Cambodia Investment Review
The inaugural edition of the Cambodia Economic Growth Policy Dialoguev, aired on National Television of Cambodia, featured an in-depth exchange between Dr. Sok Siphana, Senior Advisor to the Royal Government of Cambodia, and Derek Yip, Australian Ambassador to Cambodia. The dialogue explored the evolution of bilateral cooperation, Cambodia’s economic transformation, and future challenges as the Kingdom approaches LDC graduation.
A Historic Relationship Anchored in Trust and Shared Growth
The discussion opened with a reflection on Cambodia-Australia relations, spanning over seven decades. From Australia’s support during the Paris Peace Agreements and its peacekeeping contributions to its humanitarian intake of Cambodian refugees, the relationship has been underpinned by a deep sense of trust and long-term commitment. These historical ties continue to influence modern-day cooperation.
Australia’s development assistance—estimated at over AUD $2 billion since the 1990s—has evolved from basic infrastructure support to more targeted programs focused on economic transformation, technical capacity, and inclusive growth. This shift aligns with Cambodia’s increasing institutional maturity and strategic goals outlined in its Pentagon Strategy.
Investing in People and Knowledge
One of the most consistent pillars of bilateral cooperation has been education. Cambodia’s alumni community in Australia is one of the largest in ASEAN, helping to foster mutual understanding and create a pipeline of professionals equipped with international standards and networks.
In addition to university scholarships, programs in English language training, technical education, and postgraduate research continue to shape the Kingdom’s emerging leadership in fields such as AI, machine learning, and public policy.
Australia’s TAFE partnerships also support Cambodia’s goal of developing a skilled workforce to serve industries such as automotive assembly, electronics, EV charging infrastructure, and clean energy.
Trade Diversification and Industrial Development
As Cambodia prepares to graduate from its LDC status by 2029, both speakers noted the importance of market readiness and compliance with global trade standards. Australia’s experience with regional free trade agreements—including RCEP and AANZFTA—was shared as a model of how to widen market access while safeguarding national interests.
Australia’s CAPRED program is supporting Cambodia’s trade diversification through:
- Feasibility studies on CPTPP accession
- Development of agricultural industrial parks
- Research and coaching for cashew sector value-addition
- Support for food safety labs to reduce export certification costs
The speakers emphasized that joint ventures and foreign investment remain key vehicles for transferring know-how, especially in areas requiring technical standards and regulatory compliance.
Energy Transition and Environmental Resilience
The session also focused on green growth and Cambodia’s clean energy ambitions. Australia is supporting planning and technical capacity building around grid resilience, renewable energy integration, and EV deployment. This includes both policy development and workforce training—ensuring that technicians, fleet managers, and other skilled roles are in place to support future infrastructure.
Through CAPRED, Australia is also engaging in agriculture-based climate adaptation, including improved soil and water management, and climate-resilient rice varieties, all aimed at increasing export potential and farmer incomes.
Building Institutional Strength and Policy Ownership
Both sides highlighted the value of evidence-based policymaking as Cambodia prepares for a more competitive role in the global economy. A recurring theme was the importance of government ownership over the reform process, with technical partners like Australia providing advisory input rather than prescriptive solutions.
CAPRED’s work with entities such as the Trade Policy Advisory Board, CDRI, and sector-specific task forces (e.g., cashew) was cited as a model of responsive, demand-driven collaboration.
The conversation concluded with a shared view that the relationship between Cambodia and Australia is built on mutual respect, long-term vision, and complementary strengths. As Cambodia enters a new phase of development, Australia’s evolving engagement—through education, trade, innovation, and institutional reform—will remain an essential partnership on the path to resilience and prosperity