WT/GC/W/900  
 
14 August  2023 
(23-5496) Page: 1/5 
General Council  
  Original: English  
  
  
WORK PROGRAMME ON ELECTRONIC  COMMERCE  
E-COMMERCE READINESS  DEVELOPMENT AND CHALLENGES:  
THE CASE OF CAMBODIA  
Communication  from Cambodia  
The following communication, dated 11 July 2023, is being circulated at the request of the delegation  
of Cambodia.   
 
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1.1.  Despite the global uptick in digital activities in recent years, fuelled  by the COVID -19 pandemic, 
the potential of e -commerce to contribute to the Sustainable Development Goals (SDGs) in least 
developed countrie s (LDCs) remains largely untapped.  
• Based  on data from the World  Bank's Global  Findex  database,  the picture  varies  for the 
18 LDCs covered.  By far the largest  increase  in the share  of adults  who shopped  online  
using a mobile phone or the internet between 2017 and 2021 was observed in Myanmar, 
where it surged from 3  per cent  to 20 per cent . Other  countries with significant increases 
include Senegal, Liberia, Uganda and Lao PDR. For most of the countries, increases were 
limited,  and, in some cases, the share even declined (South Sudan, Togo and Zambia). 
While the percentage of people (aged 15+) sho pping online increased overall and across 
all country groups  since 2017,  LDCs recorded  the smallest  increase,  meaning  that gaps 
between  other countries  and the LDCs in effect  have widened.  And while more than 
80 per cent of Internet users in Europe shop online, in many LDCs, that share is often 
below 10 per cent.1 
• In the trade area, although global ICT goods trade has grown significantly during the 
pandemic, LDCs as a group saw their exports and imports of such goods fall sharply. 
Similarly,  the increase  of the share  of digitally  deliverable  services  in total servic es exports 
was smaller in LDCs than in more advanced economies.2 
• In addition,  LDCs in general  struggle  to harness  data and data flows for their development 
objectives . 
1.2.  In other  words,  LDCs in general  have fallen  further  behind  in the digital  economy  during  the 
pandemic , raising  the risk of widening  inequalities.  As global  trade is becoming  increasingly digital, 
building the digital readiness of LDCs has become even more important for LDCs to be able to double 
their share  in world  trade – as stipulated in SDG target 17.11.  
1.3.  There  is an urgent  need  to assist  LDCs  in strengthening  their  readiness  to engage  in 
and benefit  from digital trade. Findings from UNCTAD 's eTrade Readiness Assessments ' 
 
1 https://unctad.org/webflyer/digital -economy -report -2021 
2 UNCTAD  (2021).  Impacts  of the COVID -19 Pandemic  on trade in the digital  economy.  UNCTAD  Technical  
Notes  on ICT for Development No. 19. https://unctad.org/system/files/official -document/tn_unctad_ict4d19_en.pdf  WT/GC/W/900  
 
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  Implementation Reviews3 highlight major achievements and efforts undertaken by LDCs, as well as 
the multifaceted challenges lying ahead for LDCs to be able to engage in and befit from e -commerce.  
1.4.  There are encouraging developments in the area of e-commerce readiness and strategy  
formulation . Spurred by the COVID -19 pandemic, there is an expansion of e -government services. 
A growing number  of countries are working towards adopting ( e.g., Kenya, Tuvalu, Uganda, 
Zambia), or have already adopted ( e.g., Bangladesh, Benin, Bhutan, Camb odia, Myanmar, Nepal, 
Samoa, Senegal, Solomon Islands, Togo, Tonga, Vanuatu), policies and strategies specific to 
e-commerce.  
1.5.  However, the majority of LDCs do not yet have a full -fledged policy or strategy dedicated to e -
commerce, and even when a strategy is in place, the gender dimension is rather weak, if not absent. 
Furthermore, various countries have indicated that they have e -commerce committees or working 
groups to oversee and coordinate developments of the sector. But the main challenge often resides  
in weak institutional arrangements in place to accelerate the implementation process of e -commerce 
enabling reforms. Leadership conflicts and unclear responsibilities on how to drive the e -commerce 
sector development agenda hinder inter -agency cooperation . Understandably, this is often worsened 
by staff turnover and changes at the political level. Similar challenges arise in building connections 
with the private sector and civil society. The awareness of e -commerce among policy and law 
makers, consumers, a nd businesses should be strengthened. Another persistent gap in LDCs is the 
systematic measurement and development of statistics regarding e -commerce and the digital 
economy. As a result, e -commerce is not yet sufficiently mainstreamed in national developm ent 
agendas and barriers for women and youth to engage in e -commerce is preventing the leveling of 
playing fields through increased inclusion.  
1.6.  E-commerce development is constrained by the lack of affordable and available 
ICT infrastructure and services. A broad range of public and private initiatives are supporting the 
effort towards greater coverage, as well as more reliable and affordable access to the Internet and 
ICT. According to reviews by UNCTAD, nearly all countries ar e undertaking ICT infrastructure 
development projects, from improved fiber optic networks, expanded telecommunication tower 
networks to submarine connections. Countries are complementing their ICT infrastructure 
development by strengthening their electrica l grids, shifting towards renewables and developing new 
sources of electricity. In Malawi, the second phase of the National Fiber Backbone Project was 
launched in 2021 and it will extend the existing fiber optic  network  by 3,000  km. Since  early 2020,  
three  of the major  islands  and multiple  provinces in Solomon Islands have been connected to the 
submarine Coral Sea Cable System that connects  the country  to Australia.  In line with the five-year 
ICT strategic  plan 2019-2023,  the Solomon Islands Government awar ded contracts to private 
enterprise  to expand its 4G network.  This includes  the construction  of 161 towers  with the aim to 
have half of the towers constructed before November 2023. According to the International 
Telecommunication Union, in 2022 an estimated 407 million people in LDCs were using the Internet, 
corresponding to 36 per cent of the population, compared to 66 per cent globally.4 The urban/rural  
digital  divide  is globally  shrinking  but it still remains  significant  in LDCs and the gap  in the quality  of 
service  is relevant.  For example,  average  mobile  broadband  speed  is about three  times higher in 
developed countries than in the LDCs. And even where connectivity exists thanks to the expansion 
of network coverage and service options of mobile Internet are expanding, affordability is an area 
of concern. It is typically offered with a relatively low bandwidth  and with a relatively  high price tag. 
While  more countries  are moving  towards  the Broadband Commission for Sustainable Development 's 
target of entry -level broadband access at prices below two per cent of monthly per capita income, 
the lowest income groups in a country can still be priced out of affordable service.  
1.7.  E-commerce strongly relies on extensive last -mile logistics and improved trade facilitation 
measures . Relatively few new initiatives in the area of trade facilitation and logistics were 
observed in UNCTAD 's latest review, in part driven by limitations due to COVID -19 restrictions.  
1.8.  The lack of physical addressing systems remains a major bottleneck, with only limited progress  
recorded  in LDCs.  Some  countries have made  some  efforts  to expand  the network  of pick -up centers , 
in Malawi and Senegal, and to promote the digital transition of the national postal operators (Togo 
 
3 https://unctad.org/publication/fast -tracking -implementation -etrade -readiness -assessments  and 
https://unctad.org/publication/fast -tracking -implementation -etrade -readiness -assessments -second -edition . A third 
edition is currently ongoing.  
4 See e.g., https:// www.itu.int/hub/publication/d -ind-ict_mdd -2023/  WT/GC/W/900  
 
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  and Zambia). However, facilities for convenient physical delivery of online purchase,  e.g., pick-up 
centers and warehouses, are still very limited and doorstep delivery  remains  a costly  option  to be 
organized  and not always  feasible.  Most of the reviewed are working on reforms to facilitate 
cross-border trade, such as improving or introducing single  window  procedures  and trade portals,  
but the reality  is that e-commerce  remains  mainly domestic and cross -border e -commerce in LDCs is 
very marginal.  
1.9.  Despite  some  scattered  initiatives  to improve  the legal  and regulatory  framework,  it is often 
limited in scope and trust in digital transactions remains an outstanding issue in LDCs. According  to 
the latest  update  of the UNCTAD  Cyberlaw  Tracker  2022,5 despite  an increase from the previous 
update, LDCs are still lagging behind in terms of adoption of e -commerce laws. Cybercrime has 
attracted greater attention and 70 per cent of LDCs have a law in this field,  followed  by law on 
electronic  transactions  (63 per cent),  privacy  and data protection  (48 per cent) and consumer 
protection (41 per cent).  
1.10.   In the area of payment  solutions , nearly  all countries  reviewed  by UNCTAD  are working  on 
improving  their financial  inclusion  and have seen new e-payment  options  made  available.  This trend  
has been reinforced  by COVID -19 measures  to encourage  contactless  solutions.  The National Bank of 
Cambodia (NBC) developed BAKONG as backbone for payment system to address the issue of 
interconnectivity, interoperability, attain effic iency and convenience in payment systems, promote 
financial inclusion and ease the use of cash payment in local currency (KHR). In addition, the NBC 
introduced KHQR code in 2022 and Cambodian Shared Switch (CSS) in 2023, to enhance the usage 
of E-payments in the country.  Zambia 's e-government services now integrates mobile money 
payments options as a means of payment. Thereby mobile money payment options become more 
established in the interactions of citizens with the Government and payments become more 
traceable. Measures to strengthen the security and trust of online transactions are a high priority,  
and in some  countries  fintech  and banks  are increasing  working  on safer technologies and stricter 
operational security standards. The banking sectors in Ma lawi and Bhutan are upgrading to ISO  
20022 and ISO 27001 standards, respectively, for improved payment messaging  and more secure  
client  data. However,  with regard  to interoperability  of e-payment solutions, some initiatives to 
facilitate cross -border digit al payments are ongoing, but more work remains to be done because this 
is an area where only a few actions have been taken. Broadly speaking, the bias towards cash -based 
transactions hampers the development of e -commerce in LDCs. On this point, initiatives  like the 
"Cashless Bangladesh, Smart Bangladesh"  launched  in January  2023 are worth  being  highlighted,  as 
they promote  the usage of  mobile  banking  applications,  digital  financial  services,  and ultimately,  the 
implementation of a compatible Bangla QR  Code system among 1,200 small -scale merchants.  
1.11.   One persistent challenge faced by the reviewed countries has to do with productive digital 
skills  development . Particularly  in LDCs,  most people  access  the Internet  via mobile  phones  and 
often stay confined to the use of social media. Learning how to use a word processor or spreadsheet 
on a small screen is not ideal. Computers are not widely available, with just an average  of eight per 
cent of households  having  one, comprising  Bhutan  and Senegal  with the highest shares (respectively 
21 and 15 per cent) and countries like Malawi and Uganda with only  four per cent. Among  the 
countries  reviewed,  Cambodia,  Madagascar,  Solomon  Islands, Togo and Zambia have reported 
efforts to undertake skills gaps ' reviews to advance their digital endeavors. Efforts to revise 
compulsory education curricula thoroughly to introduce ICT training starting in primary school are 
underway in several countries, most notably in Bhutan  and Uganda.  Furthermore,  in a growing  
number of countries,  private -sector  initiatives are taking off and initiatives in support of start -ups 
and innovative digital ideas are being strengthened. The adoption of the Startup Act in Senegal in 
early 2020 (second African country  after Tunisia)  has served as a model  for innovation -friendly  
policies  in other  African countries. Consistently incorporating capacity -building initiatives for women 
entrepreneurs remains an issue that countries must strengthen further.  
1.12.   Access  to financing  remains  a challenge  since traditional  funding  options,  such as banks,  have 
not yet taken  this shift in business  model  fully onboard  yet. As a result,  financial  mechanisms for 
start-up enterprises are largely unsuitable to support engagement and growth of e -commerce 
businesses. The Pacific Islands Forum grant (funded by the Republic of Korea) launched in 2022 
aims to provide small capital support to boost e -commerce activities of Pacific MSMEs specifically in 
their e -commerce operations.  
 
5 https://unctad.org/news/least -developed -countries -still-lag-behind -cyberlaw -reforms  WT/GC/W/900  
 
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  1.13.   Current trends toward s widening inequalities in the digital realm must be reversed. UNCTAD 's 
eTrade  Readiness  Assessments  provide  timely  and relevant  reviews  of the state-of-play of the 
e-commerce enabling environment and provide specific recommendations on how to address 
weaknesses through concrete actions. Support for the implementation of the recommendations 
contained in the assessments  is also provided through an Implementation Support Mechanism (ISM).  
1.14.   Cambodia, among other LDCs, is committed to reverse these trends and has  taken 
significant steps towards creating an enabling environment for e -commerce, but more 
support is needed from the international community to assist LDCs overcome evolving 
challenges and barriers. Cambodia has acted upon the recommendations contained in  the 2017 
eTrade  Readiness  Assessment  to support  the efforts  of businesses  and consumers  to thrive in the 
digital economy. UNCTAD 's Implementation Reviews in 2019 and 2021 confirmed Cambodia as the 
top-performer, with an implementation rate of 92 per cent of all recommendations, followed by 
Bhutan, Senegal and Togo (all standing at 81 per cent). In Cambodia, the Ministry of Commerce 
recognizes the catalytic role played by the eTrade Readiness Assessment for several government 
initiatives in support of the e -commerce ecosystem.  
1.15.   One recommendation prioritized by the Royal Government of Cambodia was to develop a 
National E -commerce Strate gy launched in 2020. Furthermore, the impetus for reforms in this  
area has culminated  in passing  several  laws aimed  at regulating  e-commerce  activities  and 
strengthening consumer protection, complying as well with commitments made under the ASEAN 
Agreement  on Electronic Commerce  and the RCEP  Electronic Commerce Chapter . In 2022, the Gross 
Merchandise Value  reached USD  1.01 billion and E -payment transactions were worth USD 102 billion  
in 2021 (about  4 times  Cambodia 's GDP).  The growing  importance  of digital  adoption has  also 
prompted  the Government  to develop  a Digital  Economy  and Society  Policy  Framework 
2021-2035, which sets out a long -term vision to build a vibrant digital economy and society.  
1.16.   The country has also made strides in digital payments, as can be noticed NBC developed 
BAKONG to embrace blockchain technology in modernizing its national payment system. The Ministry 
of Commerce -led " CambodiaTrade.com " online marketplace  launched  in 2022 particularly  
welcomes  small  businesses,  women -owned businesses, and businesses in provincial areas to 
participate in the digital economy. It is a stepping stone for small businesses to move from offline 
to online, and for some of them to start selling goods across borders. Despite the impressive  results, 
assistance is needed to ensure MSMEs are able to mobilize financial resources  to grow their business, 
and for some of  them to move  into the formal  sector.  Moving  more businesses  to not only be online  
but also sell  goods  and services  online  and across borders,  and for marketplaces  to becoming  sourcing 
platforms for Made -in-Cambodia products are but examples or where further assistance is needed.  
1.17.   Despite these achievements, coping with digitalization remains particularly difficult. The scale  
of challenges  still outpaces  the capacity  of most LDC governments  to address  them.  The speed at 
which technologies  are evolving adds complexities to policymaking called to determine  the most 
appropriate  policy  responses.  This is where  support  from the international community becomes 
crucial. Donor countries need to increase the resources to help developing countries, particularly 
LDCs, meet increasing financing needs at a time when fiscal space is shrinking and debt burdens are 
growing, making the mobil ization of domestic resources even more difficult. Current financial support 
from the international community is far from enough, as shown in recent Aid for Trade commitments. 
UNCTAD calculations, based on OECD data, show that the share of Aid for Trade re sources allocated 
to the ICT sector  increased  from 1.2 per cent in 2017 to 2.7 per cent in 2019 and 2020.  In 2021,  
however, the share increased to 4.1  per cent , corresponding in absolute terms to a rise by 
USD 300 million since the previous year.  
1.18.   Strengthening international cooperation in the digital realm is necessary, and 
ongoing work  under  the umbrella  of the World  Trade  Organization  must  support  efforts  
towards increasing technical and financial resources to avoid LDCs trailing behind in 
making  digitalization  work  for development . The WTO provides  a platform  for broad  
participation and representation of diverse interests. This inclusivity is essential for ensuring that 
the rules and agreements governing digital trade reflect the needs and perspe ctives of both 
developed and  developing  countries  with a view to establishing  an inclusive  framework  for digital  
trade. As  countries  gradually  and unevenly  emerge  from the pandemic,  a return  to business  as usual 
is no longer  an option.  Work,  education,  and communications  are likely to be more dependent on 
digital technologies than before. This accentuates the need for public policies that can reduce 
fragmentation and the emergence of uneven blocks, maximize opportunities and address challenges WT/GC/W/900  
 
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  and concerns related to digitalization. This includ es policies and regulations  that ensure  that the 
digital  economy  works  for the benefit  of people  and the planet. In this context, there will be a need 
for more rather than less coordination and collaboration geared towards strengthening the capacities 
of LDCs and creating a level -playing field.  
1.19.   Efforts in this area do not need to start from scratch. For example, the UNCTAD -led eTrade 
for all partnership is a growing global initiative of 35 partners. It seeks to connect the dots among 
organizations, donors a nd beneficiaries to foster more inclusive e -commerce development.  By 
reaching  beyond  sector -by-sector  silos and taking  a comprehensive  approach  to various policy 
challenges that countries are facing when they develop their e -commerce ecosystems,  the initiative  
seeks  to facilitate  more inclusive  development  outcomes.  No single organization can address all the 
challenges that LDCs face with regard to digital transformation. Joining hands and leveraging 
strategic partnerships can make a great difference.  
1.20.   There are many examples of countries that have benefited from support provided by eTrade 
for all partners. At this stage, a first step could be to ensu re that all LDCs, who so want, are given 
the opportunity to receive assistance in the form of a diagnostic of their e -commerce ecosystems 
and sustained support for implementation of the identified recommendations in coordination  with 
development  partners.  In the framework  of the WTO Work Programme  on E -Commerce,  
capacity -building  sessions  drawing  on the expertise  of relevant  partners  and the solutions they offer 
would be welcome.  
1.21.   It will take time to develop and implement solutions addressing all the barriers that LDC 
governments face to engage in and benefit from e -commerce and the digital economy. Nevertheless , 
this will be essential if we are serious about creating more inclusiv e trade and value creation in the 
digital economy.  
1.22.   With less than seven years remaining on the 2030 timeline to achieve the SDGs, the 
international  community  must step up its efforts  to accelerate  progress  towards  the SDGs  and 
dramatically  scale up its assistance  to the most vulnerable  countries  to enable  them to recover the  
ground  lost to the adverse  socio-economic  impacts  of the COVID -19 pandemic  and other crises.  
Development  organizations  and bilateral  donors  need to discuss  and agree  on how best to maximize 
their contributions and scale -up the level of resources to assist LDCs ' efforts toward building inclusive 
and sustainable digital transformation agendas.  
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