Experts urge Cambodia to bolster economic resilience as LDC exit nears

Experts urge Cambodia to bolster economic resilience as LDC exit nears

Cambodia’s scheduled graduation from Least Developed Country (LDC) status in December 2029 will require a swift transition from aid dependency toward robust domestic economic resilience, according to analysts.

While the timeline is fixed, experts maintain that this departure is a major milestone, signifying that the Kingdom is no longer among the world’s poorest nations.

Director of ASEAN Economic Research Institutes at the National University of Management (NUM), Kim Veara, said the challenge lies in managing the gradual withdrawal of International Support Measures (ISMs).

“Concerns include reduced access to assistance and a decline in development financing,” Veara said. He noted that graduation is a positive outcome, following Cambodia’s fulfilment of criteria set by the UN Committee for Development Policy in 2021 and 2024.

“Graduation is a matter of national image, demonstrating that we have the capacity to move forward,” he added. “Despite losing ISMs, Cambodia has the opportunity to strengthen production capacity and seize market opportunities.”

Rector of the National University of Management (NUM) Hor Peng said that while the achievement is driven by three decades of 7% economic growth, it should not be viewed as a finish line.

“Graduation is a milestone to celebrate, but it is not the end of the development journey,” Peng said during a public seminar. “It marks the beginning of a demanding stage. Cambodia continues to face challenges regarding economic diversification, productivity, competitiveness, human capital, and vulnerability to external shocks.”

Policy Analyst at the Royal Academy of Cambodia (RAC) Sam Seun welcomed the political commitment behind the process but urged policymakers to evaluate domestic realities. Seun cautioned that post-graduation, development financing and trade arrangements may involve higher borrowing costs and stricter obligations. He said that economic progress must be accompanied by improved livelihoods and reduced inequality.

The Royal Government of Cambodia maintains that it is prepared for the transition. Ambassador and Permanent Representative of Cambodia to the UN Keo Chhea reaffirmed this position during the Joint UN General Assembly–ECOSOC Special Thematic Event on the Midterm Review of the Doha Programme of Action (DPoA), stating that Cambodia remains committed to a sustainable graduation while continuing efforts in poverty reduction, economic diversification, and digital transformation.

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