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Country facts | Capital city: | Phnom Penh | | Surface area: | 181,035 sq km | | Population: | 13.7 million | | Official language(s): | Khmer | | Head of State: | HM King Preah Bat Samdech Preah Boromneath Norodom Sihamoni | | Head of Government: | Prime Minister Samdech Akka Moha Sena Padei Techo Hun Sen | | Australian exports to Cambodia: | A$44 million | | Australian imports from Cambodia: | A$15 million | | Cambodia's principal export destinations: | USA, Israel, Germany | | Cambodia's principal import sources: | Thailand, China, Vietnam | (Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |  |
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Economic climate The emerging Cambodian economy is heavily reliant on imported goods and services, given its very weak infrastructure and low industrial base. There are signs that a fledgling middle class in Cambodia is gradually beginning to emerge, consequently leading to an increased demand for quality products, including pharmaceuticals and wine and dairy products.
The country’s economic infrastructure was devastated by the civil war of the early 1970s, the rule of the Khmer Rouge between 1975 to 1979 and continued civil war into the 1980s. Economic growth was kickstarted by the arrival of a United Nations Transitional Authority in 1991, which oversaw the transformation of Cambodia into a multi-party, free market democracy. The economy grew considerably until mid-1997, following the fighting in Phnom Penh in July, which caused most aid donors and foreign investors to withdraw from the country.
Following the restoration of political stability with the demise of the Khmer Rouge and the formation of a new coalition government in November 1998 headed by Prime Minister Hun Sen, the international community and its financial institutions have been regaining confidence in, and renewing their commitment to Cambodia.
The new administration has embarked on a wide range of economic reforms, including strengthening the taxation system, tightening the Budget, reform and rationalisation of the financial and banking sectors, and strengthening the legal framework and public administration. As the newest member of ASEAN and in line with its bid to accede to the World Trade Organisation, Cambodia has also been implementing a program of tariff reduction and rationalisation.
For the latest key economic indicators and statistics, please see theDepartment of Foreign Affairs and Trade country economic fact sheet. | |
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The Royal Government of Cambodia is a constitutional monarchy with His Majesty King Norodom Sihamoni as Head of State. The Prime Minister, who wields executive power, is chosen by the King from the party which wins the most seats in the National Assembly elections held every five years.
The Cambodian Parliament is bicameral. The National Assembly has 122 members elected from Cambodia’s 24 provinces and municipalities, while the Senate (formed in early 1999 as part of the political compromise that broke the post election deadlock) has 61 members, nominated by political parties in proportion to their representation in the National Assembly. The Council of Ministers (Cabinet) is formed by members of the Royal Government. The Provincial Governments are presided over by Governors, with further division of provinces into districts (srok), communes (khum) and villages (phum).
The Royal Government has acknowledged the existence of widespread corruption in the bureaucracy and is currently undertaking a number of reforms to bring about good governance and the rule of law in public institutions. Nonetheless, most bureaucratic decisions continue to involve a process of negotiation at the enterprise level, rather than the application of law. The problem of impunity continues, with perpetrators of crimes often avoiding apprehension and prosecution. |
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Trade relations and statistics Cambodia was accepted as the 10th member country of the Association of South East Asian Nations in April 1999. It is also in the process of acceding to the World Trade Organization. Cambodia’s recent history and relationships with other countries have been very fluid and are a result of its position as a small and underdeveloped country sandwiched between its larger neighbours, Thailand and Vietnam.
Cambodia’s reliance on the aid dollar has structured its relations with the international community in the 1990s, including its major donors such as Japan, France, USA and Australia. At the same time, Cambodia maintains strong and close relations with its traditional allies as evidenced by the growing economic and political relationship with China. Major foreign investors in Cambodia include China, Malaysia, Taiwan, USA, Hong Kong and Singapore.
Please see the Department of Foreign Affairs and Trade country economic fact sheet for key trade statistics.
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