The Eastern Shores of the Mekong River in Phnom Penh Are Booming for Development

The eastern shores of the Mekong River in Phnom Penh are poised to become a hub of transformative growth and urbanization. This potential shift is driven by ambitious infrastructure projects, government vision, and increasing private sector involvement. As the city’s western shores approach saturation with high-rise buildings and dense developments, the eastern shores offer a new frontier for urban and economic expansion.

This vision was recently articulated by Prime Minister Samdech Moha Borvor Thipadei Hun Manet during the groundbreaking ceremony of the “Mekong Quay City” project, a joint venture between TP Moral Group and Khun Sea Group, in Akreiy Ksatr City, Kandal Province. The Prime Minister’s remarks underscored the critical role of strategic planning, public infrastructure, and private-sector collaboration in driving the development of this emerging region.

The Current Landscape: Full Western Shores and Untapped Potential in the East

Prime Minister Hun Manet noted that Phnom Penh’s western shores are nearing capacity in terms of urban development. “As I have observed, the western shores are already brimming with high-rise buildings, while the eastern part still consists largely of farmland,” he stated.

This contrast highlights the untapped potential of the eastern shores as an ideal site for planned urbanization and industrialization.

This shift eastward is not just a matter of necessity due to spatial constraints but also an opportunity to rethink and modernize urban planning in Cambodia. The development in this region could transition the area from predominantly agricultural use to a dynamic hub for services and industries.

Key Infrastructure Projects Driving Connectivity

A significant factor in the eastern shores’ growth is the Royal Government’s commitment to enhancing connectivity between Phnom Penh and Akreiy Ksatr City. Among the notable projects is the Cambodia-Korea Friendship Bridge, which will connect Arey Ksat to the Night Market area in Phnom Penh. This project alone is expected to catalyze significant economic activity and urban development on the eastern bank of the Mekong River.

Additionally, the government is exploring further connectivity initiatives, including the potential construction of a bridge—whether overwater or underwater—linking the new satellite city in Arey Ksat to the Koh Norea area. These projects aim to ease transportation, facilitate trade, and stimulate investment in the eastern region.

A Vision for Smart and Sustainable Development

Prime Minister Hun Manet emphasized the importance of preparing the eastern shores for the anticipated boom. “We must ensure that public infrastructure, green spaces, and other amenities are well planned in the eastern region,” he said, highlighting the opportunity to build a modern, sustainable urban environment from the ground up. Unlike Phnom Penh’s western shores, where expansion is constrained by existing structures and dense urban sprawl, the eastern region provides a blank slate for innovative urban planning.

The “Mekong Quay City” development is a prime example of this forward-thinking approach. Positioned opposite the Koh Norea development project, it is envisioned as a satellite city with a rich mix of economic, commercial, and residential activities. Designed to embody modern aesthetics, environmental cleanliness, and efficient urban organization, the project aims to make Akreiy Ksatr City a “smart city” for both the present and future.

Encouraging Private Sector Involvement

The Prime Minister’s call for private sector collaboration underscores the importance of joint efforts in national development. “I encourage private companies to contribute to the development of our eastern region to achieve further progress,” he stated during the ceremony. By fostering partnerships between the government and private entities, the Royal Government seeks to accelerate the pace of development while ensuring that growth benefits both the country and its citizens.

The involvement of firms like TP Moral Group and Khun Sea Group in the Mekong Quay City project exemplifies how private investment can drive large-scale urban projects. Such collaborations are essential not only for funding and expertise but also for ensuring that projects align with international standards of quality and sustainability.

Improving Livelihoods Through Infrastructure

Prime Minister Hun Manet emphasized that these development initiatives are not solely about enhancing infrastructure but also about improving the lives of citizens. “These projects aim to uplift both the infrastructure and the livelihoods of our people,” he remarked. Improved connectivity, modern housing, and access to services in the eastern shores will provide residents with greater opportunities and a higher quality of life.

This shift is also expected to boost the economic potential of surrounding areas. The eastern region’s transformation will create new jobs, stimulate local businesses, and attract both domestic and foreign investors. In the long term, this will contribute to Cambodia’s overall economic growth and urban resilience.

Long-Term Vision: From Agriculture to Industry and Services

The Prime Minister’s optimism for the eastern shores’ future is grounded in a long-term vision of transforming the region into a hub for services and industries. This transition reflects Cambodia’s broader economic aspirations of moving beyond traditional agriculture towards a more diversified and modern economy.

“I hope the eastern shores of the Mekong River will evolve from an agricultural area into a vibrant hub for services and industries,” Prime Minister Hun Manet said. This shift will not only diversify the region’s economy but also position it as a key player in Cambodia’s urban and economic development.

Mekong Quay City: A Beacon of Modern Urbanization

The Mekong Quay City project is a pivotal step in realizing this vision. Situated on the eastern bank of the Mekong River, it represents a model for future developments in the region. Designed as a self-contained satellite city, Mekong Quay will offer a blend of residential, commercial, and recreational spaces.

Key features of the project include:

• Smart Urban Planning: Emphasizing efficient land use, sustainable building practices, and green spaces.
• Economic Opportunities: Creating a hub for businesses, retail, and services that will generate employment and stimulate economic activity.
• Environmental Stewardship: Prioritizing clean environments and modern waste management systems.

By setting a high standard for urban development, Mekong Quay City will serve as a blueprint for similar initiatives across the eastern shores.

Unlocking Regional Potential

The eastern shores’ development is not only significant for Phnom Penh but also for the broader region. Enhanced connectivity and infrastructure will integrate the eastern shores into Cambodia’s national economy, creating ripple effects of growth and prosperity. As the region transforms, it will attract talent, investment, and innovation, solidifying its role as a key driver of Cambodia’s progress.

A Collaborative Future

The Royal Government’s support for private-sector involvement highlights a collaborative approach to development. By aligning the interests of public and private stakeholders, Cambodia can ensure that growth is inclusive, sustainable, and impactful. The success of projects like Mekong Quay City will depend on continued cooperation, visionary planning, and a shared commitment to the region’s potential.

Prime Minister Hun Manet’s call to action—inviting all stakeholders to contribute—is a powerful reminder that development is a collective effort. By working together, Cambodia can unlock the full potential of the eastern shores and create a thriving, modern urban landscape for generations to come.

A New Chapter for Phnom Penh

The eastern shores of the Mekong River represent a new chapter in Phnom Penh’s urban and economic story. With strategic infrastructure projects, government support, and private-sector collaboration, this region is set to become a beacon of modern development. As Prime Minister Hun Manet aptly noted, this transformation will not only enhance the city’s infrastructure but also uplift the lives of its people.

The development of the eastern shores is more than just an urban expansion; it is a testament to Cambodia’s aspirations for a brighter, more inclusive future. As these plans unfold, the eastern shores will undoubtedly play a central role in shaping the next era of Cambodia’s growth and prosperity.

Source: AKP

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Cambodia’s entrepreneurial movement started slowly around 2010, with only a handful of small ventures struggling to survive due to limited funding, weak infrastructure, and a shortage of skilled talent. For nearly a decade, progress was sluggish. However, in 2019, the landscape began to shift when the government launched the Entrepreneurship Promotion Centre and Khmer Enterprise (KE), two major initiatives designed to nurture innovation and entrepreneurship across the country. Supported by the Techo Startup Center under the Ministry of Economy and Finance, these efforts brought financial grants, mentorship programs, and tax incentives that gradually sparked the country’s innovation scene. Today, the Kingdom proudly hosts over 200 startups, including 119 technology-driven ventures across e-commerce, fintech, SaaS, edutech, and healthtech, marking a new era for Cambodia’s digital economy.

Read more: How AI is Transforming Access to Finance in Cambodia?

Why did Nham24’s acquisition by Grab create such a buzz?

In early 2025, the Cambodian startup scene made headlines when Grab, Southeast Asia’s biggest tech company, acquired Nham24, a homegrown platform offering food delivery, ride-hailing, courier, and grocery services. This deal wasn’t just about business, it symbolized a turning point for Cambodia’s innovation ecosystem. The acquisition signaled growing investor confidence, gave early backers an exit opportunity, and showcased that Cambodian startups can scale beyond national borders. Merging Nham24’s local knowledge with Grab’s global resources is expected to further accelerate Cambodia’s transition into a regional tech hub.

Where does Cambodia stand globally in the startup world?

According to the Global Startup Ecosystem Index 2025 by StartupBlink, Cambodia climbed seven spots to rank 105th globally and maintained 7th place in Southeast Asia, just behind the Philippines. Phnom Penh also earned a place on the map as the country’s central innovation hub. The growth reflects steady improvements in funding, government backing, and digital adoption, especially with the introduction of Startup Cambodia, a national program under the Cambodia Digital Economy and Society Policy Framework. This initiative continues to connect entrepreneurs, mentors, and investors, building a collaborative ecosystem for sustainable growth.

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Who are the standout startups driving this change?

Several local ventures are now making a name for themselves: FirstFinance MFI and Pi Pay in fintech; ATEC Biodigesters in clean energy; vKirirom, DirexPlay, and Beebush in social tech and tourism; and BookMeBus, Somleng, and Clik in digital services. Industry expert Zia Bharwani, CEO of Red Team Partners and mentor at the American University of Phnom Penh’s Startup Accelerator, emphasized the importance of emerging technologies. “These are the best industries with the highest growth rate across the world. Innovation and advanced technologies are crucial for startups to survive and thrive in today’s competitive and fast-paced market,” he said, urging entrepreneurs to focus on AI, blockchain, and cybersecurity.

How is the government helping startups grow?

The Cambodian government has established a supportive framework through Khmer Enterprise (KE), which runs over 100 programs annually to help startups across all 25 provinces. KE offers grants, mentorship, and networking opportunities, helping young entrepreneurs build scalable and sustainable businesses. As Chhieng Vanmunin, CEO of KE, shared, “We are offering support to startups across all 25 provinces in the country. The project and fund distribution system is much effective to help investors to venture into a project in any part of the country.” Moreover, the Techo Startup Center, the Commerce Ministry’s Single Portal, and accelerator programs like ARC Start-up Accelerator simplify business registration, improve investor access, and connect startups with global partners.

What challenges still hold Cambodian startups back?

Despite impressive progress, many startups face difficulties expanding into new markets. Some entrepreneurs argue that existing support programs haven’t yet provided enough tools for international scaling. Expat founders also face barriers in accessing certain incentives and government-backed initiatives, limiting foreign participation in Cambodia’s innovation ecosystem. Funding is another challenge. Though promising startups like vKirirom, ATEC Biodigesters, and Beebush have raised between $1 million and $2.9 million, venture capital inflow remains limited. Local VCs like OOCTANE ($55 million fund) and OBOR Capital ($30 million fund) are leading the way, but regional investment still lags compared to neighbors like Vietnam and Thailand.

Read more: What is Cambodia’s National AI Strategy? Why Does It Matter for Your Business?

What do experts say about the road ahead?

According to Victor La, Director at the Canadian Chamber of Commerce in Cambodia, local entrepreneurs must focus on homegrown innovation that solves real problems. “We must understand that commercialisation is driving the modernisation of incubated technologies,” he said. This means building Cambodian-made tools that address local needs before expanding globally. Meanwhile, Renjith Thomas, an Indian entrepreneur eyeing Cambodia’s market, believes that fostering a strong venture capital ecosystem will be critical. He argues that “novelty and innovation remain the key to success,” and warns that copying existing business models like Foodpanda or Grab could stunt long-term progress.

So, what’s next for Cambodia’s startup ecosystem?

Experts agree that the next phase will depend on innovation, inclusivity, and global integration. With continued government backing, growing investor interest, and an increasingly tech-savvy population, Cambodia has the potential to transform from a small startup market into a dynamic regional innovation hub. As Renjith Thomas aptly put it, “Greatness cannot be planned; it emerges by solving unique, real-world problems that people or businesses face in their everyday lives and by embracing those challenges with creativity and persistence.”

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Cambodia is moving ahead with a major logistics upgrade as the Royal Government plans to establish two new multipurpose ports and logistics centers in Kampong Chhnang and Kampot provinces. The initiative, announced through sub decrees issued by Prime Minister Hun Manet, is part of the Kingdom’s broader strategy to modernize its transportation network and strengthen the inland waterway system. The projects align with Cambodia’s Comprehensive Intermodal Transport and Logistics System Master Plan for 2023 to 2033, which aims to improve efficiency, reduce logistics costs, and enhance the country’s competitiveness in regional and global trade.

Why Cambodia Is Building New Ports?

The development of these ports reflects Cambodia’s long term vision to diversify transportation methods and reduce heavy reliance on road freight. Inland waterways such as the Tonle Sap River provide a natural and cost effective transport route that can move large volumes of goods more efficiently.

By expanding river based logistics, the government hopes to reduce traffic congestion and road damage caused by heavy trucks while lowering transportation costs for businesses. Water transport is also considered more environmentally friendly compared to long distance road transport, making it an important component of sustainable economic development.

Key Details About the Two New Ports

The Kampong Chhnang Multipurpose Port and Logistic Center will be located along the Tonle Sap River in Kampong Leng district. Once operational, the port will have the capacity to handle up to two million tonnes of goods annually. Its location along the Tonle Sap waterway is expected to improve cargo movement between central Cambodia and other economic hubs.

Meanwhile, the Kampot Logistic Port will be developed in Kampot province with an annual capacity of about three million tonnes of goods. This facility will support cargo handling, including containers and bulk goods, and will accommodate international vessels.

Both ports are designed as multipurpose facilities that will support entry, transshipment, and loading and unloading of cargo. The logistics centers associated with these ports will also strengthen supply chain operations, providing more efficient services for traders and logistics companies.

What This Means for Cambodia’s Economy?

Industry experts believe the development of new ports will strengthen Cambodia’s logistics competitiveness and improve access to markets. Lim Heng, Vice President of the Cambodia Chamber of Commerce, noted that expanding infrastructure such as ports, highways, and railway connections will support trade growth and improve the country’s logistics ecosystem.

As Cambodia’s economy continues to expand, efficient logistics will play a crucial role in supporting export driven industries and attracting investment. Improved waterway transport can help businesses move goods faster and at lower costs, which ultimately benefits manufacturers, exporters, and consumers.

How the New Ports Fit into Cambodia’s Logistics Strategy

The projects also complement the country’s existing major ports, including the Sihanoukville Autonomous Port and the Phnom Penh Autonomous Port. These two gateways currently play a critical role in handling Cambodia’s import and export cargo.

Recent data shows strong growth in port activity. Sihanoukville Autonomous Port handled about 1.34 million TEUs of container throughput, a significant increase from the previous year. Meanwhile, Phnom Penh Autonomous Port recorded over 600,000 TEUs, also reflecting strong growth in river based trade.

By adding new logistics hubs in Kampong Chhnang and Kampot, Cambodia is building a more integrated transport system that connects waterways, roads, and railways. The Ministry of Public Works and Transportation continues to prioritize infrastructure projects that strengthen these connections and enhance the overall efficiency of the logistics sector.

The Big Picture

The new ports in Kampong Chhnang and Kampot represent more than just infrastructure development. They signal Cambodia’s broader ambition to become a stronger logistics hub in Southeast Asia. By leveraging its river systems and expanding multimodal transport networks, the country is positioning itself to support growing trade, investment, and industrial development.

For businesses, investors, and logistics operators, the message is clear. Cambodia is investing in infrastructure that will make the movement of goods faster, cheaper, and more sustainable in the years ahead.

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Located in northeastern Kratie Province, Kratie is a historically rich riverside province along the Mekong River, known for its laid back lifestyle, strong cultural traditions, and natural beauty. Covering approximately 11,094 square kilometers, the province has an estimated population of around 360,000 people in 2026, with most residents engaged in agriculture, fishing, and small scale trade.

Kratie has long served as a key transit point connecting central Cambodia to northeastern provinces such as Stung Treng, Mondulkiri, and Ratanakiri, while also linking to regional trade routes toward Laos. Located roughly 315 kilometers from Phnom Penh, the province is accessible by road in about 5 to 6 hours. Its economy is driven mainly by agriculture including rubber, cassava, and rice, alongside growing ecotourism centered around the rare Irrawaddy dolphins.

In recent years, infrastructure projects like the new Mekong bridge, along with increasing interest in agro industry, logistics, and tourism, have positioned Kratie as an emerging destination for investment and business expansion in Cambodia’s northeast corridor.

A new $114 million bridge across the Mekong River in Kratie province is now open, marking a major upgrade in Cambodia’s transport network and a significant boost for the northeastern economic corridor. The project creates a permanent connection between communities on both sides of the river and signals growing momentum in regional infrastructure development that investors and business leaders should pay close attention to.

A Long Awaited Link Across the Mekong

The Cambodia China Friendship Mekong Kratie Bridge officially opened to traffic on April 1, delivering on its construction timeline. The project first broke ground in January 2023 under the leadership of former Prime Minister Samdech Techo Hun Sen and former Chinese Ambassador to Cambodia Wang Wentian. Its completion represents a clear example of Cambodia’s continued focus on expanding strategic infrastructure to support long term growth.

Stretching 1,761 meters long and 13.5 meters wide, the bridge is designed to handle a mix of traffic, including cars, motorcycles, and pedestrians. It also maintains sufficient clearance for river navigation, ensuring that transport on the Mekong remains uninterrupted. The structure connects Chitr Borei district on the eastern bank with Prek Prasab district on the western side, effectively linking key segments of National Roads 6 and 7.

Strengthening the Northeast Economic Corridor

This bridge plays a critical role in improving connectivity across Cambodia’s northeastern provinces, an area rich in agricultural potential but historically limited by transport constraints. By reducing travel time and logistics costs, the new link is expected to streamline the movement of goods, particularly agricultural and agro industrial products, into larger domestic and export markets.

For investors and business operators, this development signals improved supply chain efficiency and opens the door to new opportunities in agribusiness, logistics, and regional trade. Faster and more reliable transport routes can significantly enhance the competitiveness of businesses operating in or sourcing from these regions.

Unlocking Tourism and Local Growth

Beyond trade, the bridge is set to reshape travel patterns in the region. It makes journeys between Kampong Thom and northeastern provinces more direct and accessible, which could stimulate tourism flows to previously less visited destinations.

For local communities, the impact is immediate and practical. The bridge reduces dependence on ferry crossings, offering safer and more consistent access to schools, healthcare facilities, and essential services. This improved accessibility can gradually lift living standards and support small scale local enterprises.

A Strategic Investment Backed by International Cooperation

The project aligns with the government’s Pentagonal Strategy, where infrastructure connectivity is positioned as a core driver of economic expansion. It reflects a broader commitment to modernizing Cambodia’s transport systems to support industrial growth and regional integration.

Funded through concessional loans from China, the bridge was constructed by Shanghai Construction Group and supervised by Guangzhou Wanan Engineering Consulting. The collaboration highlights ongoing infrastructure partnerships between Cambodia and China, which continue to play a key role in delivering large scale development projects across the country.

Why Investors Should Pay Attention?

For investors or businesses, this bridge is more than just a transport upgrade. It represents a shift in accessibility across Cambodia’s northeast, turning previously remote areas into more viable destinations for investment. Improved infrastructure typically leads to rising land values, increased business activity, and stronger regional integration.

Sectors such as agriculture processing, logistics hubs, tourism development, and cross border trade stand to benefit the most. As connectivity improves, so does the potential for scaling operations and reaching broader markets with lower operational friction.

Conclusion

The opening of the Mekong bridge in Kratie is a clear signal that Cambodia is accelerating its infrastructure transformation. By connecting key regions, reducing transport barriers, and enabling economic activity, the project strengthens the foundation for long term growth. For business leaders and investors, the message is straightforward. Opportunities are expanding beyond traditional urban centers, and those who move early into emerging corridors like the northeast could gain a strategic advantage.

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