PHNOM PENH (Bernama): The year 2025 is set to be a busy period for Cambodia as the government has established ambitious goals to position the country as a more progressive competitor in the region.
It aims to become an upper-middle-income economy by 2030 and achieve higher-income status by 2050.
Additionally, Cambodia wants to eliminate malaria and HIV/AIDS, and be mine-free next year.
Another government initiative aims to complete land registration by 2025, which will expedite land title distribution to all citizens by 2027.
Besides, policymakers are also preparing Cambodia to exit from the Least Developed Nation status in 2029, which will phase out trade preferences and development finances.
On the employment front, the Ministry of Labour and Vocational Training needs to create 235,000 jobs yearly until 2026, as the population growth is expected to reach 17 millions.
At least 60 per cent of the Cambodian population is under the age of 30.
Prime Minister Hun Manet is optimistically resetting the growth strategy to reach these social-economic goals, and to build confidence among foreign investors.
Infrastructure development will be the primary focus to propel the kingdom’s economy in 2025, consisting of mega infrastructure developments from airport, expressways, deep seaports, and to canal.
"I believe 2025 would open up opportunities for the Cambodian economy, despite geopolitical uncertainties. To take advantage, constraints on structural transformation, such as scarcity of human capital and high cost of doing business, need to be addressed in time,” Phnom Penh-based Independent Consultant on Agriculture Value Chains, Trade and Development, Jhelum Chowdhury, told Bernama.
Pivotal infrastructures - the RM 1.7 billion Funan Techo Canal and the US$1.2 billion Techo International Airport are earmarked to be commissioned in mid-2025; the Kampot Multi-Purpose Port costing US$1.5 billion, and the Kampot International Tourism Port - will change the country’s connectivity dynamics.
The government has earmarked 174 projects costing US$36.6 billion in investments to improve transport networks under the "Comprehensive Master Plan on Cambodia Intermodal Transport and Logistics System 2023-2033”.
"Moving up the value chain entails greater participation in global value and supply chains. Key infrastructure creations such as the Funan Techo Canal are welcome steps in that direction,” said Chowdhury.
The kingdom’s economy appears to be on the right growth trajectory. The Asian Development Bank forecasts Cambodia’s economy to grow by six per cent in 2025, marginally higher than this year’s 5.8 per cent.
Industries, services and agriculture sectors are expected to propel the growth engine.
Tourism is showing its potential again with about six million foreigners descending on Cambodian soil this year. The Ministry of Tourism aims to welcome 6.4 million international tourists next year.
At least 20 international cruise ships arrived at Sihanoukville Autonomous Port so far, bringing 11,000 passengers.
To adapt to the changing economic landscape, Cambodia must diversify its economy by reducing reliance on traditional sectors like garment and footwear, manufacturing or tourism.
Focusing on high value-added industries will attract quality foreign investments and spur inclusive growth covering the majority rural population, say observers.
"Cambodia’s rapid growth has been driven by trade preferences, tourism and large capital inflows for investment in infrastructure and real estate.
"Cambodia will need to pursue new drivers of growth that require greater diversification,” said Chowdhury. - Bernama
