Cambodia Urged to Cut Energy Import Dependence Amidst Economic Vulnerabilities

PHNOM PENH, Sept 8, 2026 (KPT) — Cambodia must reduce its reliance on imported energy and diversify fuel supplies as global market disruptions expose structural weaknesses in the economy, the Cambodia Development Resource Institute (CDRI) said in a new study. The report, The Economic Impact on Cambodia of International Energy‑Market Disruption, notes that Cambodia produces no domestic oil and depends heavily on imported refined petroleum, chemicals and fertiliser from a small group of regional suppliers. This leaves the economy vulnerable to price spikes and supply restrictions. Under a moderate scenario combining higher prices and export restraints, Cambodia’s real GDP could fall 1.43 percent below baseline in 2026, with employment down 2.97 percent, private consumption 4.81 percent and investment 6.71 percent. CDRI identified reducing dependence on imported petroleum as the most effective long‑term intervention, recommending accelerated deployment of solar and wind power, creation of strategic petroleum reserves and diversification of fuel sources. China, Thailand and Vietnam were cited as key suppliers whose export restrictions could trigger sustained shocks. Agriculture is also at risk, with Vietnam supplying more than half of Cambodia’s fertiliser‑embedded chemical imports. The report urged emergency fertiliser coordination and reserves covering two planting seasons, with sourcing diversified to India and Middle Eastern producers. CDRI further recommended targeted cash transfers to protect vulnerable households, while preserving fiscal resources for education, health and infrastructure. It also suggested promoting investment in electronics and electrical components to diversify Cambodia’s industrial base. The institute stressed that resilience will depend on reducing energy import exposure, strengthening renewables and building safeguards across agriculture, industry and social protection.