The BGA Cambodia Team led by Managing Director Bora Chhay, wrote an update to clients on the strategic leadership realignment in Cambodia’s Cabinet.

Context

  • The Cambodia National Assembly November 20 approved Prak Sokhonn’s appointment as deputy prime minister and minister of foreign affairs and international cooperation succeeding the incumbent Sok Chenda Sophea, who retains his position as deputy prime minister. This swap marks the second cabinet reshuffle since Prime Minister Hun Manet and his new cabinet took office in August 2023.
  • The leadership transition in the Ministry of Foreign Affairs and International Cooperation appears to be driven by a combination of political, diplomatic and economic policies, and strategic imperatives. It reflects a deliberate effort to bring experiences and diverse expertise, perspectives and skilled diplomats into Manet’s administration as part of its broader strategy to modernize Cambodia’s foreign policy and strengthen its international diplomatic engagement and stature amid an evolving geopolitical environment.

Significance

  • Prime Minister Manet emphasized the importance of promoting foreign policies with flexibility, based on independence and international law, while committing to protect Cambodia’s core interests. These include safeguarding independence, sovereignty and territorial integrity, ensuring peace and social stability, upholding justice and Cambodia’s global reputation. They also include fostering traditional friendly relations, solidarity and multi-sectoral cooperation that deliver mutual benefits with countries and key partners both within and beyond the region. Manet underscored the Cambodia’s dedication to active participation in promoting peace, stability and addressing global challenges.
  • Key priorities of the reshuffle include advancing economic diplomacy, expanding trade and investment opportunities and deepening regional engagement with the Association of Southeast Asian Nations (ASEAN), China, Japan, South Korea, and other key trading partners. Manet’s administration also aims to broaden its dialogue with Western nations, including the United States, the European Union and Canada to bolster bilateral and multilateral partnerships that are crucial for fostering sustainable growth and regional cooperation.

Implications

  • Given Cambodia’s current political landscape, further reshuffles are anticipated at the mid-point of the Manet mandate in 2025 or 2026. These changes aim at strengthening governance effectiveness and efficiency and the implementation of economic policies by aligning leadership with administration’s commitment to being active, results-driven and dedicated to delivering tangible benefits for the nation and its citizens. 
  • Despite the government’s traditionally conservative policy stance, businesses should closely monitor policy developments, because the new leadership emphasizes modernizing governance, administrative reform, workforce development, socio-economic development, infrastructure and rural development. Priorities also include strengthening internal stability and addressing international geopolitical challenges to shape the country’s economic landscape and foreign policy.

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