As Southeast Asia faces growing economic uncertainty, AMRO's latest annual report provides an uncompromising assessment of Cambodia's strengths and weaknesses in 2025. Between spectacular recovery and new threats, the kingdom is walking a tightrope.

A wave of cautious optimism is sweeping across the disputed border between Cambodia and Thailand following an extraordinary meeting of the Regional Border Committee (RBC).

Anger has swelled like a wave across Cambodian social media. The cry has spread like wildfire: #BoycottThaiProducts. But behind this apparent fervour, what are the real economic and social repercussions, a few days after the call to action? The picture is nuanced, far from the certainties expressed online.

Between a border dispute with Thailand, trade negotiations with the United States and preparations for the 2026 Francophonie Summit in Siem Reap, Soreasmey Ke Bin shares a clear vision: to defend Cambodia's interests while strengthening its regional and international ties. In this exclusive interview, the entrepreneur and Francophonie promoter for Southeast Asia discusses the strategic issues shaping the country's future.

For several months, tensions have been running high between Cambodia and Thailand, two geopolitical neighbours marked as much by a disputed border as by economic interdependence. The armed conflict has reignited deep historical resentments and triggered a series of retaliatory measures between the two countries.

Cambodia's rice exports to international markets saw a remarkable surge during the first seven months of 2025, generating more than $1.2 billion in revenue, a significant increase of nearly 15% compared to the same period last year.

With an installed capacity of 60 megawatts, the new photovoltaic power plant in Pursat marks a major step forward in the kingdom's energy transition, driven by the desire to exploit renewable resources in a country that has long been dependent on fossil fuels.

Cambodia and Thailand have cautiously embarked on a peace process under the auspices of Malaysia, the current chair of ASEAN. On 28 July, a ceasefire was agreed, ending five days of violent clashes that left at least 43 people dead and displaced more than 300,000 people on both sides of the border. This peace pact was negotiated through Malaysian mediation, supported by the United States and China, offering a glimmer of hope for calm.

Ultranationalism in Thailand has its roots in an exclusive conception of ‘Thai identity,’ which has been continuously promoted since the 20th century by the state and certain elites. This ideology is embodied in the promotion of a unified nation centred on the monarchy, Buddhism, and the Thai language, excluding ethnic minorities and migrants.

Between the Cambodian provinces of Poipet, O Smach, Pailin and Koh Kong, and the border districts of Thailand, lies an archipelago of casinos that forms a discreet but central part of the regional economy.

ASEAN+3, comprising ten ASEAN countries plus China, Japan and South Korea, is experiencing a period of moderate economic slowdown, driven by increased trade tensions, global slowdowns and volatile geopolitical factors.

Thailand's double game is part of a regional strategy in which its image as a mediator never obscures its desire to preserve, or even increase, its influence over its neighbours and over the peace processes themselves. This stance is not exclusive to the conflict with Cambodia: it reappears with force in the Burmese crisis.

Cambodia narrowly avoided economic disaster, but the country continues to suffer from deep wounds. Behind closed doors, 800,000 jobs, mainly in the textile and footwear sectors, were threatened by the announcement of new US tariffs. The axe has fallen: Cambodian exports to the United States will now be taxed at 19%, according to a presidential decree signed by Donald Trump on 31 July 2025, confirmed by the Executive Office and reported by the major US economic media outlets

The province of Preah Sihanouk is about to undergo a major transformation. An ambitious special economic zone (SEZ) project, with an investment of $50 million, has just been approved for this strategic region in southwestern Cambodia, promising to generate around 7,000 direct jobs.

Be wary of statements on social media seeking to justify the border crisis as American manipulation aimed at supplying more weapons to Thailand. While this is not impossible, it remains highly unlikely, as the US is already the leading supplier and American motivations seem to be more focused on economic stability and even Trump's desire for recognition as a ‘peace power’.

The economic dynamism between Cambodia and Thailand has long been a regional showcase for ASEAN, marking an era of integration, growing trade and productive complementarity. Over the years, Thailand has established itself as a major investor in Cambodia, while Cambodian companies, although smaller in volume, are also seeking to establish a presence in their neighbour.

The Cambodian economy entered the first half of 2025 at a turning point, balancing robust exports with the fragility of certain internal drivers. Driven by international demand, particularly from the United States and the European Union, and by a gradual recovery in tourism, economic growth remains positive despite headwinds.

The repercussions are being felt in local communities – market vendors, migrant workers and small traders – who have long depended on daily crossings for their livelihoods. The once-fluid crossings between the seventeen official border posts are now hampered by closure orders and reduced opening hours. These sudden barricades have an immediate impact on the border economy, where some 500,000 Cambodian workers hold essential jobs in the Thai labour market. Fruit sellers, stall

In a context that is causing waves in the industrial strongholds of Southeast Asia, the United States will impose tariffs of 36% on all Cambodian exports, particularly textiles and footwear, starting on 1 August 2025. Arnaud Darc reacts live on TV5 Monde.

In a speech marked by patriotism and unity, Prime Minister Samdech Moha Borvor Thipadei Hun Manet reaffirmed the royal government's unwavering support for Cambodian troops on the front lines, promising that ‘the entire nation stands firmly’ behind those defending the country's sovereignty.

During the farewell visit of Ambassador Jacques Pellet, Samdech Maha Rathsapheathika Thipadei Khuon Sudary, President of the National Assembly of the Kingdom of Cambodia, expressed her deep gratitude to France for its invaluable role in Cambodia's development journey.

Cambodia has marked a historic milestone with the successful export of its first container of fresh durian to China, symbolizing a new chapter in the diversification and expansion of its agricultural exports.

On July 10, 2025, the Official Journal officially announced the appointment of Olivier Richard as France's new Ambassador Extraordinary and Plenipotentiary to the Kingdom of Cambodia, marking an important chapter in France's diplomatic engagement with the Kingdom.

Cambodia’s investment landscape is experiencing a remarkable upswing, with the Council for the Development of Cambodia (CDC) announcing the approval of 373 investment projects in the first half of 2025.