Cambodia is taking another major step to strengthen its investment climate with the launch of a new framework that brings international business chambers and foreign companies into the Government Private Sector Forum mechanism. Announced in Phnom Penh on Friday by the Cambodia Chamber of Commerce, the initiative aims to improve cooperation between the government and the private sector while making the country’s business environment more competitive, resilient, and attractive to global investors. The framework also supports Cambodia’s long term economic vision by creating a more structured way for international businesses to share expertise, resolve challenges, and contribute to policy reforms.

The new blueprint comes as Cambodia continues to position itself as a preferred investment destination in Southeast Asia. By giving foreign business associations a formal channel to participate in national policy discussions, the government hopes to accelerate regulatory improvements, encourage sustainable investment, and strengthen confidence among multinational companies operating in the Kingdom.

New Framework Strengthens Public and Private Cooperation

The Cambodia Chamber of Commerce officially introduced the new framework during a consultation session titled Government Private Sector Forum Mechanism Framework with the International Chambers and Businesses. The event brought together leaders from international chambers of commerce, multinational companies, trade associations, and representatives from all 16 private sector working groups under the Government Private Sector Forum.

The consultation was designed to create an open platform where businesses can discuss operational challenges, align investment priorities, and establish a more effective process for presenting concerns through the Government Private Sector Forum. Organizers said the initiative is expected to improve communication between policymakers and investors while creating a more transparent and results focused partnership.

CCC Invites Global Businesses to Help Shape Cambodia’s Future

The consultation was led by Cambodia Chamber of Commerce President Kith Meng, who also serves as Chair of the Coordination Committee of the Private Sector Working Groups under the Government Private Sector Forum.

“A stronger G-PSF directly translates to a stronger economy,” Meng said, urging international chambers to share expertise and align positions to boost Cambodia’s business environment, economic resilience and global competitiveness.

He emphasized that Cambodia is entering a new stage of economic development where stronger cooperation between local and international businesses will play a critical role.

“As we enter this next stage of development, the Cambodia Chamber of Commerce serves as an open, inclusive gateway for all national and international business associations, chambers, and enterprises to channel their challenges through a single, unified framework,” Meng said.

Meng added that international business organizations possess valuable technical knowledge and practical experience that can help Cambodia improve its regulatory environment and increase its competitiveness in global markets.

“We can truly act as strategic partners in driving Cambodia’s economic resilience, improving the general business environment, and accelerating global competitiveness,” he said.

Foreign Investors Invited Into Key Economic Sectors

As part of the new initiative, the Cambodia Chamber of Commerce invited international investors and foreign business associations to participate in 16 major sectoral working groups covering agriculture, tourism, manufacturing, small and medium enterprises, banking and financial services, transportation, infrastructure, education, healthcare, and digital transformation.

The framework also includes two specialized partnership mechanisms focused on taxation and customs administration, allowing businesses to work directly with the General Department of Taxation and the General Department of Customs and Excise. These channels are expected to improve policy coordination while making it easier for businesses to address regulatory issues.

Working Group to Prepare Reforms Before Major Forum

Participants agreed to establish a dedicated working group responsible for preparing long term recommendations that will permanently strengthen international business participation within the Government Private Sector Forum.

The group will continue meeting in the coming months to finalize proposals before the upcoming 20th Government Private Sector Forum Plenary. Officials believe the recommendations will help build a stronger investment ecosystem while supporting the country’s ambitious Cambodia Vision 2050 development strategy.

Strong Reform Progress Builds Investor Confidence

During the consultation, Cambodia Chamber of Commerce officials also highlighted significant progress in improving the country’s business environment. One of the latest institutional upgrades includes the introduction of a new Management Information System jointly developed with the Council for the Development of Cambodia to improve coordination and monitoring.

The Chamber also shared encouraging performance results from the latest Government Private Sector Forum report. According to the data, 169 of 179 mandated policy reforms have already been completed, representing 94.4 percent of the target. Meanwhile, 174 out of 198 operational challenges raised by the private sector have been successfully resolved, achieving an 87.9 percent resolution rate. These figures demonstrate Cambodia’s continued commitment to delivering practical reforms that support investors and businesses.

Conclusion

The Cambodia Chamber of Commerce’s new framework marks an important milestone in strengthening collaboration between the government and international businesses. By creating a unified platform for foreign investors to contribute ideas, resolve challenges, and participate in policy reforms, Cambodia is reinforcing its commitment to becoming one of the region’s most competitive investment destinations. As preparations continue for the 20th Government Private Sector Forum, the initiative is expected to enhance investor confidence, improve the business climate, and support the nation’s long term economic ambitions under Cambodia Vision 2050.

Cambodia Secures Lower US Tariff Than Several ASEAN Competitors

Cambodia has secured a more favourable trade position after the United States imposed a 10 percent tariff on Cambodian goods under its latest Section 301 trade action. The decision, announced by the Office of the United States Trade Representative (USTR) on July 23 (US time), places Cambodia in a lower tariff category than several ASEAN neighbours, including Vietnam, Thailand, Singapore and the Philippines, which will face a 12.5 percent tariff. The move comes after months of consultations between Cambodia and US authorities regarding measures to prevent imports linked to forced labour.

The outcome is being viewed as a positive development for Cambodia’s export sector and investment climate. Government officials and business leaders believe the lower tariff strengthens the Kingdom’s competitiveness for manufacturers and investors looking to establish production facilities that serve the US market. The decision also reflects Cambodia’s efforts to strengthen trade compliance and maintain closer economic cooperation with the United States.

Cambodia’s Compliance Helped Secure the Lower Tariff

The new tariff forms part of the USTR’s Section 301 action targeting 60 economies that Washington determined had not sufficiently prohibited or enforced restrictions on imports associated with forced labour.

When the proposal was first announced on June 6, Cambodia was expected to face a 12.5 percent tariff. The USTR opened a public consultation process that allowed governments, businesses and other stakeholders to submit comments before the July 6 deadline. After reviewing the feedback, the United States lowered Cambodia’s tariff to 10 percent, placing the country alongside Indonesia and Malaysia in the lower tariff group.

According to the White House, Cambodia was recognised as one of the economies that introduced measures prohibiting imports made with forced labour during the consultation period. This commitment was one of the key factors considered when determining the final tariff rate.

Government Welcomes the Outcome

Deputy Prime Minister and First Vice Chairman of the Council for the Development of Cambodia Sun Chanthol welcomed the announcement, describing the result as encouraging for Cambodia’s trade outlook.

“We are very pleased with the rate that we received today regarding Section 301 on forced labour. The rate ranged between 10 percent to 12.5 percent, but Cambodia received the 10 percent,” he said.

Chanthol explained that Cambodia is still waiting for the outcome of another US Section 301 investigation concerning excess production capacity. He expressed optimism that any additional tariff resulting from that review would remain below 9 percent.

“The two components–the forced labour and excess capacity–could add up to around 19 percent or less, based on what we agreed under the Agreement on Reciprocal Trade (ART) with the United States,” he said, noting that Cambodia became the first country in the world to sign the Agreement on Reciprocal Trade with the United States on October 26 last year.

Cambodia Expands Trade Cooperation With the United States

Minister of Commerce Cham Nimul said Cambodia worked closely with three ministries to introduce additional measures aimed at preventing imports linked to forced labour.

“With that, the ability to maintain the rate below 19 percent is a possibility for Cambodia,” she noted.

Nimul also revealed that Cambodia is negotiating a quota arrangement with the United States alongside Bangladesh, Indonesia and Malaysia. If approved, garment manufacturers would be able to import raw materials from the United States, process them in Cambodia and export finished products back to the US market under quota free and duty free treatment.

She added that discussions are continuing on broader trade cooperation, including opportunities for Cambodian manufacturers to increase the use of American made raw materials in production.

Business Community Sees Strong Investment Potential

Business leaders believe the lower tariff could significantly improve Cambodia’s appeal as a manufacturing and export destination.

Dr Sam Soknoeun, Vice President of the Board of Directors of the Federation of Associations for Small and Medium Enterprises of Cambodia and Chairman of SAM SN Group, described the announcement as an encouraging signal for investors.

“Actually, this is good news for Cambodia,” he said while congratulating the Royal Government for its successful negotiations with US authorities.

According to Soknoeun, international companies seeking to export products to the United States may increasingly consider establishing manufacturing operations in Cambodia because the country now enjoys a tariff advantage over several regional competitors.

He added that greater foreign direct investment would contribute to stronger economic growth, create more employment opportunities, expand industrial production and deepen Cambodia’s integration into regional and global supply chains.

Legal Background Behind the New Tariff

The latest tariff action follows broader changes in US trade policy. Earlier this year, the US Supreme Court ruled against the use of the International Emergency Economic Powers Act as the legal basis for broad reciprocal tariffs, prompting the Trump administration to rely on other legal mechanisms.

As a result, the United States introduced the Cambodia tariff under Section 301 of the Trade Act of 1974, which authorises the USTR to investigate and respond to unfair trade practices through targeted trade measures.

Conclusion

The United States’ decision to impose a 10 percent tariff on Cambodian exports instead of the higher 12.5 percent rate applied to several ASEAN competitors represents a positive development for Cambodia’s trade and investment environment. The decision reflects the country’s efforts to strengthen compliance with international trade standards while reinforcing its position as an attractive manufacturing hub. As negotiations with the United States continue on broader trade arrangements, Cambodia’s lower tariff could provide exporters, investors and manufacturers with new opportunities to expand production and strengthen access to one of the world’s largest consumer markets.

Southern Districts See Mixed Price Trends

Southern Phnom Penh, particularly the Mean Chey and Dangkor districts, is undergoing rapid development with new housing projects, shopping centers, and commercial buildings reshaping the landscape. As the area grows, land prices have fluctuated, reflecting the dynamic nature of Cambodia’s real estate market. According to the Cambodian Association of Valuers and Real Estate Agents, the second half of 2025 saw both high-value and more affordable land options, depending on location and proximity to main roads.

Land Prices in Mean Chey

Mean Chey district is seeing strong development with new housing, shopping malls, and commercial projects. As of the second half of 2025, land prices are as follows:

• Stung Mean Chey
  • Main road: $760 – $2,850 per sqm
  • Side road: $380 – $950 per sqm
• Boeung Tumpon
  • Main road: $1,050 – $2,760 per sqm
  • Side road: $380 – $950 per sqm
• Sangkat Chak Angre Leu
  • Main road: $1,050 – $2,380 per sqm
  • Side road: $670 – $950 per sqm
• Sangkat Chak Angre Krom
  • Main road: $1,050 – $2,090 per sqm
  • Side road: $570 – $950 per sqm

Land Prices in Khan Dangkor

Khan Dangkor is also undergoing rapid development, with prices varying by neighborhood and proximity to main roads:

• Sangkat Pong Teuk
  • Main road: $180 – $360 per sqm
  • Side road: $36 – $180 per sqm
• Sangkat Prey Veng
  • Main road: $90 – $270 per sqm
  • Side road: $36 – $99 per sqm
• Sangkat Prey Sar
  • Main road: $180 – $720 per sqm
  • Small road: $72 – $225 per sqm
• Dangkor Sangkat
  • Main road: $540 – $1,530 per sqm
  • Small road: $90 – $414 per sqm
• Kraing Pong Sangkat
  • Main road: $90 – $180 per sqm
  • Small road: $27 – $117 per sqm
• Sak Sampov Sangkat
  • Main road: $180 – $720 per sqm
  • Small road: $54 – $207 per sqm
• Choeung Cheong Sangkat
  • Main road: $270 – $540 per sqm
  • Small road: $72 – $162 per sqm
• Prek Kampeus Sangkat
  • Main road: $90 – $270 per sqm
  • Small road: $36 – $162 per sqm
• Sangkat Spean Thmor
  • Main road: $90 – $180 per sqm
  • Small road: $54 – $117 per sqm
• Sangkat Tean
  • Main road: $90 – $180 per sqm
  • Small road: $27 – $117 per sqm
• Sangkat Roluos
  • Main road: $90 – $180 per sqm
  • Small road: $36 – $117 per sqm
• Sangkat Kong Noy
  • Main road: $45 – $90 per sqm
  • Small road: $18 – $45 per sqm

Market Trends and Advice

Land prices in southern Phnom Penh have shown a slight decrease in the second half of 2025 compared to the first half of the year, reflecting subtle adjustments in the local real estate market amid rapid urban development. This shift is influenced by a combination of factors, including an increase in available housing and commercial projects, fluctuating demand, and broader economic conditions that impact investor confidence. While prime locations along main roads in districts like Mean Chey and Dangkor continue to command higher prices due to accessibility and proximity to key infrastructure, plots along side streets or less developed areas have seen more noticeable reductions. The overall moderation in prices provides potential buyers with a window of opportunity to enter the market under more favorable conditions, while still allowing investors to benefit from long-term growth as these districts continue to expand and modernize.

Conclusion

Southern Phnom Penh remains a key area for real estate growth, with opportunities for investors and homebuyers. By understanding local price trends and partnering with experienced agencies, buyers can make confident and informed investment decisions.

Strategic EU Cambodia Partnership Delivers Fresh Reform Funding

The European Union and Cambodia have reinforced their long standing strategic partnership through a high level bilateral dialogue that unlocked more than $22 million in new funding to advance critical reforms. The agreement signals strong confidence in Cambodia’s reform trajectory and focuses on strengthening institutions, improving public service delivery, and reinforcing long term economic resilience. The dialogue took place at the Ministry of Economy and Finance in Phnom Penh and confirmed that the new funding will support priority sectors including education, fisheries, and public financial management, aligning development assistance with Cambodia’s broader growth and governance objectives.

High Level Dialogue Reviews Economic Trends and Reform Progress

The bilateral dialogue was co chaired by Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth and EU Ambassador to Cambodia Igor Driesmans. Discussions covered recent macroeconomic and fiscal developments in both Cambodia and the European Union, while also examining growth prospects, emerging risks, and trends in bilateral trade and investment. Both sides acknowledged Cambodia’s continued progress under Stage IV of the Public Financial Management Reform Programme, recognizing it as a central pillar for safeguarding macroeconomic stability and fostering inclusive and sustainable economic growth across the public sector.

Public Financial Management Reforms Anchor Long Term Stability

Cambodia’s Public Financial Management Reform Programme was highlighted as a cornerstone of national development efforts, aimed at strengthening fiscal discipline, transparency, and accountability. The reform agenda seeks to ensure that public resources are managed efficiently and aligned with policy priorities, supporting economic growth and social equity. Deputy Prime Minister Aun Pornmoniroth reaffirmed the government’s commitment, stating, “The Royal Government of Cambodia is strongly committed to successfully implementing the PFMRP to achieve budget credibility, financial accountability, budget policy linkages and performance accountability,” emphasizing that these reforms are essential to sustaining macroeconomic stability and long term development.

Trade Growth Outpaces Investment Inflows

Trade relations between Cambodia and the European Union were described as positive and expanding, with bilateral trade continuing to grow in 2025. Cambodian exports to the EU increased by 17 percent year on year up to October 2025, demonstrating resilient demand despite ongoing global economic uncertainty. However, both parties acknowledged that EU investment inflows into Cambodia remain relatively modest, highlighting the importance of accelerating reforms to further improve the business environment, strengthen investor confidence, and unlock higher quality investment opportunities.

Global Gateway Strategy Expands Sector Cooperation

Under the EU Global Gateway investment strategy, which promotes sustainable and high quality investments worldwide, the European Union is scaling up cooperation with Cambodia in priority sectors such as energy, water, education, and skills development. Both sides reaffirmed their commitment to accelerating reforms and deepening cooperation in the years ahead, ensuring that investment and technical support contribute directly to sustainable and inclusive development outcomes that benefit businesses and communities alike.

Over $22 Million Confirmed for Key Sector Reforms

Ambassador Igor Driesmans confirmed that in 2025 the European Union transferred €19.5 million, equivalent to more than $22 million, to the Royal Government of Cambodia to support reforms in education, fisheries, and public financial management. The funding is designed to strengthen institutions, enhance service delivery, and build long term economic resilience. Looking ahead, the dialogue also discussed plans for a new EU Cambodia cooperation initiative with France and Finland, focusing on tax reforms and public financial management to further enhance fiscal governance. Ambassador Driesmans noted, “By promoting transparency and sound public finance, including effective tax systems, we help build a predictable business environment that supports investment and long term economic growth.”

Conclusion

The EU Cambodia bilateral dialogue underscores the depth of their strategic partnership and the shared commitment to reform driven development. With more than $22 million in new funding, expanding trade ties, and a renewed focus on institutional strengthening under the Global Gateway strategy, both sides have signaled a clear intention to deepen economic cooperation. As Cambodia advances its reform agenda, continued engagement with the European Union is expected to play a vital role in enhancing fiscal governance, attracting investment, and supporting sustainable and inclusive growth in the years ahead.