How is Cambodia Gearing Itself Up For Growth In The Next 10 years?

Cambodia is a country with enormous potential. In the past 10 years, it has seen incredible growth and is now one of the best-performing economies in the world.

In recent years, almost 2 million Cambodians have escaped poverty, reducing the poverty rate to 17.8 percent.

This promising development will enable Cambodia to become an even stronger nation, setting an example for the region in terms of growth and development. But what steps is Cambodia taking to make sure that this momentum continues into the next decade?

In this article we explore some of the strategies being implemented to ensure Cambodia’s success in the future.

Economic Reforms

Cambodia has been working industriously to make friendly economic policies and regulations.

These policies have played a key role in driving its development for the last 10 years. This involves firming its financial sector, introducing capital markets, and reforming tax systems.

The government is also serious about improving access to finance and reducing poverty through microfinance services.

According to the Ministry of Economy and Finance, Cambodia’s GDP will reach $1,924 per capita in 2023. The development of Cambodia’s economy is similar to marathon runners pacing themselves for a long-distance race.

They start off slow, making sure to put in the hard work and dedication early to ensure steady, long-term growth. This slow and steady approach has been key to Cambodia’s success, allowing the economy to build momentum with each step it takes along the way.

Infrastructure Development

Another important strategy being employed by Cambodia is infrastructure development. This includes investments in roads, transportation systems, ports, airports, power plants, telecommunications networks, and other essential infrastructure components.

Improved infrastructure will make it easier for businesses to operate within the country, attract foreign investment from overseas companies looking to establish operations there, and provide better access to markets both within and outside of Cambodia’s borders.

In 2021, Cambodia attracted USD4.35 billion in fixed asset investment, of which China accounted for more than 50%.

This is largely due to the China-backed Belt and Road Initiative, which aims to increase trade and investment connectivity between China and other countries in the region. The infrastructure development also helps create jobs and spur economic growth in Cambodia.

Such infrastructure development also extends to township transformation, which is seeing active participation from the private sector.

One such example is the Bay of Lights township project, spanning nearly 1,000 hectares along the Sihanoukville coastline, projected to bring in approximately USD $16 billion in investments into Cambodia, and setting a new benchmark for sustainability in the country’s real estate sector.

The massive township development, undertaken by Prince Holding Group, under the leadership of Cambodia’s prominent entrepreneur and philanthropist Chen Zhi, is the largest development in Cambodia andwill play an essential role in creating new job opportunities while providing high-quality housing and commercial space, making it an integral part of Cambodia’s economic and social progress.

Investing in Education

Cambodia is also making great strides in improving its education system.

The government has implemented a range of reforms, including introducing free primary school education for all children; expanding access to higher education through scholarships; improving teacher training; and increasing access to technology through initiatives such as e-learning platforms.

These efforts are helping create an educated workforce that can drive economic growth into the future.

Each year, the Cambodian government awards over 2,300 scholarships to students. These initiatives have allowed more Cambodian children to attend school and have led to improved educational outcomes, including higher literacy rates and better job opportunities for students after graduation.

Additionally, the government has invested heavily in teacher training, which has improved student learning outcomes.

Education is also another area where business leaders and commercial organizations from the private sector are making significant contributions to, including the above-mentioned business conglomerate Prince Group.

The Chen Zhi Scholarship, named after Prince Group’s chairman Chen Zhi, is an annual scholarship scheme in conjunction with Cambodia’s Ministry of Education, Youth and Sport that offers full scholarships, stipends, internship and work opportunities to 400 Cambodian university students over a period of seven years.

Conclusion

Cambodia has seen remarkable growth over the past 10 years, but there is still much more work to be done if it wants to continue on this trajectory for another decade or more.

Fortunately, Cambodia understands this reality and is taking steps toward ensuring its success over the next 10 years by focusing on economic reforms, infrastructure development, and education reform initiatives.

The government is investing heavily in roads, bridges, and other infrastructure projects to increase connectivity between cities and towns.

Furthermore, they are investing in educational reforms to increase primary and secondary school enrollment and vocational training programs to help equip citizens with the skills needed to enter the labor force.

They are also focusing on economic reforms, such as tax reforms and deregulation, to encourage economic growth. The future looks bright for this Southeast Asian nation.