As part of the Royal Government’s preparedness efforts for Cambodia’s graduation as Least Developed Country (LDC), the Ministry of Planning and the United Nations Development Programme (UNDP) organised a Policy Dialogue titled “Towards Cambodia’s LDC Graduation: A Multi-Stakeholder Outlook for a Smooth and Durable Transition” in Phnom Penh on Nov. 11.

The policy dialogue brought together senior government officials, development experts, private sector representatives, and civil society to discuss from a multi-stakeholder perspective the socioeconomic implications of LDC graduation and the main requirements for a smooth and durable transition.
During the event, the Ministry of Planning and UNDP also launched the policy brief, “Cambodia’s Graduation from Least Developed Country (LDC) Status: Preparedness and Potential Economic and Social Impacts.
According to a joint press release, the policy brief assesses potential loss of international support measures, such as Trade-Related Aspects of Intellectual Property Rights (TRIPS) waivers under WTO rules, preferential market access, and concessional financing, among others. These losses could affect public health, key trade exports (ex. garments, milled rice, and bicycles), and reduce the overall economic growth. The policy brief highlights that GDP growth may slow down between 0.5 to 1.5 percent with 165,000 potential job losses, particularly among women working in the garment sector. As a result, 432,000 people are at risk of falling into poverty if the right foundations are not laid as early as possible.
“LDC graduation marks a significant achievement of the Kingdom's development journey, bringing not only challenges but also opportunities. This transition will also open new avenues for strong and resilient growth,” said Ms. Alissar Chaker, Resident Representative of UNDP Cambodia.
“LDC graduation is a collective effort that extends beyond trade, and that requires the engagement of all development partners and social actors to fully harness its opportunities and re-brand the country. UNDP is committed to accompanying Cambodia during its transition through supporting the acceleration of human development, enhancing competitiveness and economic diversification, promoting green economy for resilient growth, and transitioning from funding to financing, as outlined in the UNDP’s Country Programme Document (2024-2028).”
H.E. Bin Troachhey, Minister of Planning, said :
“To ensure that Cambodia's graduation from LDC status does not hinder socio-economic and environmental progress, the Ministry of Planning, as the arm and secretariat of the Royal Government of Cambodia (RGC) responsible for coordinating and preparing Cambodia’s LDC graduation, will collaborate with all relevant ministries, institutions, the private sector, development partners, and civil society to develop the Smooth Transition Strategy (STS) for implementation during post-graduation. This strategy will be aligned with the Royal Government's Pentagonal Strategy – Phase I and Vision which will focus on six key priorities: 1). Enhancing Human Capital; 2). Economic Diversification; 3). Expanding Trade Markets; 4). Attracting Foreign Investment; 5). Advancing Science, Technology, and Innovation; and 6). Strengthening Social Support Mechanisms.”
UNDP takes great pride in supporting the Ministry of Planning who leads the reflection and coordination on smooth and sustainable transition from LDC status, working hand in hand with national and international partners to develop and implement a comprehensive smooth transition strategy.
The Least Developed Countries (LDC) category, established by the United Nations General Assembly in 1971, currently includes forty-five nations, with some set to graduate soon. Graduation is based on three criteria: per capita income, the Human Assets Index, and the Economic and Environmental Vulnerability Index.
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