Cambodia’s Government and private sector are working together to address 13 key challenges affecting businesses across manufacturing, small and medium sized enterprises and services. The issues were discussed on August 6, 2026, during the fourth meeting of Working Group “C” under the Government Private Sector Forum in Phnom Penh, with the goal of turning business concerns into practical reforms that can improve the country’s business environment and competitiveness.

The meeting brought government officials and private sector representatives together to examine challenges ranging from access to finance and electricity costs to business licensing, skilled labour shortages, environmental regulations and product certification. Rather than simply identifying problems, the discussions focused on practical actions, including regulatory simplification, digital public services, stronger support for informal businesses and better coordination between government agencies.

Private Sector Highlights 13 Business Challenges

Private sector representatives presented 13 major issues affecting day to day business operations. These included concerns surrounding salt production and imports, access to finance, investment incentives and the cost of electricity, all of which can directly influence business costs and investment decisions.

Other challenges involved business licensing procedures, the implementation of environmental regulations, shortages of skilled workers and difficulties facing the cashew processing industry. The private sector also raised concerns about product certification, the development of enterprises operating in the informal economy and the need to strengthen compliance among online businesses to create fairer competition.

Government Seeks Solutions Beyond Policy

H.E. Hem Vanndy, Minister of Industry, Science, Technology & Innovation and Co Chair of Working Group “C”, stressed that the Government Private Sector Forum should deliver more than discussions and lists of unresolved issues. He said its real value comes from turning business challenges into practical actions that can be measured and implemented.

“The value of this Government-Private Sector Forum mechanism lies not in the number of issues raised, but in our ability to transform challenges into solutions that are clear, actionable and measurable,” he said.

The Minister also pointed out that business difficulties are not always caused by missing policies or regulations. In many cases, problems emerge when existing policies are not implemented effectively or do not fully reflect the realities businesses face on the ground.

“The challenges faced by the private sector do not always stem from the absence of policies or regulations. In many cases, they arise from the gap between policy, implementation and the practical realities experienced by businesses,” H.E. Minister added.

Discussions Focus on Implementation

The meeting was conducted through open and constructive discussions, allowing government officials and private sector representatives to examine the issues at both technical and policy levels. Proposals were reviewed within the Working Group with the aim of finding workable responses rather than leaving concerns at the discussion stage.

This approach is important for businesses that often face challenges not because a policy does not exist, but because procedures can be complicated, services can take time and implementation may vary across different institutions. Addressing these practical gaps could make it easier for businesses to operate, invest and expand.

Digital Services and Simpler Procedures on the Agenda

The meeting agreed on several follow up measures aimed at making the business environment more efficient. One key area is the continued simplification of regulatory and administrative procedures, which could reduce the time and effort businesses spend dealing with government requirements.

The government and private sector also agreed to accelerate the digitalisation of public services. For businesses, more accessible digital services could reduce administrative burdens and make interactions with government agencies faster and more transparent.

More Support for SMEs and Informal Businesses

Another priority is strengthening support for businesses operating in the informal economy. The initiative is intended to help enterprises move toward greater formalisation while improving their access to support and opportunities.

The agreed measures also include expanding industry driven skills development to address labour shortages. Technical, financial and market support for enterprises will also be strengthened, particularly to help businesses improve their capacity and competitiveness.

Stronger Coordination and Monitoring

Inter agency coordination was another important part of the follow up plan. Better cooperation among government institutions could help reduce duplication, resolve regulatory issues more efficiently and ensure that agreed reforms are implemented consistently.

The Working Group also plans to establish monitoring mechanisms to track whether the agreed measures are actually being implemented effectively. This reflects the broader goal of moving from identifying business problems to measuring the results of solutions.

What Does This Mean for Cambodia’s Business Environment?

For businesses, the significance of the meeting goes beyond the 13 challenges raised. The bigger message is that the Government and private sector are seeking a more direct way to identify problems, agree on solutions and monitor implementation.

Working Group “C” provides a formal platform for addressing policy, regulatory and implementation issues affecting manufacturing, SMEs and services. By connecting private sector concerns with government decision making, the mechanism aims to turn real business challenges into practical reforms.

If the agreed measures are implemented effectively, businesses could benefit from simpler procedures, more accessible digital government services, stronger workforce development, better support and improved coordination between institutions. These changes could also help Cambodia strengthen its competitiveness and create a more supportive environment for private sector growth.

Conclusion

Cambodia’s latest Government Private Sector Forum meeting signals a stronger focus on solving business problems through practical action. The 13 challenges raised by the private sector cover some of the everyday issues that affect business costs, investment, compliance, productivity and growth.

The real test, however, will be implementation. As H.E. Hem Vanndy emphasised, the success of the mechanism should not be measured by how many problems are discussed, but by whether those problems are converted into clear, measurable and workable solutions. For Cambodia’s businesses, the follow through on these commitments could be just as important as the discussions themselves.

SCA Plans New Investment to Strengthen Cambodia’s Transport and Supply Chain Network

Cambodia’s long established airport operator, Société Concessionnaire de l’Aéroport (SCA), is preparing to broaden its investment beyond aviation by entering the country’s logistics sector. The plan was discussed during a meeting at the Council for the Development of Cambodia headquarters in Phnom Penh on Wednesday between Cambodian Investment Board Secretary General Chea Vuthy and SCA’s newly appointed Chief Executive Officer Julien Bert. The expansion reflects the company’s long term commitment to Cambodia while supporting the country’s economic growth, trade connectivity, and regional supply chain development.

The proposed investment comes at a time when Cambodia is accelerating infrastructure development to improve transport efficiency and attract more high quality foreign investment. By combining airport development with modern logistics services, SCA aims to help strengthen Cambodia’s position as an important gateway for trade, tourism, and investment in Southeast Asia.

SCA Reinforces More Than Three Decades of Investment in Cambodia

During the meeting, Chea Vuthy congratulated Julien Bert on his appointment as the new Chief Executive Officer of SCA and welcomed him to his leadership role. He also recognized the company’s contribution to Cambodia over the past three decades, highlighting its important role in developing the country’s aviation industry and supporting the rapid growth of tourism.

Vuthy noted that SCA has consistently invested in improving Cambodia’s airport infrastructure, making international travel more accessible while increasing the country’s appeal as both a tourism destination and an investment location. These long term improvements have helped strengthen Cambodia’s connections with regional and global markets.

Logistics Expansion Supports Cambodia’s Economic Vision

Julien Bert expressed his appreciation to the Council for the Development of Cambodia for the opportunity to discuss the company’s future investment plans. He reaffirmed SCA’s commitment to continuing its operations in Cambodia while providing an update on the ongoing development of Sihanouk International Airport, a key gateway serving the country’s growing coastal tourism and business activities.

Looking beyond airport operations, Bert revealed that SCA intends to expand into the logistics industry. The new investment strategy is designed to improve logistics services, strengthen regional supply chains, and support Cambodia’s expanding role in international trade. As global supply chains continue to evolve, efficient logistics infrastructure has become increasingly important for attracting foreign direct investment and supporting sustainable economic growth.

Government Supports Infrastructure and Logistics Development

The logistics investment proposal aligns closely with Cambodia’s national strategy to modernize transport infrastructure and improve logistics efficiency. These improvements are expected to reduce transportation costs, facilitate trade, and enhance the country’s competitiveness within the regional economy.

Chea Vuthy welcomed SCA’s expansion plans and reaffirmed the Royal Government’s commitment to upgrading infrastructure and strengthening Cambodia’s logistics system. According to him, these efforts will create a stronger business environment, attract higher quality investment, and generate greater opportunities for the tourism sector and the wider economy.

Business Confidence Continues to Improve

The discussion also covered Cambodia’s broader efforts to create a more attractive investment climate. Before concluding the meeting, Vuthy highlighted the government’s continued crackdown on online scam operations, saying the measures have helped restore Cambodia’s international reputation and strengthen investor confidence.

He explained that these actions are intended to provide a safer and more secure environment for investors, businesses, and tourists while supporting the country’s long term economic development. Strong governance and improved security continue to play an important role in Cambodia’s strategy to attract sustainable investment.

What Does This Mean for Businesses and Investors?

SCA’s decision to diversify into logistics demonstrates growing confidence in Cambodia’s economic future. The company’s expansion could improve the movement of goods, strengthen supply chain efficiency, and create new opportunities for businesses operating in manufacturing, trade, e commerce, and export industries.

The meeting also reinforced the strong partnership between SCA and the Council for the Development of Cambodia as both sides explored opportunities for deeper investment cooperation. As Cambodia continues investing in transport infrastructure and logistics modernization, the country is positioning itself as a more competitive regional hub for trade, tourism, and investment.

Conclusion

SCA’s planned expansion into Cambodia’s logistics sector marks another significant step in the company’s long standing partnership with the Kingdom. By combining airport development with logistics investment, the company is supporting Cambodia’s ambition to become a stronger regional transport and supply chain hub. With continued government backing, infrastructure improvements, and a focus on investor confidence, the initiative could help unlock new business opportunities while strengthening Cambodia’s role in regional and global trade.

Cambodia is making significant progress in strengthening its customs system, with revenue from diversified imports reaching 49.5 percent in July 2026, up from 42.9 percent in April. The latest update was shared during a high level government meeting in Phnom Penh on Aug. 6, highlighting the country’s continued efforts to improve tax collection, reduce tax evasion, and modernize customs administration through digital innovation. The reforms are designed to create a stronger and more sustainable revenue base while making cross border trade more efficient.

The progress reflects Cambodia’s broader commitment to fiscal reform and better governance. Despite a decline in customs revenue from petroleum imports after the government absorbed fuel import duties, the customs authority successfully increased revenue from other imported goods. This demonstrates the effectiveness of ongoing reform measures aimed at expanding the country’s sources of customs income.

Customs Reform Delivers Stronger Revenue Performance

The latest achievements were reviewed during a meeting chaired by Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth. The meeting evaluated the implementation of the General Department of Customs and Excise’s 2026 action plan, which focuses on preventing tax evasion, strengthening governance, and improving customs operations across Cambodia.

According to Kun Nhem, Minister Attached to the Prime Minister and Director General of the General Department of Customs and Excise, the department has made solid progress since introducing 31 reform measures in May. Nine initiatives have already been completed, while 13 are currently being implemented. The remaining nine measures are expected to be completed before the end of the year. These reforms have helped increase the contribution of diversified imports to customs revenue despite reduced income from fuel related duties.

Government Steps Up Fight Against Tax Evasion

Government leaders also reviewed ongoing efforts to combat tax evasion while improving trade facilitation and strengthening governance within the customs sector. Discussions covered operational improvements, inspection procedures, and the continued development of information technology systems that support customs services.

Deputy Prime Minister Aun Pornmoniroth praised the progress achieved so far and encouraged customs officials to strengthen technical operations and improve origin management. These measures are intended to reduce fraudulent trade practices, ensure fair tax collection, and enhance confidence in Cambodia’s customs system.

Digital Technology Becomes a Key Priority

One of the government’s major priorities is accelerating the digital transformation of customs administration. Authorities plan to upgrade the existing customs automation platform into a fully integrated digital ecosystem with Application Programming Interface connectivity that allows different government systems to work together more efficiently.

Officials also plan to expand the use of artificial intelligence in customs operations to improve risk analysis, inspection efficiency, and overall administrative performance. At the same time, Cambodia will develop a Digital Customs Architecture Framework to support long term sustainability, interoperability, and future technological growth within the customs sector.

Stronger Customs Support Economic Growth

The customs reforms are part of Cambodia’s wider strategy to strengthen fiscal governance while creating a more transparent and business friendly trade environment. By broadening customs revenue sources and embracing modern technology, the government aims to improve public finances without relying heavily on a single import category.

These improvements are also expected to support businesses by making customs procedures more efficient and predictable. A modern customs system helps facilitate international trade, encourages investment, and strengthens Cambodia’s position as an increasingly competitive regional trading hub. Readers can learn more through the original report published by KPT.

Conclusion

Cambodia’s latest customs reforms demonstrate that stronger enforcement and digital modernization can work together to improve revenue collection while supporting economic development. With diversified import revenue continuing to rise and more reform measures being implemented throughout 2026, the country is building a more resilient customs system that strengthens fiscal stability, promotes fair trade, and prepares Cambodia for future economic growth.

Cambodia is laying the foundation for its next stage of economic development as the country prepares to graduate from Least Developed Country (LDC) status in 2029. Speaking in Phnom Penh, government officials outlined a long term strategy focused on expanding trade partnerships, lowering business costs, improving workforce skills, and attracting higher value industries. The strategy is designed to help Cambodia remain competitive after it gradually loses the trade preferences currently available to LDC nations.

The government’s plan reflects a broader vision of building a more resilient economy that relies on productivity, innovation, and investment rather than preferential market access. Officials believe the transition marks an important milestone in Cambodia’s development journey and supports the country’s ambition of becoming a high income nation by 2050.

Cambodia Looks Beyond Preferential Trade Benefits

Deputy Prime Minister Sun Chanthol said Cambodia must prepare for a future where preferential tariffs are no longer the country’s main competitive advantage. As LDC related trade benefits are gradually phased out after graduation, the country will need to strengthen its own economic fundamentals to remain attractive to investors and global manufacturers.

“Graduating from Least Developed Country (LDC) status in 2029 will be a source of national pride,” Chanthol told reporters last month, citing new U.S. tariff arrangements following a Section 301 compliance probe. “We have to rely on ourselves. We need to reduce production costs and undertake reforms across the board to make Cambodia competitive.”

According to Chanthol, the government is prioritising reforms that simplify administrative procedures, reduce logistics expenses, improve production quality, and strengthen workforce skills. He also highlighted the importance of diversifying Cambodia’s industrial base by expanding into higher value sectors such as electronics instead of relying heavily on garment manufacturing.

New Free Trade Agreements Become a Priority

As Cambodia prepares for the post LDC era, expanding international trade partnerships has become one of the government’s key objectives. Officials believe broader market access will help Cambodian businesses maintain export growth and attract more foreign investment.

Commerce Ministry Secretary of State Sim Sokkheng said Prime Minister Hun Manet has instructed relevant ministries to explore new free trade agreements with additional partners. Cambodia has already signed bilateral trade agreements with China, South Korea, and the United Arab Emirates, while discussions are being explored with the Eurasian Economic Union and the European Free Trade Association, which includes Iceland, Liechtenstein, Norway, and Switzerland.

These potential agreements could provide Cambodian exporters with new opportunities and help offset the gradual reduction of LDC trade preferences. More information about Cambodia’s economic policies is available through the original report published by the Cambodia News Agency (KPT).

Building Competitiveness Through Investment and Infrastructure

Beyond trade, Cambodia is strengthening its investment climate by improving infrastructure, promoting renewable energy, and simplifying investment procedures. These efforts are intended to position the country as a competitive destination for international manufacturers and investors.

Chanthol noted that renewable energy currently accounts for 63 percent of Cambodia’s electricity generation, with the government aiming to increase that figure to 70 percent by 2030. Major infrastructure projects, including the nearly one billion dollar Upper Tatay Pumped Storage Hydropower project, are expected to support future industrial growth while ensuring a more reliable energy supply.

Officials also continue to highlight Cambodia’s political stability, young labour force, and investor friendly policies that allow full foreign ownership and unrestricted profit repatriation. At the same time, reforms at the Council for the Development of Cambodia are making investment approvals more efficient while reducing logistics costs across regional supply chains. Qualified Investment Projects continue to receive tax incentives on imported production materials, especially for export focused industries.

Investment Momentum Remains Strong

Cambodia continues to attract significant investment despite the approaching LDC graduation. During the first half of 2026, the Council for the Development of Cambodia approved 276 investment projects worth approximately 4.7 billion US dollars. This follows an even stronger performance in 2025, when 630 projects valued at around 10 billion US dollars received approval.

The consistent flow of investment demonstrates growing confidence in Cambodia’s long term economic outlook. Rather than depending on preferential tariffs, the country is increasingly positioning itself as a competitive manufacturing and investment destination through policy reforms, skilled labour development, modern infrastructure, and expanded international partnerships.

Cambodia’s Long Term Vision for Economic Growth

Government officials emphasise that graduating from LDC status should be viewed as the beginning of a new chapter rather than the end of Cambodia’s development journey. By improving competitiveness, expanding trade opportunities, encouraging higher value industries, and creating a more efficient business environment, Cambodia aims to build a stronger and more sustainable economy.

These reforms are expected to play a central role in helping the country successfully navigate its 2029 graduation while supporting its long term objective of achieving high income status by 2050.

Conclusion

Cambodia’s post LDC strategy reflects a shift toward self sustained economic growth driven by competitiveness rather than preferential treatment. Through continued reforms, stronger trade partnerships, investment friendly policies, and a focus on innovation and skills development, the country is preparing for a future that offers greater resilience and broader economic opportunities. As 2029 approaches, the success of these initiatives will shape Cambodia’s ability to compete in the global economy and achieve its long term development ambitions.