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The Economy of Cambodia

Upgrading: Diversification, Skills and Trade

Cambodia aims to move beyond garments through agriculture processing, electronics assembly, logistics and digital services, but faces skills and trade challenges.

Growing beyond cheap labour.

Diversification

New factories make bicycles, electronics and travel goods.

Skills

Training in technical and English skills is needed.

Trade

Membership in RCEP and bilateral deals expand market access, while EU preferences face political pressure.

Infrastructure

New expressways, ports and a canal project are planned.

A new line

A factory adds electronic component assembly beside its garment lines.

Assuming cheap labour will last forever

Wages rise and rivals emerge.

Key takeaways
  • Diversification is a priority.
  • Skills are needed.
  • Trade deals help.
  • Infrastructure is being built.
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