning and the country’s image is gradually improving. While recovery, especially in tourism, will take time, the long term outlook is increasingly positive. If the government maintains momentum and strengthens transparency, Cambodia has a real opportunity to turn a challenging chapter into a foundation for sustainable growth and renewed investor trust.

Cambodia is attracting growing attention from Europe’s technology sector as international companies look for new opportunities in Southeast Asia’s expanding digital economy. A delegation of 15 European technology firms wrapped up a five day visit to Cambodia on June 12, exploring investment opportunities, outsourcing partnerships, and collaboration with local startups. The mission reflects rising confidence in Cambodia’s long term digital strategy and its ambition to become a regional innovation hub.

Organised by EuroCham Cambodia and Germany’s GIZ, the visit brought together businesses working in artificial intelligence, travel technology, and cybersecurity. Through business networking sessions, site visits, and meetings with government leaders, the delegation gained firsthand insight into Cambodia’s evolving technology ecosystem and the policies designed to attract foreign investment.

European Companies Explore Cambodia’s Tech Landscape

During the five day mission, representatives from the European technology sector visited regional data centres and participated in business matchmaking programmes aimed at building partnerships with Cambodian enterprises. The delegation also met with government officials and startup communities to better understand the country’s digital transformation efforts.

The visit highlighted Cambodia’s increasing appeal as a destination for technology outsourcing and investment. As digital industries continue to expand across the region, European firms are looking beyond traditional markets and exploring emerging economies that offer strong growth potential, competitive business environments, and a young workforce.

Government Promotes Innovation Driven Growth

A key part of the programme included panel discussions with senior government officials, where Ministry of Industry, Science, Technology and Innovation Undersecretary of State Hul Seingheng shared Cambodia’s long term digital vision.

According to Seingheng, the government is actively encouraging international partnerships through policies that support innovation and research. The national investment framework offers enhanced tax deductions for qualified research, development, and innovation activities, creating incentives for foreign companies to establish a stronger presence in Cambodia.

“Cambodia is leveraging science, technology and innovation to drive inclusive and sustainable socio-economic development,” Seingheng said, highlighting the ambition to achieve high-income status by 2050.

His remarks reinforced the government’s commitment to building a modern economy powered by technology, knowledge, and international collaboration.

STI Roadmap 2030 Shapes Cambodia’s Innovation Strategy

Cambodia’s long term digital ambitions are guided by the Science, Technology and Innovation Roadmap 2030, which serves as the foundation for the country’s National Innovation System. The strategy focuses on five major pillars that are considered essential for sustainable growth.

These core pillars include governance, education, research, collaboration, and ecosystem development. Together, they aim to create an environment where innovation can flourish while strengthening the country’s competitiveness in the global digital economy.

The roadmap also seeks to improve connections between government agencies, educational institutions, private companies, and international partners, helping Cambodia develop a stronger and more resilient technology sector.

Investing in Local Talent and Global Partnerships

Alongside efforts to attract foreign investment, the Ministry of Industry, Science, Technology and Innovation is expanding research and development initiatives through the National Research Foundation. The objective is to nurture local technical talent and equip the next generation with the skills needed for a digital economy.

International partnerships are expected to play an increasingly important role in Cambodia’s future economic growth. By combining local talent with global expertise and investment, the country hopes to accelerate innovation while creating new opportunities for businesses and skilled professionals.

The growing interest from European technology firms suggests that Cambodia is becoming a more attractive destination for companies seeking to expand their digital operations in Southeast Asia.

Readers interested in the original report may visit the Khmer Times website for additional information.

Why Cambodia’s Digital Economy Is Drawing Global Attention?

Cambodia’s digital transformation is no longer just a national development strategy. It is becoming an international investment story. Government support, innovation focused policies, and expanding research initiatives are creating conditions that encourage foreign technology companies to explore long term partnerships.

As more international firms engage with Cambodia’s startup ecosystem and digital industries, the country is positioning itself as an emerging technology destination that could play a larger role in the region’s economic future.

Conclusion

The recent visit by European technology companies marks another step in Cambodia’s journey toward becoming a regional centre for digital innovation. Strong government policies, investment incentives, and a commitment to developing local talent are helping build confidence among international investors. As global partnerships continue to grow, Cambodia’s digital economy may become one of the country’s most important drivers of sustainable economic growth in the years ahead.