ADB Backs Cambodia’s Vision 2050 With $5.5B Support

PHNOM PENH, May 11, 2026 (KPT) — The Asian Development Bank said it is backing Cambodia’s ambition to become a high‑income country by 2050, pledging stronger support for private sector‑led growth, diversification and reforms to bolster resilience amid global uncertainty.

In its latest country update, the bank noted Cambodia’s economy has continued to recover despite external pressures including trade disruptions, slowing global demand and regional instability.

Cambodia recorded rapid growth averaging 7.6 percent between 2010 and 2019 before the COVID‑19 pandemic triggered a 3.6 percent contraction in 2020. Growth rebounded from 3.1 percent in 2021 to 6 percent in 2024, but slowed to an estimated 5.2 percent in 2025.

ADB said the industrial sector remained resilient, with garment exports rising 16.3 percent and other manufactured goods — including electrical components, car tires and bicycles — up 15.2 percent. But border disruptions with Thailand weighed on remittances, tourism and trade, while construction activity stayed below pre‑pandemic levels. Inflation rose to 2.5 percent in 2025 from 0.8 percent the year before, driven by higher import costs.

The bank’s new country partnership strategy for 2024–2028 aligns with Cambodia’s Pentagonal Strategy and Vision 2050 agenda, focusing on growth, employment, efficiency and sustainability.

As of end‑2025, ADB had committed 359 public sector loans, grants and technical assistance projects worth US$5.5 billion, making it one of Cambodia’s largest development partners. In 2025 alone, it provided US$343 million in loans and grants and mobilized US$241 million in co‑financing for governance reforms, urban resilience, energy access and sustainable finance.

ADB also highlighted growing emphasis on digital transformation, including modernization of government infrastructure, cybersecurity resilience and workforce competitiveness. Future operations will continue to support infrastructure modernization, renewable energy, climate resilience and public‑private partnerships.

The report warned that evolving US trade policies could affect Cambodian exports, underscoring the need for stronger social protection systems for vulnerable workers.