Русский
The Russian Foreign Minister, Sergey Lavrov, met with Prak Sokhonn, the Deputy Prime Minister and Minister of Foreign Affairs of Cambodia on the sidelines of the 80thsession of the UN General Assembly in New York.
The parties discussed pressing international and regional issues and the current state and prospects for Russia-Cambodia relations.
Cambodia has a population of around 17 million people and an area of 181,025 km². Cambodia’s GDP (PPP) is $142.39 billion, and its GDP per capita (PPP) is $8,290. In its June report, the World Bank forecast Cambodia’s GDP growth in 2025 to be about 4% for the year.
Cambodia is a member of ASEAN and is in the process of becoming industrialized. That is mainly represented by garment factories, most of which are located in special economic zones. These products are almost entirely exported (80% of total exports) to the European Union and the United States.
There has also been an increase in the production of building materials, electronics, machinery, engines, and chemical products, however due to a limited base, poor degree of technological sophistication, low value segmentation, and concentration in a small number of sectors, Cambodian industries continue to be relatively unsophisticated, although spillover from an increasingly expensive China manufacturing is occurring. Investors will need to balance lower operational costs against lower productivity ratios.
40% of the working population is employed in agriculture. The main food crop is rice, and the main industrial crop is rubber. Corn, sweet potatoes, soybeans, peanuts, oil palms, and spices are also grown. The main focus of livestock farming is cattle and pig breeding. Fishing also plays an important role.
Tourism is also taking off, with Cambodia welcoming 6.4 million foreign tourists in 2024, 22.2% more than in the same period last year. The country’s Ministry of Tourism expects to attract 7 million foreign visitors during 2025.
Cambodia also wishes to develop electricity generating hydropower resources, and will be looking at the Laos experience with Russian technology and investment as regards decisions in this sector.
Cambodia is also in the process of negotiating a Free Trade Agreement with the Eurasian Economic Union (EAEU), which includes Russia, along with Armenia, Belarus, Kazakhstan, and Kyrgyzstan. Fellow ASEAN member Vietnam, a neighbouring country, already has a successful FTA with the bloc.
Russia and Cambodia signed a plan of cooperation agreements between for the two-year period 2025−2027 earlier this year and are preparing to sign a protocol between the customs services of the two countries. This protocol, initiated by the Russian side, focuses on cooperation in customs administration, information exchange, and mutual assistance and is expected to boost bilateral cooperation under the Eurasian Economic Union’s preferential tariff system.
Bilateral trade between Russia and Cambodia has dropped in recent years, from US$239.4 million in 2021 to an estimated US$55 million in 2024. The reasons for this decline are not immediately political, although sanctions against Russia have impeded trade. Cambodian markets are somewhat difficult to reach from Russia, with most trade having to pass via China, and Russian businesses concentrating on developing both the Chinese and Vietnamese markets, leaving Cambodia somewhat neglected. However, customs unity and a Free Trade Agreement should help pave the way for increased trade and investment volumes.
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