The BGA Cambodia Team, led by Managing Director Bora Chhay, wrote an update to clients on Prime Minister Hun Sen’s resignation as Cambodia’s prime minister.

Context

  • Cambodian Prime Minister Hun Sen on July 26 declared his intention to step down from his office after ruling the country for more than 38 years. The 70-year-old leader announced his retirement immediately following the country’s July 23 general election, in which the ruling Cambodian People’s Party (CPP) won an expected landslide victory.
  • Hun Sen said his son Hun Manet, 45, will succeed him as the country’s next prime minister on August 10, the day after the National Election Committee verifies the election results. Observers have long speculated on the dynastic power transfer, but the timeline was unclear until recently. Hun Manet is a general in the armed forces and member of the National Assembly. The National Assembly will likely convene on August 21 and confirm the new premier the following day.

Significance

  • Hun Sen will relinquish his title as premier, but he will continue to serve in the government for the foreseeable future. During a recent press conference, the prime minister said he would remain a National Assembly member and the CPP president. He also plans to run for a seat in the February 2024 Senate race and head the Supreme Council of the King.
  • Hun Sen’s announcement is not unexpected; it follows a similar statement last month and the July 14 release of leaked document outlining the new Cabinet’s composition. Hun Sen has reportedly told CPP veterans who were reluctant to step down that their retirement is necessary for the country’s betterment. An official list of the new Cabinet makeup could be circulated on August 22, the date Hun Manet will assume his new role as premier.
  • The United States determined that the elections were “neither free nor fair” and imposed visa restrictions “on individuals who undermined democracy.” Washington also suspended a number of foreign assistance programs to the country.

Implications

  • Businesses should prepare for a Cabinet reshuffle that will remove 80 percent of Cambodia’s current counselors and install a new generation of CPP leaders. The younger cohort is expected to accelerate the country’s economic agenda to achieve upper middle-income status by 2030. Clients are advised to engage the new stakeholders soon after the reshuffle, which is due August 22.
  • The new Cabinet will implement the “Pentagon Strategy” — successor to the “Rectangular Strategy” — to drive Cambodia’s digitalization and economic development through 2050. The document will be unveiled after the new government forms. In parallel, the CPP has identified six economic priorities for the years ahead: expand health care, develop skills, enhance social welfare, foster growth among small and medium-sized enterprises and within the informal economy, increase financial inclusion and provide agricultural technical support.

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