Exporting Made Easy: Cambodia’s Freight Forwarding Landscape in 2025
Cambodia’s freight forwarding industry is undergoing significant transformation in 2025, driven by infrastructure developments, strategic partnerships, and evolving trade dynamics. As the country positions itself as a key logistics hub in Southeast Asia, understanding the current landscape is crucial for businesses aiming to navigate the complexities of international trade.
Economic Growth and Trade Expansion
Cambodia’s economy is experiencing robust growth, with international trade reaching $5.057 billion in January 2025 alone—a 24.6% year-on-year increase. This surge is attributed to a 17.3% rise in exports, totaling $2.306 billion, and a 31.6% increase in imports, amounting to $2.75 billion. This upward trajectory underscores the growing demand for efficient freight forwarding services to support the expanding trade volume.
Infrastructure Developments Enhancing Freight Forwarding
Key infrastructure projects are enhancing Cambodia’s logistics capabilities:
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Funan Techo Canal Project: A $1.7 billion initiative funded by China aims to construct a 94-mile canal linking the Mekong River to the Gulf of Thailand. This project is expected to reduce shipping times and costs, providing direct maritime access for Cambodian exports and decreasing reliance on neighboring countries’ ports. However, environmental concerns and regional geopolitical implications have sparked debates about the project’s impact on the Mekong Delta and surrounding ecosystems.
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Sihanoukville Port Expansion: Efforts are underway to upgrade Sihanoukville Port to handle larger vessels and increase throughput capacity. These enhancements are anticipated to improve port efficiency and reduce congestion, facilitating smoother export processes.
Key Players in Cambodia’s Freight Forwarding Sector
Cambodia’s freight forwarding market is characterized by a mix of local and international players offering a range of services:
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International Carriers: Major global logistics companies such as DHL, UPS, and FedEx operate in Cambodia, providing express and ground courier services. Their established networks and expertise are vital for businesses seeking reliable international shipping solutions.
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Local Freight Forwarders: Companies like VTS Freight, Hong Leng Huor, and Full Well are prominent in Cambodia’s freight forwarding sector. These firms offer specialized services tailored to the unique needs of Cambodian exporters, including customs clearance, warehousing, and last-mile delivery solutions.
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Emerging Startups: The rise of startups in the logistics sector is fostering innovation and competition. Companies such as Angkor Air and Master Delivery are introducing technology-driven solutions to streamline operations and enhance service delivery.
Government Initiatives and Policy Support
The Cambodian government is actively supporting the growth of the freight forwarding industry through various initiatives:
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Logistics Cost Reduction: The General Department of Logistics is working on reducing logistics costs and improving infrastructure to align with Cambodia’s goal of achieving upper-middle-income status by 2030. These efforts aim to make Cambodian exports more competitive in the global market.
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Special Economic Zones (SEZs): Cambodia’s 16 SEZs contributed approximately $5.43 billion to the country’s exports in 2024. These zones offer incentives such as tax exemptions and streamlined customs procedures, attracting foreign investment and boosting export activities.
Challenges and Considerations
Despite positive developments, the freight forwarding industry faces several challenges:
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Logistics Performance: Cambodia’s Logistics Performance Index (LPI) score of 2.4 out of 5.0 indicates room for improvement in areas such as customs procedures, infrastructure quality, and shipment tracking. Addressing these issues is essential for enhancing the overall efficiency of the logistics sector.
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Environmental Concerns: Projects like the Funan Techo Canal have raised environmental concerns, particularly regarding the potential disruption of the Mekong River’s natural flood systems and the impact on agriculture in neighboring regions.
Future Outlook
The freight forwarding industry in Cambodia is poised for continued growth, driven by infrastructure enhancements, strategic initiatives, and a supportive policy environment. Businesses looking to capitalize on these developments should consider partnering with reliable logistics providers, staying informed about regulatory changes, and leveraging technology to optimize supply chain operations.
Further Reading:
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Explainer: Cambodia’s Logistics Costs 2025
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EuroCham Transport and Logistics Forum 2025