AGP Executive Report

Investment & Manufacturing: MinebeaMitsumi’s CEO met Prime Minister Hun Manet, praising Cambodia’s support and outlining plans to inaugurate a new factory and expand investment as the firm marks 15 years in-country. Trade & Competitiveness: CDC First Vice Chairman Sun Chanthol said Cambodia is preparing for shifts in U.S. trade preferences now—by simplifying procedures, cutting logistics costs, improving quality and skills, and moving beyond garments into electronics and food processing. U.S. Tariffs Watch: Sun Chanthol clarified the new 10% U.S. tariff on Cambodia is a separate Section 301 measure alongside the MFN rate, with Cambodia in the lower band while an excess-capacity review is still pending. Investment Climate: Sun Chanthol also highlighted investment procedure streamlining and reported 276 projects approved in H1 2026 worth about $4.7B and expected to create around 160,000 jobs. Tourism Pressure: Reports say Cambodia’s tourism slump is leaving Angkor Wat eerily quiet, with operators blaming safety concerns, Thailand border tensions, and reputational damage from scam compounds. Public Health & Cities: Nearly 400 Siem Reap residents petitioned for designated smoking areas or stricter enforcement around Pub Street to protect workers and visitors from secondhand smoke. Environment & Fisheries: A Mekong Irrawaddy dolphin rescued from fishing gear in Kandal province was found dead days later, prompting renewed calls to stop illegal gear.

Funan Techo Canal Financing: Cambodia’s flagship Funan Techo Canal gets a major boost as China approves a $200M loan (plus a $200M grant for bridges) and a $1B loan to the concessionaire, ending months of uncertainty around the $1.2B project. US Tariffs & Trade Rules: CDC’s Sun Chanthol says Cambodia’s new US 10% tariff is a separate Section 301 duty added on top of MFN, with forced-labour issues resolved and only an excess-capacity review pending. Investment Climate Push: Sun Chanthol also flags streamlined investment procedures aimed at cutting costs, removing bureaucracy, and shifting toward higher-value sectors like electronics and food processing. Textiles Under Pressure: Cambodia’s textile industry warns the US “textile mechanism” tied to Section 301 forced-labour actions could still disrupt supply chains, even if some relief is possible for Cambodia-linked imports. Exports Watch: Cambodia exported about $360M in bicycles in H1 2026 (+19%), and fresh durian exports to China jumped to 5,738 tonnes (+~40x) as a new rail corridor via Laos cuts delivery time to around five days. Economy Outlook: The National Bank of Cambodia forecasts 3.9% growth in 2026, with stronger exports and FDI expected to lift performance in the second half.

Ecotourism & Forest Protection: In Kampong Speu’s Cardamom Mountains, former illegal logger Kou Da now guides hikers at Phnom Knorng Phsar, as community-based ecotourism grows membership and eases pressure on protected pine forests. Agri-Exports & Logistics: Cambodia’s fresh durian exports to China hit 5,738 tonnes in the first seven months of 2026, boosted by a new overland route through Laos that cuts delivery time to about five days. Investment & Jobs: The Council for the Development of Cambodia approved 276 new projects in H1 2026 worth about $4.7 billion, targeting around 160,000 jobs, including renewable energy and advanced manufacturing. US Tariffs & Cambodia Trade: The US imposed new 10–12.5% forced-labour-related tariffs on 60 economies, with Cambodia listed among affected countries—raising compliance and supply-chain scrutiny for exporters. ASEAN Trade Resilience: Cambodia says it has adapted well to Thailand’s unilateral border closure by shifting logistics through ports/air and diversifying import sources. Green Farming Tech: Australia committed AU$3.2 million to help Cambodia modernize smallholder farming with electric, smart-technology-enabled machinery to tackle fuel costs and labor shortages. Solar & Energy Transition: Cambodia also secured major World Bank sustainable energy financing, while Cambodia-US cooperation highlights green transport systems.

Home Textiles Sourcing: Intertextile Shanghai Home Textiles (Aug 18–20) is expanding its exhibitor lineup and cross-category sourcing in bedding, upholstery/sofa fabrics and wall décor, aiming to match shifting buyer demand with fresh design and sustainable options. US Forced-Labour Tariffs Impacting Textiles: The U.S. Section 301 forced-labour action now includes a textile mechanism that could offer relief for textile/apparel imports from Bangladesh, Cambodia, Indonesia and Malaysia, but industry groups warn it may still hurt U.S. manufacturers and that exemptions may not cover all inputs. Cambodia Trade Resilience: Cambodia’s commerce minister says the country has “adapted well” to Thailand’s unilateral border closure, with seaports/airports still moving goods and trade routes reorganising through diversified import markets and more local raw-material buying. Cambodia-US Green Transport Deal: GenRich Investment and Graphion Energy Solutions signed an MoU to develop green transportation systems, focusing on accelerating electric vehicle adoption and charging infrastructure. Tourism Downturn: Cambodia’s international arrivals fell 47.9% to 1.75 million in H1 2026, with declines from China, Vietnam and the U.S., linked to regional slowdown, online scam concerns and Thailand border disputes. Crypto Enforcement Gap: A FATF update highlights a widening gap between fast-growing crypto regulation and enforcement effectiveness, as illicit crypto flows hit record-high levels.

SME Push for Faster Growth: PM Hun Manet ordered a fast-track overhaul of SME business registration, aiming to cut delays and speed up Cambodia-made production, starting with a soap pilot targeting registration within six days. Border Tensions and Trade Strain: Thailand’s fortified border wall and continued closure keep cross-border trade and livelihoods under pressure, while Cambodia says its manufacturing sector has adapted by rerouting via ports/air and diversifying suppliers. Tourism Shock: Cambodia’s international arrivals fell 47.9% to 1.75 million in H1 2026, with declines from China, Vietnam and the US blamed on regional slowdown, scam concerns and Thailand border disputes. Green Season Branding Debate: A commentary argues Cambodia’s “green season” label won’t fill hotels unless the rainy season is packaged into real visitor products. Responsible Investment Scrutiny: A study on major Chinese projects (Lower Sesan 2, Dara Sakor SEZ, Funan Techo Canal) flags “significant compliance gaps” in responsible business conduct, urging stronger ESG guidance. Cybercrime Crackdown Link: The US moves to restrict visas for foreign cybercriminals tied to scams and extortion, with Cambodia mentioned in the wider fight against online scam networks. Energy Finance: Cambodia secured World Bank financing for sustainable energy transition projects, reinforcing the push for greener infrastructure.

US Forced-Labour Tariffs: The US has started imposing new Section 301 duties on 60 trading partners, with rates of 10% or 12.5% depending on each country’s forced-labour controls—an approach that’s already triggering legal challenges and supply-chain jitters. India’s Relative Relief: India landed in the lower 10% tier after engagement with Washington, with officials saying about 45% of exports fall outside the extra duty, but exporters still warn of competitiveness and quota uncertainty. Textiles Watch: Industry groups flagged risks for apparel and footwear sourcing as the tariff architecture could shift orders toward rivals like Bangladesh, Cambodia, Indonesia and Malaysia under any future quota rules. Cambodia Trade Resilience: Cambodia’s commerce minister says the country has “adapted well” to Thailand’s unilateral border closure, with logistics still moving via ports and airports and trade routes reorganising through diversified supply sources. Green Transport Push: Cambodia and a US firm signed an MoU to accelerate electric-vehicle adoption, charging infrastructure and a broader green transport ecosystem. Solar Road Safety: Cambodia will deploy solar-powered street lighting across 13 provinces under a $5m government partnership aimed at safer roads and public security. Tourism Downturn: Cambodia’s international arrivals fell 47.9% in H1 2026, with scamming concerns and Thailand border disputes cited among the drivers. ASEAN External Links: Cambodia’s foreign minister met US, Canada and Australia counterparts in Manila, pledging deeper cooperation on trade, energy, security and investment.

US Forced-Labor Tariffs: The US has rolled out new Section 301 duties on 60 trading partners, replacing the expiring Section 122 levy, with rates set at 10% for countries deemed to have adopted and enforced forced-labor import bans and 12.5% for others; Cambodia is listed in the 10% tier, meaning the extra cost stacks on top of existing Most-Favoured-Nation tariffs for covered goods. Textiles & Sourcing Pressure: Industry voices warn the tariff architecture could reshape apparel and footwear sourcing, with Cambodia, Bangladesh, Indonesia and Malaysia also flagged for possible textile tariff-rate quotas tied to US cotton inputs—while rivals facing 12.5% may gain a relative edge. Regional Trade Signals: Bangladesh’s apparel sector is reported to be losing momentum in the EU and US, pushing exporters toward higher-value products as buyers tighten scrutiny. Cambodia Compliance Push: Cambodia says it has taken additional steps to strengthen measures against forced-labor imports following the US action. ASEAN Energy Cooperation: China and ASEAN foreign ministers backed closer energy security cooperation, including information-sharing and possible mechanisms to improve power interconnectivity and resilience amid Middle East spillover risks. Cambodia–Thailand Context: Separate coverage notes ongoing sensitivity around Cambodia’s border situation with Thailand, underscoring how logistics and stability still matter for industry planning.

US Forced-Labour Tariffs: The Trump administration has launched sweeping Section 301 tariffs on 60 economies, with rates of 10% for countries deemed to have forced-labour import bans in place and 12.5% for others, taking effect as a temporary global levy expired. Cambodia Export Impact: Cambodia is listed in the 10% tier, which could help its garment, footwear and travel-goods makers stay competitive versus rivals facing 12.5%, though Cambodia still competes with Bangladesh and Indonesia at the same 10% rate. Trade Facilitation for LDC Graduation: Cambodia’s Commerce Minister Cham Nimul says talks with the US focus on customs modernization, electronic communication, licensing and standards as Cambodia prepares for 2029 LDC graduation, alongside steps to strengthen forced-labour enforcement. Cross-Border Friction: A year after Thai-Cambodian clashes, the border remains effectively closed, with tens of thousands displaced and local services and businesses still disrupted. SME Risks: Cambodia saw a major counterfeit crackdown on “Empress” personal care products, highlighting how IP protection gaps can hurt local brands. Supply-Chain Headaches: A trade-focused op-ed warns that delays often start before goods move—inside contracts, documents and approvals—creating costly disputes and unexpected fees.

US Tariff Shock for Cambodia’s Exporters: The Trump administration imposed new 10% and 12.5% forced-labour tariffs on 60 trading partners as a temporary global 10% levy expired, with Cambodia listed among the 10% group—raising fresh pressure on apparel, agriculture and other supply chains that serve the US market. ASEAN Tech & Trade Push: Cambodia used ASEAN dialogue talks in Manila to call for deeper cooperation with partners on trade, investment, digital transformation, infrastructure, energy security and regional security. AI and Digital Economy Focus: Cambodia also put AI, digital trade, fintech, cybersecurity and smart infrastructure at the center of discussions with China, India, Japan and Korea, including a push for an ASEAN–China Year of AI Cooperation in 2027. Human Capital & Green Growth: Cambodia stressed education, TVET, renewable energy, climate resilience and sustainable agriculture as key drivers for long-term ASEAN prosperity. Scam Crackdown Intensifies: PM Hun Manet pledged tougher action against transnational online scam networks, warning syndicates are adapting into smaller, decentralised cells across Cambodia, Myanmar and Laos. Mining Update (Mondulkiri): Unity Metals reported its first modern drill results at O’Phlay—40m at 1.9g/t gold from 82m—supporting plans to expand drilling at the Cambodian project. Insurance Sector Moves: Cambodia’s insurance regulator signed an MoU with ACLEDA University to boost public awareness and skills, as penetration remains low at about 1.11% of GDP. US-Cambodia Business Interest: A US-ASEAN Business Council delegation met Cambodian leaders to explore expansion in healthcare, manufacturing, energy, finance, digital tech and hospitality.

Investment & Industry Approvals: Cambodia’s Council for the Development of Cambodia reviewed nine proposed QIP projects worth nearly US$95m across manufacturing, agro-industry and mining, aiming to create about 3,500 jobs. Agriculture Under Pressure: El Niño drought has hit 180,663 hectares of rice in seven provinces, with authorities pumping water to limit damage. Export Wins for Farmers: Cambodia secured China market access for edible bird’s nests, with BEST LIFE PRODUCT Co. approved as the first authorised exporter, while swiftlet nest exports are expected to expand as more firms meet compliance. Food & Processing Trade: Cambodia exported about US$1.75b in raw cashew nuts in H1 2026 (up 28%), and vehicle tire exports reached roughly US$1b in H1 (up 55%). Energy Infrastructure: The World Bank approved US$115m for sustainable energy transition, including battery storage, grid upgrades and EV charging. Regional Security & Scams: UN reports warn Southeast Asia’s scam economy is now a transnational network, and the US FBI chief met Cambodia’s PM to push joint action against online scam operations. Governance & Productivity: APO handed Cambodia an Institutional Capability Development Plan for the National Productivity Centre to support productivity-led growth ahead of LDC graduation in 2029. ASEAN Energy Focus: Cambodia’s FM urged ASEAN to accelerate the petroleum security pact, power grid and renewable investment. Border Tensions: Cambodia protested Thailand’s road construction in Oddar Meanchey as a sovereignty violation.

El Niño Drought Response: Cambodia is racing to protect rice crops after El Niño hit 180,663 hectares across seven provinces, with authorities pumping water where irrigation is limited and monitoring for further damage. Vehicle Tire Exports Surge: Cambodia exported about $1B in vehicle tires in H1 2026, up 55% year-on-year, with eight tire factories in special economic zones supporting demand in the US and Europe. Sustainable Energy Push: The World Bank approved $115M for Cambodia’s Sustainable Energy Transition, including battery storage, grid upgrades, EV charging, and smart metering to improve reliability and rural access. Bird’s Nest Opens China Market: China’s customs regulator approved Cambodia’s first official exporter for edible bird’s nests, with BEST LIFE PRODUCT Co., Ltd. preparing an inaugural shipment. Cashew Cash Inflow: Raw cashew exports reached 1.03 million tonnes and about $1.75B in H1 2026, up 28%, though the industry is still urging more local processing for higher value. Insurance Skills Partnership: The Insurance Regulator of Cambodia signed an MoU with ACLEDA University to build talent and raise public insurance awareness as premiums grow. Anti-Scam Security Drive: FBI Director Kash Patel met PM Hun Manet to intensify cooperation against online scam syndicates, as UNODC estimates Asia-Pacific scam losses of up to $114B in 2025. Productivity Capacity Plan: Cambodia received an Institutional Capability Development Plan for the National Productivity Centre to strengthen implementation ahead of LDC graduation in 2029. ASEAN Energy Priority: Cambodia’s FM highlighted ASEAN energy security goals, including the ASEAN Power Grid, renewable investment, and operationalizing the ASEAN Petroleum Security Agreement.

Cybercrime Crackdown: FBI Director Kash Patel met PM Hun Manet to push joint action against online scam syndicates, with UNODC warning Asia-Pacific losses hit up to $114bn in 2025 as criminals shift tactics and locations. Scam Industry Links: Reuters reported a Cambodian tycoon’s property was the landlord for buildings used for industrial-scale scamming and human trafficking on the Thai-Cambodian border, raising questions for landlords and enforcement. Energy Transition Finance: Cambodia received a World Bank concessional loan ($110m) and grant ($5m) for sustainable energy transition projects, including battery energy storage, transmission lines, substations, and grid upgrades. ASEAN Energy Security: FM Prak Sokhonn told ASEAN meetings in Manila that energy security is a strategic priority, calling for faster ASEAN petroleum security, the ASEAN Power Grid, and more renewable investment. Trade Momentum: Cambodia’s trade with ASEAN and the EU reached $13.3bn in H1 2026, with ASEAN trade up 21.8% YoY to $10.3bn. Investment Inflows: Cambodia welcomed about 70 Chinese companies to explore opportunities across EVs, renewables, agriculture, AI, manufacturing, logistics, and finance. Border Tensions: Cambodia lodged another protest against Thailand’s road construction and barbed-wire works in Oddar Meanchey, saying they encroach on Cambodian territory. US Diplomacy: US Sec. of State Marco Rubio warned ASEAN partners that any move to control and toll the Strait of Hormuz could set a dangerous precedent for global trade routes.

Customs Readiness: Cambodia’s customs chief says H1 2026 collections hit $1.55B, up 4.5% year-on-year, with mixed consumer goods and machinery leading while fuel/gas fell after tariff cuts. Cross-Border Trade & Compliance: As trade volumes rise, businesses are being pushed to streamline customs clearance, duties payment, and supply-chain planning to protect production and delivery schedules. Labour Enforcement: Thai authorities arrested 38 foreign workers without permits at a Chinese-owned construction site in Rayong and charged the company for employing them illegally. Aviation & Fleet Expansion: Air Cambodia signed with COMAC to buy 20 C909 regional jets, aiming for phased deliveries and service entry in 2H 2026. Scam Economy Warning: A UNODC report flags rapidly expanding Southeast Asia-linked cyber fraud using AI and encrypted tools, with Asia-Pacific losses estimated up to $114.1B in 2025. Wildlife Trade Probe: Earth League International alleges illegal wildlife trade in Cambodia, with endangered species sold to wealthy and Chinese-linked buyers. Tourism Push: The 11th Angkor Empire Marathon (Aug 2) is set to boost sports tourism during Green Season, with visa-exempt Chinese participation expected. Korean Investment Interest: Hun Manet met a Korean delegation exploring manufacturing, electronics, textiles, finance, construction and food opportunities.

Aviation Deal: Air Cambodia has signed with COMAC to buy 20 C909 regional jets, aiming for phased deliveries and service entry in the second half of 2026, plus COMAC support for operations, training and maintenance. Customs & Trade: Cambodia’s customs revenue hit $1.55bn in H1 2026, up 4.5% year-on-year, with mixed consumer goods, vehicles and machinery driving gains as fuel collections fell after tax cuts. Cross-Border Tensions: Cambodia pushed back on Thailand’s claim that Phnom Penh stalled land border talks, saying demarcation is continuing and rejecting “pretexts” for delays. Power & Industry Supply Chains: Malaysia’s Hyrax Oil signed agreements to expand transformer fluids and technical services across Thailand, Cambodia, Laos, Myanmar and Vietnam, targeting cleaner power infrastructure. Investment Interest: A Korean business delegation met PM Hun Manet to explore manufacturing, electronics, textiles, construction and finance opportunities as bilateral trade rises. Agriculture Markets: Cambodia and the Philippines launched a government-private forum to boost agricultural trade, focusing on rice, cashews and livestock and supply of fertilisers. Scam Economy Warning: A UN report says Asia-Pacific scam losses reached up to $114.1bn in 2025 as syndicates professionalize with AI and crypto, with Cambodia highlighted among key hubs. Wildlife Trade Probe: Earth League International alleges illegal wildlife trade in Cambodia is thriving, with endangered species sold to wealthy buyers and officials, urging China to curb demand and networks. Fuel Price Relief: PM Hun Manet said Cambodia subsidizes $50–60m monthly to cushion fuel price hikes, as retail gasoline and diesel prices rose again. Regional Diplomacy: ASEAN foreign ministers meet in Manila amid Myanmar, South China Sea and trade disruptions, with China and the US among expected participants. AI & Skills Push: Hun Manet said Chinese firms are interested in Cambodia’s AI education/training, electrical components and agro-industry, urging faster skills development. Aviation Training Support: KOICA-backed training in South Korea concluded for Cambodian aviation officials, aimed at strengthening civil aviation education and ICAO certification. Export Milestone: China’s customs approved Cambodia’s Best Life Product to export bird’s nest to China through 2031, making it the first approved exporter.

Cambodia–China Trade & Exports: China’s General Administration of Customs has approved Best Life Product Co., Ltd. as the first Cambodian bird’s nest exporter to ship directly to China, with approval valid until 2031—raising hopes that more firms can meet strict traceability and hygiene requirements. Korean Investment Push: Prime Minister Hun Manet met a Korean investor delegation led by KOCHAM and WorldBridge Group, with firms exploring expansion across automotive, electronics, textiles, finance, construction, distribution, food and entertainment. Education & Tech Cooperation: India’s Quick Impact Project will support Samdech Preah Mohasangharajah Bour Kry University in Kandal with a teleconference hall, electrical engineering lab and digital education centre. Regional Trade Momentum: Cambodia’s RCEP trade hit $24.5B in H1 2026 (+24%), while trade with ASEAN and the EU rose to $13.3B, underlining continued demand for Cambodian manufacturing and higher-value exports. SME Pressure on Red Tape: Hun Manet invited SMEs to share obstacles after complaints about slow, bureaucratic business registration for manufacturing ventures. Cross-border Security Watch: Thai-Cambodian border tensions remain high, with reports of explosions and construction activity near the frontier, while dialogue efforts continue. Digital Crime Warning: A UN report says victims across East and Southeast Asia lost up to $114.1B in 2025, with Cambodia and Myanmar highlighted as scam hubs.

ASEAN Diplomacy: Cambodia’s Deputy PM and Foreign Minister Prak Sokhonn joined the 59th ASEAN Foreign Ministers’ Meeting in Manila, with US Secretary of State Marco Rubio and China’s Wang Yi among key partners, as regional peace and security stay front and center. SME & Business Climate: Prime Minister Hun Manet invited SMEs to submit feedback on what’s blocking them, after renewed complaints about slow, bureaucratic business registration—signaling more targeted support for domestic production. Industrial Growth: Cambodia reported a 25% jump in large-scale operating factories by June 2026, reaching 3,319 plants and 1.3 million jobs, as the country pushes higher-value manufacturing. Cambodia–Korea Trade & Investment: A South Korean investor delegation met Hun Manet to expand manufacturing and business ties across sectors like electronics, textiles, construction, food and finance. Aviation & Logistics: Air Cambodia placed a 20-jet order for Comac C909 regional aircraft, with delivery starting later this year, aiming to strengthen route networks and competitiveness. Consumer Protection: The UK and Cambodia deepened cooperation on product safety and market surveillance, including SOP support for inspectors rolling out to provinces and border regions. Digital Skills & STEM: Cambodia launched the 7th Kibo Robot Programming Challenge to boost coding and space-focused STEM among students. Trade Performance: Cambodia’s trade with ASEAN and the EU rose to $13.3bn in H1 2026, reflecting stronger regional supply-chain links. Public Health: A landmark study found tobacco use among Cambodian men is closely tied to poverty, limited education, manual/agricultural work and alcohol—pointing to inequality-driven prevention needs.