Cambodia: Diversifying Beyond Garments and Tourism - Executive Summary
Rapid economic expansion brought Cambodia important gains in national income and poverty reduction. Even so, Cambodia is one of Asia’s eight remaining low income countries and the second-poorest country in Southeast Asia.
Cambodia has enjoyed over 2 decades of robust growth, with rising foreign investment and deepening integration into global and regional value chains. The country—once riven by civil war and conflict—is now politically stable and increasingly making its mark as the world’s eighth-largest rice producer, Asia’s 10th-largest garment exporter, and a rising tourist destination. Yet Cambodia faces considerable challenges. It suffers from major infrastructure deficits; limited skills development and education quality; and weaknesses in governance. Fiscal resources are also stretched. Moreover, for a successful transition to a modern industrialized economy, Cambodia needs to diversify and upgrade its productive capabilities.