ADB's Work in Cambodia

In 2023, Cambodia’s economic recovery continued with gross domestic product (GDP) growing by an estimated 5%, led by the tourism and non-garment manufacturing sectors. Inflation decelerated to 2.1% from 5.3% in the previous year as global commodity price pressures eased. Tourism and trade recovery led the current account into surplus. Fiscal policy remained expansionary.

In the decade leading up to the coronavirus disease (COVID-19) pandemic, Cambodia posted impressive economic growth with an average annual GDP rate of over 7%, positioning it as one of the fastest growing economies in Asia and the Pacific. This robust growth was supported by macroeconomic stability, openness to trade, large inflows of foreign direct investment, strong tourist arrivals, and a structural shift toward export-oriented manufacturing.

The Asian Development Bank (ADB) is one of the country’s largest sources of official development assistance with an average annual lending of $363.28 million from 2019 to 2023. ADB’s support is aligned with Cambodia’s Rectangular Strategy - Phase IV and Strategic Framework and Programs for Economic Recovery in the Context of Living with COVID-19 in a New Normal, 2021–2023.

As of 31 December 2023, ADB has committed 339 public sector loans, grants, and technical assistance totaling $4.8 billion to Cambodia. ADB’s current sovereign portfolio in Cambodia includes 34 loans and 8 grants worth $1.92 billion.

Cumulative sovereign and nonsovereign loan and grant disbursements to Cambodia amount to $3.46 billion. These were financed by regular and concessional ordinary capital resources, the Asian Development Fund, and other special funds.

ADB assisted the Government of Cambodia in implementing its Rectangular Strategy - Phase IV. In 2023, ADB committed a total of $90 million in lending to support efforts to strengthen public sector management at the national and subnational levels through improved governance and financial management. A $100-million loan was also provided to help Cambodia develop its pool of skilled workers in response to changing industry needs. ADB secured an additional $25 million in cofinancing to support the program. 

ADB committed over $3.93 million in technical assistance to improve domestic resource mobilization, offer solutions on the impact of heat stress on workers, improve the efficiency of project implementation, and support for the implementation of the government’s new Pentagonal Strategy Phase I, 2024–2028. 

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Cambodia as of 31 December 2023 amounted to $60.03 million, representing 0.51% of ADB’s total private sector portfolio. 

Operational challenges. In 2023, ADB provided $140 million (of total commitments) in budget support through policy reforms. More than $190 million worth of contracts were awarded to national and international firms and over $230 million was disbursed in the delivery of project loans, grants, and technical assistance. Contracts were awarded through an open competitive bidding process. ADB is working closely with the government and other development partners to improve the performance of project implementation through (i) strengthening capacity in project management, procurement, safeguards and financial management; (ii) developing common reporting and monitoring reports across all development partners; (iii) simplifying business processes; and (iv) updating standard operating procedures. In doing so, ADB strengthens the government’s capacity in project implementation, environmental and social safeguards, and climate change mitigation and adaptation in all publicly financed projects.

Diploma students at the Institute of Technology of Cambodia (ITC) practicing their knowledge and skills in the civil construction lap. Photo: Institute of Technology of Cambodia

Knowledge Work

ADB produced several knowledge products jointly with the Government of Cambodia and development partners. The forthcoming Public–Private Partnership (PPP) Monitor for Cambodia will provide an overview of Cambodia’s PPP market, analyze its landscape, identify key challenges, and recommend actions for strengthening partnerships. ADB also supported the government in the development of its National Fintech Development Policy 2023–2028 to promote financial innovation, ensure financial stability, and enhance financial inclusion. ADB will publish a Gender Impact Assessment of COVID-19 on Women-Led MSMEs which will identify key challenges and opportunities to inform government policy. 

ADB jointly organized several knowledge events with the government in 2023, including a high-level dialogue on climate action as part of the preparation for the new ADB country partnership strategy, 2024–2028. A symposium was organized in collaboration with the United Nations Children’s Fund (UNICEF) and the World Food Programme on the socioeconomic impact assessment of the 2020-2023 polycrisis on vulnerable households. ADB supported the National Social Protection Council in launching the Social Protection Registration System and Data Management Harmonization Project, which integrates all information systems related to social protection.

  ADB Projects in Cambodia Project data sheets for loans, grants, TAs