In an era of rapid globalization and intense regional competition, economic diplomacy has emerged as a crucial new frontier for nations striving for growth. As neighboring countries like Vietnam solidify their positions as semiconductor hubs and Thailand leverages its soft power to attract billions in investment, Cambodia faces an imperative to strategically advance its own economic diplomatic efforts. The nation must meticulously prepare to transform its inherent potential into a powerful catalyst for growth, particularly as its regional counterparts actively evolve their strategies.
Economic diplomacy, in this fast-changing global landscape, is far more than a mere political slogan; it is a sharp strategic tool that developing countries can wield to accelerate their national economic momentum. For a nation with significant potential like Cambodia, employing diplomatic mechanisms to attract investors, boost trade, promote tourism, and foster cultural and sporting exchanges is an indispensable priority. These efforts are essential for achieving Cambodia’s ambitious vision of becoming an upper-middle-income country by 2030.
Cambodia’s commitment to economic diplomacy has already shown promising results. By 2025, the country achieved a total trade volume of $64.02 billion, marking a significant 16.8 percent increase. Investment attracted 630 projects, valued at approximately $10 billion. Furthermore, the tourism sector welcomed an impressive 5.5 million international visitors, highlighting positive trends in economic activity.
However, a broader regional perspective reveals that some nations with comparable potential have been more agile and effective in leveraging economic diplomacy. Vietnam stands out as a prime example. Despite sharing a similar starting point with Cambodia in previous decades, Vietnam’s economic diplomatic strategies have been notably proactive. The country has not only expanded its bilateral relationships but has also actively engaged in numerous major free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA). This strategic engagement has positioned Vietnam as a global manufacturing hub.
By 2025, Vietnam had ascended into the top 15 largest trading nations globally, with a trade volume exceeding $930 billion. Major corporations such as NVIDIA, Samsung, and Qualcomm have established research and development (R&D) centers in Vietnam, thereby integrating the nation into the global value chains for semiconductors and artificial intelligence (AI). In terms of market expansion, Vietnam has achieved significant success in exporting key agricultural products like rice, coffee, durian, and swallow’s nests, and recorded 21.5 million international tourist arrivals in 2025. Looking ahead to 2026, Vietnamese officials have indicated that their economic diplomacy will prioritize science and technology diplomacy, semiconductor diplomacy, and digital economic diplomacy, while accelerating free trade negotiations with regions such as the Middle East, Africa, Latin America, and Central Asia to diversify beyond traditional markets. Notably, Vietnam boasts 17 free trade agreements and diplomatic relations with 194 countries, including comprehensive or higher-level partnerships with 42 nations, 17 of which are G20 members, and comprehensive strategic partnerships with all five permanent members of the UN Security Council. Vietnam’s experience underscores that successful economic diplomacy is built not solely on showcasing potential but on fostering trust through legal stability and a highly competitive investment environment.
Thailand also offers valuable insights. In September 2023, then-Prime Minister Srettha Thavisin unveiled a vision for “active diplomacy” to bolster Thailand’s economy and influence. This policy aimed to navigate geopolitical block divisions, technological competition, and global environmental standards. Thailand has diligently maintained balanced relationships with major powers like the United States, China, Japan, and India, while expanding cooperation with ASEAN, the European Union, and the Middle East. Additionally, Thailand has intensified its free trade agreement negotiations and pursued digital economic development through its “Thailand 4.0” strategy. Under subsequent leadership, this policy remains a cornerstone, focusing on “diplomacy for the people” and leveraging “soft power” to help the country escape the “middle-income trap.” In practice, the Thai government targeted attracting at least 1 trillion baht (approximately $28.8 billion) in investments by 2026, with a focus on high-tech industries, data centers, and cloud computing services. A key aspect of this strategy is its people-centric approach, linking the economic benefits of diplomacy directly to citizens’ livelihoods. Thailand has also effectively utilized tourism and culture as tools of soft power, implementing initiatives such as the “Thailand Destination Visa” and promoting a joint ASEAN visa system to establish itself as a global tourism and healthcare hub. By 2025, Thailand welcomed an estimated 33 million international tourists.
The success of Thailand’s economic diplomacy is significantly attributed to its “Thailand Team” mechanism, which ensures seamless coordination among the Ministry of Foreign Affairs, the Ministry of Commerce, and the private sector. This unified approach has strengthened Thailand’s voice in international negotiations and enabled swift responses to investor needs. Moreover, Thailand systematically employs its global diplomatic network to promote its products and services, a departure from some neighboring countries that continue to rely on traditional diplomatic methods heavily focused on politics and security. This comparison highlights that more advanced nations actively transform their embassies and diplomatic officials into astute “sales agents” and “trade facilitators.”
Drawing from the experiences of these two neighboring countries, Cambodia can identify several critical lessons to enhance the effectiveness of its international economic integration. Firstly, Cambodia should prioritize the diversification and multilateralization of its partnerships to mitigate risks associated with over-reliance on a single economic source and to strengthen its role within ASEAN. For instance, in 2025, China represented the largest source of investment in Cambodia, accounting for 54.25 percent of the total. Secondly, it is imperative to enhance international negotiation capabilities and leverage “soft power” by promoting Cambodia’s rich culture, distinct cuisine, and vibrant tourism. Thirdly, focusing on innovation and the development of a green economy is crucial, achieved by improving the investment climate and streamlining administrative procedures. Finally, increased inter-ministerial coordination, akin to the “Team Thailand” model, is vital to ensure cohesive foreign policy, trade, and investment strategies, thereby maximizing national interests in this new global era.
In conclusion, economic diplomacy is not isolated from domestic policy. To achieve the same level of development as its similarly-potential neighbors, Cambodia must foster deep integration between its foreign policy objectives and internal economic reforms. Strengthening the human resources within the diplomatic sector, equipping them with expertise in economics, international law, trade, and market analysis, is the key determinant. This will decide whether economic diplomacy becomes a genuine engine for national growth or remains a theoretical framework on paper. Achieving this success demands strong political will and active participation from the private sector to forge a collective force capable of competing effectively on the international stage.
