Cambodia is a South-East Asian country, with a population of just over 17 million people. 75% of its people live in rural areas and 30% are under 30. In the past few decades, Cambodia has achieved significant socio-economic progress but the social and economic consequences of the COVID-19 pandemic caused a contraction of the economic growth. It is therefore crucial to maintain sustainable socio-economic growth, reduce vulnerability and achieve the Sustainable Development Goals.
Cambodia is one of the 10 member countries of the Association of South-East Asian Nations (ASEAN).
Our partnership
The European Union (EU) is committed to assisting Cambodia in realizing sustainable and inclusive growth, aligned with the National Strategic Development Plan (NSDP) for 2024-2028, the accompanying Pentagonal Strategy-Phase 1 for the same period, as well as the EU’s Global Gateway and Indo-Pacific Strategies. Our initiatives are designed to support Cambodia's goal of advancing from a lower-middle-income to an upper-middle-income country by 2030, with the aspiration of achieving high-income status by 2050.
Team Europe in Cambodia brings together the European Union, France, Sweden, the Czech Republic, Belgium, Germany, Ireland, Hungary, Switzerland, and the European Investment Bank (EIB).
The second Joint European Development Cooperation Strategy (JES) for 2021-2027 establishes a comprehensive framework for European cooperation in Cambodia. Within this strategic framework, the EU has earmarked EUR 155 million for the 2021-2024 period to bolster Cambodia's integration into ASEAN. This financial support aims to foster green growth and create decent job opportunities, thereby enhancing Cambodia's economic recovery and strengthening its resilience in the aftermath of the COVID-19 pandemic. Additionally, investments will be mobilised through the European Fund for Sustainable Development Plus (EFSD+), further amplifying the impact of these efforts.
Cambodia also benefits from several multi-country EU programs and engages in regional collaboration with the EU as a member of ASEAN. At the EU-ASEAN summit in December 2022, Team Europe announced a projected investment of approximately EUR 10 billion in South-East Asia. Within this partnership, the EU has launched two flagship Global Gateway initiatives with ASEAN: the Green Team Europe Initiative and the Team Europe Initiative on Sustainable Connectivity, highlighting a strong commitment to fostering green growth and enhancing sustainable regional connectivity.
- 8 MARCH 2022
- 31 OCTOBER 2024
- 23 OCTOBER 2023
- 23 AUGUST 2022
Our flagship initiatives
- Green growth and decent jobs
Team Europe is dedicated to enhancing Cambodia's economic recovery and resilience efforts. By contributing to the green transformation within specific industrial and agricultural value chains, Team Europe aims to open up improved market opportunities. The goal is to draw in high-quality investments and infrastructure projects, while offering knowledge and expertise to facilitate this transition. Initiatives supporting these objectives include:
Cambodia Partnership for Sustainable Agriculture and Food Systems (EU CAPSAFE): This initiative aims to integrate Cambodia into international and regional markets, fostering sustainable and deforestation-free value chains. It seeks to attract green investments and create decent employment opportunities by emphasizing environmental sustainability and social equity.
Garment, Footwear, and Travel Goods (GFT): Focused on promoting green energy and sustainable industrial value chains, the GFT initiative is set to enhance Cambodia's access to high-value markets and standards. It will focus on improving energy efficiency, advancing the use of renewable energy sources, facilitating the upskilling of workers, and ensuring social due diligence in factories, thus contributing to a greener and more equitable industrial sector.
Bakheng Water Supply Project: Supported jointly by the Agence Française de Développement (AFD) and the EU, this project aims at building the Bakheng water treatment plant. It will extend pipe connections to support vulnerable communities in the peri-urban areas of Phnom Penh, addressing critical water supply needs and ensuring sustainable management of water resources.
- Education and skills development
The objective is to provide a more qualified labour force for green and decent jobs within the agricultural and industrial sectors, while also fostering evidence-based research to guide sustainable investment decisions. Through the Transforming Technical Education EU-Cambodia Partnership for 2024-2027, Team Europe is committed to supporting:
- Technical education for better employability, in particular in agriculture and industry.
- Improved data and Public Financial Management (PFM) for evidence-based and efficient policymaking in education.
- Women’s empowerment in the garment sectors.
- Mobility within ASEAN and with the EU for education and research.
Team Europe is also investing in the training of middle to high-level technicians, crucial for the short and medium/long-term implementation of the country's industrial policy.
- Governance
Strong Public Financial Management (PFM) is essential for driving reforms aimed at enhancing transparency and accountability, as well as bolstering Domestic Resource Mobilisation for green investments. The EU's contribution to the PFM Reform Programme in Cambodia focuses on and has led to:
- Significant improvement in Cambodia’s revenue mobilisation.
- Better alignment of expenditure with national priorities.
- Availability of financial information for timely decisions.
- Increased accountability and transparency.
- Enhanced national capacity for increased budget credibility and predictability in macroeconomic stability and resilience to external economic shocks.
- Efficient budget-policy linkages, including on climate change and gender equality.
- Support to civil society and public/private mechanisms that promote transparency, accountability, oversight, due diligence.
- Trade and private sector
The aim is to enhance Cambodia's interconnectivity, streamline trade processes, and bolster the private sector's capacity to boost exports within targeted value chains. Through the Global Access, Trade Expertise (EU GATE) program, trade-related support will focus on:
- Strengthening trade policy to meet regional and international commitments for Cambodia’s ASEAN integration.
- Strengthening capacities of the private sector to leverage business opportunities within ASEAN and the EU markets and promote value chain approaches.
- Facilitating trade and improving customs operations.
- Health
The goal is to improve international and regional cooperation on the One Health approach in the fight against pandemics, by advancing interoperable digital information systems and promoting technical skills in relevant institutions for improved laboratory services and food safety.