Cambodia Targets Logistics Sector as Economic Growth Engine with 10-Year Master Plan

The Cambodian government reviewed and approved a progress report on the logistics sector during a cabinet meeting on Friday, September 25, 2026. The World Bank regards the logistics sector as the "backbone" of international trade and an "engine" for driving economic growth, poverty reduction, and job creation. Efficient logistics are crucial for reducing trade costs, strengthening connections between businesses and markets, and supporting economic development. The efficiency of logistics is evaluated based on three key elements: "short transit time," "low cost," and "high reliability." To achieve these goals, six objective factors need to be measured: the speed of customs clearance procedures at borders, the quality of physical infrastructure, competitiveness in international transport, the quality and capacity of domestic logistics operators, the ability to track goods, and the frequency of timely deliveries to the final destination. These factors involve both government and private institutions, and are challenges that related institutions must address collaboratively under the framework of the National Logistics Council, with the National Logistics Committee serving as the secretariat. With support from development partners including the Japan International Cooperation Agency (JICA), the World Bank, and the People's Republic of China, the government has developed the "Comprehensive Intermodal Transport and Logistics Master Plan for Cambodia 2023-2033 (CITLS)." This 10-year master plan aims to integrate all modes of transport—road, rail, water, air, ports, and multimodal transport—along with logistics, into a single comprehensive master plan. It includes 174 projects (both soft and physical) with an estimated investment of approximately $36.6 billion, and was officially approved for use in August 2023. Concurrently, the Ministry of Public Works and Transport is preparing a draft law on "Logistics" to manage the sector efficiently and progressively. Logistics data also plays a significant role, not only in measuring progress but also as a crucial compass for policy formulation and strategic planning based on empirical evidence.