MANILA, Philippines, September 22, 2024 – Cambodia is on the cusp of a major digital transformation, with plans to leverage technology for economic growth, human resource development, and environmental sustainability.
During an exclusive interview with AsiaBizToday on the sidelines of the 8th ASEAN CIO Forum in Manila on September 18, Sok Puthyvuth, Secretary of State at the Ministry of Post and Telecommunications, Cambodia shared the ambitions and challenges on the path to becoming a high-income digital economy by 2050. Puthyvuth outlined the government’s vision, highlighting the critical role of technology in shaping Cambodia’s future and the challenges it must overcome to achieve its goals.
The country’s focus on education, technology, and a sustainable economy forms the bedrock of its future development. From the development of a national digital payment system to innovative strategies for human resource development and managing carbon credits, Cambodia is positioning itself as a forward-thinking, tech-enabled economy.
A Strategic Framework for Digital Growth
At the core of Cambodia’s digital transformation is a policy framework that enables the development of a digital economy and society. Puthyvuth emphasized, “This framework allows us to adopt a whole-of-government approach in transforming Cambodia into a digital nation. Our pentagonal strategy, which focuses on people, power, water, roads, and technology, underpins this transformation.” The inclusion of technology as a pillar highlights its importance as an enabler of other sectors.
One of the major initiatives that exemplifies this transformation is the establishment of a national digital payment system. Led by Cambodia’s National Bank, the system integrates banks across the country, allowing seamless digital transactions nationwide. “This system is a critical enabler for Cambodia’s digital economy. We envision its integration into a broader ASEAN-wide platform, which could facilitate financial transactions and promote digital commerce across member states,” Puthyvuth remarked.
Human Resource Development: Building Capacity for a Digital Future
While Cambodia is rapidly progressing in terms of infrastructure and policy, Puthyvuth acknowledged that human resource development remains a challenge. “We still face a shortage of skilled professionals, especially in the tech sector. That’s why education and capacity building are top priorities for the government. We are focused on training more people and, when necessary, borrowing talent with the intention of developing local expertise over time.”
The government’s approach aims to strike a balance between immediate needs and long-term capacity building. “Borrowed talent is a temporary solution. As we train more Cambodians and build local capacity, we aim to transition to a more self-reliant model,” he added.
Carbon Credits and Sustainability: A Balancing Act
Cambodia’s commitment to sustainability is another central theme of the country’s vision for the future. As a carbon-positive country, Cambodia has the ability to sell carbon credits, but Puthyvuth warns of potential challenges. “While selling carbon credits is financially beneficial, there needs to be a balance between locking in land for carbon offset purposes and ensuring long-term environmental and economic sustainability.”
Cambodia, rich in natural resources, must navigate the complexities of the shared and circular economy. “ASEAN as a bloc needs to engage in discussions about balancing environmental efforts with financial equity. We cannot allow wealthier countries to monopolize the benefits of carbon credit systems, leaving less affluent nations at a disadvantage,” he stressed.
Combatting Online Scams: A Collaborative Effort
One of the darker aspects of Cambodia’s digital expansion is the rise of online scams, notably “pig butchering” scams. These scams, which often involve organized crime, exploit vulnerable individuals online. “Cambodia, like many other countries, was not prepared for the rapid rise of these online scams. These operations are highly organized, and combatting them requires international cooperation,” Puthyvuth stated.
He emphasized that no single country can effectively address this issue on its own. “The solution lies in collaboration among all ASEAN member states and beyond. We need to share intelligence, track down perpetrators, and create stronger enforcement mechanisms. These scams aren’t just a problem for Cambodia—they’re a global issue.”
The Road Ahead: A Multi-Pronged Approach to 2050
Cambodia’s goal of becoming a high-income country by 2050 hinges on several factors, including its ability to harness technology, build human capacity, and maintain sustainable development. “Our vision for 2050 requires a multi-pronged approach. Technology will enable rapid development, but we also need to focus on sectors like agriculture, minerals, and manufacturing, all of which have significant untapped potential,” Puthyvuth explained.
The next two decades will be critical for Cambodia as it navigates the challenges and opportunities of digital transformation. With a forward-looking policy framework, a commitment to sustainability, and international collaboration, Cambodia is laying the groundwork for a prosperous future in the digital age.
As Puthyvuth concluded, “We know the time is short, but with the right strategies and partnerships, we believe Cambodia can achieve its vision of becoming a high-income nation by 2050. The journey will be challenging, but technology will allow us to move faster than ever before.”