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Australia – Cambodia Diplomatic Relations & Investments

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Australia and Cambodia share a long-standing and robust relationship. Diplomatic relations were established in 1952, with Australia consistently supporting Cambodia’s development and peacebuilding endeavours.

In recent years, Australia has offered significant assistance to Cambodia in areas such as education, health, governance and economic development. Additionally, Australia actively voices support for Cambodia’s interests within international forums.

The relationship between Australia and Cambodia is built upon mutual respect, trust and shared values. Both nations are committed to collaborating to promote peace, stability and prosperity within the region.

Some key areas of cooperation between Australia and Cambodia are:

  • Trade and investment
    Australia holds a prominent position as a trading partner with Cambodia. Further potential exists for expanded trade and investment opportunities between the two countries.
  • Development assistance
    Australia plays a substantial role as a donor, offering assistance across various sectors, including education, health, governance and economic development.
  • Peace building
    Australia is a dedicated supporter of Cambodia’s peace building endeavours, and has aided the United Nations Transitional Authority in Cambodia (UNTAC).
  • Security cooperation
    Australia and Cambodia maintain close collaboration on security issues, including counter-terrorism measures, combating people smuggling and addressing human trafficking.
  • Regional cooperation
    Australia and Cambodia engage in extensive cooperation on regional matters, such as the Mekong River Commission. Australia holds a dialogue partnership with the Association of Southeast Asian Nations (ASEAN) and actively collaborates on numerous regional issues.

Australia’s Trade Relationship with Cambodia

Cambodia and Australia have a growing trade relationship. In 2022, trade between the two countries amounted to $432.4 million, as reported by the Australian Government Department of Foreign Affairs and Trade. This marked a significant 21.6% increase from the previous year.

Australia and Cambodia maintain a close relationship with abundant opportunities across various industries, including:

  • Premium food and wine
    Australia is a prominent exporter of high-quality food and wine, and there is a growing demand for these products in Cambodia.
  • Agribusiness (dairy and live cattle)
    Australia serves as a major exporter of dairy products and live cattle, presenting potential for increased trade in these industries with Cambodia.
  • Education
    Australia is a favoured destination for Cambodian students, indicating potential for expanded trade in educational services.
  • Banking and finance
    Australia has a strong financial sector, creating potential for increased trade in banking and financial services with Cambodia.
  • Garment sourcing
    Cambodia holds a significant position as a leading garment exporter, offering potential for increased trade in garment sourcing with Australia.

The Australian Government has implemented various programs to support trade and investment between Australia and Cambodia. These programs include the:

  • Australia–Cambodia Trade and Investment Partnership, which established a framework for cooperation on trade and investment matters.
  • Australia–Cambodia Business Council, bringing businesses from both countries together to promote trade and investment.
  • Australian Centre for International Agricultural Research (ACIAR) serves as a research institution and supports agricultural development in Cambodia.

The trade relationship between Cambodia and Australia is expected to continue growing in the years ahead. Both countries share a strong interest in expanding trade and investment, opening up numerous opportunities for businesses from both nations to collaborate on.

Australian Investment in Cambodia

Australian investment in Cambodia primarily focuses on the following sectors:

  • Property
    Many Australians are investing in residential, commercial and industrial properties in Cambodia due to its affordable cost, vast potential for capital growth, as well as the country’s overall economic strength and political stability.
  • Agriculture
    Australian companies are investing in agricultural projects in Cambodia, such as the development of new rice varieties and the production of milk and dairy products.
  • Education
    Cambodia has benefited from Australian investment in education projects, including the construction of new schools and the provision of scholarships.
  • Tourism
    The development of new hotels and resorts is evidence of Australian companies’ appetite for investment in tourism projects in Cambodia.
  • Mining
    Australian companies are investing in mining projects in Cambodia, including the exploration for gold and other minerals
Investment-Handbook-AUKH

 

Australian Investment in Property In Cambodia

According to the World Bank’s Cambodia Investment Climate Assessment 2022/23, Australian investment in Cambodian property was estimated to be US$100 million in 2022. This represents a significant 50% increase from the previous year, when Australian investment in Cambodian property was estimated to be US$50 million.

The World Bank’s report attributes the increase in Australian investment in Cambodian property to a number of factors, including Cambodia’s:

  • strong economic growth;
  • low cost of property;
  • potential for significant capital growth;
  • political stability.

 

Australian Investment in Property in Cambodia 2013-2022

Australian-Investment-in-Property-2013-2022

Note: The data from the World Bank shows that Australian investment in Cambodian property is a significant part of its total foreign direct investment (FDI) in Cambodia.

 

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