Cambodia Pursues Dual Diplomacy: Protecting Sovereignty and Attracting Investment

The Cambodian government is actively pursuing a dual diplomacy strategy, balancing political diplomacy with economic diplomacy to protect national sovereignty and foster growth. Government spokesperson Pen Bona stated that the government is working hard to ensure that political diplomacy and economic diplomacy advance hand-in-hand. Pen Bona elaborated that political diplomacy is currently very active, especially in the context of Cambodia facing illegal territorial incursions by armed forces. Simultaneously, the government is not overlooking economic diplomacy, continuing to work with countries and the international business community to attract investment and expand markets for Cambodian products. As a practical example, on September 12, 2026, Myanmar's President Min Aung Hlaing concluded a two-day state visit to Cambodia. This visit demonstrated the strengthening of relations and cooperation between the two countries, encompassing both political and economic aspects. During the visit, Cambodia and Myanmar agreed to strengthen their bilateral relations and promote cooperation in key sectors, including economy, trade, investment, tourism, culture, education, security, and national defense. They also exchanged views on regional and international issues. Both sides also paid attention to cooperation in combating technological fraud. In parallel, Cambodia and Myanmar signed four cooperation documents: an agreement on the avoidance of double taxation, an agreement on the promotion and reciprocal protection of investors, an amendment to the agreement on cultural cooperation, and a Memorandum of Understanding on cooperation in information and media. These signings are considered a part of promoting deeper bilateral relations and expanding cooperation between the peoples and institutions of both countries. Following the strengthening of relations with Myanmar, the Cambodian government continued its economic diplomacy activities through meetings with business delegations from Japan and the United States. Specifically, on September 10, 2026, Prime Minister Hun Manet separately met with the President of the Japan-Cambodia Association (JCA) and the President of the American-Cambodian Business Council (ACBC) to discuss strengthening business, trade, and investment cooperation. In the meeting with the President of the Japan-Cambodia Association, the Japanese side raised the signing of an MOU with the Ministry of Interior aimed at promoting Japanese Small and Medium Enterprises (SMEs) operating in Cambodia and continuing to strengthen close cooperation. The President of the JCA also emphasized key areas of cooperation, including vocational and technical training, agricultural development, and digital industry development. Furthermore, the Japanese side aims to expand investment in agricultural product processing, silkworm farming, and tilapia production, as well as training in beauty and cosmetic care and cooperation with TOYOTA in training car maintenance specialists. Prime Minister Hun Manet expressed support for the positive developments in Cambodia-Japan cooperation and expressed confidence that this cooperation will attract more Japanese investors to Cambodia. The Prime Minister also mentioned Cambodia-Japan cooperation in developing the Sihanoukville Autonomous Port into a regional port and logistics center, and the expectation for the Cambodia-Japan Special Economic Zone to materialize in Cambodia in the future. Meanwhile, in the meeting with the President of the American-Cambodian Business Council, the American side briefed the Prime Minister on the purpose of their business delegation's visit, which is to seek investment opportunities in Cambodia. Member companies of the American-Cambodian Business Council expressed interest in the logistics, agriculture, and furniture sectors, with the goal of strengthening connectivity between investors of both countries and increasing bilateral trade volume. Prime Minister Hun Manet welcomed the visit, considering it a significant driving force for boosting business relations between Cambodia and the United States. He stated that the two countries still have considerable potential for expanding cooperation, especially in trade and investment. The Prime Minister also expressed hope that Cambodian products will have a greater presence in the U.S. market and reiterated the goal of transforming Sihanoukville Port into a regional logistics hub. Spokesperson Pen Bona considers these activities as evidence of the Cambodian government's efforts to ensure that political diplomacy and economic diplomacy go hand-in-hand. While political diplomacy focuses on protecting sovereignty, territorial integrity, and national interests, economic diplomacy is being promoted to strengthen relationships with international partners, attract investment, increase trade, and create economic opportunities for Cambodia. Source: Kampuchea Thmey Local