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Cambodia ranked last among ASEAN countries in its ability to combat illicit trade, according to a report released this week, which cited weak enforcement, corruption, a large informal economy and organized crime.
Cambodia scored 36.6 out of 100 — 138th of 158 countries —- on the 2025 Illicit Trade Index by the Transnational Alliance to Combat Illicit Trade (TRACIT), an industry-backed group whose members include companies in the tobacco, alcohol and pharmaceutical sectors. The ASEAN report, which applies the 2025 index to the bloc’s 10 members with country-by-country analysis, industry interviews and policy recommendations, was commissioned by the EU-ASEAN Business Council and released Tuesday.
Singapore ranked highest in the region at 61.5, followed by Indonesia at 57.1 and Thailand at 53.0. Laos, at 44.8, and Myanmar, at 40.9, placed eighth and ninth. The ASEAN average was 49.7, just below the global average of 49.9.
“Cambodia’s performance on the Illicit Trade Index reflects a system where the basic building blocks are in place but are not yet functioning effectively,” the report said.
The index assesses countries across six categories and 37 indicators to identify their vulnerabilities and capacity to combat illicit trade.
The six categories cover taxation and the economic environment; regulatory framework and enforcement; criminal enablers of illicit trade; trade, customs and borders; supply chain intermediaries; and sectoral indicators of illicit trade.
The report pointed to corruption as a primary driver, citing Cambodia’s score of 20 out of 100 on Transparency International’s Corruption Perceptions Index, and noted that more than 80% of employment is informal. It also flagged scam compounds and human trafficking, and gaps in oversight of online platforms and special economic zones.
Cambodia performed particularly poorly in the supply chain intermediaries category, scoring just 9.3 out of 100, the lowest in the region. TRACIT attributed this to weak oversight of key intermediaries, particularly online platforms. Platforms such as Facebook, Telegram and TikTok are widely used for informal sales, scams and the distribution of illicit goods, it said, adding that this often happens with little monitoring or enforcement.
Cambodia scored highest in the taxation and economic environment category, with 57.4 points, slightly below the ASEAN average. However, the report said the scale of the informal economy remains the primary driver of illicit trade in this category.
“This severely limits the government’s ability to monitor economic activity, enforce tax compliance, and detect illicit trade,” it stated.
Pen Sovicheat, spokesperson for the Ministry of Commerce, did not immediately respond to request for comment.
TRACIT noted Cambodia has several key customs tools in place, including systems that collect shipment details before goods arrive, a trusted-trader program and powers to seize goods in transit. But these “do not appear to translate into strong enforcement outcomes,” it said, pointing to the country’s continued role as a transit point for counterfeits, narcotics, wildlife and timber.
Additional Reporting by Mon Sanyana
