Economic Diversification in Cambodia

The Adenauer Young Scholars for Excellence program, a public-policy training initiative by KAS Cambodia and IISPP, is tackling a key question this year: How can Cambodia transition from low-cost manufacturing to the industries of tomorrow? In their work, our fellows provide their insightful perspectives on the Kingdom's economic diversification efforts under the Pentagonal Strategy Phase I.

In this volume, fourteen commentaries are featured: 1) Electricity Security for Economic Diversification: A Shift to Greener Solutions; 2) Cambodia’s Workforce at a Crossroads: Navigating the Transition from Low-Cost Labor to High-Value Industries; 3) The Fallout of Abandoned Chinese Investments in Sihanoukville: Implications for Local Communities and the Real Estate Market; 4) Cambodia’s Position in the ASEAN Business Landscape: Opportunities and Challenges for Growth; 5) Exploring Sihanoukville’s Potential as a Forex Trading Hub in Southeast Asia: Opportunities and Challenges; 6) Shifting Cambodia’s Economic Paradigm: From Low-Cost Labor to High-Value Industries in the Age of AI and Automation; 7) Diversifying the Cambodia Electronics and Electrical (E&E) Sector Toward Global Value Chain Integration and Linkage Creation; 8) The Importance of TVET in Enhancing Cambodia’s Industrial Development; 9) Beyond Garments: Building a Diverse and Resilient Export Economy in Cambodia by 2029; 10) The Impact of Limited Agro-Processing Capacity on Domestic Consumption in Cambodia; 11) Fish & Rice Corridor: A Strategic Agricultural Goldmine for Cambodia or a Key Food Supply Chain for China; 12) Cambodia’s Role in the China + 1 Strategy: Emerging as a New Manufacturing Hub or Serving as a Proxy State?; 13) Startups as a Catalyst for Economic Diversification in Cambodia: A Critical Analysis; and 14) Made in Cambodia: Bridging the Gaps in Agro-Processing for a Stronger Export-Oriented Industry.

We hope you enjoy exploring the insights our scholars have shared, and we extend our heartfelt gratitude to the entire cohort for their thoughtful contributions. Our sincere thanks also go to Mr. Lak Chansok and Mr. Luy Ung Techhong for spearheading this project, with special appreciation to Ms. Sean Mouy Ing and Ms. Im Ponha Voatey for their invaluable assistance.