BGA Cambodia Deputy Managing Director Sophea Ros wrote an update to clients on Cambodia’s new strategic development plan.

Context

  • Cambodian Prime Minister Hun Manet in his first Cabinet session on August 24 adopted the Pentagon Strategy, Phase 1, which aims to transform Cambodia into an upper-middle-income country by 2030. Introduced just two days after Hun Manet’s appointment, the strategy includes five phases, each lasting five years up to 2050.
  • The plan targets economic growth of 7 percent each year, job creation and poverty reduction below 10 percent. Other sections advance public administration reform; environmental sustainability; and the development of human capital, public infrastructure and technology.

Significance

  • The Pentagon Strategy outlines five key objectives: build human capital; diversify the economy and enhance competitiveness; develop the private sector and employment opportunities; promote resilience, sustainability and inclusive development; and strengthen the digital economy and society.
  • Hun Manet identified justice system and administrative reform as essential to earn public trust and build private sector confidence. He outlined an agenda and timeline to structurally revamp Cambodia’s institutions, with the aim of providing quality and accessible services through digital governance.

Implications

  • Businesses should watch for the Government-Private Sector Forum, which the prime minister will chair in November. The forum is designed to solicit feedback that will be used to improve the ease of doing business, attract new investment and enhance productivity through skills development and technology adoption.
  • In tandem, the Foreign Affairs Ministry, led by former Council for the Development of Cambodia Secretary-General Sok Chenda Sophea, will seek to implement an economic diplomacy strategy that attracts more high-value investments and modernizes the agricultural sector. The strategy aims to boost growth by offering investment incentives and promoting economic ties with new partners.

We will continue to keep you updated on developments in Cambodia as they occur. If you have any comments or questions, please contact BGA Cambodia Deputy Managing Director Sophea Ros at sros@bowergroupasia.com.

Best regards,

BGA Cambodia Team

A small ginko leaf

Deputy Managing Director

Sophea helps BGA clients parse Cambodia’s business environment and identify opportunities to build a sustainable foundation in the country. He has two decades of senior management experience in sectors such as telecommunications, fast-moving consumer goods and hospitality plus experience with international courts and nongovernmental organizations and as a university lecturer. Sophea has a deep knowledge of the investment environment in Cambodia that provides him a nuanced understanding necessary to help companies succeed.   Before joining BGA, Sophea led the government and external affairs strategies for a major telecommunications company in Cambodia. Prior to that, he worked for a leading beverages company, ... Read More