In recent weeks, Cambodia has embarked on an ambitious journey to establish a robust electric vehicle (EV) ecosystem, aiming to harness global technological innovations and the rapid advancements in the electric vehicle sectorThis initiative is a key part of Cambodia's long-term vision to achieve carbon neutrality by the year 2050. The plan outlines a comprehensive pathway for the development of the electric vehicle industry, which is expected to play a significant role in reducing carbon emissions and enhancing the country’s environmental sustainability.

The policy framework indicates a phased approach towards building and advancing an electric vehicle ecosystemThe Cambodian government plans to attract significant investment to set up electric vehicle assembly plants and parts manufacturing facilities, as well as a comprehensive network of charging stations throughout the countryBy 2030, Cambodia aims to have a total of 30,000 electric vehicles on the roads, including 25,000 private electric cars and 5,000 commercial vehiclesAdditionally, the targets also encompass electric motorcycles and electric tuk-tuks, aiming to increase their numbers to 720,000 and 20,000, respectivelyHowever, as of February this year, registered electric vehicles in Cambodia stood at only 1,887, a stark contrast to future projections—906 were private electric cars, 415 were electric motorcycles, and 566 were electric tuk-tuks.

In December 2021, the Cambodian government submitted its long-term strategy for carbon neutrality to the United Nations Framework Convention on Climate Change (UNFCCC), committing to achieve this ambitious goal by 2050. Under this strategy, it is projected that electric motorcycles will account for an impressive 70% of the total motorcycle fleet, while electric vehicles and electric buses will make up 40% of similar vehicle categoriesSuch targets not only reflect a commitment to reducing carbon footprints but also highlight Cambodia's potential as a key player in the burgeoning electric vehicle sector.

Chea Kok Hong, the Deputy Director General of the Policy Department at the Cambodian Ministry of Economy and Finance, articulated the government’s strategic vision for the successful implementation of these new policies

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He emphasized the importance of clearly defining the roles and responsibilities of various departments, agencies, and stakeholders involved in this initiative, alongside establishing a detailed timetable and roadmap for executionAdditionally, mechanisms for monitoring progress and addressing issues have been put in place to ensure accountability and effective execution of the strategies.

To further bolster the growth of the electric vehicle industry, the Cambodian government plans to introduce incentive policies, including a review of existing vehicle import tax rates to spur investment in electric vehicle production and charging infrastructureThis approach is expected to increase electric vehicle sales while progressively diminishing the reliance on gasoline-powered vehiclesThe government is also keen on encouraging financial institutions, such as banks, to offer auto loans to electric vehicle owners, as well as exploring adjustments to tax rates on home charging systems and vehicle componentsBoth central and local governments are preparing budgets to lead by example, purchasing electric vehicles and promoting the use of electric trucks and buses within the logistics and passenger transport sectors.

Hong also highlighted that the implementation of these policies will be grounded in the sustainable fiscal stability of the governmentHe reiterated three fundamental principles: ensuring the development of electric vehicles does not disrupt the existing economic and social frameworks; complying with environmental, social, and governance standards; and ensuring the nation’s energy supply is adequate to meet the growing demand for electric transportation.

Representatives from the electric vehicle industry have welcomed this new policy directionGong Kun, the national representative of HARMONY Auto, which holds the exclusive distributorship for BYD in Cambodia, acknowledged that the government’s new policies aimed at boosting the new energy vehicle sector could significantly invigorate Cambodia’s local market

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