Phnom Penh
Cambodia is set to graduate from its status as a least developed country (LDC) by 2029, according to a policy brief released by the Cambodian government and the United Nations Development Program (UNDP) on Monday.
The policy brief highlights the challenges Cambodia will face as it transitions away from LDC status, including the potential loss of international support measures such as trade benefits, concessional financing, and market access. This shift could impact sectors like public health, garment exports, rice production, and bicycles. As a result, Cambodia’s GDP growth may slow by 0.5 to 1.5 percent, with a risk of 165,000 job losses, especially in the garment sector, where women make up a significant portion of the workforce. Around 432,000 people could also be pushed back into poverty without proper preparation.
Cambodian Minister of Planning Bin Troachhey emphasized that the government will work closely with ministries, the private sector, and civil society to implement a Smooth Transition Strategy (STS). This strategy will align with the government’s broader development goals, focusing on six priorities: enhancing human capital, economic diversification, expanding trade markets, attracting foreign investment, advancing science and technology, and strengthening social support systems.
UNDP Resident Representative Alissar Chaker noted that LDC graduation presents both challenges and opportunities, opening pathways for stronger, resilient growth. The UNDP has committed to supporting Cambodia through this transition by enhancing competitiveness, promoting a green economy, and shifting from donor funding to sustainable financing.
