Germany&Cambodia sign Implementation Agreement on stronger Economic Cooperation
PHNOM PENH, CAMBODIA — 08 October 2026, at the Council for the Development of Cambodia, His Excellency Senior Minister Chhieng Yanara, Second Vice-Chairman of the Council for the Development of Cambodia, signed the Implementation Agreement of the Improved Competitiveness of National Enterprises II (ICONE II) project on behalf of the Royal Government of Cambodia, with Mr. Hans-Juergen Cassens, Programme Director of ICONE II, signing for the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the Government of the Federal Republic of Germany. The signing was witnessed by Her Excellency Silke Röfer, Ambassador of the Federal Republic of Germany to Cambodia, members of the National Steering Committee, and the GIZ ICONE II team. The project is commissioned funded by the German Federal Ministry of Economic Cooperation and Development (BMZ) and implemented by GIZ.
The ICONE II project is implemented from 2026 to 2030, building upon the foundations and successes established by its predecessor, ICONE I. The new project phase marks an important milestone in Cambodian-German cooperation on private sector development. Through close collaboration between public institutions, the private sector and development partners, the project will support measures that help Cambodian enterprises become more competitive, investment-ready and connected to international business opportunities. The project’s objective is to strengthen the competitiveness of the Cambodian economy in the context of business cooperation with German partners. It focuses on four core areas: partnerships and investments involving German companies; investment-promotion measures by the Cambodian Government; improvement in productivity and resource efficiency among selected medium-sized and larger enterprises; and the development of investment-ready projects with international potential and structured financial planning.
ICONE II will continue using the existing institutional framework established in Phase I namely the National Steering Committee, composed of representatives of the Royal Government of Cambodia and Cambodia Chamber of Commerce, representative of German Embassy and GIZ Cambodia. The Committee will serve as a mechanism for providing policy recommendations, monitoring, and coordinating the implementation of the ICONE II Project.
Under the Implementation Agreement, the Government of the Federal Republic of Germany, through Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, will provide a contribution of up to EUR 8 million and the Royal Government of Cambodia will contribute to the project by 10% equivalent to USD 0.90 million, reflecting the shared commitment of both governments toward strengthening the competitiveness of Cambodian enterprises and fostering closer economic cooperation.
“The private sector is a backbone of Cambodia’s economy, and strengthening its competitiveness is a priority for the Royal Government. By aligning with the Pentagonal Strategy – Phase I, ICONE II supports enterprises to innovate, adopt new technology, and integrate into regional and global value chains, particularly as Cambodia prepares for LDC graduation.”
H.E. Chhieng Yanara
Senior Minister and Second Vice-chairman of the Council for the Development of Cambodia
“Cambodia has important assets to offer: a young and dynamic population, an increasingly diversified industrial base, a strategic location in ASEAN and growing experience in international manufacturing and trade. We therefore see significant potential for more German-Cambodian business cooperation.”
H.E. Mrs. Silke Röfer
Ambassador of Germany to Cambodia
