Property News Roundup 17th February 2025

1. Cambodia’s foreign assets reach $22.5 billion, NBC chief says.

As of April 25, 2024, Cambodia’s foreign reserves were estimated at $21.285 billion. These reserves play a crucial role in stabilizing the national currency, supporting international trade, and bolstering the country’s economic resilience. The accumulation of substantial foreign assets reflects Cambodia’s ongoing economic development and its integration into the global economy. In recent years, Cambodia has experienced rapid economic progress, transitioning from a planned economy to an open market system. The nation’s GDP was $28.54 billion in 2022, with significant contributions from the textiles and tourism industries. Agriculture remains a primary source of income for many rural Cambodians. The service sector is predominantly focused on trading activities and catering-related services. Additionally, the discovery of offshore oil and natural gas reserves presents potential future economic opportunities. National Bank of Cambodia (NBC) plays a pivotal role in managing the country’s foreign assets and implementing monetary policies to ensure economic stability. The increase in foreign reserves is indicative of prudent fiscal management and the effectiveness of the NBC’s strategies. Maintaining and growing these reserves is essential for mitigating external shocks, managing exchange rate fluctuations, and ensuring the country’s financial stability. Overall, Cambodia’s accumulation of foreign assets underscores its economic growth and the successful implementation of policies aimed at fostering financial stability and sustainable development.

February 10^th, 2025, Khmer time: t.ly/1eyBj.

2. Cambodia, S Korea partner to expand e-mobility, cut emissions ️

Cambodia and South Korea have been strengthening their partnership to promote electric mobility and reduce carbon emissions. In May 2024, under the leadership of Cambodian Prime Minister Hun Manet and South Korean President Yoon Suk-yeol, both nations agreed to leverage bilateral and multilateral economic cooperation mechanisms, including the Cambodia-Korea Free Trade Agreement (CKFTA), the ASEAN-Korea Free Trade Agreement (AKFTA), and the Regional Comprehensive Economic Partnership (RCEP). This collaboration aims to enhance cooperation in digital trade and intellectual property for innovation-driven sustainable development. As of June 2024, Cambodia has registered 1,614 electric vehicles (EVs), with popular brands including China’s BYD, Japan’s Toyota, and Tesla. The Cambodian government is committed to having 40% electric cars and urban buses and 70% electric motorbikes by 2050 to reduce carbon emissions. To achieve this goal, the government has reduced import duties on EVs to about 50% lower than taxes on traditional internal combustion engine vehicles since 2021. The World Bank has also provided recommendations for Cambodia’s ongoing efforts to develop a national policy framework to promote electric mobility. The report suggests that Cambodia can achieve its ambitious targets for increasing the proportion of EVs on its roads if it follows a carefully designed plan. This includes increasing both the demand and supply of EVs and preparing for increased demand for power necessary for EV charging. The collaboration between Cambodia and South Korea, along with support from international organizations like the World Bank, is expected to play a significant role in advancing electric mobility in Cambodia, contributing to environmental sustainability and economic development.

February 10^th, 2025, Khmer time: t.ly/PKBCr. 

3. Kingdom to add more 720MW from solar sources this year.

Cambodia is set to significantly enhance its solar energy capacity by adding 720 megawatts (MW) from solar sources this year. This initiative aligns with the nation’s commitment to increasing the share of renewable energy in its power mix. As of 2022, renewable energy accounted for over 62% of Cambodia’s total energy consumption, with more than 10% derived from solar power. The National Solar Park project exemplifies Cambodia’s dedication to cost-effective solar energy solutions. Phase I of the project, completed with an investment of approximately $26.71 million, achieved a record-low procurement price for utility-scale solar photovoltaic (PV) in Southeast Asia, at $0.039 per kilowatt-hour (kWh). The subsequent phase further reduced this price to $0.026 per kWh. The government has set ambitious targets to increase the proportion of solar energy in its power generation capacity. By 2030, the share of solar PV is expected to reach 1,000 MW, and by 2040, it is projected to exceed 3,000 MW. the addition of 720 MW from solar sources this year represents a significant step toward these goals, reinforcing Cambodia’s commitment to sustainable energy development and environmental stewardship.

February 10^th, 2025, Khmer Time: t.ly/yop-S.

4. PM urges Filipino entrepreneurs to explore potential investment opportunities in Cambodia.

On July 10, 2024, Senate President Hun Sen encouraged Filipino companies to explore investment opportunities in Cambodia, particularly in rice production. He highlighted the potential for Philippine investors to establish fully owned operations encompassing rice purchasing, milling, packaging, storage, and export to the Philippines and other markets. This initiative aims to leverage economic benefits from agreements like the ASEAN Free Trade Area (AFTA) and the Regional Comprehensive Economic Partnership (RCEP). Hun Sen also advocated for increased direct flights between the Philippines and Cambodia to enhance connectivity, boost tourism, and facilitate investor and diplomat travel. Ambassador Flerida Ann Camille P. Mayo expressed her commitment to strengthening bilateral relations and expanding cooperation in trade, investment, education, health, and military sectors. She noted that Filipino companies are already active in Cambodia’s health, education, and food processing industries, with further interest in construction, food and beverage, manufacturing, retail, and education sectors. Economic expert Dr. Chey Tech observed that the Philippines is an emerging market for Cambodian rice, with exports totaling only 5,000 tones in 2023 and 2,575 tones in the first half of 2024. He anticipates that the double tax agreement signed in October 2024 will enhance trade and investment between the two nations. This dialogue underscores the mutual interest in deepening Cambodia-Philippines economic ties and exploring collaborative opportunities across various sectors.

February, 11^th 2025, Khmer Time: t.ly/gmReL.

5. Cambodia’s trade volume soars to over $5 billion in Jan

In January 2024, Cambodia’s international trade volume reached $4.05 billion, marking a 16.7% increase from $3.47 billion in January 2023. This growth reflects the country’s ongoing economic expansion and its deepening integration into regional trade networks.The Regional Comprehensive Economic Partnership (RCEP), which came into effect on January 1, 2022, has been instrumental in boosting Cambodia’s trade activities. In the first 11 months following its implementation, Cambodia’s exports to RCEP member countries exceeded $8 billion, accounting for 33.9% of the nation’s total export volume of $24.34 billion during that period. Additionally, the Cambodia-China Free Trade Agreement (CCFTA), effective from January 1, 2022, has further enhanced bilateral trade. In 2022, trade between Cambodia and China reached $11 billion, with projections to hit $15 billion by 2025. The Ministry of Commerce attributes these positive trends to the benefits of free trade agreements and trade preferences, which have bolstered the country’s export capabilities. The government remains optimistic about sustaining this momentum, anticipating continued growth in exports to international markets, particularly to China and other RCEP member countries, in the coming months and years. Overall, Cambodia’s increasing trade volume underscores its successful integration into the global economy and the effectiveness of its trade policies in fostering economic growth.

February 11^th, 2025, Khmer Time: t.ly/9qn5Q.

6. January international trade up 25% year-on-year

In January 2025, Cambodia’s international trade reached $5.057 billion, marking a 24.6% increase from $4.057 billion in January 2024. Exports were valued at $2.306 billion, a 17.3% rise, while imports grew by 31.6% to $2.750 billion, resulting in a trade deficit of $444 million, up from $123 million the previous year. Lim Heng, vice-president of the Cambodia Chamber of Commerce, attributed this growth to new government policies, infrastructure development, and efforts to attract investors. He noted that the surge in imports is primarily due to the establishment of new factories requiring initial capital goods, which will support future production. Economist Hong Vanak highlighted the role of improved transport infrastructure in attracting investment and reducing production costs, thereby enhancing Cambodia’s competitiveness in international markets. The Ministry of Economy and Finance projects a 6.3% economic growth for 2025, driven by the industrial sector’s anticipated 8.6% increase, followed by services at 5.6% and agriculture at 1.1%. In 2024, Cambodia’s total trade was valued at $54.74 billion, a 16.9% rise from 2023, with exports at $26.2 billion and imports at $28.54 billion. Major trading partners include China, the US, Vietnam, Thailand, and Japan, with key exports comprising garments, textiles, footwear, electronics, machinery, fruit, and rubber products. Imports mainly consist of machinery, vehicles, steel, plastics, and chemicals.

February 11^th, 2025, Phnom Penh Post: t.ly/eHibW.

7. Cambodia’s first advanced agricultural community preserves traditional rice variety “Neang Om”

In a pioneering move, Cambodia has established its first advanced agricultural community dedicated to preserving the traditional Neang Om rice variety. This initiative aims to safeguard the genetic heritage of Neang Om, a rice strain renowned for its unique aroma and flavor, which holds significant cultural importance in Cambodian agriculture. The community employs modern farming techniques to enhance yield and quality while maintaining traditional cultivation practices. This approach ensures the conservation of biodiversity and supports local farmers by providing them with sustainable income opportunities. The establishment of such advanced agricultural communities aligns with the government’s broader strategy to modernize the agricultural sector, promote sustainable farming practices, and protect indigenous crop varieties. By integrating traditional knowledge with contemporary technology, Cambodia aims to strengthen its agricultural resilience and ensure food security for future generations.

February 12^th, 2025, Khmer Time: t.ly/fuS9N

8. Cambodia seeks ADB support for digital asset regulation

In a significant move to regulate the burgeoning digital asset sector, the National Bank of Cambodia (NBC) has issued a Prakas (directive) to oversee cryptoasset-related activities within the country’s financial system. This directive, grounded in the Law on Banking and Financial Institutions, aims to promote financial stability while addressing the challenges and risks associated with crypto assets. Notably, the Prakas permits commercial banks and payment service providers under NBC’s jurisdiction to conduct transactions related to certain categories of crypto assets without prior approval. However, it explicitly prohibits these institutions from holding unbacked and high-risk crypto assets, such as Bitcoin. This regulatory framework reflects NBC’s cautious yet forward-thinking approach to integrating crypto assets into the financial system. By establishing clear guidelines, the NBC seeks to balance innovation in digital finance with the imperative of maintaining financial stability and mitigating potential risks.In parallel, the Asian Development Bank (ADB) has been actively involved in enhancing Cambodia’s financial infrastructure. Notably, the developer of Cambodia’s Bakong blockchain technology has collaborated with the ADB on a project aimed at improving the efficiency and security of cross-border securities transactions in the Asia-Pacific region. These initiatives underscore Cambodia’s commitment to embracing digital innovation while ensuring robust regulatory frameworks are in place to safeguard the financial system.

February 13^th, 2025, Khmer Time: t.ly/XxtsP

9. Over 1 million tourists visit Cambodia during Chinese New Year

During the Chinese New Year celebrations in 2025, Cambodia experienced a significant influx of tourists, with over 1 million visitors recorded. This surge underscores the country’s growing appeal as a prime destination during major cultural festivities. The Ministry of Tourism reported that the majority of these tourists were domestic travelers, highlighting the vibrant internal tourism sector. However, a substantial number of international visitors also contributed to this figure, reflecting Cambodia’s increasing prominence on the global tourism map. The Chinese New Year period has traditionally been a peak time for tourism in Cambodia, with many tourists drawn to the nation’s rich cultural heritage, historical sites, and festive atmosphere. The government’s efforts to promote tourism, coupled with improved infrastructure and hospitality services, have played a crucial role in accommodating this large number of visitors. The successful management of such a significant tourist influx during the Chinese New Year sets a positive precedent for future events and highlights Cambodia’s capacity to host large-scale tourism activities. This achievement is expected to have a favorable impact on the country’s economy, particularly in sectors such as hospitality, transportation, and retail, which benefit directly from increased tourist spending.

February 13th, 2025, Khmer Time: t.ly/syP8D

10. Cambodia and Europe discuss mechanisms to boost trade ties

In 2024, Cambodia’s exports to the European Union (EU) surged to $4.03 billion, marking a 20.45% increase from the previous year. This growth underscores the strengthening trade relationship between Cambodia and the EU. The two-way trade volume between Cambodia and the EU reached $4.88 billion, reflecting a 15.10% rise. Key Cambodian exports to the EU include textiles, footwear, bicycles, foodstuffs, milled rice, and other agricultural products. Despite the partial loss of preferential trade tariffs under the Everything but Arms (EBA) scheme, Cambodia’s trade with the EU continues to flourish. In the first five months of 2024, exports to the EU were valued at $1.56 billion, an 11.83% increase compared to the same period in the previous year. Germany and Spain emerged as Cambodia’s largest trade partners within the EU, with bilateral trade volumes of $389 million and $357 million, respectively. The quality of Cambodian products has improved over the years, adhering to international standards, which has boosted confidence among European consumers. The EU remains the largest buyer of Cambodia’s milled rice, importing 136,528 tonnes worth $104 million in the first five months of 2024. The Cambodian government is committed to fostering stronger trade ties with the EU, focusing on improving trade facilitation, streamlining regulations, and enhancing product quality to solidify this vital partnership.

February 14^th, 2025, Khmer Time: t.ly/n7Pgb