Cambodia maintains growth amid rising challenges, says PM

Cambodia maintains growth amid rising challenges, says PM

Mr Hun Manet says the country has sustained solid and resilient economic growth, coupled with low inflation and stable exchange rates.

With increasing international trade and investment inflows, Cambodia continues to maintain strong economic growth, even as the global, regional, and domestic environments are surrounded by high risks and uncertainty, said Prime Minister Hun Manet, yesterday.

The Prime Minister was presiding over a meeting attended by nearly 5,000 people, including representatives of trade unions, informal economy workers and members of associations from educational institutions, to celebrate the 140th anniversary of International Labour Day at the Koh Pich Convention and Exhibition Centre in Phnom Penh.

Mr Hun Manet stated that while there is a great level of uncertainty facing the world and the region, reflected by wars and conflicts, geopolitical and economic competition among major powers, and the continued decline of the global order, along with ongoing violations and encroachments by Thailand on Cambodia’s territorial integrity and national sovereignty, the country has continued to maintain strong macroeconomic stability.

The Prime Minister said that despite the mounting challenges, the country has sustained solid and resilient economic growth, coupled with low inflation and stable exchange rates.

He added that the strong growth of international reserves, the steady expansion of foreign trade—especially with increasing diversification in both products and trading partners—and the robust inflow of foreign direct investment, combined with the effective implementation of fiscal and monetary policies, as well as the assurance of national budget sustainability and financial inclusion, are expected to continue in the medium term.

“Maintaining high and resilient economic growth under these complex circumstances is the fruit of peace, stemming from the implementation of the win-win policy of Samdech Techo Hun Sen, besides great sacrifices and tireless efforts to carry out bold reform programmes with a strong commitment to national and public interests,” the Prime Minister added.

Mr Hun Manet further emphasised that the Royal Government has always prioritised the development of the labour sector and vocational training. Under the Pentagonal Strategy Phase One of the Seventh Mandate of the National Assembly, the government has set out five strategic goals, among which job creation—both in quantity and quality—for Cambodian citizens, especially youth, has been identified as the second strategic priority.

He added that there are currently about 2.3 million formally registered workers within the system, while millions of other workers remain outside the formal system and are yet to benefit from various mechanisms established by the Royal Government.

As of the first quarter of 2026, a total of 6,920 professional organisations have been officially registered in the country. They include 43 trade union confederations, 285 trade union federations, 6,579 grassroots unions, and 13 employer associations. Meanwhile, approximately 97.92​ percent of labour disputes have been resolved at the ministry level and through the Arbitration Council.

Heng Sour, Minister of Labour and Vocational Training, stated that the selection of the theme “Collectively Building Resilience for Decent Work” for this year’s International Labour Day celebration reflects the Royal Government’s strong commitment to promoting a resilient and sustainable labour market.

“The Royal Government is highly committed to promoting decent, productive, and sustainable employment for all Cambodian people, while meeting labour market demands and enhancing productivity and resilience of Cambodia’s economy,”​ he emphasised.

On the occasion, on behalf of the ministry’s leadership and officials at all levels, Heng Sour solemnly pledged to continue making greater efforts to effectively implement the Royal Government’s priority policy programmes and the recommendations of Prime Minister Hun Manet.​

He also expressed the commitment to working with relevant stakeholders—including trade unions, employer associations, the Arbitration Council, and other social partners—in a flexible yet firm manner, based on the rule of law, to mediate and resolve labour disputes more effectively at all stages.

This includes addressing factory bankruptcy cases more appropriately, while jointly ensuring improvements in working conditions, rights, benefits, honour and dignity of workers in both formal and informal sectors, as well as for Cambodian workers employed abroad.

In the recently-released “Regional Economic Outlook: Asia and Pacific” report, the International Monetary Fund (IMF) projected Cambodia’s economy to grow at four percent in 2026, unchanged from its October 2025 forecast, despite ongoing challenges such as the border conflict, tariff uncertainty and the Middle East war.

Meanwhile, the Kingdom’s economic growth is expected to rebound to 4.7 percent in 2027, up from the earlier projection of 4.5 percent, reflecting a gradual recovery in external demand and domestic activity.

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