The Cambodian government has outlined three priority sectors for implementing public-private partnership (PPP) projects over the next decade. The sectors, which face high costs and challenges, are transportation and logistics, energy, and public services.

According to a government directive circulated over the December 21-23 weekend, the 2025 to 2035 priority areas include infrastructure such as roads, bridges and ports; the energy sector; and public services, such as clean water supply and waste management. However, other sectors may be added to the list if deemed necessary.

The “Comprehensive Master Plan on Cambodia Intermodal Transport and Logistics System 2023-2033” (CITLS) identifies 174 projects across the hard and soft infrastructure categories, with a total investment of $36.6 billion. This plan aims to connect intermodal transport systems within the country and the region, supporting economic growth and addressing socio-economic and environmental needs.

Despite progress, Cambodia’s transport and logistics systems still face challenges, including poor road quality, limited railway connectivity with neighbouring countries, constrained public investment resources and a lack of skilled human resources, according to the Ministry of Public Works and Transport’s General Department of Logistics.

Sin Chanthy, president of the Cambodia Logistics Association and CEO of Linehaul Express (Cambodia), acknowledged the significant growth in the logistics sector. He noted that the government is expanding both the quantity and quality of logistics infrastructure despite existing gaps.

However, Chanthy pointed out that transportation costs in Cambodia remain high compared to neighboring countries such as Vietnam and Thailand. 

“We hope transportation and logistics costs will decrease in the future as Cambodia continues to improve this sector,” he said.

Chanthy expressed optimism about the government’s development plans, including deep-sea ports, large-scale airports, expressways and major roads to key economic zones.

“We believe that with these plans, Cambodia will enhance its logistics competitiveness with neighbouring countries,” he added.

He also emphasised the need to improve “soft infrastructure,” such as procedures and documentation related to logistics, and to adopt digital systems to streamline operations. 

“Additionally, reducing unofficial costs is a key area we must address,” he added.

Regarding energy, Chanthy highlighted its critical role in production and logistics, adding that high energy costs remain a significant challenge.

“High energy costs impact transportation, logistics, and other production sectors. Improving the energy sector is essential to boosting Cambodia’s economy,” he said.

Chanthy commended the government’s focus on these three sectors as priorities for PPP projects over the next 10 years, describing it as a vital step for national development.

Yang Kim Eng, president of the People Centre for Development and Peace (PDP-Centre), urged the government to consider including other sectors in PPP initiatives, such as education, which should focus on quality improvements, and tourism, which plays a significant role in enhancing livelihoods and the national economy.

He added that partnership with civil society should also be prioritised.