by Sebastien GOULARD
In June 2024, Prime Minister Hun Manet called for the modernization of Phnom Penh to compete with other ASEAN capitals. Cambodia’s economic development began later than most other Southeast Asian nations, but over the past decade, it has become a very dynamic economy, transforming its capital. Phnom Penh is now a megacity with 2.3 million inhabitants, its population having doubled in 20 years. Thanks to the economic growth—5.4% in 2023—a middle class has emerged, inspiring the development of new infrastructure. From 2018 to 2023, the annual growth rate of motor vehicles (cars, trucks, motorcycles) in Cambodia was 11%. This development requires the capital, Phnom Penh, to evolve, particularly through substantial investments in the construction of a diverse public transportation and mobility system to reduce traffic congestion. In 2023, Prime Minister Hun Manet announced feasibility studies for the construction of an underground or aerial metro network in the capital.
The modernization plan presented by Prime Minister Hun Manet is not limited to transportation, it also addresses urban lighting, CCTV, solar panels, and water and waste treatment. The ambition is to completely transform the capital to accelerate the implementation of the Phnom Penh 2035 urban plan, adopted in 2015, to compete with other Southeast Asian capitals.
Cooperation with Singapore
To achieve this objective, Cambodia is relying on both the private sector and foreign investments, particularly from Singapore, with which it has cooperation agreements. In June 2024, during Prime Minister Hun Manet’s official visit to Singapore, a digital cooperation agreement was signed between the two countries. This agreement will enable the Cambodian administration to offer online services more easily to residents in Phnom Penh.
Cooperation with Singapore in the field of smart cities is not new. In 2019, the Singaporean company Limestock Network was chosen to develop a district in Phnom Penh following smart city principles. Several institutions in Singapore also collaborate with Cambodia on its national logistics master plan, which aims to make Phnom Penh, as well as Siem Reap and Sihanoukville, hubs for trade between Vietnam and Thailand, and a bridge between the Indochinese Peninsula and China.
Attracting Foreign Investments, Particularly from China
Cambodia is attracting more and more investors, mainly from China, but also from other countries, especially ASEAN nations, as the government seeks to diversify its partnerships. To enhance its attractiveness, modernizing Phnom Penh is a priority. Chinese companies are also very active in offering digital services in Phnom Penh. In October 2024, the Ministry of Posts and Telecommunications signed a memorandum of understanding with the Chinese giant Huawei to strengthen their digital cooperation.
5G and artificial intelligence have become major elements of cooperation between China and Cambodia. Utilizing the knowledge gained during the making of smart cities in various urbanizing Chinese regions in the 2000s can help Cambodia develop its own model for the capital, as well as for Siem Reap, Battambang, and Sihanoukville— members of the ASEAN Smart Cities Network.
For Cambodia, maintaining a balance between its Chinese and ASEAN partners is necessary to preserve relative independence in the digital domain. New cooperation opportunities for smart city development with other partners such as India or the European Union can be envisioned.
Smart Cities and Cambodians
Phnom Penh’s smart city ambitions can only be realized with the support of the city’s residents. The approach should not be entirely top-down; Phnom Penh authorities must create the necessary conditions for dialogue with residents to understand their needs. Some European cities have already adopted such approaches and could share their experiences with the Cambodian capital.
Finally, to best meet its smart city needs and maintain digital independence, Cambodia must develop the technical and academic sectors that enable the country to create its own IT solutions.
Author: Dr. Sebastien Goulard is the founder and editor-in-chief of Global Connectivities.
