Total official development finance to Cambodia dropped by 30 per cent in 2022 to $2.3 billion, in line with a broader regional trend for Southeast Asia, the think tank’s annual ‘Southeast Asia Aid Map’s 2024 Key Finding Report’ said.

China, which offered over a third of Cambodia's development finance from 2015 to 2022, saw its support plummet to $386 million in 2022—its lowest point—with little signs of recovery, it observed.

The decline is a matter of concern, said Alexandre Dayant, Southeast Asia Aid Map project lead at the think tank, during the launch event of the report in Phnom Penh. Critical sectors like infrastructure, health and education are heavily reliant on international aid.

However, regional powers like India, Japan and Korea have increased their support, suggesting a shift in Cambodia's development partnerships.

While Cambodia may not pivot to traditional Western donors, its pool of development partners could expand, potentially leading to more diversified and resilient economic growth.

The role of intra-regional development financing and assistance between ASEAN member states is growing, albeit from a low base. Thailand leads in this regard, followed by Vietnam, the report noted.

Governance was cited as a primary barrier to growth and development in Cambodia.

“During the 2015-2022 period, more than 19,500 projects were implemented by 63 development partners in Cambodia, totalling more than $17.7 billion in funding,” the report added.

Fibre2Fashion News Desk (DS)