AGP Executive Report

US Tariffs & Cambodia Export Relief: The U.S. Section 301 forced-labor tariffs took effect July 24, with Cambodia listed among the 10% tier, while textile and apparel tariff-rate quotas (TRQs) were granted to Bangladesh, Cambodia, Indonesia and Malaysia—meaning some quota shipments can avoid the extra duty. Digital Payments & Riel Push: Cambodia’s Bakong hit about 1 billion transactions worth $135.8m in H1 2026, with riel payments surging 120% in volume and 42.9% in value as adoption expands. Investment Spotlight: Japanese precision maker MinebeaMitsumi says it plans to expand in Cambodia, including a new factory in Pursat, after meeting PM Hun Manet. Tourism Pressure: European tourist numbers are falling due to Middle East-linked flight disruptions and higher fares, with Cambodia among the destinations hit. Scam Compound Crackdown: The UN warns online scam centers across Asia are coercing about 300,000 people, with networks heavily based in Cambodia, Laos and Myanmar. Conservation Win: WWF Cambodia reports three sarus crane nests found in early breeding season, signaling a rebound, with Cambodia’s count reaching a record 214.

Cambodia–Vietnam Deal-Making: Cambodia’s National Assembly President Khuon Sudary met Vietnam’s top leaders in Hanoi, pushing deeper parliamentary ties and expanding cooperation in trade, investment, healthcare, tourism, education, and digital governance, with a target to lift bilateral trade to $20bn. Banking Watch: The National Bank of Cambodia says the banking system is still healthy, projecting 3.9% growth in 2026 and 5% in 2027, while noting prudential steps like restructuring 239,546 loan accounts. Payments & Riel Push: Bakong processed about 1bn transactions worth $135.8bn in H1 2026, with riel activity surging and NBC crediting digital payments for formalization. Investment & Jobs: MinebeaMitsumi told Cambodia’s Senate it has kept operations running despite Thailand border tensions and is expanding factories and solar plans. Trade & Tariffs Risk: US forced-labour Section 301 tariffs are reshaping textile competition; reports flag that Cambodia may face higher relative costs even where tariff rates look “favourable,” depending on quota access. Scam Economy Alarm: UN warnings say online scam compounds across Myanmar, Cambodia and Laos are expanding fast, with trafficking and coercion tied to social media recruitment. Connectivity Upgrade: New subsea cables are boosting intra-Asia bandwidth, including a Cambodia–Hong Kong link that strengthens regional data routes. Growth Outlook: NBC forecasts Cambodia’s economy to ease to 3.9% in 2026, supported by garments, non-garment manufacturing, agriculture, and FDI.

US Tariff Shock for Cambodia’s Exports: Cambodia’s new Section 301 tariff rate for U.S.-bound goods is set at 10% plus the applicable MFN tariff, not an extra charge on top of the earlier 19% reciprocal rate, Deputy Prime Minister Sun Chanthol said, with only an “excess capacity” issue still under review. Duty-Free Boost: The U.S. also granted Cambodia zero import duties for 154 tariff lines, including textiles and handicrafts like krama and hats, plus some wood-waste and certain plant/animal products, after the Section 301 forced-labor compliance investigation. Competitiveness Push: Sun Chanthol added Cambodia is already preparing for preference changes by simplifying procedures, cutting logistics costs, improving quality, and building skills, while diversifying beyond garments into areas like electronics and food processing. Investment Spotlight: MinebeaMitsumi’s CEO met Prime Minister Hun Manet, briefing plans to inaugurate a new factory and expand investment as the company marks 15 years in Cambodia. Tourism Calendar: Cambodia will host the “Green Season Tourism Event 2026” in Stung Treng on Aug. 8-9 to promote northeastern ecotourism and local jobs. Public Health & Cities: Nearly 400 Siem Reap residents petitioned for designated smoking areas around Pub Street to reduce secondhand smoke exposure. Tourism Demand Pressure: Reports say Cambodia’s tourism slump has left Angkor Wat unusually quiet, with fewer European visitors.

US Tariffs & Cambodia Exports: Cambodia’s CDC says the new 10% US Section 301 tariff is separate from the old 19% reciprocal tariff, and the US has promised Cambodia won’t lose competitiveness; officials also say only excess-capacity issues remain under review. Duty-Free Access: The US granted zero import duties for 154 Cambodian tariff lines, including textiles and items like krama scarves, hats, wood-waste goods, and some plant/animal products. Investment Climate Push: Sun Chanthol says Cambodia is streamlining investment procedures to cut costs and bureaucracy, with 276 projects approved in H1 2026 worth about $4.7B and targeting 160,000 jobs. Growth Outlook: The National Bank of Cambodia forecasts 3.9% growth in 2026, with acceleration in H2 supported by exports and FDI. Trade Diversification Signals: Cambodia exported about $360M in bicycles in H1 2026 (+19%), and fresh durian shipments to China jumped to 5,738 tonnes (+~40x) after a new rail corridor via Laos. Digital & Telecom Deals: Cambodia’s MPTC met the US-ASEAN Business Council to discuss digital parks, cybersecurity, and investment opportunities. Social Protection Funding: Australia will announce new support for Cambodia’s social protection systems under the ISPH 2 program.

Cambodia’s Investment Surge: CDC approved 276 new projects in H1 2026 worth about $4.7bn, expected to create around 160,000 jobs, with deals spanning renewables and advanced manufacturing. Agribusiness & Exports: Fresh durian shipments to China hit 5,738 tonnes in the first seven months of 2026, boosted by a faster overland route through Laos. Scam Crackdown: Cambodia deported 21,102 foreign online-scam suspects from 38 countries over July 2025–June 2026, and sealed hundreds of scam-linked sites while revoking or suspending some casino licenses. US Tariff Pressure on Cambodia Trade: The US imposed new 10%–12.5% forced-labour-related tariffs on 60 economies, including Cambodia, raising supply-chain and export-cost concerns for regional exporters. Green Farming Support: Australia committed AU$3.2m to help Cambodia modernize smallholder farming with electric, smart-technology-enabled tractors. Tourism & Livelihoods: Community ecotourism in Kampong Speu is turning former loggers into guides, with protected-area membership rising as visitors grow. Wildlife Conservation: NatureLife Cambodia reported three Sarus crane nests found in Lomphat Wildlife Sanctuary, supporting ongoing habitat protection.

US Forced-Labour Tariffs: The Trump administration’s Section 301 regime kicks in for 60 economies, with Cambodia named in a textile “mechanism” that could offer relief for some apparel and textile imports—though US industry groups warn it may still hurt domestic manufacturers. Cambodia–US Diplomacy: Phnom Penh and Washington reaffirmed momentum on trade, investment, defense cooperation and border attention, pointing to the Open Skies Agreement as a boost for connectivity. Border Trade Resilience: Cambodia’s commerce minister says the country has adapted well to Thailand’s unilateral border closure by rerouting via ports/air and diversifying supply sources, including more local raw-material buying. Youth & Community Projects: Maybank and the ASEAN Foundation launched eYAA Cohort 6, planning 10 community development projects across eight ASEAN states including Cambodia. Scam Economy Watch: A US visa crackdown targets foreign cyber scammers, while separate reporting highlights how online job scams can funnel victims into fraud operations—an issue Cambodia remains exposed to. Home Textiles Sourcing: Intertextile Shanghai Home Textiles (Aug 18–20) will expand bedding, upholstery and wall décor sourcing, signaling fresh design and supplier opportunities for regional buyers.

SME Push: PM Hun Manet ordered a fast-track overhaul of SME business registration, aiming to cut red tape fast (a pilot targets soap makers to finish in six days), but experts warn the real hurdles for Cambodia-made goods run deeper than paperwork. Tourism Branding: An op-ed argues Cambodia’s “green season” label won’t fill hotels unless the rainy season is turned into a real product with itineraries, activities and better visitor-ready mechanisms. Cambodia–Thailand Trade Strain: Cambodia says its manufacturing sector has “adapted well” to Thailand’s unilateral border closure by rerouting via ports/air and diversifying import sources, while border communities still feel the slowdown. US–Cambodia Links: Cambodia and the US reaffirmed momentum on trade, investment, defense cooperation and anti-crime work, including progress on connectivity via the Open Skies Agreement. Online Scam Economy: Cambodia is again in the spotlight as US actions target transnational cyber fraud networks, while a separate report warns scam syndicates are recruiting via fake jobs and forcing victims into online fraud. Green Finance & RBC: A study on major Chinese projects (Lower Sesan 2, Dara Sakor SEZ, Funan Techo Canal) finds “significant compliance gaps” on responsible business conduct, despite meeting minimum Cambodian laws.

US forced-labour tariffs: The US Section 301 regime kicked in July 24, replacing the temporary Section 122 levy, with Bangladesh placed in the lower 10% tier—giving it a 2.5-point edge over China, Vietnam and Thailand now facing 12.5%. Cambodia angle: Cambodia is also listed among the 10% tier economies under the forced-labour framework, while exporters elsewhere brace for higher landed costs and supply-chain reshuffling. Cambodia–US ties: Cambodia and the US reaffirmed momentum in Manila, highlighting trade and investment cooperation, defence collaboration, and continued attention to the Cambodia–Thailand border issue. Tourism hit: Cambodia’s international arrivals fell 47.9% to 1.75 million in H1 2026, with scamming concerns and Thailand border disputes cited among causes. Online scam crackdown: Uganda warned that cyber-scam syndicates are recruiting foreigners—including people from Cambodia—through fake job ads, with passports allegedly seized. ASEAN security: Cambodia’s foreign minister met US counterparts as ASEAN partners pushed for stronger regional cooperation on security and transnational crime.

US Forced-Labor Tariffs: The Trump administration has imposed new Section 301 duties of 10% and 12.5% on imports from 60 economies, replacing the expiring temporary 10% levy, with Cambodia included in the 10% tier—raising compliance pressure on supply chains and importers. Cambodia’s Response: Cambodia says it has stepped up measures with multiple ministries to strengthen enforcement of forced-labor import bans after the US action. Textiles & Apparel Shockwaves: Industry groups warn the tariff mix could shift sourcing in labour-intensive sectors like textiles and garments, where Cambodia competes directly with Bangladesh, Pakistan and others. ASEAN Diplomacy & Trade Risks: ASEAN and China foreign ministers issued a joint statement on Middle East spillovers and energy cooperation, while the US reiterated it will not let any South China Sea code undermine its interests. Tourism Boost: Cambodia welcomed 1.75 million foreign tourists in the first half of 2026, with China the top source market. Anti-Scam Push: Cambodia will host an international conference on combating online scams in September, as authorities report large-scale raids and inspections.

US Forced-Labour Tariffs: The Trump administration has rolled out Section 301 tariffs on 60 economies, effective 12:01 a.m. Friday, with rates of 10% for countries deemed to have enforced forced-labour import bans and 12.5% for others. The move covers about 99.4% of US imports, stacking on top of existing duties in many cases. Cambodia Angle: Cambodia is in the 10% tier, which could help its garment, footwear and travel goods exports stay more competitive versus rivals facing 12.5%—and the US is also set to introduce tariff-rate quotas for Cambodia and other lower-tier countries to encourage use of US cotton and textile inputs. Trade Facilitation: Cambodia’s Commerce Minister Cham Nimul says talks with the US focus on customs modernization and enforcement, ahead of LDC graduation in 2029. Domestic Governance: Cambodia’s Interior Ministry has temporarily suspended the Tourism Police chief, Run Roth Veasna, pending an investigation into alleged arbitrary detentions tied to a Flora Development complaint.

US Tariff Shock: The Trump administration has imposed new 10% and 12.5% Section 301 tariffs on goods from 60 trading partners, including Cambodia, as temporary 10% global duties expire—raising fresh pressure on regional exporters and supply chains. Cambodia-US Business Push: A US-ASEAN Business Council delegation met Cambodia’s top leaders to explore expansion in healthcare, manufacturing, energy, finance, digital tech and hospitality, signaling stronger commercial momentum. Online Scam Crackdown: PM Hun Manet told Bloomberg Cambodia will intensify action against transnational online scam networks, expand international cooperation (including with the FBI), and ensure no special economic zone is used to shelter crime. ASEAN Partnerships: Cambodia used ASEAN dialogue talks in Manila to call for deeper cooperation with partners on trade, investment, digital transformation, infrastructure, energy security and regional security. AI & Digital Economy: Cambodia also highlighted AI, fintech, cybersecurity and digital trade cooperation with China, India, Japan and Korea, including a proposal to name 2027 the ASEAN-China Year of AI Cooperation. Entrepreneurship Support: Khmer Enterprise’s board reviewed progress and endorsed a next phase to strengthen entrepreneurship support for startups and MSMEs, including more training and AI/digital advisory. Gold Exploration Update: Unity Metals reported its first modern drill results at O’Phlay in Mondulkiri—40m at 1.9g/t gold from 82m—boosting confidence in Cambodia’s gold potential.

Cambodia–Korea Ties: Cambodia and the Republic of Korea reaffirmed their strategic partnership in Manila, with talks covering trade and investment, security, people-to-people links, and cooperation against online scams. US–Cambodia Anti-Scam Push: US FBI Director Kash Patel met PM Hun Manet and police chief Sar Theth, pledging stronger joint action to dismantle scam networks and improve information sharing and accountability. Investment Pipeline: Cambodia’s Council for the Development of Cambodia reviewed nine proposed Qualified Investment Projects worth nearly US$95m, targeting about 3,500 jobs across manufacturing, agro-industry and mining. Productivity Boost: APO handed over an Institutional Capability Development Plan for Cambodia’s National Productivity Centre, aiming to strengthen productivity services as the country prepares for LDC graduation in 2029. Swiftlet Nests to China: Cambodia’s swiftlet nest exporters have received first-ever official approval to export directly to China, with more firms expected to meet compliance requirements. Regional Business Climate: The US-ASEAN Business Council praised Cambodia’s efforts to improve the investment and business climate after reforms to streamline procedures and expand digital services. Border Tensions: A year after the Cambodia–Thailand border fighting in July 2025, displacement remains a key concern as diplomacy is urged to prevent renewed clashes.

El Niño Drought Response: Cambodia says 180,663 hectares of rice in seven provinces are affected, with authorities pumping water but warning some communities still lack irrigation and are far from water sources. Export Momentum: Cambodia exported about $1B in vehicle tires in H1 2026, up 55%, with eight tire factories in special economic zones supporting jobs and demand abroad. Energy Financing: The World Bank approved $115M (including $110M concessional credit and a $5M grant) to fund battery storage, grid upgrades, EV charging and smart metering under a sustainable energy transition plan. Trade Growth: Cambodia’s trade with ASEAN and the EU hit $13.3B in H1 2026, with ASEAN up 21.8% YoY and EU up 8%. New Market Access: Cambodia received China’s first official approval for an edible bird’s nest exporter (BEST LIFE PRODUCT) to ship to China, with an inaugural shipment reportedly underway. Value-Add Pressure in Agriculture: Raw cashew exports reached 1.03M tonnes and about $1.75B in H1 2026, but the industry again flags the need to expand domestic processing for higher value. Digital Crime Warning: UNODC reports Southeast Asia scam losses of $88.3B–$114.1B in 2025, driven by tech and AI, while Cambodia-US security cooperation highlights the push to tackle online scams. Insurance Skills Push: Cambodia’s insurance regulator signed an MoU with ACLEDA University to build insurance awareness and train professionals as the sector grows. Connectivity Boost: China Unicom’s new Hong Kong–Cambodia submarine cable link aims to close digital gaps and improve internet capacity.

US-ASEAN Diplomacy: U.S. Secretary of State Marco Rubio told ASEAN partners in Manila the U.S. “will never abandon” the bloc, while warning that any country trying to control and toll the Strait of Hormuz would set a dangerous precedent for global trade. Anti-Scam Security Push: Cambodia’s PM Hun Manet met FBI Director Kash Patel, with both sides stressing stronger cooperation against online scams and transnational crime. Regional Scam Scale: A UNODC report says Asia-Pacific scam losses hit about $88.3bn–$114.1bn in 2025, with Cambodia and Myanmar flagged as major hubs as syndicates use AI, trafficked labor, and “corporate” franchising models. US Asset Seizures: The U.S. DOJ moved to forfeit over $25m in crypto tied to romance, investment, and recovery scams, with laundering networks linked to IP addresses in Cambodia, China, and Malaysia. Japan-Cambodia Business & Security: Japan reaffirmed support for Cambodia, including a new OSA defense aid package (communications gear and patrol boats) and continued backing for Japanese firms like Toyota. Energy Finance: The World Bank approved a $110m concessional loan plus a $5m grant for Cambodia’s sustainable energy transition, including battery storage and grid upgrades. Trade & Investment: Cambodia’s trade with ASEAN and EU reached $13.3bn in H1 2026, while Cambodia welcomed around 70 Chinese companies to explore investment in sectors from EVs and AI to logistics and finance. Investor-Friendly Message: Hun Manet urged U.S. firms to expand investment, reiterating a business-friendly environment and reforms to simplify procedures.

Tax & Retail Compliance: A new Cambodia-focused explainer breaks down how common sales promotions (discounts, rebates, “buy one get one,” early-payment deals, seasonal campaigns, and instant-win prizes) can trigger different VAT, income tax, and withholding tax treatment—plus possible registration needs—depending on how the offer is structured. Customs Readiness: With trade volumes rising, Cambodia’s businesses are being urged to tighten customs processes and compliance so import duties and tariffs don’t disrupt inventory, production schedules, and delivery timelines. Cybercrime & Cross-Border Security: Cambodia joined a Lancang-Mekong cybersecurity forum in Siem Reap, where officials stressed that ransomware and online fraud require stronger regional cooperation as threats spread across borders. Banking & Payments Ties: The National Bank of Cambodia met the U.S.-ASEAN Business Council to discuss deeper cooperation with the U.S. private sector, including digital finance and support for Bakong tourism payments. Scam Industry Warning: A UNODC report says Southeast Asia’s organized crime is becoming more “corporate” and tech-driven, with 2025 scam losses estimated at up to $114.1bn and Cambodia flagged as a major hub. Aviation Deal: Air Cambodia signed with COMAC to buy 20 C909 regional jets, aiming for phased deliveries starting in 2H 2026. Food Exports & Standards: Hok Sreyhour’s PPF Yummy says it has scaled traditional Khmer products for supermarkets and exports to five countries, stressing that quality upgrades are key for meeting overseas standards. Business Growth in Consumer Brands: Happy Potato says it has expanded to four new international markets in six months, reaching 126 outlets across five countries, including Cambodia. Labor Enforcement: Authorities arrested 38 foreign workers for working without permits at a Chinese-owned construction site in Rayong and charged the company.

Aviation Deal: Air Cambodia signed an agreement with COMAC to buy 20 C909 regional jets, aiming for first deliveries and entry into service in the second half of 2026—its first bulk order for the aircraft type. Scam Economy Warning: A UNODC report says Southeast Asia’s scam industry is now “corporate franchising,” with 2025 losses across Asia-Pacific estimated at $88.3–$114.1bn, driven by AI, malware, and crypto, with Cambodia named among key operating hubs. Anti-Scam Crackdown: Cambodia’s region-wide fight against online fraud continues as police in Laos arrested 589 suspects in a raid targeting online gambling and telecom fraud networks. Trade & Investment Signals: Hun Manet met a Korean business delegation exploring expansion in manufacturing, finance, construction, and more; separately, Cambodia-US ties were highlighted as more American firms show interest in investing. Public Finance: Cambodia’s customs revenue reached about $1.563bn in H1, up 4.5% year-on-year, though fuel and gas collections fell as the government absorbed import tax burdens. Regional Cooperation: ASEAN chief Kao Kim Hourn urged deeper rule-of-law cooperation with China to protect trade from transnational crime. Agriculture Link: Cambodia and the Philippines launched a government-private forum in Manila to boost agricultural trade, especially rice, cashew nuts, and livestock.