Cambodia’s government has openly acknowledged that online scam centres are damaging the country’s economy and global investment reputation and says it is taking decisive action to dismantle them.
During an official visit to Brussels, Prime Minister Hun Manet told international media that cyber-scam operations are harming Cambodia’s economic narrative and undermining investor confidence. His remarks represent one of the clearest public recognitions at the highest level that scam networks pose not only a criminal issue, but a strategic economic risk.
Why Are Scam Centres Such a Serious Problem?
Over recent years, Cambodia has been identified as one of several Southeast Asian locations used by transnational criminal syndicates operating large-scale online fraud schemes. These scams have targeted victims globally through romance fraud, cryptocurrency investment schemes, and digital financial deception.
According to a 2024 report by the United States Institute of Peace, cyber-scam revenues linked to Cambodia may exceed $12.5 billion annually, an amount roughly equivalent to half of the country’s formal GDP. While independent estimates vary, the scale underscores how large the illicit ecosystem has become.
Many of these operations reportedly involve trafficked workers forced to operate under coercive conditions inside secured compounds. This human rights dimension has intensified international scrutiny and raised compliance concerns among foreign governments and multinational corporations.
Did Scam Centres Benefit Cambodia’s Economy?
Prime Minister Hun Manet acknowledged a sensitive reality: scam operations indirectly stimulated certain sectors, particularly real estate and construction tied to operational compounds. In some areas, property demand and short-term capital flows were influenced by these networks.
However, he stressed a critical distinction, illicit proceeds did not enter state revenue channels and should not be mistaken for legitimate economic growth.
For Cambodia’s formal business community, this distinction is essential. While short-term liquidity may have circulated in certain pockets of the economy, the reputational damage of being labelled a cybercrime hub poses far greater long-term risks. Export-oriented industries, tourism operators, financial institutions, and technology firms depend heavily on international trust.
What Concrete Actions Has the Government Taken?
Over the past year, Cambodian authorities have intensified enforcement efforts, resulting in thousands of arrests and the repatriation of foreign nationals linked to scam compounds. Operations have been conducted in coordination with regional partners, particularly China, Cambodia’s largest source of foreign direct investment.
One of the most high-profile cases involved the arrest and extradition of Chen Zhi in January. U.S. authorities had indicted him in late 2025 over allegations that his conglomerate, Prince Group, operated as a front for large-scale cyber-fraud activities.
U.S. prosecutors allege that operations connected to his network included forced labour compounds in Cambodia. Prince Group has denied the allegations.
Hun Manet stated that authorities were not aware of any alleged wrongdoing at the time Chen served as an adviser and took action once formal accusations emerged. He also confirmed that Chen’s Cambodian nationality was revoked after authorities determined fraudulent documentation had been used to obtain it, allowing extradition based on Chinese citizenship.
Why Is This Crackdown Economically Strategic?
Cambodia has spent more than a decade positioning itself as:
- A competitive manufacturing base integrated into global supply chains
- A destination for infrastructure and real estate investment
- A growing financial services and technology market
- A tourism hub in Southeast Asia
Continued association with cybercrime networks complicates access to correspondent banking relationships, heightens compliance scrutiny, and increases due diligence requirements for foreign investors.
For a country seeking long-term capital in manufacturing, logistics, financial services, and digital infrastructure, reputational risk directly affects cost of capital, investor appetite, and diplomatic leverage.
Hun Manet’s public acknowledgment signals recognition that economic credibility is inseparable from governance standards and regulatory enforcement.
What Will Determine Success?
For Cambodia’s private sector, the key question is not whether crackdowns occur but whether enforcement becomes consistent, institutionalized, and durable.
Sustainable growth requires:
- Clear regulatory frameworks
- Transparent enforcement mechanisms
- Strong anti-money laundering controls
- Protection of workers’ rights
- International cooperation in cross-border crime
If the government succeeds in separating the formal economy from illicit financial flows, it could strengthen Cambodia’s institutional credibility and unlock higher-quality investment.
If enforcement weakens or becomes selective, reputational risk will persist.
The Bigger Picture: Protecting Cambodia’s Next Growth Phase
Hun Manet, who took office in 2023, has sought to present a reform-oriented economic agenda while navigating regional geopolitical pressures. Addressing scam centres is now central to that agenda.
Cambodia’s next phase of development depends not only on infrastructure and trade agreements but also on governance credibility. Investors today evaluate jurisdictions based on compliance standards, anti-corruption enforcement, and financial transparency as much as labor costs or tax incentives.
By publicly confronting the issue and stepping up enforcement, the government is signaling that Cambodia’s long-term economic strategy prioritizes legitimacy over short-term illicit gains.
The effectiveness of this strategy will shape how global markets perceive Cambodia in the years ahead.