[Excerpt] Cambodia is in the challenging process of economic transition as it seeks to move beyond low-skill, low-value activities and expand its industrial base to generate broad-based inclusive growth. As the Government of Cambodia continues to build on strong growth and address emerging challenges, this study supports Cambodia’s efforts to sustain growth and make it more inclusive. The study identifies the critical constraints to development: namely, the need for better infrastructure, especially in the energy sector and rural transport; higher skills and educational levels; and improved governance to enhance the business and investment environment. The study also recognizes the need for better collection and allocation of fiscal resources to meet growing demand for economic and social investment. A special section highlights the need to diversify and upgrade the economy’s productive activities as the country develops and transitions toward higher-value activities in global value chains.