ADB's Work in Cambodia

Cambodia’s economy grew by an average of 7% per annum during 2010–2019, making it one of the fastest-growing economies in the world. This rapid growth was underpinned by macroeconomic stability, openness to trade and foreign direct investment, and structural transformation led by export-oriented, labor-intensive manufacturing such as garments, travel goods, and footwear. Real gross domestic product contracted by 3.1% in 2020. The country faced its first recession in 1995 but its economy bounced back and grew by around 2% in 2021.

ADB is one of Cambodia’s largest sources of official development assistance, with an average annual lending of $329.8 million from 2016 to 2021. ADB’s support is aligned with the Cambodia’s National Strategic Development Plan 2019–2023.

ADB assisted the Government of Cambodia in its immediate response to the coronavirus disease (COVID-19) pandemic through programs to strengthen the country’s health care system; increase social assistance to the poor and vulnerable; and provide economic stimulus to businesses, including small and medium-sized enterprises. ADB committed $327.1 million in loans in 2021 to support the government’s efforts in responding to the COVID-19 pandemic by further developing core health system capacities to respond to public health threats; increasing financial inclusion and access to affordable finance by micro, small, and medium-sized enterprises (MSMEs); and improving national and provincial roads and urban services.

To date, ADB has committed 319 public sector loans, grants, and technical assistance totaling $4.2 billion to Cambodia. Cumulative loan and grant disbursements to Cambodia amount to $2.84 billion. These were financed by regular and concessional ordinary capital resources, the Asian Development Fund, and other special funds. ADB’s ongoing sovereign portfolio in Cambodia includes 36 loans and 7 grants worth $2 million.

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Cambodia as of 31 December 2021 was $53.52 million representing 0.38% of ADB’s total private sector portfolio.

Operational challenges. ADB is working closely with the government to monitor funds and enhance the technical and institutional capacities of staff and clients, and strengthen partnerships with the government and the development partners to improve portfolio performance. Amid the impacts of the COVID-19 pandemic and some minor operational challenges, the team is incorporating new updates to meet the changing context.

Cambodia's economy to accelerate in 2022 and 2023, with strong merchandise exports and foreign direct investment inflows. Photo: ADB

COVID-19 Response

The assistance built on the support that ADB provided for Cambodia’s COVID-19 response in 2020 with a total of over $491 million in loans. This included $250 million in budget support from ADB, and $241.6 million in cofinancing from the Japan International Cooperation Agency under the COVID-19 Active Response and Expenditure Support Program (CARES). In addition, $270,000 loan funds from the Greater Mekong Subregion (GMS) Health Security Project supported Cambodia’s COVID-19 response program.

ADB also provided about $1 million in grants and technical assistance to help the government develop evidence-based policies, such as the COVID-19 gender impact assessment, IDPoor program evaluation, and the COVID-19 socioeconomic assessment. It also provided advisory support to ensure the effective implementation of the CARES Program through meetings with civil society organizations and the private sector.

Knowledge Work

ADB produced several publications and organized knowledge events in collaboration with government institutions and development partners. These included key publications Reaping the Benefits of Industry 4.0 through Skills Development in HighGrowth Industries in Southeast Asia and Agriculture, Natural Resources, and Rural Development Sector Assessment, Strategy, and Road Map. A webinar on “Digital Platforms and Cambodia’s Post-COVID-19 Economic Recovery” was jointly organized with the Ministry of Economy and Finance to discuss policies on harnessing digital platforms to restore and promote economic growth. “Women in Leadership: The Journey of Becoming” featured prominent female leaders and entrepreneurs promoting gender equality. ADB partnered with Cambodia Development Resource Institute, a leading think tank, to facilitate easier access to ADB research and publications for stakeholders.

  ADB Projects in Cambodia Project data sheets for loans, grants, TAs