For Cambodia, the road to becoming a high-income country by 2050 is dotted with formidable challenges. No one can deny that between 2000 and 2019, the Kingdom was among the fastest-growing economies globally, with over 7 percent of annual GDP growth, but then the economic expansion slowed down in recent years, especially after the COVID-19 pandemic. A widening chasm between national aspirations and economic realities has crept into the system. A recent AmCham Business Outlook 2026 Survey highlights those gaps in great detail. Khmer Times talks with an array of experts to find out what Cambodia should do. Cambodia’s GDP, according to them, would need to grow by more than 8 percent each year to stay on course. They also have reservations about what they term as “regulatory frictions” that are holding Cambodia back from achieving higher growth. While there’s unanimity among them that without bold reforms to reduce regulatory burdens and open up the economy, the country risks falling short of its high-income ambitions, the silver lining, however, is the committed leadership of the country that has shown a willingness to listen to private sector concerns, and remains open to new ideas, offering a foundation for progress in the years ahead.
Cambodia must accelerate economic liberalisation and sustain strong long-term growth if it hopes to achieve its ambition of becoming a high-income country by 2050, according to new insights from experts and organisations such as the American Chamber of Commerce (AmCham) in Cambodia.
The Cambodian government has set an ambitious target of reaching high-income status—defined as a per capita income of nearly $14,000—within the next quarter century. However, Casey Barnett, the outgoing president of AmCham, has warned that current economic trends fall short of what is required to meet that goal.
“Unfortunately, Cambodia is not on track to achieve the required annual GDP growth rate of 6.4 percent for the purpose,” Barnett told Khmer Times recently. Based on his projections, the country would need to sustain even higher levels of expansion when population growth is taken into account. Assuming an annual population increase of around two percent, Cambodia’s GDP would need to grow by more than eight percent each year to stay on course.
Such figures highlight a widening gap between national aspirations and economic realities. While Cambodia was among the fastest-growing economies globally between 2000 and 2019 with over seven percent of annual GDP growth, the economic expansion has moderated in recent years, especially after the COVID-19 pandemic. During its earlier boom period, the country benefitted from a combination of favourable conditions—limited bureaucracy, strong inflows of foreign investment, macroeconomic stability supported by US dollarisation, and the peace that followed the end of decades of conflict in 1998.
Today, however, businesses say structural challenges are slowing momentum. According to the AmCham Business Outlook 2026 Survey, governance issues and high electricity costs are the most pressing concerns for the private sector. Among these, regulatory bottlenecks—particularly licensing requirements—stand out as a key obstacle to productivity and investment.
Companies report that obtaining licences, especially for importing and exporting goods, is both time-consuming and unpredictable. This issue is particularly acute in sectors such as agriculture and information and communications technology (ICT), where access to modern inputs and equipment is essential for competitiveness.
One frequently cited barrier is Sub-Decree 110, which mandates approval from the Ministry of Posts and Telecommunications for a wide range of ICT equipment, artificial intelligence technologies, and digital services. While internet usage has become widespread among Cambodian businesses, the process for importing ICT equipment remains cumbersome. In addition, Cambodia has lagged behind regional peers in rolling out advanced telecommunications infrastructure, including 5G networks.
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