Cambodian PM Hun Manet Meets World Bank VP to Boost Key Sectors Toward High-Income Goal

Cambodian Prime Minister Samdech Moha Borvor Thipadei Hun Manet met on Tuesday at the Palace of Peace with Carlos Felipe Jaramillo, Vice President of the World Bank for East Asia and the Pacific.

This meeting, reported by the Khmer Presse Agency (AKP), marks a new step in the partnership between the Bretton Woods institution and the Kingdom, which aims to achieve high-income status by 2050.

Mr. Jaramillo presented the main guidelines of the Bank's regional support, identifying Cambodia as a priority beneficiary in key sectors: agriculture and agro-industry, tourism, manufacturing industry, health, and infrastructure.

Support refocused on the private sector

“The World Bank reaffirms its commitment to deepening its cooperation with the Royal Government for dynamic and sustainable growth,” declared Mr. Jaramillo, emphasizing the central role of the private sector as an “essential engine” of employment and shared prosperity.

This vision builds on recent performance. According to the World Bank's “Cambodia Economic Update” from October 2025, GDP growth reached 5.8% in 2024, driven by the textile sector (around $10 billion in estimated exports in 2024) and the tourism rebound. The Ministry of Tourism, moreover, projects welcoming 5.5 million international visitors in 2025, approaching pre-pandemic levels where the sector represented 12% of GDP (WTTC).

Agriculture, which still employs nearly 40% of the workforce (World Bank), will benefit from targeted investments in irrigation and value chains. The goal is to increase rice productivity, currently around 3.2 tons per hectare, to 4 tons per hectare, a regional competitiveness standard (FAO).

The manufacturing sector, supported by $4.2 billion in foreign direct investments recorded in 2025 (Cambodia Development Council - CDIC), will continue to attract industries seeking to diversify their production bases in Asia. Finally, health and infrastructure will benefit from substantial funding, with the World Bank committing nearly $500 million in new financing for the Kingdom since 2020.

The “Pentagonal Strategy” in action

Prime Minister Hun Manet expressed his gratitude for this long-standing partnership and detailed the progress of the “Pentagonal Strategy” (inclusive growth, just society, human development, rule of law, multi-directional diplomacy). Among the highlighted achievements: accelerated vocational training (with a target of 100,000 young people trained annually via the National Employment Agency), investments in human capital (the literacy rate for youth aged 15-24 now reaches 88%, according to UNESCO), and financial reforms to stabilize the riel.

The government also highlighted its efforts to improve the business climate, particularly through the digitization of business permits (Unique Business Registration portal), a key factor for attracting investors.

Support for SMEs, which represent about 60% of employment and 20% of GDP (IFC), is strengthened by dedicated credit lines and the development of special economic zones (12 major zones in operation generating nearly 300,000 jobs, according to the CDIC). These measures aim to diversify an economy still dependent on traditional markets: while the European Union and the United States remain major outlets, their share of total exports is tending to decrease in favor of regional partners.