Cambodia - From Vision to Reality : Priorities for Growth and Better Jobs

Overview & Synopsis

Cambodia has achieved remarkable economic transformation over the past two decades, with rapid growth, falling poverty, and progress to lower-middle-income status, but Vision 2050 sets a far more ambitious goal of reaching high-income status. Achieving this will require shifting from a growth model driven by labor and capital accumulation to one based on productivity, competitive firms, skilled workers, and stronger fiscal capacity. Firms must overcome constraints such as high input costs, informality, and regulatory barriers, while deeper trade integration is needed to drive value addition and job creation. At the same time, strengthening education and skills systems is essential to break the low-skill equilibrium and support higher productivity employment. Expanding fiscal capacity through broader tax bases and stronger administration will finance investments in human capital, infrastructure, and social protection. The report emphasizes that only bold, coordinated reforms implemented in parallel can deliver sustained growth, better jobs, and successful realization of Vision 2050.