Covid-19 FAQ in Cambodia

Current economic situation under pandemic conditions

The Cambodian economy is projected to grow by 4 per cent this year and 5.5 per cent in 2022 as economic recovery among key trading partners boosts demand for Cambodian exports. In 2020, the economy contracted by 3.1 per cent and is forecast to return to modest growth this year.

Industrial production is expected to increase by 7.1 per cent in 2021 and 7.0 per cent in 2022. This will be due to the recovery of the apparel, footwear and travel goods sectors. In addition, growth is expected in light industry, e.g. electronics and bicycles.

The services sector will recover more slowly, growing by 3.3 per cent in 2021 and 6.2 per cent in 2022. The tourism sector will not be able to recover in 2021 due to travel restrictions that are expected to last until the end of the year. Overall, no increase in the services sector is expected in 2021.

However, the real estate sector will recover slightly from last year's contraction as early as 2021. The same applies to the construction industry.

Measures for exit and restart/restart of the economy

The government has shown an impressive response to the pandemic. Its COVID-19 master plan includes strengthening the health system, supporting workers and businesses, and providing cash transfers to poor and vulnerable households. The cost of the government's response are US$1.36 billion (5.1 per cent of GDP).

An ambitious cash transfer programme was successfully rolled out, using innovative mobile payments. It has reached about 90 per cent of the intended beneficiaries under the Poor Household Identification Programme. A package of economic support measures, including wage sharing, tax deferral and credit extension, was implemented to maintain labour market stability and support economic recovery.

Demand from Cambodia's main trading partners, the US and the EU, as well as continued weakness in domestic demand, mean that the government will maintain its accommodative fiscal policy stance this year and next to support growth.

Mobility of people

A country that until recently managed to contain the COVID-19 epidemic has now placed its capital, Phnom Penh, and other districts in the region under lockdown. Cambodia also has a ban on domestic travel and a curfew from 8pm to 5am.

Entry for business travellers is only possible under strict conditions. To apply for a business visa, the following requirements are necessary: a letter of invitation and a justification stating that entry is mandatory or a local work contract. Without a local employment contract and Work Permit, only a maximum stay of 30 days is possible. These entry requirements are expected to remain in place until the end of 2021. Upon entry into Cambodia, two weeks of hotel quarantine and a PCR test are required, as well as a deposit of US$ 2,000 and valid health insurance.

Logistics in the country and international movement of goods

The national movement of goods is functioning with COVID-related restrictions and waiting times. The international movement of goods has declined sharply due to a sharp drop in demand for exports, but is expected to recover well into 2021.

» Here you find current Covid-related figures: Cambodia - COVID-19 Overview - Johns Hopkins (jhu.edu)

» For more information: Royal Embassy of Cambodia in Berlin