ADB reaffirms strong partnership with Cambodia

ADB reaffirms strong partnership with Cambodia

Asian Development Bank (ADB) reaffirmed its strong partnership with Cambodia and commitment to advancing economic diversification, private sector development, and investments in human capital to sustain inclusive growth.

The assurance was made by ADB President Masato Kanda during a meeting with Prime Minister Hun Manet at the Peace Palace on Thursday, read an ADB press release.

“Amid intensifying global challenges, strong leadership and a commitment to people-centred development are essential,” said Kanda, adding, “ADB is dedicated to supporting Cambodia as it navigates economic shifts and creates new opportunities, particularly for the poor and most vulnerable.”

During their discussion, Kanda and Mr Hun Manet emphasized the importance of balancing economic growth with ecological sustainability and cultural preservation. They also underscored the significance of regional energy cooperation, including Cambodia’s participation in the ASEAN Power Grid, to enhance energy access and security.

As part of his three-day visit from March 18-21, Kanda highlighted Cambodia’s importance as a strategic partner and noted the steadily strengthening relationship between ADB and the country.

He expressed confidence that under the Prime Minister’s leadership, this partnership would continue to grow. Additionally, ADB remains committed to expanding its collaboration with Cambodia to support the country’s Vision 2050 goals.

In response, Mr Hun Manet expressed deep appreciation for ADB’s longstanding support, which has significantly contributed to Cambodia’s socio-economic development. He stressed the importance of setting clear goals to promote economic growth, job creation, and sustainable development while implementing priority policies that address the needs of the Cambodian people.

These policies focus on improving healthcare, education, and employment opportunities.

The Prime Minister also outlined key measures to empower local communities by supporting infrastructure development, providing training, and building local capacity to ensure direct benefits for the population. He emphasized the introduction of policies to promote education, technical training, and vocational programs to meet current and future labour market demands.

Additionally, he reaffirmed the government’s commitment to enhancing Cambodia’s investment environment and competitiveness. He encouraged ADB to continue working with local authorities, ministries, and other government institutions to further strengthen their partnership.

Later in the day, in discussions with Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth, Kanda highlighted ADB’s support for key reforms under the country’s national strategy. These include strengthening high-value industries, supporting micro, small, and medium-sized enterprises, enhancing the investment climate, and accelerating digital transformation.

Pornmoniroth outlined Cambodia’s long-term vision, aiming to transition the country into an upper-middle-income nation and eventually a high-income country. This vision is supported by key policies and strategies including the ‘Development Cooperation and Partnerships Strategy 2024–2028.’

“The Pentagonal Strategy – Phase 1 outlines the Royal Government’s key priorities: People, Roads, Water, Power, and Digital Technology. These priorities guide the policies of the 7th National Assembly and align with Cambodia’s medium- and long-term policy directions in response to rapid global economic changes,” he said.

To drive sustainable and inclusive economic growth, the government is focusing on strengthening institutional capacity, developing the digital economy and society, and enhancing domestic revenue mobilization, Pornmoniroth noted.

“Additionally, Cambodia is actively working to boost competitiveness, enhance economic resilience, and strengthen regional cooperation within ASEAN. This includes efforts to improve ASEAN connectivity, promote economic diversification, attract investment, enhance tax collection efficiency, develop human capital, and formulate policies for sustainable development,” he added.

Kanda also met with Chea Serey, Governor of National Bank of Cambodia (NBC) to discuss broadening access to banking, expanding digital payment options, and adopting policies to support rural communities and new businesses.

Serey emphasized ADB’s crucial role in supporting Cambodia’s economic development since the 1990s through technical assistance and financing for numerous projects. ADB has also played a significant role in strengthening Cambodia’s banking system by assisting in formulating regulations for the microfinance sector, making Cambodia the first country in the world to establish such regulations.

She further highlighted ADB’s contributions to Cambodia’s financial sector strategy, which has been evolving since the early 2000s. She acknowledged the potential of Cambodia’s agricultural sector and requested ADB’s continued support for this vital industry.

“It was an honour to meet Masato Kanda, the newly appointed President of the Asian Development Bank. Cambodia was chosen as his first overseas visit after his appointment. We discussed Cambodia’s growth potential and the infrastructure investments—both soft and hard—needed to realize that potential,” Serey said.

“President Kanda also visited the SOSORO Museum and was impressed by the history and resilience of the Cambodian people. We emphasized that peace and stability are necessary prerequisites for development,” she added.

The ADB President commended NBC for its progress in banking and payment systems, which have supported economic growth, facilitated trade, and promoted financial inclusion. In particular, the Bakong system has become a successful model for other developing countries to learn from.

Additionally, he stated that the ADB will continue to actively support the development of Cambodia’s financial and economic sectors.

During his visit, Kanda toured the Asian Development Fund-supported Sustainable Coastal and Marine Fisheries Project, which focuses on regenerating marine ecosystems, boosting fisheries sustainability, and improving livelihoods in coastal communities. Engaging with fisher families and other community members, he reaffirmed ADB’s role as Cambodia’s largest multilateral development partner and its commitment to projects that create lasting and meaningful impact.

ADB’s portfolio in Cambodia is valued at approximately $2.2 billion. Over the past three years, ADB’s sovereign commitments to Cambodia have averaged around $350 million annually. ADB’s country partnership strategy for Cambodia (2024–2028) underscores its strategic commitment to the country’s development.