AGP Executive Report

Energy & Trade Resilience: Cambodia says its fast-growing renewables buildout (nearly two-thirds of installed capacity) is helping keep electricity prices steady despite oil shocks tied to the Strait of Hormuz, while fuel import duty cuts add extra relief. Investment Momentum: The Council for the Development of Cambodia approved fixed-asset investment projects worth $3.26bn in Jan–May 2026, with 225 licensed projects and about 132,000 jobs; China remains the top investor. Cross-border Business Links: Cambodia joined the China–South Asia Expo in Kunming, using a Cambodia–China Trade Centre booth to showcase goods and investment opportunities. Anti-scam Enforcement: Cambodia revoked Roxy Casino’s license in Bavet after inspections found links to online fraud, with authorities also seeking financial records tied to owners. Smuggling Crackdown: Authorities seized over 200 tonnes of allegedly Thai frozen meat in Phnom Penh raids, including chicken and fish-tofu products. Digital Security: A new report warns of an espionage campaign in Cambodia using a signed VMware tool to deliver a malicious loader, targeting defense and public infrastructure agencies. Culture & Heritage: The Met returned two Khmer antiquities to Cambodia, including an Angkor-era guardian deity and a pre-Angkor lintel. Bankruptcy Notice: Creditors of Cambodia Mekong Public Limited have until 26 June 2026 to submit debt claims.

Frozen Meat Crackdown: Cambodia intensified inspections after discovering over 200 tonnes of allegedly smuggled frozen meat from Thailand in Phnom Penh, with authorities checking multiple districts and saying figures are preliminary as operations continue. Investment Pipeline: The Council for the Development of Cambodia approved fixed-asset investment projects worth $3.26bn in Jan–May 2026, including SEZs and manufacturing plus EV and hotel projects, generating about 132,000 jobs. Exports Momentum: Cambodia’s exports rose 19% to $14.04bn in the first five months, led by the US ($5.73bn) and Vietnam ($2.32bn), with analysts pointing to trade agreements and diversification beyond garments. Digital Trade Push: The Ministry of Commerce announced the Third Cambodia Digital Trade Forum and Online Expo for Sept 11–13 in Phnom Penh, focusing on e-commerce, AI, cybersecurity and cross-border logistics. Scam & Casino Oversight: Cambodia revoked Roxy Casino’s license in Bavet after findings tied it to online fraud, as regulators continue targeting scam networks. Creditors Deadline: Creditors of Cambodia Mekong Public Limited have until June 26, 2026 (5pm) to submit debt claims. Skills & Jobs: Cambodia’s Labour Minister studied Switzerland’s TVET model to modernize vocational training and better match market needs. Regional Payments: India and Nepal launched a UPI–NPI linkage for instant cross-border remittances, easing cash and currency-exchange frictions for users and merchants.

U.S.-led anti-scam crackdown: The DOJ says a cross-border operation (with the FBI and partners) took down 1M scam-related online accounts and froze millions in crypto tied to scam compounds in Laos, Cambodia and Myanmar, with 63 arrests. Trade & diplomacy: Cambodia and the UK agreed to diversify cooperation as the UK trade envoy returns to Phnom Penh to push trade, investment, education and energy-transition links. Aviation connectivity: The U.S. deputy secretary praised the Cambodia–U.S. Open Skies deal as a milestone for business and tourism connectivity. Poverty risk: The World Bank warns fuel-price hikes could push about 1.1 million more people into poverty, as growth slows. Environment & enforcement: Cambodia recorded 896 natural resource crimes in the first five months of 2026, while activists call for stronger action against the interests behind deforestation. Energy skills: Locals are gaining tech skills at a Koh Kong hydropower plant through training with Chinese experts. Livelihoods: Over 600 displaced families in Svay Chek are now earning steady income via a free-range chicken cooperative. Food trade pressure: Bangladesh RMG exports to the U.S. fell, while Vietnam and Cambodia posted growth—highlighting shifting demand in apparel markets.

Poverty & costs: The World Bank warns Cambodia could see about 1.1 million more people fall into poverty if fuel prices keep rising, with growth forecast slowing to 3.9% and higher transport/production costs feeding into everyday prices. Trade momentum: Cambodia’s exports hit $14bn in the first five months of 2026, up 19% year-on-year, while imports rose 18.9% to $16bn, with the US, Vietnam, China, Japan and Canada leading destinations. US forced-labour tariffs: Cambodia’s Ministry of Commerce says it will cooperate with the U.S. after USTR proposed a 10% additional tariff on Cambodia under forced-labour import rules, stressing the need for cross-border supply-chain checks. Apparel productivity push: Shahi Exports and Good Business Lab report a vision-correction trial that lifted garment worker productivity by 6% and is now planning expansion to 100,000 workers. Cambodia–Vietnam tourism links: Both countries pledge to boost tourist flows and connectivity, including maritime cruise plans linking Ho Chi Minh City, Phnom Penh and Siem Reap. AEO customs upgrade: Cambodia and China signed an AEO pact to speed clearance for trusted traders under the Authorized Economic Operator framework, aiming to cut inspections and paperwork for compliant firms. Scam crackdown: A U.S.-led operation says it took down 1m+ scam-related online accounts and froze millions in crypto across Laos, Cambodia and Myanmar, with 63 arrests.

U.S.-Cambodia Ties: U.S. Deputy Secretary of State Christopher Landau met PM Hun Manet in Hanoi, praising progress and highlighting the recently concluded Cambodia–U.S. Open Skies deal as a boost for connectivity and investment. ASEAN Role: At the 3rd ASEAN Future Forum, Vietnam’s PM urged ASEAN to help shape global rules, while Cambodia’s PM stressed peace, economic cooperation and people-centred development. Cambodia–Vietnam Momentum: Hun Manet and Vietnam’s To Lam reaffirmed steady bilateral growth and pledged deeper cooperation across trade, tourism, infrastructure and regional frameworks. ASEAN–China Media: Cambodia outlined three priorities for ASEAN–China media cooperation in Shenyang: information integrity, digital capacity building and people-centred storytelling. EV Push: Cambodia’s Environment Ministry signed an MoU to scale EV adoption via tax incentives and expanded charging infrastructure. Garment Worker Safety: Civil society groups renewed calls for safer commuting after deadly crashes killed 14 garment workers and injured 79. Scam Crackdown Scrutiny: Amnesty challenged Cambodia’s anti-scam claims, saying state intervention reached only 24 of 86 compounds it documented. Macroeconomic Watch: The World Bank warned Cambodia faces overlapping shocks from higher fuel prices, returning migrant workers and tighter domestic credit. Road Law Update: Cambodia’s National Assembly began reviewing Road Law amendments aimed at cutting transport costs and improving safety and enforcement.

ASEAN Diplomacy & Growth: Cambodia’s PM Hun Manet used the 3rd ASEAN Future Forum in Hanoi to stress three priorities—peace, economic cooperation, and people-centred development—warning that peace can’t be taken for granted as cyber and information threats rise. Border Trade Crackdown: Acting Head of State Hun Sen ordered tough action against illegal smuggling from Thailand, including asset confiscation and compulsory border-area work, saying Cambodia has faced no shortages despite the border closure. Garment Worker Safety: After deadly crashes in Svay Rieng and Kampong Chhnang, civil society groups are calling for safer worker transport, seatbelts and better vehicle standards. Anti-Scam Enforcement Under Fire: Amnesty International challenged Cambodia’s “crackdown” claims, saying state intervention reached only 24 of 86 scam compounds it documented, while the government rejected the findings. Digital & Finance: Cambodia and Singapore renewed cooperation on digital transformation, AI and digital skills; separately, ED alleged thousands of Indian SIMs activated in Cambodia were used for cross-border cyber fraud. Business & Investment: Megakim broke ground on Phnom Penh’s Time Square 9 & 11, while Air Cambodia signed an MoU with Hainan Airport to expand Cambodia–China routes. Energy Skills Transfer: A Chinese hydropower plant in Koh Kong is training Cambodian technicians, building local capability for clean power operations.

Digital Payments & Regulation: Cambodia’s payment apps Huione Pay and H-Pay have collapsed, leaving users protesting outside the National Bank of Cambodia and spotlighting weak oversight of fintech. Anti-Scam Crackdown Under Scrutiny: Amnesty International says Cambodia’s raids on online scam compounds “bypassed” over 70% of sites it identified, with victims still facing trafficking-linked abuses and gaps in protection. Cross-Border Scam Disruption: A U.S.-led operation reported taking down more than 1 million scam-related online accounts and freezing millions in crypto, with arrests tied to scam compounds in Laos, Cambodia and Myanmar. Trade & Compliance Pressure: The U.S. is moving toward broad Section 301 forced-labor tariffs (10%–12.5%) on imports from 60 economies, a move that could reshape regional supply chains including Cambodia-linked trade. Business Climate & SMEs: The government launched an “Entrepreneurship Support Program Cluster” in Kampong Thom via Khmer Enterprise to boost MSMEs, farmers and tourism/agri value chains. Infrastructure & Connectivity: Cambodia and Vietnam agreed to facilitate customs clearance and goods movement, including expressway links and possible air-link expansion. Tourism Investment Push: Authorities reviewed over $39m in Preah Sihanouk projects to transform Koh Rong and expand hospitality, targeting about 1,000 jobs. Digital Education: Cambodia signed an MoU with Huawei to expand digital learning infrastructure and skills in schools.

Scam Crackdown Hits Cross-Border Networks: The US DOJ says a May 18 operation with the FBI and partners dismantled scam compounds in Laos, Cambodia and Myanmar, arresting 63 people and freezing millions in crypto tied to fraud proceeds. EV Push: Cambodia’s environment minister urged citizens and businesses to switch to electric vehicles, citing air-quality and emissions benefits; Cambodia has registered 11,656 electric cars plus thousands of electric motorcycles and three-wheelers. Cambodia–Vietnam Trade Facilitation: PM Hun Manet met Vietnam’s National Assembly chair and later both PMs agreed to speed customs clearance and goods movement, with plans for expressway links and possible air-route expansion; bilateral trade rose to nearly $5bn in Jan–Apr. Road Safety Plan: Transport officials are studying a speed-monitoring system after data showed speeding links to 49% of crashes and 1,467 deaths in 2025. Scam Industry Still Persists: Amnesty reports Cambodia’s crackdown hasn’t dismantled most scam compounds, finding 86 sites in April and limited state intervention. ASEAN Economic Focus: Hun Manet’s Hanoi trip for the ASEAN Future Forum centers on trade, investment and regional economic cooperation. Border Checks Tightened: Takeo governor ordered stricter inspections of imported goods at the Cambodia–Vietnam border to protect consumers. Clean Cambodia Campaign: The “Clean Cambodia, Khmer Can Do” drive links waste control to methane and flood-risk reduction, pushing daily action for climate goals. EV Fleet Tech Launch: Graphion Energy Solutions unveiled EWave, an electric two-wheel fleet platform aimed at Southeast Asia with fast charging and GPS telematics.

Temporary Market for Displaced Families: Cambodia launched a phased temporary market in Banteay Meanchey for 3,000+ conflict-displaced households, aiming to restore livelihoods while building an organized, hygienic trading hub under PM Hun Manet’s oversight. Scam Crackdown Under Fire: Amnesty International says Cambodia still has 86 scam compounds (up from 53 a year earlier) and found state intervention at only 24 sites, challenging official claims of major progress; separate reporting also details how scammers used a scripted “AFP officer” impersonation to target victims. Aviation & Trade Facilitation: Cambodia and the US concluded a draft air transport agreement after 12 years, while Cambodia and China signed an AEO mutual recognition deal to speed customs clearance and cut costs for compliant firms. ASEAN Diplomacy: PM Hun Manet arrived in Hanoi for an official visit and the ASEAN Future Forum 2026, with business representatives included in talks to push trade and investment cooperation. Workforce & Skills: Cambodia is preparing for National TVET Day (June 15–16) with TVET enrollment topping 270,000 since Jan 2024, targeting 1.5 million youth from vulnerable households. Tourism & Environment Push: Cambodia promoted tourism and visa facilitation at a Beijing expo, while “Zero Waste” efforts reported 14 million pledges to cut plastic use and millions joining clean-up campaigns.

Cambodia–China Marine Cooperation: Environment Minister Eang Sophalleth says Cambodia and China are deepening ties on marine ecological protection, coral reef conservation, ocean observation and a joint ocean observation station, with plans to tackle marine plastic pollution and boost the “blue economy.” Prime Minister’s Vietnam Trip: Hun Manet will visit Vietnam (June 8–9) and attend the 3rd ASEAN Future Forum in Hanoi (June 8–10), holding talks with Vietnamese PM Le Minh Hung and meeting senior leaders as both countries mark 60 years of diplomatic ties in 2027. Tourism & Digital Push: The Tourism Ministry launched a green-season AR app to promote domestic travel, alongside exhibitions and events aimed at attracting investment and partnerships. Business & Finance: Economists say Cambodia’s public debt rose 1.9% in Q1 to $13.3bn, but remains low risk due to mostly concessional, long-term external loans. Insurance Expansion: Daiichi Life launched SMARTCare Medical, a reimbursement rider meant to ease high out-of-pocket healthcare costs and support the regulator’s goal of 2% insurance penetration by 2030. Sports Development: CPL plans new youth competitions (U10, U12, U22 Development League) and a return of League 2 to build a pathway to the professional game. Youth Media Literacy: The Information Ministry expanded its “Say No to Fake News” campaign, urging young people to verify before sharing. Angkor Conservation Partnership: Park Hyatt Siem Reap and the World Monuments Fund will fund a six-month training program for 25 local heritage foremen and offer guest education at active conservation sites.

Tourism & Tech: Cambodia’s Tourism Ministry rolled out a green-season AR app to boost domestic travel, while also pushing a visa-exemption message for Chinese visitors at a major Beijing expo. Property & Land: In Preah Vihear, residents met authorities over land disputes tied to large concessions granted in 2012, with claims of cleared farmland and threats to protesters. Public Finance: Cambodia’s public debt rose to $13.3bn in Q1, but economists say risk stays low thanks to mostly concessional, long-term external borrowing. Aviation & Trade Links: Cambodia and the US concluded a key Open Skies deal after 12 years, aiming to unlock direct flights and new investment. Business Climate & Governance: Acting Head of State Hun Sen urged faster public service delivery and tougher action on tax evasion, illegal business, and cybercrime. Security & Enforcement: Police raided illegal gambling dens in Phnom Penh’s Chinese Market area, arresting six, as authorities also reported arrests in a separate Chinese businessman murder case. Environment & Circular Economy: Cambodia reported major progress on zero-waste efforts, including a sharp drop in plastic bag use and expanded wastewater treatment. Education & Skills: CoolThink@JC’s computational thinking curriculum was officially introduced in Cambodian primary schools, alongside broader calls to link academia, industry and government for research and innovation.

US–Iran Ceasefire Watch: Trump says an Iran deal could be announced “this weekend,” but fighting around the Gulf and Lebanon keeps escalating, underlining how diplomacy can lag the battlefield. Cambodia Debt: Cambodia’s public debt rose 1.9% in Q1 to $13.3bn, with experts saying risk stays low thanks to mostly concessional, long-term external loans. Land & Investment Tensions (Preah Vihear): Hundreds of families met authorities over alleged land grabs tied to China Great Cause (Cambodia) Investment and Global Green (Cambodia) Energy Development, after years of petitions and claims of crop clearing and threats. Port Logistics Rules: Indonesia’s finance minister pushed for stricter, fair limits on how long cargo can sit at ports to cut congestion and business disruption. Aviation & Connectivity: Cambodia and the US concluded a key Open Skies agreement after 12 years, aiming to unlock direct flights, tourism and trade. Digital Agriculture: MAFF launched the Cam Agri Hub website to help farmers access climate-smart advisories and market guidance. Tourism Pressure: Cambodia welcomed 1.3m foreign visitors in Jan–Apr 2026, down nearly 46%, with analysts citing regional factors and the Thailand border dispute. Skills for Industry: Cambodia’s Labour Ministry and ADB reviewed workforce and TVET policy frameworks, including the 1.5m TVET programme. Zero-Waste Push: Cambodia reported major progress in cutting plastic bag use and expanding waste management and wastewater treatment. Local Business Growth: Toyota said “Made in Cambodia” Hilux and Fortuner production has scaled up sharply, with a push to deepen SME supply links.

US–Cambodia Aviation & Investment: A senior US diplomat wrapped up a high-level visit to Phnom Penh, clinching progress on a long-awaited US–Cambodia Open Skies deal and discussing regional security plus airport investment plans. Tourism Demand Watch: Cambodia welcomed about 1.3 million foreign tourists in Jan–Apr 2026, down nearly 46% year-on-year, with China, Vietnam and the US still the top source markets; analysts cite regional slowdown, online scam concerns, and the Thailand border dispute. US Forced-Labour Tariffs: The US Trade Representative proposed 10–12.5% Section 301 duties on 60 economies, naming Cambodia among countries failing to effectively ban forced-labour imports, with a public comment process underway. Cambodia–China Trade Facilitation: Customs agencies signed an AEO mutual recognition arrangement to speed clearance and cut inspections; Cambodia has 11 AEO-certified firms and targets 30 by end-2026. Rice Exports: Cambodia exported 568,912 tonnes of rice in the first five months of 2026, earning about $327m. Workforce Skills: Labour and Vocational Training Minister Heng Sour met ADB to review skills frameworks, including the 1.5 million TVET programme. Tourism Product Push: First Russian tour-operator delegation arrived in Siem Reap to assess and promote high-value Russian travel. Digital Payments for Tourism: Cambodia expanded QR payments for Indian visitors via UPI–KHQR linkage, enabling cashless spending at millions of merchants.

Tourism Slump: Cambodia welcomed just 1.3 million foreign tourists in the first four months of 2026, down nearly 46% year-on-year, with declines from China, Vietnam and the U.S. blamed on regional slowdown, scam concerns and the Thailand border dispute. Trade & Customs: Cambodia and China signed an AEO mutual recognition deal to cut inspections and speed clearance; Cambodia has 11 AEO firms and targets 30 by end-2026. Rice Exports: Cambodia’s milled rice exports hit 568,912 tonnes and about $327m revenue in Jan–May 2026, up strongly versus last year, with fragrant rice leading. Aviation Investment: The U.S. DFC approved $100m financing for Techo International Airport expansion, backing Cambodia’s connectivity push. Cambodia–China Projects: Seven cooperation initiatives under the Mekong-Lancang Special Fund 2026 were signed, covering health, poverty reduction, tourism digitalisation and green tech. Forced Labour Tariffs Watch: The U.S. proposed up to 12.5% Section 301 duties on imports from 60 countries including Cambodia, drawing pushback over how firms will manage supply-chain compliance. Agribusiness Deal: Cambodia and China agreed SPS terms for dried longan exports, aiming to improve market access for farmers. Skills & Jobs: Cambodia’s TVET programme for 1.5m youth is set to take centre stage at National TVET Day, highlighting training-to-employment goals.

Cambodia–China Trade: Cambodia’s Agriculture and China’s customs authority signed deals to open the Chinese market for Cambodian beef products and dried longans, including an SPS protocol and quarantine cooperation to speed approvals. Business Climate Reform: The CDC pledged faster, more transparent internal reforms to improve Cambodia’s business environment and investment protection, following a public-private briefing with AmCham and other chambers. Aviation & Infrastructure Finance: The U.S. DFC approved US$100 million for Techo International Airport expansion, backing Cambodia’s connectivity push and supporting broader trade and growth. Tourism Payments Boost: Cambodia and India launched a cross-border UPI/QR link (KHQR), with Tourism Minister Huot Hak saying it should make Cambodia easier to pay for and more attractive to Indian visitors. Forced Labour Tariff Risk: The U.S. proposed Section 301 tariffs tied to forced-labour enforcement failures, and Deputy PM Sun Chanthol said Cambodia’s forced-labour tariff would replace (not add to) the previously agreed 19% rate. Insurance Sector: Cambodia’s insurance industry logged about US$27m in gross premiums in April, a slight year-on-year dip, with claims also down. Animal Welfare Tool: FOUR PAWS launched an online reporting system to track the dog and cat meat trade, aiming for better data and public-health awareness. Border & Maritime Tensions: Cambodia invoked UNCLOS compulsory conciliation over the OCA dispute with Thailand, while Thailand criticized the move as affecting mutual trust; Germany and Japan voiced support for peaceful, law-based resolution. Local Industry Growth: Toyota said its “Made in Cambodia” Hilux and Fortuner output has surged, with most workers coming from Cambodian TVET institutions and a push for more SME supplier links. Rights Watch: Rights groups renewed calls to free jailed Mother Nature Cambodia environmental activists, saying appeals have been postponed and conditions remain harsh.

Public Finance: Cambodia’s public debt rose 1.9% to $13.3bn in Q1 2026, with 96% external debt, while the government signed new concessional loans worth $91.92m and paid $280.6m in debt services. Aviation Investment: Canadia Group’s OCIC secured a US$100m financing commitment from the U.S. DFC for Techo International Airport, backing Cambodia’s aviation expansion. Digital Payments & Tourism: Cambodia and India launched a cross-border UPI/QR cashless payment link, with Tourism Minister Huot Hak saying it should boost Indian visitor convenience and arrivals. Fintech Regulation: Cambodia’s Real Estate Business and Pawnshop Regulator (RPR) reviewed how mobile apps are used for digital lending to strengthen oversight and protect consumers. Animal Welfare: FOUR PAWS rolled out an online reporting tool to document the dog and cat meat trade, focusing on pet theft, slaughterhouses and transport. Cybercrime & Scams: A major U.S.-led “Disruption Week” targeted scam infrastructure across Cambodia, Laos and Myanmar, disrupting 1.4m accounts and freezing $3.8m in crypto. Trade Policy Shock: The U.S. proposed 10%-12.5% tariffs on 60 economies over forced-labour enforcement failures, putting Cambodia on the list and raising cost risks for regional trade. Business Value-Add: Three firms plan to start cashew nut shell liquid (CNSL) processing projects by end-2026, aiming to expand domestic processing and extract more value from cashew byproducts.