Cambodia Urges Strategic Resilience to Confront Emerging ‘War Economy’

PHNOM PENH, Cambodia (Dec. 1, 2025) — Permanent Deputy Prime Minister Vongsey Vissoth has warned that Cambodia must strengthen resilience and strategic foresight to confront what he described as a global shift toward a “war economy,” where geopolitics and security increasingly shape economic outcomes.

Speaking at the workshop Reflections on Cambodia’s Strategy to Confront the War Economy, Vissoth said the world has entered a new operating system defined by instability, major-power rivalry and weakened multilateral protections. For small and open economies like Cambodia, he said, adapting to this environment is essential.

He outlined Cambodia’s vulnerabilities, including dependence on external markets, exposure to regional frictions, reliance on foreign digital platforms and the erosion of global rules. He stressed that Cambodia must diversify partners, strengthen deterrence, uphold international law and reinforce ASEAN centrality while preparing for long-term resilience.

Vissoth said Cambodia’s strategic planning, including the next phase of the Pentagonal Strategy and Vision 2050, must align with lessons from past crises. He urged unity, adaptability and institutional strength to ensure Cambodia not only withstands global fragmentation but secures its place in the evolving order.

Chheang Vannarith, Non-Permanent Member of the ECOSOCC of the Office of the Council of Ministers, has warned that the world has entered a “permanent war economy,” where militarization and geopolitical rivalry increasingly shape global trade, technology and investment.

Presenting on the topic War Economy and Small States, Vannarith said major powers are reorganizing supply chains around security priorities, while economic tools such as sanctions, export controls and technology denial have become as powerful as military weapons.

He noted that U.S.–China rivalry is fragmenting the global system into competing blocs, forcing small states to navigate securitized trade and decoupling pressures.

Drawing on historical analysis, Vannarith emphasized that small states’ survival depends less on internal strength than on the structure of the international system. He urged Cambodia to build resilience, maintain strategic autonomy and leverage its agency amid intensifying geopolitical competition.