Digital Finance in Cambodia: Chea Serey, the first woman to lead the National Bank of Cambodia, shares her perspective on the country’s economic outlook, the evolving financial system, and how digital innovation is shaping the nation’s monetary landscape.
Global Finance: What are your expectations for Cambodia’s economic growth and inflation for the rest of 2025?
Chea Serey: The Cambodian economy is expected to expand by around 5% in 2025, in line with government projections. So far this year, we’ve seen encouraging performance across various sectors, though growth hasn’t been uniform. For instance, the garment industry saw a 21.3% rise in exports, largely due to front-loaded orders in anticipation of potential US tariffs. Meanwhile, non-garment exports grew by 14%, thanks to our diversification strategies—though we expect that pace to moderate in the latter part of the year.
Tourism also gained traction earlier this year, though the recent border tensions with Thailand have dampened momentum. Despite that, inflation remains under control, projected at 2.4% for the year, largely because of declining global oil and food prices. The stable exchange rate has also played a key role in anchoring price levels, even amid trade disruptions.
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GF: The “Inclusive and Sustainable Financial Development Program” is moving into its next phase. What impact do you foresee on the Cambodian financial sector?
Serey: The upcoming phases of this program are designed to fortify Cambodia’s financial infrastructure while making it more inclusive and resilient. We’re putting strong emphasis on expanding financial literacy and protecting consumers, especially among women and underserved communities. These are critical pillars for building trust and participation in the financial system.
We’re also working on expanding access to both digital and non-bank financial services. At the same time, sustainable finance tools are being introduced to support green investments and climate resilience. Coupled with enhanced regulatory oversight, we aim to ensure the system remains sound even under stress. Ultimately, these reforms will encourage more local currency use, attract investment, and promote a healthier, more inclusive financial ecosystem.
GF: What role has the Bakong system played in transforming Cambodia’s financial ecosystem?
Serey: Since its launch in October 2020, Bakong—our blockchain-powered payment platform—has been a game-changer. It addresses a longstanding challenge: interoperability across payment systems. It has also helped advance financial inclusion by making digital payments more accessible and efficient.
As of mid-2025, Bakong has onboarded 70 financial institutions and facilitated over 34 million user accounts. The system processed a staggering 600 million transactions totaling $147 billion in 2024—roughly three times Cambodia’s GDP. This shows not just its reach, but also its growing relevance in everyday economic activity.
We’re also pushing regional integration. We’ve partnered with countries like Malaysia, Thailand, Vietnam, Laos, Korea, China, and Japan to enable cross-border payments. The launch of the Bakong Tourist App is another step toward making travel and spending easier for visitors through seamless digital payments.
GF: With the loan forbearance regime set to expire in December, is debt distress a significant concern?
Serey: We’re certainly monitoring this closely. Since the pandemic and the recent border conflict, we’ve implemented targeted loan restructuring for vulnerable households and affected businesses. That has helped cushion some of the pressure, but challenges remain.
Non-performing loans (NPLs) rose to 8% by the second quarter of 2025, which reflects not just financial stress but also a general slowdown in credit expansion—credit growth dipped to just 2%, driven by both global uncertainty and domestic challenges.
Despite that, our banking system remains fundamentally sound. Capital adequacy ratios are strong, and liquidity levels are healthy. That gives us room to stay flexible in our macroprudential response. As a central bank, our dual responsibility is to safeguard financial stability while ensuring credit continues to flow where it’s most needed. We’ll stay vigilant and responsive to emerging risks, especially in these uncertain times.
Conclusion on Digital Finance in Cambodia
Chea Serey’s leadership marks a pivotal moment for Cambodia’s financial future. With a steady hand, she’s guiding the country through a period of global volatility while laying the groundwork for a more inclusive, digitally empowered financial system. The reforms underway—and the innovations like Bakong—signal a forward-looking strategy to not just weather current challenges, but build long-term resilience and shared prosperity.
Key Points on Digital Finance in Cambodia:
🔹 Economic Outlook (2025)
- GDP Growth: Projected at 5% for 2025.
- Sector Performance:
- Garment exports surged 21.3% due to early US order placements.
- Non-garment exports rose 14% from diversification efforts but may slow down.
- Tourism showed recovery but was impacted by the Cambodia-Thailand border conflict.
- Inflation: Forecast at 2.4%, supported by:
- Lower global oil and food prices.
- Stable exchange rate keeping price levels in check.
🔹 Financial Sector Reforms
- Program: Inclusive and Sustainable Financial Development Program (phases 2 & 3 run until 2029).
- Goals:
- Enhance financial stability and resilience.
- Expand access to digital and non-bank services, especially for women and underserved groups.
- Promote financial literacy and consumer protection.
- Support sustainable finance and green investments.
- Encourage broader use of the riel (local currency).
🔹 Bakong System Impact
- Launched: October 2020; a blockchain-based digital payment system.
- Reach (as of July 2025):
- 70 member financial institutions.
- 34 million+ accounts.
- 600 million transactions worth $147 billion in 2024 (≈3x Cambodia’s GDP).
- Regional Integration: Partnerships with Malaysia, Thailand, Vietnam, Laos, Korea, China, Japan.
- Tourism Support: Launch of Bakong Tourist App for seamless cross-border payments.
🔹 Debt and Financial Stability
- Loan Forbearance: Ends December 2025.
- NPLs (Non-Performing Loans): Reached 8% in Q2 2025.
- Driven by economic uncertainty and credit slowdown (credit growth at just 2%).
- Banking Sector: Remains well-capitalized and liquid.
- NBC Response:
- Ongoing monitoring of provisioning and debt levels.
- Maintaining macroprudential flexibility to support stability and growth.
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