Cambodia sets 2029 deadline to exit LDC status

Khmer Times

Cambodia’s Prime Minister Hun Manet has declared that the country will graduate from the United Nations’ Least Developed Country (LDC) category by 2029, insisting the nation must stop depending on aid and seize greater global opportunities.

Speaking at the National Day of Micro, Small and Medium Enterprises in Phnom Penh, Hun Manet acknowledged the transition will bring short‑term challenges but described it as a vital step towards “true economic independence”. He rejected calls to delay the move, asking whether Cambodians wanted to “remain poor forever” or face difficulties to become a fully developed nation.

Under current arrangements, Cambodia enjoys concessional loans and duty‑free export privileges. Exiting LDC status will mean losing many of these benefits, with future borrowing subject to standard market rates. Exports may shift to schemes such as GSP Plus, but conditions will be tougher.

The government says preparations began before 2023 and are now embedded in the Pentagon Strategy – Phase 1, which focuses on strengthening domestic capacity, expanding market access and boosting competitiveness. Hun Manet linked the graduation target to Cambodia’s ambition of moving from lower‑middle‑income to high‑income status by 2050, stressing the need for adaptation and technology.

At the United Nations, Ambassador Keo Chhea reaffirmed Cambodia’s commitment to a “smooth and sustainable” graduation, highlighting the creation of a National Committee to oversee the process. He called for stronger global partnerships in financing, technology transfer and climate resilience.

Policy analysts warn that the first challenge will be reduced preferential treatment. Development assistance and concessional loans will diminish, while financing will involve interest payments and stricter obligations. Sam Seun of the Royal Academy of Cambodia praised the government’s determination but urged a careful assessment of living standards, warning that inequality could undermine the benefits of graduation.

Deputy Prime Minister Aun Pornmonirothon has already discussed a draft national strategy for MSMEs covering 2026‑2030, designed to support long‑term growth and readiness for the 2029 milestone.

For Hun Manet, the message is clear: Cambodia must embrace ambition, resilience and ownership. “If we do not dare to set high goals and work hard to achieve them, we will remain where we are,” he said.

At stake is not just a change in status but a redefinition of Cambodia’s place in the global economy – a bold gamble on independence over aid.

-2026-06-30