UNCTAD16 side event: Cambodia’s development vision in preparation for smooth LDC graduation

Your Excellency, (Mr.) Sok Siphana, Senior Minister for Special Missions in Cambodia,
Your Excellency, (Ms.) Tekreth Kamrang, Secretary of State, Ministry of Commerce of Cambodia,

Your Excellency, Mr. Prasith Suon, Ambassador of Cambodia to WTO and International Organisations (moderator),

Your Excellency, Mr. Ram Prasad Subedi, Ambassador of Nepal to the WTO and International Organisations in Geneva and LDC Group Coordinator at UNCTAD,

Dear Ratnakar Adhikari, Executive Director of the Executive Secretariat for the Enhanced Integrated Framework, 

Dear Stefano Inama, Chief of the Regional Advisory Programme in our ALDC Division,

Excellencies,

Ladies and Gentlemen,

It is a great pleasure to join you today for this important discussion.

Cambodia’s journey from Least Developed Country status toward graduation is a story of remarkable vision, resilience, and partnership.

In the two decades preceding the COVID-19 pandemic, Cambodia achieved annual per capita economic growth of over 6 percent — almost double the LDC average. During that time, the country more than tripled its per capita income, made rapid progress in reducing poverty, and saw significant advances in health and education.

Cambodia has shown that sound policies, strong institutions, and openness to trade and investment can deliver sustained development gains.

UNCTAD has been privileged to accompany Cambodia throughout this journey — from our early support in using trade preferences and acceding to the WTO, to more recent collaboration on trade policy design and implementation.

Today, as Cambodia approaches the important milestone of graduation from the LDC category in December 2029, UNCTAD stands ready to continue its support — both through the transition and beyond.

Excellencies,

Graduation is a momentous achievement, but it also comes with significant challenges. The eventual loss of international support measures — such as duty-free and quota-free market access, flexible rules of origin, and Special and Differential Treatment under the WTO — can be disruptive if not carefully managed.

A smooth transition requires early preparation, effective policies, and strong partnerships.

In this regard, the Vulnerability Profiles prepared by UNCTAD — as mandated by the UN General Assembly — play a vital role. They assess economic, social, and environmental vulnerabilities and propose policy options for sustainable graduation.

For Cambodia, the analysis shows impressive achievements in industrial development, export upgrading, and poverty reduction. However, it also highlights that the country’s growth model — heavily reliant on foreign direct investment and preferential market access — is reaching its limits.

Looking ahead, Cambodia must deepen industrialization, promote technological upgrading in manufacturing and services, and address trade-related challenges such as the phasing out of preferences, tighter rules of origin, and exposure to reciprocal trade arrangements.

To support Cambodia in this next phase, UNCTAD and the Asian Development Bank have developed a Trade Strategy and Graduation Study — a forward-looking roadmap aligned with the Prime Minister’s vision of “strengthening old markets and expanding new ones.”

The study outlines how Cambodia can sustain export competitiveness and diversify its economy in an increasingly complex and fragmented global trading environment.

This includes:

• Effectively implementing existing free trade agreements and pursuing new ones;
• Strengthening domestic industries, including through local content and value chain integration;
• Improving trade facilitation to reduce costs and enhance connectivity; and
• Leveraging opportunities in the digital economy.

These efforts are especially important in the new tariff landscape, which affect both trade policy and investment flows.

To navigate these transitions successfully, partnerships will be key — including at the global level, such as through extended or additional international support measures to ensure a smooth and sustainable graduation.

Excellencies,

Cambodia’s forthcoming graduation is not an end, but a new beginning — a milestone in its ongoing journey toward structural transformation and sustainable development.

Allow me to conclude by commending the Government and people of Cambodia for this impressive achievement, and by reaffirming UNCTAD’s unwavering commitment to supporting a smooth, sustainable, and irreversible graduation.

Thank you.