PHNOM PENH, Feb. 25 (Xinhua) -- Cambodia's market value of e-commerce was estimated at 1.51 billion U.S. dollars in 2024, up from 1.29 billion dollars in the year before, a report said on Tuesday.

The report said that e-commerce revenue in the Southeast Asian country will reach 1.78 billion dollars in 2025.

"Cambodia's emerging e-commerce market accounts for only 4-5 percent of gross domestic product (GDP)," the report said.

It added that e-commerce revenue was mainly from food and groceries, fashion, electronics, beauty and cosmetics, healthcare, media and entertainment, and ride-hailing, transportation and logistics, among others.

Facebook and TikTok have reshaped Cambodia's sales and advertising landscape, empowering businesses and driving online commerce for both big corporations and local small and medium-sized enterprises, the report said.

However, regulatory frameworks are needed to ensure consumer protection and payment security for building trust and sustainable growth, it added.

With a total population of 17 million, the kingdom has 11.65 million Facebook users and 9.96 million TikTok users as of 2024, the report said.

"Rapid digital payment adoption, a tech-savvy youth population, rising smartphone penetration, and strong government support are accelerating Cambodia's e-commerce expansion," the report said.

The country has registered approximately 30 million e-wallet accounts as of 2024, according to the National Bank of Cambodia.

The report was prepared by corporate finance firm Profitence with support from Cambodia's Ministry of Commerce.

Minister of Commerce Cham Nimul said in the report that e-commerce has emerged as a key enabler of economic growth, enhancing business competitiveness, expanding market access, and fostering new opportunities for enterprises of all sizes.

"Significant progress has been made in recent years, with improvements in digital payments, logistics, and consumer trust mechanisms," she said.

Nimul said an evolution from e-commerce to a broader digital trade ecosystem will be instrumental in ensuring long-term economic resilience and global competitiveness.

Jack Lee, secretary of the Digital Economy Professional Association of the Chinese Chamber of Commerce in Cambodia, said e-commerce has become popular in Cambodia in recent years thanks to rapid increases in internet users and digital payments.

He said the coverage rate of digital platform users in the kingdom varies across different e-commerce sectors.

"Mobile payments and social commerce have the highest penetration rate, exceeding 50 percent," he told Xinhua. "Food delivery and ride-hailing services mainly target urban residents, with a penetration rate of over 20 percent."

"Many Cambodian businesses rely on Facebook, TikTok, and Telegram to sell products, making social commerce a dominant trend," he said. Enditem

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