In 2023, Cambodia and China elevated their bilateral relations to new height under the framework “Diamond Hexagon Cooperation” that is focused on six priority areas, including (1) political cooperation, (2) production capacity and quality, (3) agriculture, (4) energy, (5) security, and (6) people-to-people exchanges.
Furthermore, during attending the 3rd Belt and Road Forum in Beijing last year, Cambodian newly appointed Prime Minister Hun Manet and his Chinese counterpart Li Qiang agreed to design “2024 as the Year of People-to-People Exchanges”, aiming to boost tourism and strengthen connectivity between the two countries.
In a message celebrating the 2024 Cambodia-China People-to-People Exchange Year, Cambodian Premier Hun Manet said that, “I’m optimistic that the 2024 Cambodia-China People-to-People Exchange Year will provide a new great opportunity to attract more Chinese tourists and investors to Cambodia, and the bonds of solidarity, friendship and diamond cooperation between our two countries and peoples will be even stronger”.
On top of this, in early January 2024, the two countries hosted the luminous arts performance in the Angkor Archaeological Park to officially start the year of Cambodia-China People-to-People Exchanges. In April 2024, the two countries also co-organized the exciting cultural exchange event under the theme “When Shaolin Meets Bokator at Angkor”, highlighting the cultural diversity of Cambodia and China and served as a way to promote Cambodia’s cultural diplomacy and attract more Chinese tourists to the Kingdom.
Indeed, the rich cultural heritage of Cambodia and China create a solid foundation for further cultural exchange and creating a shared understanding between Cambodian and Chinese peoples. In this sense, Cambodia can explore further opportunities for collaboration with China in art, music, folklore, dance, and traditional practices. This will contribute to stimulating the sharing of cultural values, boosting the respect and appreciation for each other’s cultural heritage. Such collaborations also align with Cambodia’ economic diplomacy strategy that encourages the promotion of Cambodian culture, gastronomy as well as fostering cultural exchange and cooperation.
Certainly, hosting cultural festivals, exhibitions, and events as part of cultural exchange initiatives can attract international visitors, especially Chinese tourists to Cambodia as these events will offer a marvelous opportunity to highlight a destination’s heritage and traditions, enriching tourists’ experiences and even encouraging repeat visits.
Significantly, given China standing as the largest source market for global tourism, the People-to-People Exchanges will foster the resurgence of further two-way travel between Cambodia and China, injecting vitality into economic growth and foster stronger cultural connections not only for Cambodia, but also for the region.
Noticeably, tourism is one of the main contributing factors to Cambodia’s economic growth. The tourism industry has driven billions of dollars in revenue and created numerous job opportunities in Cambodia. In 2019, the industry employed 630,000 individuals and brought in 4.9 billion USD in revenue, accounting for 18.2 percent of the GDP, the highest amongst the ASEAN+3 countries. In addition, the economy of Cambodia is expected to see growth of 5.8% in 2024 and 6.0% in 2025, driven by a reinvigoration in tourism and promising manufacturing opportunities.
Last year, Cambodia received approximately 540,000 Chinese tourists among the 5.4 million international visitors while prior to the pandemic, Cambodia had received 2,300,000 Chinese tourists in 2019. This year, Cambodia is expected to welcome around one million Chinese tourists.
Additionally, the trade relationship between Cambodia and China has experienced significant growth and development over the years, marked by substantial trade volumes and cooperation mechanisms. Chinese investment in Cambodia has displayed a dynamic trend over recent years, with substantial figures reflecting a significant presence in the Cambodian economy.
In 2021, Chinese investment reached about 2.32 billion USD, positioning China as the top investor in Cambodia. However, due to the pandemic restriction policy, the investment dropped to around 1.7 billion USD, ranking China as the second-largest investor in 2022. Nevertheless, in 2023, Chinese investment surged to around 3.2 billion USD, reclaiming its top position as the leading investor in Cambodia. These investment figures clearly demonstrate China’s continued interest and confidence in the Cambodian market.
Besides the investment, the trade volume between Cambodia and China has also shown consistent growth. Starting at about 8 billion USD in 2020, the trade volume rose to approximately 11 billion USD in 2021 and increased roughly 11.7 billion USD in 2022 despite the pandemic. In 2023, the two countries saw their trade volume reached to around 12 billion USD. The progression of this trade volume underscores the robust commercial ties and economic partnership between Cambodia and China, highlighting a mutual commitment to enhancing bilateral trade relations.
By implementing the framework of People-to-People Exchanges, together with existing new investment law, free trade agreements, Regional Comprehensive Economic Partnership (RCEP) agreement, and newly initiated national single window, the government of Cambodia has optimistically expected to attract more foreign direct investment (FDI), particularly Chinese investors to the country as these instruments create an environment conducive to legal certainty, investment protection, and enhanced market access for foreign businesses and investors.
It is worth noting that in the previous year, Cambodia saw a 28.8% surge in exports to RCEP member countries, reaching a total of 8.17 billion U.S. dollars. The top five export destinations within the mega-regional agreement were Vietnam, China, Japan, Thailand, and Singapore. Cambodia’s total trade volume with RCEP members surpassed 29.4 billion U.S. dollars in 2023.
Most importantly, since the accomplishment of hard-earned complete peace in 1998, Cambodia has made impressive strides in human development, economic growth, and building strong relationships with countries both regionally and globally. Cambodia, as a post-conflict state, puts utmost significance on the peace and security for its survival. Thus, it is committed to upholding its independent and neutral foreign policy, upholding the principle of being “friend to all and enemy to none”.
The implementation of People-to-People Exchanges between Cambodia and China is deemed to hold immense potential for creating new opportunities to advance people-centered cooperation approach and to foster closer ties at the grassroots level between both countries. Hence, Phnom Penh and Beijing must strengthen their bond and open up new avenues for cooperation in various sectors for boosting development and prosperity for peoples of the two countries.
This meaningful cooperation will help Cambodia to achieve its goal of becoming an upper-middle-income country by 2030 and high-income country by 2050. Also, it is a driving force for Cambodia and China to build a brighter future together and create a model of cooperation that will serve as an inspiration for others in the region and beyond.
