Dear members, partners and friends of EuroCham Cambodia,

It is my great honor and pleasure to write this last newsletter introduction of 2023 today. It has been a very intense and delicate year for Cambodia’s economy, and for many observers it was the year that kickstarted a new era for the Kingdom.

First of all, I would like to thank all our members for their ongoing support and strong participation in EuroCham events, committees, seminars, and trainings. We are a member-driven organization, and thanks to that engagement we are the most active and visible international chamber in Cambodia. To our sponsors – a big thank you for your support as platinum, gold, and silver partners: through our joint events and communication initiatives we are confident to contribute to a valuable partnership.

The country has seen progress not only in politics, but also in the all-important economic management of the country during these three decades of the post-conflict era. The Kingdom now has much recognized peace and stability after three decades of internal conflict. As the country enters a new future, it is facing structural challenges that did not have priority during that all-important phase of rebuilding the nation to what it is today.

The incoming government under Prime Minister Hun Manet is aware that the heavy ship the Cambodian economy has become despite its relatively small size needs to become more agile, particularly within a highly competitive regional environment that too looks to attract tourism, investment, and jobs. High quality, sustainable investment goes where it is welcome and supported by political will, an enabling and supportive economic and ecologic environment, efficient international-standard administration, and a workforce able to return high-value investments as profits to companies.

The Royal Government is thus shifting development priorities towards administrative and governance reform, an opening to international investment and a focus on economic development that shall lead to the Kingdom becoming a high-income country in the upcoming three decades, by 2050. A new era starts with a vision, a crucial first step towards achieving a goal. Once the necessary, significant reforms and regulatory streamlining takes hold, combined with progressive policies fit for the modern world, I am certain this vision can be achieved.

Part of such a timely vision for Cambodia’s future is the recently announced goal of achieving a 70% renewable energy share by 2030, a huge step forward from the previously anticipated 45% by 2040. This policy highlights the Kingdom’s ambitions, and complemented with more innovative RE policies will help to shape the country’s image and fuel the realization of its vision.

A less widely noted, but hugely relevant policy initiative is the recently announced strategy on the informal economy, with which the Prime Minister has expressed his will to move the carefully estimated 40% of the economy and 85% of the total workforce that are unofficial, into the official, tax-paying and largely compliant sector. If this strategy shows signs of success in the coming years, the international business community will gain confidence and increase it investments while the government creates higher and more reliable revenues for further investment into education and infrastructure.

The Kingdom’s enormous progress in connecting its advanced digital payment system to regional peers will contribute to more cross-border trade and business and push the digital economy agenda forward.

Amongst others, these are very significant projects and programs to bring Cambodia into a position for sustainable growth, and to compete with neighboring markets while at the same time integrating better with them. These are the good news that investors and travelers like to hear, and they will help to shape the image of the country in the years to come.

While the economy in 2023 has suffered through lower exports and less tourism, two key pillars of revenue – 2024, I am afraid, might not immediately bring a change in trend. But I am convinced that Cambodia, a country full of resilience and entrepreneurship, will be back on track once reforms start to be implemented and the safety concerns still marring its reputation as a safe travel and investment destination are rooted out. Phnom Penh continues to grow and modernize, and will surely become the regional leisure and lifestyle hub it deserves to be, further fueling overall growth.

EuroCham continues to be an important partner of the Royal Government and the Cambodian business landscape, together with other international business organizations we support the government in its efforts and help to promote the recent reforms to the outside world. Our members are often here for many years, are compliant, employ via caring contracts, and pay taxes. In this sense, we spearhead the support for the new leadership to turn its vision into reality. Jointly, we will need to convince international investors, tourists, and entrepreneurs that Cambodia is a safe, promising, and optimistic place to come to; and that the new government is serious in redirecting its priorities, and in speedily reforming the important parameters for sustainable development.

Shifting an economy, and innovating long-established governance systems, structures and networks takes a long breath, and we should expect years to pass until the potential of the country and its young and entrepreneurial population is realized with the support of a prospering region, both in the Mekong subregion and ASEAN as a whole. Reform and the adoption of international standards in governance and doing business is the only way to integrate the Kingdom independently and strongly into the regional and global economies.

A very big thank you goes to the fantastic EuroCham team, which keeps delivering high standard work and pushes the boundaries with great events, outstanding and innovative advocacy work and publications and communication initiatives that are of highest quality – led by our director Martin Brisson and supported by a highly efficient administration team.

I wish you a wonderful year-end holiday season, all the best in 2024, and look forward to seeing you next year at our Toast to 2024 at Seekers Distillery!