Why a Self-Sustainable Cambodia is Crucial for the Future

In an increasingly unpredictable global landscape, Cambodia’s path to progress must be paved with resilience, self-reliance, and strategic independence. The concept of “self-sustainability” is no longer a development ideal—it is a national necessity. Whether in agriculture, energy, industry, or technology, building a self-sustaining economic and social foundation ensures long-term security, dignity, and prosperity for the Cambodian people.

At the heart of this transformation are two powerful engines: Micro, Small, and Medium Enterprises (MSMEs) and the cooperative sector. Together, they are capable of driving inclusive growth, reducing dependency on volatile external markets, and strengthening national identity through shared progress.

The Case for Self-Sustainability

Cambodia’s economy has grown steadily over the past two decades. But with that growth has also come reliance—on imported energy, foreign capital, overseas markets, and cross-border trade. Global supply chain disruptions, inflation shocks, and geopolitical tensions have shown how easily external dependencies can become internal risks.

Self-sustainability means producing more of what we consume, powering more of what we build, and owning more of what we create. It means supporting our farmers, artisans, engineers, and entrepreneurs so they can innovate, compete, and thrive without relying disproportionately on others. For Cambodia, a young and rapidly developing nation, this is both an economic and strategic imperative.

A more self-reliant Cambodia would be better equipped to:

• Ensure food security by strengthening local agricultural systems.
• Reduce energy dependence through renewable energy generation.
• Stimulate domestic manufacturing and digital innovation.
• Maintain stable employment during external economic shocks.
• Protect national interests through greater internal capacity.

Commending Government Commitment

The Royal Government of Cambodia, under the leadership of Prime Minister Samdech Moha Borvor Thipadei Hun Manet, has demonstrated remarkable vision in placing sustainability and self-reliance at the core of national policy. From prioritising digital economy frameworks and agricultural transformation to promoting SME development and renewable energy, the government’s commitment to inclusive growth has been consistent and forward-thinking. National strategies such as the Pentagonal Strategy—Phase I, the Cambodia Digital Economy and Society Policy Framework 2021–2035, and the revised Industrial Development Policy are tangible evidence of the state’s resolve to build a resilient Cambodia that stands strong on its own foundations.

MSMEs: Cambodia’s Growth Engine

MSMEs are the silent heroes of Cambodia’s economic narrative. According to national data, they represent more than 98% of total registered businesses and provide jobs to more than 70% of the workforce. From garment workshops in Phnom Penh to rice millers in Battambang, from street food vendors to digital startups—MSMEs form the economic lifeblood of the country.

Their contribution goes far beyond numbers. MSMEs keep the economy dynamic, localised, and adaptive. They:

• Provide employment at the grassroots level, particularly to women and youth.
• Foster innovation and entrepreneurship in both urban and rural areas.
• Encourage local production and reduce dependency on imports.
• Create supply chains that are embedded in the national economy.
• Offer greater flexibility during crises compared to large corporations.

Despite their importance, MSMEs often face systemic challenges—limited access to finance, lack of formal training, regulatory burdens, and absence of digital integration. To realise their full potential, Cambodia must create a national ecosystem that supports them. This includes easier credit facilities, simplified business registration, mentorship programs, e-commerce support, and targeted export promotion.

MSMEs are not merely small businesses—they are nation-builders in disguise.

The Cooperative Model: Shared Strength for Sustainable Growth

In rural Cambodia, cooperatives are transforming lives. Whether in agriculture, handicrafts, aquaculture, or services, cooperative models enable small producers to pool their resources, reduce costs, and access larger markets. They promote fairness, transparency, and mutual benefit.

For example, agricultural cooperatives allow farmers to collectively purchase seeds and fertilizers at lower rates, share knowledge on climate-resilient farming, and process their goods for higher value. Similarly, women-led cooperatives have created opportunities for skill-building, income generation, and social empowerment in remote provinces.

The cooperative sector contributes to:

• Enhancing rural livelihoods and reducing poverty.
• Building stronger supply chains from farm to market.
• Improving bargaining power of small producers.
• Encouraging savings and reinvestment in local communities.
• Strengthening social cohesion and shared accountability.

What makes cooperatives unique is their built-in sustainability. Since they are owned and governed by their members, they are motivated not just by profits but by long-term wellbeing of their communities.

To scale up, cooperatives need greater institutional support. This includes capacity building, financial literacy training, access to credit and insurance, and better market integration. With the right policy backing, cooperatives can become a foundation for inclusive and sustainable national development.

Sustainability in Agriculture, Energy, and Manufacturing

A self-sustainable Cambodia rests on three critical pillars:

1. Food and Agriculture

Cambodia’s vast agricultural potential remains underutilised. By promoting agro-processing, climate-smart farming, and organic practices through MSMEs and cooperatives, the country can reduce food imports and enhance food sovereignty.

• Support for community-based irrigation systems and seed banks.
• Training in regenerative farming and soil restoration.
• Encouraging local food markets and farm-to-table models.

2. Renewable Energy

Rural electrification and national energy independence are key to self-reliance. Cambodia has immense potential in solar, biomass, and mini-hydro power.

• MSMEs in solar installation and maintenance can drive local green jobs.
• Cooperatives can manage community solar grids and reduce costs.
• Policy incentives for decentralized, clean energy systems are essential.

3. Domestic Manufacturing and Industry

Cambodia must shift from being a raw materials exporter to a value-added producer. This is where MSMEs and cooperatives in textiles, crafts, electronics assembly, and food processing can be catalysts.

• Develop local sourcing clusters around major cities.
• Link small producers with export hubs and trade facilitation programs.
• Foster industrial linkages between cooperatives and SMEs in processing.

Sovereignty Forged in Resilience: Lessons from the Preah Vihear Dispute

The enduring dispute over the Temple of Preah Vihear stands as a powerful reflection of Cambodia’s unwavering commitment to its national sovereignty and the imperative of internal strength. This ancient temple complex, deeply revered as a place of pilgrimage and worship for Cambodians, has been a recurring point of contention with neighboring Thailand. Cambodia formally asserted its territorial rights by initiating proceedings at the International Court of Justice (ICJ) in 1959, seeking a declaration of its sovereignty over the temple.  

In 1962, the ICJ delivered a decisive judgment in Cambodia’s favor, affirming its territorial sovereignty over Preah Vihear. The Court’s decision was based on the 1904 Franco-Siamese Treaty, which stipulated that the frontier in the area should follow the watershed line, and a subsequent map that clearly depicted the temple on the Cambodian side of the border. Thailand’s contention that it had not accepted the map, or had done so under a mistaken belief, was rejected by the Court, which ultimately ordered Thailand to withdraw any military or police forces and restore any objects removed from the ruins.

While this legal victory was crucial for asserting Cambodia’s sovereign claim, the decision was rendered on “narrow technical grounds” and did not fully address the deeper historical and normative debates surrounding cultural ownership. This limited scope meant that the dispute resurfaced decades later, particularly when Cambodia sought to register Preah Vihear as a UNESCO World Heritage Site in 2008, leading to renewed tensions and even armed clashes.  

This recurring historical and ongoing tension surrounding Preah Vihear underscores that national sovereignty is not a static declaration but a dynamic concept requiring continuous assertion and robust national capabilities. The persistence of geopolitical sensitivities, even after international legal rulings, highlights the critical need for internal strength and resilience. A self-sustainable Cambodia, characterized by a diversified economy, a cohesive social fabric, and environmental integrity, is inherently better equipped to navigate and withstand such external pressures, whether they are economic, political, or military.

The historical and ongoing necessity to assert and safeguard national sovereignty serves as a powerful motivation for Cambodia to vigorously pursue self-sustainability. This pursuit becomes a strategic instrument for enhancing national security and maintaining independence within a complex regional environment, allowing Cambodia to truly strengthen its ownership over its national destiny.  

A Stronger Cambodia Begins Within

The future of Cambodia will not be shaped by global uncertainty or foreign influence—it will be shaped by the strength of its people, the resolve of its institutions, and the sustainability of its development. In every rural cooperative, every small enterprise, and every solar-powered village, Cambodia is building a stronger, fairer, and more resilient foundation.

Self-sustainability is not a slogan—it is a strategy. One that protects the nation’s interests, strengthens its sovereignty, and ensures that no matter the challenge, Cambodia can stand steady on its own.

With vision, collaboration, and commitment, Cambodia can—and will—build a future where progress is powered from within.