Cambodia's economic landscape at the end of 2025 presents a complex yet dynamic picture: the riel faces depreciation pressures while agricultural exports achieve breakthroughs, non-garment manufacturing shines, and e-commerce tax regulations become more sophisticated. These developments highlight both the resilience of Cambodia's economy and the challenges ahead.
Riel Experiences Modest Depreciation
Amid slowing global economic recovery and trade deficits, the Cambodian riel (KHR) showed slight depreciation trends as of December 30, 2025. Exchange rates stood at 1 KHR to 0.001747 CNY (-0.08%), 0.0002483 USD (-0.07%), 0.0002165 EUR (-0.12%), 0.0004005 CAD (-0.08%), and 0.0001898 GBP. Despite this, cross-border trade remains stable as businesses increasingly adopt multi-currency settlements (including RMB and USD) to hedge against exchange rate fluctuations.
Cashew Exports Break Into Middle East Market
Cambodian agriculture achieved a significant milestone as Ample Agro Product successfully exported 12 tons of M23 variety WW180-grade cashew kernels to Jordan—marking the country's entry into the Middle Eastern market. Shipped via refrigerated containers with a 30-32 day transit time, these premium cashews benefited from GMP compliance and halal certification. As the world's second-largest fresh cashew producer with 633,000 hectares of plantations and 850,000-950,000 tons annual capacity, Cambodia recorded over $4 billion in cashew exports during the first 10 months of 2025.
Non-Garment Manufacturing Surges
Cambodia's industrial diversification showed remarkable progress, with wire/cable exports skyrocketing 194.9% year-on-year in H1 2025. Other standout performers included electronics (+24.3%), furniture (+39.4%), bicycles (+41.6%), and tires (+80.4%). While US tariff hikes caused a 98.9% plunge in solar panel exports, swift supply chain adjustments—including shifting from land to sea/air transport—maintained production continuity. The Ministry of Economy noted that increased exports to EU and Chinese markets effectively offset US trade declines.
E-Commerce Taxation Framework Strengthens
Cambodia is tightening tax oversight on digital commerce, with plans to implement tax reforms during 2026-2028 focusing on digital service tax feasibility, rates, and collection mechanisms. Current regulations require foreign platforms with over $62,500 annual revenue to register for VAT and impose a 10% tax on digital transactions. Authorities have already brought 30+ international platforms (including Google, TikTok, and Amazon) into compliance, collecting $44 million in e-commerce taxes during early 2024. The e-commerce market is projected to reach $1.78 billion in 2025.
Cross-Border E-Commerce Thrives
Cambodia's e-commerce sector shows strong cross-border characteristics, with international transactions accounting for 60% of activity—primarily agricultural exports and industrial imports. Social commerce via Facebook and TikTok dominates, while QR code payments have become the preferred method (47% adoption rate). The government is streamlining business registration and establishing support funds to help SMEs integrate into digital ecosystems.
Balancing Challenges and Opportunities
Cambodia's trade landscape demonstrates three key trends: emerging market expansion, industrial diversification, and enhanced resilience. Positive indicators include successful Middle East market penetration, manufacturing sector transformation, e-commerce infrastructure development, and non-US market growth. However, challenges persist—riel depreciation increases import costs, US tariffs disrupt certain exports, value-added products remain scarce, and rural logistics limitations hinder agricultural potential.
Moving forward, Cambodia must prioritize multilateral cooperation, industrial upgrading, rural infrastructure (especially cold chain systems), and e-commerce policy optimization to strengthen its economic resilience in an uncertain global environment.