Cambodia’s Digital Economy Contributes 1.8% of GDP, Asian Development Bank Report Shows
Asian Development Bank Brief No. 399 reveals that Cambodia’s digital economy contributes 1.8% to GDP, citing infrastructure, regulatory, and digital skill challenges among MSMEs.
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PHNOM PENH — Cambodia’s digital economy currently contributes 1.8 percent to the country’s Gross Domestic Product (GDP), placing the Kingdom among the lower-performing digital economies in the region alongside Laos, according to findings from the Asian Development Bank (ADB).
The findings, released in ADB Brief No. 399 titled “Advancing Digital Trade and Cross-Border E-Commerce in Asia and the Pacific,” assess digital readiness and cross-border e-commerce capacity across the Asia-Pacific region.
Low Score on ADB Digitalization Index
On the ADB Digitalization Index 2024, Cambodia scored 19.3 out of 100, placing it in the lower tier of emerging digital ecosystems across Asia. The index evaluates national digital development across seven core pillars:
- Digital Economy & Government
- Infrastructure & Regulation
- Household Digitalisation
- Human Capital & Innovation
- Production Digitalisation
While Cambodia recorded a 1.8 percent GDP contribution from its digital sector, neighboring peers Thailand and Vietnam demonstrated substantially stronger momentum. Vietnam stood out for high fintech adoption rates, while Thailand maintained a well-established goods-based digital trade framework.
Key Growth Barriers for Local Enterprises
The ADB brief highlights several structural and regulatory hurdles currently limiting Cambodia’s digital trade potential:
“Relatively high infrastructural and regulatory hurdles, including gaps in connectivity, payment systems, electronic transactions, and digital public infrastructure, raise compliance costs and make it harder for firms to sell across borders.”
Micro, Small, and Medium Enterprises (MSMEs), which form the backbone of Cambodia’s business landscape, face the steepest challenges due to limited access to financing, technical capacity, and specialized digital skills.
Path Forward: Regional Integration & Regional Policy Frameworks
Despite current structural limits, the assessment underscores measurable gains for businesses adopting technology. Cambodian firms utilizing digital tools and e-commerce platforms reported higher revenues, operational efficiency, and greater formalization.
To bridge the regional gap, ADB recommends expanding digital public infrastructure, lowering regulatory friction, and leveraging regional economic agreements.
As an active ASEAN member, Cambodia is participating in initiatives such as the ASEAN Agreement on Electronic Commerce and the Digital Economy Framework Agreement (DEFA), which prioritize payment interoperability, data governance, paperless customs procedures, and cross-border trade facilitation.
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