AGP Executive Report

Trade & Industry: Cambodia’s garment, textile, footwear and travel goods exports rose 6.2% to $7.99 billion in H1 2026, keeping the sector as the country’s top foreign-exchange earner at 46.8% of total exports. Exports Surge: Overall exports jumped 19.5% year-on-year to $17 billion in the first half of 2026, with imports up 21.4% to $19.7 billion, as RCEP and other free-trade deals boost preferential access. Diplomacy & Investment: France pledged to deepen economic cooperation with Cambodia, with French Minister Delegate Nicolas Forissier highlighting trade growth and plans to bring more SMEs ahead of Macron’s November visit. Regional Security: Malaysia’s defence chief backed Cambodia’s peaceful border dispute resolution with Thailand under international law, as Cambodia and Malaysia also push closer defence ties. Skills & Education: Australia and Cambodia held the “Study in Australia Fair 2026” in Phnom Penh and Siem Reap to expand education pathways for Cambodian students. Tourism Push: Cambodia launched Muslim-friendly tourism standards and promoted tailored products at a Muslim Tourism Forum and Expo to attract more Muslim travellers. Innovation & Manufacturing: Calypso Motors unveiled its flagship Calypso Xplorer motorcycle in Phnom Penh, pitching it as a step beyond assembly into higher-value engineering. Humanitarian/Capacity Building: Japan and Cambodia expanded demining know-how sharing, including training Ukrainian officials through the Japan-Cambodia Landmine Initiative.

Japan-Cambodia Demining Push: Japan and Cambodia are expanding mine-action know-how beyond their long partnership, including training Ukrainian officials on landmine detectors and mechanical demining under a Japan-Cambodia Landmine Initiative. Local Digital Governance: In Bu Gia Map, a border commune in Dong Nai, a two-tier administration model is making public services easier via an electronic one-stop system and online submissions. Transport Shift to EVs: Cambodians are increasingly switching to Chinese electric vehicles as Middle East-linked fuel price hikes cut monthly commuting costs. Trade Boost: Cambodia’s exports rose 19.5% to about $17.1B in H1 2026, with RCEP and bilateral free trade deals cited as key drivers. Jobs and Skills: KB PRASAC Bank highlighted support for employment and vocational training, including sponsorship for a 2026 forum with the Labour Ministry. Health Cooperation: Cambodia and the US signed a five-year infectious-disease research MoU, linking Cambodian public health institutions with NIAID. Environment and Water: A World Bank team with Cambodia assessed Tonle Sap water security and biodiversity, focusing on livelihoods and climate pressures.

Banking & Jobs: KB PRASAC Bank’s CEO met the Labour Ministry after receiving an appreciation letter for sponsoring the Job, Social Security and Vocational Training Forum 2026, and the bank also highlighted its no-fee bill payment service plus an MoU to offer unsecured loans to workers and trainees. Trade Boost: Cambodia’s exports rose 19.5% year-on-year to about US$17.09 billion in H1 2026, with the US the top market and garments and other manufacturing still driving growth. IMF Watch: Cambodia’s economy is forecast to grow 4.2% in 2026, but the IMF cut its outlook to 3%, citing risks like the Cambodia-Thailand border dispute, tourism weakness, and the crackdown on online scams. Health Security: Cambodia and the US signed a five-year MoU to expand infectious-disease research, with work across several Cambodian public health institutions. Environment & Water: A World Bank team joined Cambodia to assess Tonle Sap water security and biodiversity, including community livelihoods around Kampong Phluk. Skills for Industry: The Skills Development Fund signed partnerships with logistics, automotive, cashew, and electronics groups to align training with labour-market needs. Startup Spotlight: Khmer Enterprise and 2080 Ventures backed PharmKulen, a medicine search and pharmacy stock system now live via web app and Telegram. Tourism Access: Cambodia launched a seasonal direct charter flight from Prague to Sihanoukville starting Dec 19, 2026, aiming to grow European arrivals.

Aviation & Tourism: Cambodia launched its first seasonal direct charter flights linking Prague and Sihanoukville, running weekly from Dec 19, 2026 to Apr 3, 2027, aiming to pull in higher-spending European visitors and boost Sihanouk International Airport. Banking & Property Security: KB PRASAC Bank received a license to provide retention/escrow services, positioning itself as a neutral custodian to hold buyer funds and release them only after sale conditions are verified. Economy Outlook: The ADB cut Cambodia’s growth forecast to 4.1% for 2026 and warned of weaker momentum amid energy shocks and border disruptions, with inflation projected at 4.5%. Cybercrime & Scams: A report says cyber scam hubs across Southeast Asia often cluster in Special Economic Zones, including Cambodia’s Dara Sakor, where oversight is weaker. Finance Sector Fallout: H-Pay’s liquidator says the payment service operated beyond its license and is insolvent, leaving creditors with limited hope of recovery. Diplomacy: Cambodia’s foreign ministry lifted travel bans for parts of Cambodia for South Koreans after improved security conditions. Politics: Hun Sen and Hun Manet sent condolences to Kem Sokha over the death of his mother.

Trade Talks: India and ASEAN hit US$128 billion in bilateral trade for 2025–26 as officials met in New Delhi to review and modernise the ASEAN–India trade pact, with Cambodia among the delegations. Business & Integrity: Cambodia’s Ministry of Commerce opened an internal probe after a Japan Times report about a 2021 company registration amendment, pointing to online registration services and hotline 1266. Economy Watch: The IMF projects Cambodia growth slowing to 3.0% in 2026, citing higher energy prices, weaker tourism, and reputational damage from scam activity. Logistics Push: Cambodia is moving to modernise its national logistics system through the 11th National Logistics Council meeting to improve supply chains and competitiveness. Digital & AI: Cambodia is highlighting digital infrastructure and AI governance work at a UN-led dialogue, including its verify.gov.kh platform and tech talent programmes. Labour & Climate: A new report warns Cambodia’s garment sector faces rising heat stress, with many factories recording extreme indoor temperatures. Borders: A senior Cambodian official says Thailand is using UNCLOS procedures to delay Joint Boundary Commission work on the land border. Human Resources: Japan granted about US$2.8m to extend Cambodia’s scholarship project for government officials, and Cambodia also hosted an ASEAN-India women scientists conclave in Phnom Penh.

IMF Outlook: The IMF projects Cambodia’s growth will slow to 3% in 2026, citing higher energy prices, weaker external demand, and reputational damage from scam activity that is weighing on tourism and financial stability. Logistics Push: Cambodia is modernising its national logistics system, with the National Logistics Council meeting chaired by DPM Sun Chanthol to improve supply-chain efficiency and better link to regional and global trade. Japan Scholarships: Japan signed a US$2.8m grant to extend Cambodia’s Human Resource Development Scholarship Project, backing graduate study for young government officials. Water Reform: Industry, Science, Technology & Innovation Minister HEM Vanndy met World Bank officials to advance water-sector reform, including an independent regulator and progress toward universal clean water access by 2030. Digital Multilateralism: Cambodia highlighted AI governance and digital partnerships, including its verify.gov.kh verification platform, during UN-led global dialogue talks. Women in Science: Phnom Penh hosted the ASEAN-India Women Scientists Conclave, focusing on inclusive STI leadership for food security, sustainable energy, education, and emerging technologies. Tourism Warning Signs: A new analysis says Cambodia’s tourism slump is tied to safety fears and scam-centre reputational damage, arguing the remaining fixes are both urgent and achievable.

IMF Outlook: The IMF says Cambodia’s growth will slow to 3% in 2026 (from 5.3% in 2025) and inflation will rise to 5.6%, citing higher energy prices, weaker external demand, and reputational damage from scam activity—while noting exports, FDI, and reserves remain supportive. Rice Exports: Cambodia’s milled rice exports jumped 63% in the first half of 2026 to 630,319 tonnes, bringing $367.1m, with ASEAN, China and the EU as key buyers. Scam Crackdown & Fake Notice: Cambodia denied a viral claim that African nationals must leave by May 31, 2026, calling the document shared online fake as authorities intensify anti-scam enforcement. Human Rights Pressure: NGOs urged the OIF and France to press Cambodia to release the “Mother Nature Cambodia 5” ahead of the 2026 Francophonie Summit. IP & Skills Support: Cambodia and WIPO signed an MoU to set up an Intellectual Property Business Centre, while Japan approved a $2.8m grant for human resource development scholarships. Economy Policy Response: Cambodia’s Ministry of Economy and Finance said it will keep fiscal discipline and pro-poor spending to protect growth and stability amid global uncertainty.

Roads & Logistics: Prime Minister Hun Manet inaugurated an expanded China-funded 45-km stretch of National Road 7 in Kampong Cham, upgrading it to four lanes and saying it will cut travel costs, speed farm and agro-industrial transport, and boost investment and tourism. Regional Trade & Aviation: Cambodia is also exploring turning the former Phnom Penh airport into a regional logistics hub, while the US Open Skies deal and a new US$100m financing plan for Techo International Airport aim to widen air connectivity. Green Industry: Cambodia and Germany signed FABRIC Cambodia II phase two to help garment and textile firms shift toward greener, internationally compliant production. Community Tourism: The Tourism Ministry pushed for stronger Public-Private-Community partnerships to make community-based tourism and ecotourism more sustainable and benefit local livelihoods. Health & Cooperation: Cambodia praised Nepal’s eye-care expertise after a Kampong Cham free eye camp helped more than 1,000 people, with talks on expanding training and future camps. Wildlife & Online Safety: Cambodia warned social media creators against dangerous snake and crocodile videos that could normalize risky behavior and fuel demand for exotic animals. Climate Watch: Cambodia is preparing for a potentially prolonged El Niño, with ministries told to strengthen monitoring, emergency response, and support for farmers and water security.

Road Upgrade Boost: PM Hun Manet inaugurated the upgraded 45.489-km National Road No. 7 (Skun Roundabout to Kizuna Bridge Roundabout) in Kampong Cham, saying four lanes will cut travel time and logistics costs, help farmers move goods cheaper, and attract investment. Logistics Push: The same event highlighted a plan to build 11 logistics hubs nationwide under the 2023-2033 intermodal transport master plan, including Phnom Penh, Sihanoukville, Bavet, Poipet and other regional centers. AI Governance: Cambodia joined a Geneva Global Dialogue on AI governance with 170+ countries, with Minister Chea Vandeth urging trust-driven innovation, proactive risk mitigation, and ASEAN-style multi-stakeholder regulation. Agro-Industrial Parks: A feasibility study reviewed by officials says Cambodia has strong potential to develop agro-industrial parks to draw private investment into processing and strengthen agriculture. Cybercrime Crackdown: Phnom Penh authorities raided 94 properties and arrested eight foreigners, dismantling a pig-butchering tech-scam cell and seizing laptops, phones and counterfeit US banknotes. Fuel Prices: Retail gasoline and diesel prices fell again, easing inflation pressure as Cambodia remains a net oil importer. El Niño Watch: Cambodia is preparing for a potentially prolonged El Niño that could worsen heat, drought and farm and water risks through early 2027. Wildlife Online Warning: The Ministry of Information and conservation groups warned creators against dangerous snake and crocodile videos that could normalize risky stunts and boost demand for exotic animals.

Roads & Tourism: Prime Minister Hun Manet inaugurated upgraded National Road No. 7 (Skun–Kampong Cham), a $117.65m project largely financed by China, saying it will cut travel time and boost Kampong Cham’s tourism, hospitality, agriculture and industry. Infrastructure Enforcement: He also urged transport firms to comply with revised legal truck weight limits (40 to 50 tonnes) and called for tighter, more transparent weight-check enforcement to protect road assets. Logistics & Trade Facilitation: Deputy PM Sun Chanthol met EuroCham to discuss ways to improve Cambodia’s transport and logistics efficiency, including better cargo movement and port operations, with PASNet and customs links highlighted. Microfinance Confidence: Cambodia’s microfinance sector reported 2025 growth, with loan portfolios reaching $6bn (+15%) and deposits rising to $2.99bn (+17.6%), alongside more riel-denominated lending. Health Cooperation: A Nepal-led two-day eye camp in Kampong Cham provided free eye care to 1,002 Cambodians, including medicines and spectacles, with cataract patients referred for further treatment. Conservation Update: A critically endangered white-rumped vulture was spotted again at Lomphat Wildlife Sanctuary after nearly a decade, alongside signs of breeding among red-headed vultures. Industry & Exports: A RAPID study says Cambodia and Vietnam have gained apparel orders as China’s share shrinks, while Bangladesh’s position is weakening ahead of EU tariff risks post-LDC graduation. IP & Business Support: Cambodia and South Korea reaffirmed IP cooperation, while Cambodia and WIPO signed an MoU for an IP business centre to support private-sector awareness and use of intellectual property. Cambodia–France Trade Push: A French trade minister delegate is set to visit Phnom Penh to boost investment ties ahead of President Macron’s planned November visit.

Border Security: Cambodia’s Ministry of National Defense says four soldiers were injured by an explosion during a border patrol in Oddar Meanchey after encountering Royal Thai Armed Forces near a barbed-wire fence; an investigation is underway and Cambodia reiterates commitment to existing Cambodia–Thailand peace agreements. Independent Media Exchange: Six Cambodian journalists took part in an Australia-sponsored program in Sydney and Canberra focused on independent newsroom practices, editorial accountability, fact-checking, and sustainable revenue models. Garment Compliance Push: Cambodia and Germany launched the second phase of “FABRIC Cambodia II,” aiming to improve supply-chain transparency and compliance in the garment, footwear, and travel goods sector as Western buyers tighten environmental and labour standards. IP Cooperation: Cambodia and South Korea reaffirmed plans to deepen intellectual property cooperation, while Cambodia and WIPO signed an MoU to set up an IP Business Centre to support private-sector awareness and use of IP. France Investment Drive: A French trade minister will visit Phnom Penh July 9–10 to boost investment and prepare for President Macron’s planned November visit. Natural Resources Enforcement: Senate President Hun Sen urged stronger protection and prevention of natural resource offences, with special focus on Prey Lang Wildlife Sanctuary. Industrial Growth: Cambodia reported large factories rising to 3,284 by end-May 2026, employing over 1.33 million workers and attracting $27.6 billion in cumulative investment. Scam Crackdown: A commentary says Cambodia is moving from ad hoc enforcement to a more coordinated strategy against online scams, citing the Law on Combating Online Scams and the CCOS.

Cybercrime Shift: A new investigation says Sri Lanka is becoming a fresh hub for cross-border telecom fraud and “pig butchering” scams after crackdowns elsewhere, raising concerns for regional and global victims. Tourism & Heritage: Cambodia’s plan to trial nighttime Angkor temple tours is drawing cautious support from stakeholders, but guides warn it must protect fragile monuments and visitor safety. Conservation Win: A critically endangered white-rumped vulture has been recorded again at Lomphat Wildlife Sanctuary for the first time in a decade, after earlier poisonings devastated local numbers. Health Cooperation: Nepal’s embassy in Bangkok is running a free eye treatment camp in Kampong Cham, expecting about 1,500 Cambodians to benefit. Justice & Media: Cambodia’s Supreme Court upheld treason sentences against two journalists, with observers saying the ruling could shape how the state handles sensitive military-zone reporting ahead of major international events. Local Development: A Kratie investment study tour involving 48 companies aims to map agriculture and tourism opportunities under a northeastern investment promotion program.

Angkor Tourism Watch: Cambodia is moving ahead with a plan to study nighttime Angkor temple tours, with stakeholders welcoming the idea but warning it must protect the fragile monuments. Heritage Spotlight: APSARA says newly discovered Ta Prohm artifacts—21 items linked to Avalokiteśvara—are on display at the Siem Reap museum until Dec. 31. Conservation Update: A white-rumped vulture has been recorded again at Lomphat Wildlife Sanctuary for the first time in a decade, after poisoning risks devastated the local population. Health & Diplomacy: Nepal’s embassy in Bangkok is running a free eye treatment camp in Kampong Cham, expecting about 1,500 Cambodians to benefit. Justice & Media: Cambodia’s Supreme Court upheld the treason sentences of two journalists tied to coverage of the Cambodia–Thailand border conflict, signaling strict limits around sensitive military zones. Cybercrime Context: Separate reporting highlights how authorities elsewhere are ramping up anti-fraud enforcement and public awareness—an echo of the wider regional fight against scams.

Supreme Court Upholds Treason Sentences for Journalists: Cambodia’s top court has upheld the strictest treason ruling against two journalists, a decision that signals the state’s hard line on reporting tied to sensitive military zones—while also opening debate ahead of the November 2026 Francophonie summit on how Cambodia treats its own media. Cultural Etiquette for Visitors: A practical guide reminds travelers that Buddhist temples are places of worship, with clear do’s and don’ts like dressing respectfully and avoiding disruptive photo behavior. Angkor Conservation History: A heritage explainer traces the Conservation d’Angkor from its EFEO-era origins to its later UNESCO-era role, highlighting how Khmer art protection became a lasting institution. Cambodia-Linked Health Aid: Nepal’s embassy runs a free eye treatment camp in Kampong Cham, aiming to help about 1,500 Cambodians and deepen Nepal–Cambodia healthcare cooperation. Cybercrime and Scam Networks: Reports across the region describe ongoing forced scam operations tied to cross-border fraud, including alleged trafficking and torture of victims lured by fake job offers. Energy and Industry Moves: Toyota has launched a Hilux production line in Cambodia, while Cambodia also pushes energy efficiency financing and broader power access.

Cambodia–Thailand Tensions: A Thai outlet’s criticism of Cambodian social media reactions to a vehicle hitting Thai monks has sparked a commentary pushing back, saying Cambodia has repeatedly urged citizens not to discriminate against Thais during the 2025 border crisis. Energy & Industry: Cambodia launched a $20 million Energy Efficiency Revolving Fund to help SMEs pay for energy-saving tech, backed by the ADB and local financial partners. SME Finance: The ADB also backed a separate $20m energy loan for Cambodian SMEs, aiming to cut costs and support a greener transition. Power Access Reality Check: Despite near-universal village electrification, some rural households still can’t afford grid connections, leaving firewood as the main cooking fuel in places like Stung Treng. Climate Aid: The Cambodian Red Cross delivered aid to 800 vulnerable families in Thbong Khmum as El Niño impacts worsen. Transport & Tourism: Direct charter flights from Prague to Sihanoukville are set to start this winter, bringing Czech visitors to Cambodia’s coast. Cybercrime Region Watch: Thailand unveiled SHIELD, an international platform to share information on scam networks and forced criminality, naming Cambodia among affected areas. EV Market: Chinese e-motorcycle sales in Cambodia are rising fast after tariff cuts and incentives for electric vehicles.

Toyota & Industry: Toyota officially launched production of the new Hilux Travo at its plant in Phnom Penh’s Royal Group Special Economic Zone, expanding local assembly beyond earlier models. Energy & SMEs: Cambodia rolled out a $20 million Energy Efficiency Revolving Fund with ADB support to help SMEs finance efficient technologies, aiming to cut costs and speed the shift to a greener economy. Clean Energy Skills: Cambodia held its first National Clean Energy Youth Forum, flagging a major workforce gap for solar, energy efficiency and EV jobs and pushing for better training and certification pathways. Climate Relief: The Cambodian Red Cross delivered aid to 800 vulnerable families in Tbong Khmum as El Niño impacts worsen, including food, cash and health outreach. Tourism Connectivity: Direct charter flights from Prague to Sihanoukville are set to start this winter, bringing Czech visitors to Cambodia’s coast. Scam Crackdown Spillover: Indonesia reported a sharp rise in repatriation requests from Cambodia after Phnom Penh’s crackdown on cyber scam syndicates. Regional Anti-Fraud Push: Thailand unveiled SHIELD, an international platform to share information on cross-border online scams and forced criminality, naming Cambodia among key targets. Human Rights Court: Cambodia’s Supreme Court upheld the conviction of youth activist Koet Saray, despite UN and rights groups calling the case politically motivated. EV Battery Warning: A new report warns EV battery waste governance is lagging globally, with developing countries facing higher health and environmental risks from weak recycling oversight.