Digital economy cooperation with China makes life easier in Cambodia

In December last year, I moved to the southern suburbs of Phnom Penh, Cambodia’s capital, only to find everyday life there not so convenient as expected due in large part to a lack of supermarkets in the neighborhood. So I’ve turned to online shopping, purchasing vegetables and ordering meals through Cambodia’s e-commerce platforms.

I arrived in Cambodia amidst the COVID-19 pandemic and was immediately struck by the vibrant atmosphere of digital economy development. Thanks to close collaboration with China’s thriving digital economy, Cambodia offers remarkable convenience in online shopping and services. You can effortlessly order almost everything from meals to daily essentials via e-commerce apps, and enjoy the seamless experience of mobile payments — all with the same ease and quickness as one would find in China. Furthermore, due to healthy competition among various platforms, customers often benefit from promotional deals, which ensures affordable prices for a wide range of products and services.

Every time I venture out onto the roads, I am invariably greeted by the familiar sight of delivery riders swiftly navigating through the bustling traffic of cars and motorcycles. Dressed in vibrant hues of orange, blue and other distinctive e-commerce logo colors, they exhibit remarkable riding prowess, effortlessly overtaking others. As I observe them, a sense of deja vu washes over me, making me feel as if I have been transported back to the streets of China.

One day, after placing an order for a meal, I had a brief conversation with a courier named Bin Vichet. Curious about his workload, I asked about the number of deliveries he makes in a day. The young man, who was visibly blushing, told me that he delivers to some 20 customers each day and that he finds joy in riding his motorcycle and this delivery job provides him with adequate income to support his family. After our little chat, he promptly departed on his motorcycle, continuing his busy schedule.

In the streets and alleys of Phnom Penh, thousands of riders hustle every day, delivering takeaways and express packages to numerous households. Through their tireless efforts, they contribute so much to making people’s lives much easier. Their dedication and commitment to timely deliveries are truly admirable, and their service greatly appreciated by the residents of the city.

From an interview with a prominent e-commerce platform, I learned that the platform boasts an impressive scale, with 40,000 partner merchants in Cambodia, serving over 2 million users, and employing 3,600 riders. This burgeoning e-commerce giant has not only revolutionized the local retail landscape but has also catalyzed the dual development of local Internet technology and talent, setting the stage for a more digital and connected Cambodia.

Many of Cambodia’s leading e-commerce platforms are supported by Chinese investment, attesting to the strong economic ties between the two countries. Chinese companies have made significant investments in a wide array of digital economy sectors in Cambodia, such as new media, food delivery, online car-hailing, e-commerce, digital payments, freight sharing and online education. These investments have not only driven the rapid growth of Cambodia’s digital economy but have also contributed to the overall development and modernization of the country.

Jack Lee, secretary of the Digital Economy Professional Association of the Chinese Chamber of Commerce in Cambodia, noted that integrating the Chinese e-commerce model with localized strategies has emerged as a prominent trend in the Cambodian market. Entrepreneurs have skillfully adapted the refined operational model from China and applied it to the Cambodian context. The e-commerce ventures of Chinese companies have been instrumental in propelling diverse industries forward across the nation.

The recently released 2024 E-commerce Report by Cambodia’s Ministry of Commerce highlights the thriving e-commerce market in the country, driven by such key factors as the swift adoption of digital payments, a sizable young population, rising smartphone penetration and robust government support. Looking ahead, the report predicts that e-commerce revenue will reach an impressive 1.78 billion U.S. dollars in 2025, accounting for 4-5 percent of the country’s GDP.

The Cambodian government places significant emphasis on the digital economy, listing it as a key priority in its Pentagonal Strategy, which focuses on human capital development, economic diversification, private sector, sustainability and digital development. In recent years, with the deepening of friendly cooperation between China and Cambodia, Cambodia’s digital economy has seen rapid growth.

By leveraging the Belt and Road Initiative and the Regional Comprehensive Economic Partnership, China and Cambodia have significantly strengthened their collaboration in areas such as digital infrastructure, 5G networks, e-commerce and digital payments. This enhanced cooperation has been instrumental in propelling Cambodia’s digital economy forward at a remarkable pace. Within the broader framework of digital economy cooperation, the widespread adoption of technologies like electronic payments and information communication has played a pivotal role in facilitating consistent annual growth in total trade and investment between China and Cambodia.

The digital economy has risen as a fresh growth driver for economic relations between China and Cambodia, serving as a firm pillar in building a high-quality, high-level and high-standard China-Cambodia community with a shared future in the new era.

As a Chinese individual living and working in Cambodia, I am confident that the digital economy cooperation between our two countries will not only enhance the convenience of everyday life here but will also foster deeper progress and bring prosperity closer to our doorstep.

By Wu Changwei, the bureau chief of Xinhua News Agency Phnom Penh Bureau.