Peace and Order and Economic Developments in Cambodia
The Cambodia Business Guide (CBG) provides easy-to-understand information on how you can easily set up a business enterprise in Cambodia as a foreign national.
Read below: The Peace and Order and the 2026 Economic Developments relevant to business in Cambodia.
The Peace and Order Condition
Is there war in Cambodia?
Contrary to what might be read or seen in press reports or social media, because of the armed border conflict between Thailand and Cambodia in 2025, there is no ongoing "war" happening. There were sporadic military clashes between the two within the period of five months in 2025, with an exchange of firepower and some aerial bombing done by the Thai air force, but these were only along the northwestern border areas. This did not affect normal life in the whole country of Cambodia. By the start of 2026, the armed conflict had ceased, with Cambodia leading efforts to reach a peaceful resolution, assisted by other Asian countries and the United States. The armed conflict that briefly happened, while tragic to the directly affected sectors of the population living near the borders along Thailand and had some temporary disruptive effect on the social and economic growth, it actually inspired greater internal effort, both in the government and private sector in Cambodia, to increase economic activities and development that favor entrepreneurial undertakings that can boost self-sufficiency in products and services in the country, using local and foreign-sourced investments and expertise.
What is the usual observable peace and order condition in Cambodia?
- There are no political and religious violent conflicts within the country.
- There is no violent social unrest.
- There are no armed shooters who shoot people at random in the streets, schools, or churches, the way it happens in Western Countries.
- You cannot see drunken brawls in the streets or in restaurants where alcoholic drinks are served.
- Violent road rage does not happen among drivers in Cambodia.
- With sensible observance of simple precautions, it is safe to walk in city streets even late at night. Violent mugging still does not happen in Cambodia.
- When riding an open public transport vehicle, your greatest concern would only be not to have your mobile phone snatched from your hand.
- Armed robbery in business establishments does not happen. Security guards are not armed and are there just to see to it that the parking of vehicles is orderly, and that thieves will not be tempted to steal parked motorbikes. At night, you will see a security guard confidently sleeping on his folding bed under a mosquito net, undisturbed in front of the business establishment he is guarding.
The Economic Development Condition in Cambodia
What are the observable economic developments in Cambodia in 2026?
1. There have been booming developments in infrastructure (city roads, highways, and bridges), high-rise commercial buildings, real estate developments, and the proliferation of small business enterprises.
2. The demand for products and services in Cambodia is rapidly increasing because of the growing population. The current population now exceeds 18 million, with an annual growth rate of 2.1 percent. The population is expected to exceed 20 million by 2050, which will create much market demand potential.
3. The middle-class sector, with bigger purchasing potential, is increasing in Cambodia, driven by two decades of rapid economic growth. Data from the World Bank indicates that the proportion of the middle-class population in Cambodia grew from 23% in 2010 to 42% in 2019.
4. Cambodia has a large labor pool, with a dynamic, able-bodied young generation sector of the population available for business employment. From its current 2026 population of 18 million, it has a working-age sector of approximately 11 million.
5. There is the recent and actively ongoing government crackdown on syndicated international criminal business operations that had attempted to use Cambodia as a base for their international financial scams, now preventing it from exploiting the young labor force and destroying people's trust in the banking system and capital investment in Cambodia.
6. There is the 2026 opening of the new Techo International Airport, near the capital city of Phnom Penh, to accommodate the growing number of tourists entering the country, increasing the demand for products and services.
7. There is the ongoing building of the waterway system that will enable international cargo shipping to directly enter Cambodia from the sea, to enhance international trade, which will benefit industrial investments.
8. Major world car manufacturers have now set up car assembly plants in Cambodia, with plans to set up Cambodian car parts manufacturing factories.
