AmCham: Cambodia urged to speed up reforms to meet 2050 high income target

PHNOM PENH, Mar 23, 2026 (KPT) — Cambodia must accelerate economic reforms if it is to sustain growth and achieve its ambition of becoming a high income country by 2050, according to the American Chamber of Commerce’s Business Outlook 2026 report.

The study said Cambodia’s economy remains resilient despite external and domestic challenges, but warned current growth may not be enough to meet long term targets. To reach high income status, the country would need to sustain average annual GDP growth of 6.6 percent over the coming decades.

Outgoing AmCham president Casey Barnett said Cambodia’s fundamentals are solid but reforms are needed to reduce red tape and streamline licensing. The report highlighted governance issues and high electricity costs as major concerns, with restrictions on importing ICT equipment and delays in licensing new technologies such as 5G slowing digital adoption.

It also pointed to limitations on renewable energy licensing, which have raised concerns among investors seeking greener solutions. Business leaders stressed that easing regulatory barriers would unlock higher productivity and attract more foreign investment.

The report recommended liberalizing the economy further, improving access to innovation and technology, and strengthening trade ties with key partners, particularly the United States, which remains Cambodia’s largest export market, accounting for 41 percent of total shipments.

The accelerating reforms in governance, trade facilitation and private sector development will be essential to sustain momentum. They added that Cambodia’s strong economic foundation — built on garment exports, agriculture and growing services — provides a base for future growth, but only if reform efforts are intensified and sustained.

AmCham noted that Cambodia’s long term competitiveness will depend on diversifying its economy, investing in renewable energy and digital infrastructure, and ensuring that regulatory frameworks support innovation. Without such measures, the report warned, Cambodia risks falling short of its 2050 high income goal.