Cambodia bets on youth power to drive digital economy ambitions

Cambodia bets on youth power to drive digital economy ambitions

The fact that Cambodia’s 17 million population has 21 million mobile phone subscriptions presents a fascinating story. What do the disproportionate numbers suggest? While expert after expert presents the rosy side of the growth, they also tell Khmer Times that more needs to be done to fully capitalise on the number boom. One of the outstanding achievements has been the rapid development of digital payments through the National Bank of Cambodia’s Bakong platform and the KHQR payment system. Indeed, Bakong has transformed the digital finance ecosystem, allowing users to make transfers and QR-based payments across banks and e-wallets. True, a solid foundation for domestic digital readiness has been laid. But that’s hardly enough. Although the Kingdom is moving in the right direction on digital transformation, the real test will be its execution, not policies. As one techno-geek puts it: Countries do not become digital by accident. They need infrastructure, regulation, talent, and private sector participation. What Cambodia ultimately needs is digital managers, cybersecurity professionals, data analysts, AI-literate teachers, digital finance professionals, and young people who can crack real business problems with technology. In gist, a long way to go, but it’s viable

With nearly 21 million mobile phone subscriptions and around 20 million internet subscriptions that surpass a population of over 17 million, a good majority of them under the age of 30, Cambodia is on the cusp of a digital revolution that could reshape its economic future.

As Khmer Times spoke to a cross section of industry leaders and experts, one thing is clear: Cambodia is accelerating efforts to build a modern digital economy, with policymakers positioning technology as a new engine of growth, governance reform and regional integration.

National strategies

Over the past five years, the Kingdom has rolled out a series of national strategies aimed at expanding digital infrastructure, modernising public services, boosting e-commerce and strengthening digital financial connectivity across borders.

At the centre of the transformation is the “Cambodia Digital Economy and Society Policy Framework 2021-2035,” which outlines the government’s long-term vision of building a “vibrant digital economy and society” by promoting digital adoption among the state, businesses and citizens. The framework focuses on five pillars: digital infrastructure, digital citizens, digital government, digital business and digital trust.

Complementing this is the “Digital Government Policy 2022-2035,” led by the Ministry of Post and Telecommunications, which seeks to modernise public administration through integrated digital services, data-sharing systems and digital payment platforms. The policy aims to improve service delivery while strengthening cybersecurity and public confidence in online systems.

Government agencies say Cambodia’s digital transformation strategy is designed not only to improve efficiency, but also to increase economic competitiveness amid rapid technological changes in Southeast Asia. The roadmap includes expansion of broadband and 5G infrastructure, cloud systems, digital identity platforms and electronic invoicing services.

One of Cambodia’s most notable achievements has been the rapid development of digital payments through the National Bank of Cambodia’s Bakong platform and the KHQR payment system.

Bakong, launched in 2020, has emerged as a key component of Cambodia’s digital finance ecosystem, allowing users to conduct real-time transfers and QR-based payments across participating banks and e-wallets.

The system has also become central to Cambodia’s push for cross-border payment interoperability. In recent years, Cambodia has expanded QR payment connectivity with Vietnam, Laos, Malaysia, Singapore, Thailand and Japan, enabling travellers and businesses to make transactions more seamlessly using local currencies. The Kingdom has also partnered with China’s Alipay, allowing Cambodian users to access millions of overseas merchants while enabling Chinese tourists to make QR payments in Cambodia.

According to reports cited by National Bank of Cambodia, QR payment transactions have surged sharply in recent years, reflecting rising public adoption of digital finance and mobile banking services. Policymakers also see the system as a tool to promote wider use of the Cambodian riel in a highly dollarised economy.

Experts say Cambodia’s approach is increasingly centred on a ‘Government-as-a-Platform’ model, integrating digital identity, payments, data exchange and e-invoicing systems into a unified digital infrastructure. Platforms such as CamDigiKey, CamDX and CamInvoice are being developed to support secure digital interactions between citizens, businesses and state institutions.

E-commerce has also expanded rapidly since the Covid-19 pandemic accelerated digital adoption among consumers and businesses. The government has sought to support the sector through improvements in logistics, digital payments and legal frameworks governing online trade. The Digital Economy and Society Policy Framework specifically identifies logistics systems and last-mile delivery as critical components of Cambodia’s digital infrastructure development.

E-commerce has become a significant contributor to Cambodia’s economy, accounting for 6.68 percent of GDP in 2024. Platforms such as Facebook, TikTok, and Telegram dominate online sales, underscoring the role of social commerce in driving digital transactions.

Ministry of Commerce data for 2024 showed that QR codes had emerged as the most popular payment method, representing 47.15 percent of transactions, followed by cash at 26.5 percent, mobile money transfers at 13.3 percent, and other methods at 13.05 percent. This trend reflects growing public confidence in digital payments, supported by mobile banking integration.

Cambodia has also begun rolling out electronic invoicing systems as part of broader efforts to modernise taxation and improve transparency. The CamInvoice platform, initially introduced for government procurement and public-sector transactions, is expected to gradually expand into the private sector in the coming years. Analysts say digital invoicing could help improve tax compliance while reducing paperwork and transaction costs for businesses.

According to Tassilo Brinzer, Chairperson of the European Chamber of Commerce in Cambodia (EuroCham), digital governance offers a great opportunity for the country to make its public administration and regulatory environment more efficient, and in many areas, digital platforms are already established.

“Cambodia was always very open to this. Important is that these processes now become more integrated across ministries and authorities so that efficiency gains bring real advantages to businesses and the public, helping to reduce red tape and to cut unnecessary or redundant regulations. For example, as a business, you upload a document once and you don’t need to submit that same document to another authority again. How many times do businesses need to send the same set of documents to different institutions? Smart and even AI-driven e-governance will make life easier for everyone,” Brinzer pointed out, while speaking with Khmer Times.

“For example, in Germany, urban planners are supported by AI, which vets architectural plans submitted to the government. What took months before to review now takes days as the AI checks the plans for their regulatory compliance. A human then just does the final checks. AI use in public administration will also cut the number of public employees, which brings cost advantages for the government. So, more digitalisation and AI in governance will help Cambodia become much more efficient, easier to navigate and more transparent – and thus attractive to investors,” he said.

Shane Gladwin, Senior Policy & Research Analyst, at Profitence (Cambodia) Co., Ltd, said that the Royal Government of Cambodia has laid a solid foundation for domestic “digital readiness” through initiatives like the Bakong payment ecosystem, the CamDX platform, and national data privacy goals.

“However, to ensure long-term economic resilience, Cambodia must pivot from local readiness to global competitiveness. While domestic frameworks have successfully driven local adoption, there is a need to strengthen existing policies to better equip local SMEs in handling complex international trade laws, cross-border e-logistics, and foreign consumer markets. To bridge this crucial gap, the Ministry of Commerce is collaborating with Profitence to draft the Cambodia Digital Trade Strategic Plan (CDTSP), an operational roadmap under the Cambodia Trade Policy Framework (CTPF) 2030,” Shane said.

“This blueprint aims to equip local businesses with the specialised trade mechanisms and legal frameworks needed to actively scale and compete globally,” Shane said, adding, “Although Cambodia’s domestic e-commerce sector is thriving, driven by a young, digitally native population, the country accounts for just 1.2 percent to 1.3 percent of the ASEAN e-commerce market.

Transitioning from localised marketplaces to cross-border, export-driven e-commerce is essential to counter the impending erosion of preferential tariffs as Cambodia graduates from the Least Developed Country (LDC) status.”

“Aligned with Pentagon 5 of the government’s Pentagonal Strategy–Phase 1, the CDTSP addresses cross-border friction points. It focuses on regional protocols like the ASEAN Digital Economy Framework Agreement (DEFA), cross-border e-contracts, lower B2B transaction fees, and resolving reverse logistics bottlenecks to help MSMEs scale internationally,” Shane said.

Skills development

Beyond infrastructure and payments, authorities are increasingly prioritising digital skills development to prepare the workforce for a more technology-driven economy. The national digital policy framework emphasises the importance of “building digital citizens” through education, training and workforce development initiatives.

Efforts include promoting ICT education, digital literacy programmes and technical training for both public officials and private-sector workers. Cambodia has also encouraged partnerships with universities, development agencies and technology companies to strengthen digital capabilities and innovation ecosystems.

The government views digital skills as essential for supporting startups, attracting investment and enabling local businesses to participate in regional and global digital trade. Policymakers have also stressed the need to expand digital access beyond urban centres to reduce the digital divide between cities and rural communities.

Despite the progress, Cambodia still faces significant challenges. Government policy documents acknowledge that the country remains in the early stages of digital transformation, with fragmented systems, limited integration and cybersecurity vulnerabilities still posing risks.

There are also concerns among some observers about internet governance, data protection and regulatory oversight as digital systems expand. Nevertheless, Cambodia’s digital economy agenda is increasingly viewed as a major pillar of the country’s long-term economic strategy, with authorities hoping technology-driven growth can help diversify the economy and strengthen Cambodia’s regional competitiveness in the years ahead.

According to Niraj Gupta, Vice President of Indian Business Chamber in Cambodia (IBCC) and Director of Macro Solutions, Cambodia is moving in the right direction on digital transformation, but the real test will be its execution, not policy. “The government has already laid down a clear direction through its digital economy and digital government strategies, and that is important because countries do not become digital by accident. They need policy, infrastructure, regulation, talent, and private sector participation moving together. From my experience working in technology, fintech, and digital transformation, I see Cambodia’s biggest strength as its speed of adoption. People are already using mobile payments, online services, social platforms, and digital tools in daily life. This gives Cambodia a strong base,” he said.

He added that the next step is to make this adoption more productive for the economy. “On manpower, the government is right to focus on digital skills, but the approach must be practical.

Cambodia does not only need coders. It needs digital managers, cybersecurity professionals, data analysts, AI-literate teachers, product builders, digital finance professionals, and young people who can solve real business problems with technology.

“Universities, training institutions, government, and the private sector must work more closely. Students need exposure to projects, internships, startup thinking, and real market problems. At Macro Solutions, we see that talent improves fastest when young people are given practical work and responsibility. Cambodia has the right direction. Now the focus should be on building people who can turn digital policy into real economic value,” Niraj Gupta pointed out.

According to Devin Barta, President of American Chamber of Commerce (AmCham), Cambodia’s digital transformation is a necessary step forward to secure the country’s future. “This development brings faster, more reliable, and transparent transactions. Digital payment systems and e-commerce platforms reduce bureaucratic delays, minimise human error, and create clear audit trails which promote accountability and fairer business practices,” he said.

Digital transformation also creates new employment opportunities in technology, logistics and digital marketing sectors. “Digital governance further enhances transparency, reducing inefficiencies and building greater investor confidence. It attracts foreign investment and encourages business growth,” he said.

Long-term goals

As Cambodia advances deeper into the digital age, the country’s transformation is no longer defined solely by faster internet speeds or the spread of mobile payments. Increasingly, the focus is shifting toward how technology can create long-term economic value, improve governance, and strengthen Cambodia’s position in a rapidly evolving regional economy. From cross-border QR payments and digital trade frameworks to e-government systems and AI-driven administration, the foundations of a modern digital economy are steadily taking shape.

Yet experts caution that infrastructure alone will not determine success. The next phase of Cambodia’s digital journey will depend heavily on whether the country can build the human capital, regulatory environment and institutional coordination needed to fully harness the opportunities of digitalisation. Developing a workforce equipped with practical digital skills, strengthening cybersecurity and data protection, and helping local businesses compete in international digital markets will be critical in the years ahead.

For Cambodia, the stakes are high. As the country prepares for graduation from the Least Developed Country status and faces growing regional competition, digital transformation is increasingly viewed not simply as a technology agenda, but as an economic necessity. Policymakers and business leaders alike believe the Kingdom has a unique opportunity to leapfrog traditional stages of development by embracing digital tools across finance, trade, education and public administration.

If successfully implemented, Cambodia’s digital ambitions could help create a more competitive, transparent and inclusive economy — one capable of generating new industries, attracting investment and improving opportunities for a young and increasingly connected population.

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