The BGA Cambodian Team, led by Managing Director Bora Chhay, wrote an update on the government’s new digital agenda.

Context

  • The Cambodian government’s 2024-2035 digital policy agenda will focus on modernizing the country’s economy and government while deepening integration with its neighbors in the Association of Southeast Asian Nations (ASEAN) and the global economy. The initiative is one of five key pillars underpinning the Pentagonal Strategy, which aims to transform Cambodia into a digital economy powered by fast, secure, reliable and resilient data transfers.
  • The digital transformation of Cambodia’s economy will be completed in three phases: the first (2021-2025) is foundation building, the second (2026-2030) is digital adoption and the third (2031-2035) completes the process. In the first phase, Cambodia will seek to expand digital connectivity, create fintech infrastructure and digital payment systems and enhance logistics and last-mile delivery. Officials will also look to build trust and confidence in the country’s digital architecture by developing responsive and effective legal frameworks and strengthening digital security.

Significance

  • The country’s digital transformation began in earnest in June 2021 with the drafting and enactment of policies, laws and related regulations and the establishment of the National Council for Digital Economy and Society, chaired by the prime minister. The council composes three committees that are responsible for technical tasks: the Digital Economy and Business Committee, chaired by the minister of economy and finance; the Digital Government Committee, chaired by the minister of posts and telecommunication; and the Digital Security Committee, chaired by the prime minister.
  • The government has already adopted a raft of measures to support the digital transformation agenda. These include a value-added tax on e-commerce and laws on e-commerce and telecommunication, competition and consumer protection. Separately, authorities are expediting the adoption of legislation concerning cybercrime, cybersecurity, data protection and privacy. They have already launched digital systems to handle non-tax revenue, business registration and licensing, education, identification, land and vehicles, finance, data exchange and document verification. The government’s cloud strategy and fintech development road map are aimed at safeguarding national interests, protecting citizens’ rights and fostering a secure digital environment conducive to sustainable economic and social development.

Implications

  • The acceleration of Cambodia’s digital transformation presents opportunities for platform technology and fintech companies looking to capitalize on the country’s untapped potential in this space. Businesses are encouraged to consult with officials drafting new laws, policies and regulations and share best practices to assist in the development of Cambodia’s digital infrastructure and security.
  • Cambodia is looking to adopt a national internet gateway, which has been put on hold, develop an integrated digital platform for government services, a data center and a government cloud. In the medium and long term, the government plans to introduce fees or licenses for cloud service providers and software developers, enact a digital management law and implement the national payment system strategy. Officials also hope to develop a system in which the national ID can be used to support the digital identity verification and facilitate e-transactions, streamline digital government-related investment decisions and introduce a core set of technical and functional standards for investment in the information and communications technology space.

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 Managing Director Bora Chhay at bchhay@bowergroupasia.com.

Best regards,

BGA Cambodia Team

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Managing Director

Bora leads BGA’s practice in Cambodia. He is a highly regarded government affairs and public policy expert who helps clients resolve business issues, navigate regulatory and legal challenges, expand operations, explore new investment opportunities and enter Cambodia’s market.  Prior to joining BGA, Bora served for five years as a fast-moving consumer goods (FMCG) corporate and regulatory affairs professional. In this role, he helped transform his company’s government relations and corporate affairs unit into a more effective business-driven group. Notwithstanding Cambodia’s difficult and highly regulated macro environment, Bora played a key role in developing and executing government relations and corporate affairs ... Read More