Cambodia's two largest industries are textiles and tourism, while agricultural activities remain the main source of income for many Cambodians living in rural areas.

The most important economic institution that developed itself was the ruling CPP which dominates financial banks and its own way of life through foundation which had supported by the Communist Party of China.

Currently, Cambodia's foreign policy focuses on establishing friendly borders with its neighbors (such as Thailand and Vietnam), as well as integrating itself into regional (ASEAN) and global (WTO) trading systems.

Some of the obstacles faced by this emerging economy are the need for a better education system and the lack of a skilled workforce; particularly in the poverty-ridden countryside, which struggles with inadequate basic infrastructure.

Nonetheless, Cambodia continues to attract investors because of its low wages, plentiful labor, proximity to Asian raw materials, and favorable tax treatment.

Cambodia also focused on integrating itself into regional and international economic blocs, such as the Association of South East Asian Nations and the World Trade Organization respectively.

These policies triggered a growth in the economy, with its national GDP growing at an average of 6.1% before a period of domestic unrest and regional economic instability in 1997 (1997 Asian financial crisis).

Foreign direct investment (FDI) inflows reached US$600 million (7 percent of GDP), slightly more than what the country received in official aid.

Cambodia was severely damaged by the financial crisis of 2007–2008, and its main economic sector, the garment industry, suffered a 23% drop in exports to the United States and Europe.

In 2005, there were fears that the end of the Multi Fibre Arrangement would threaten Cambodia's garment industry; exposing it to stiff competition with China's strong manufacturing capabilities.

This is can be attributed to the country's open economic policy which has drawn in large amounts of foreign investment into this sector of the economy.

This is a reflection of the deficiency of skilled workers in the country as well as the limited leverage and autonomy Cambodian factories have in strategic decisions.

[34] This has allowed Cambodia to secure its share of quotas for exports to the US through the US-Cambodia Trade Agreement on Textiles and Apparel (1999–2004), which linked market access to labor standards.

Major secondary crops include maize, cassava, sweet potatoes, groundnuts, soybeans, sesame seeds, dry beans, and rubber.

[37] Cultural heritage tourism is especially popular in the country, with many foreign tourists visiting the ancient Hindu temple of Angkor Wat located in the Siem Reap province.

Other popular tourist attractions include the Royal Palace, Phnom Penh, as well as ecotourism spots such as Tonlé Sap Lake and the Mekong River.

Cambodian citizens are allowed to gamble through government sponsored gaming including five separate privately run national lotteries.

[44] Extralegal activities are also widespread outside of the permitted casinos ranging from cockfights and card rooms to sports book (primarily regional football and Kun Khmer matches) and unauthorized lotteries.

Recently, planned projects that have been on the pipeline for several years have been shelved temporarily due to a reduction in foreign investment.

Further discoveries of oil and natural gas deposits offshore in the early 2000s led to renewed domestic and international interest in Cambodia's production possibilities.

[47] In addition, there are 10,000 square miles offshore in the Gulf of Thailand that holds potential reserves of 12-14 trillion cubic feet of natural gas and an unspecified amount of oil.

Under the mandate of the United Nations Transitional Authority in Cambodia (UNTAC), $1.72 billion (1.72 G$) was spent in an effort to bring basic security, stability and democratic rule to the country.

[50][51] With regards to economic assistance, official donors had pledged $880 million at the Ministerial Conference on the Rehabilitation of Cambodia (MCRRC) in Tokyo in June 1992.

[66] There are also many initiative and policies put in place to decrease the prevalence of child labour such as the United States generalized system of preferences, the U.S.-Cambodia textile agreement, ILO Garment Sector Working Conditions Improvement Project, and ChildWise Tourism.

There is some evidence of expansion in value-added exports from a low starting point, largely thanks to the manufacture of electrical goods and telecommunications by foreign multinationals implanted in the country.

[72] It will be challenging for Cambodia to enhance the technological capacity of the many small and medium-sized enterprises (SMEs) active in agriculture, engineering and the natural sciences.

Whereas the large foreign firms in Cambodia that are the main source of value-added exports tend to specialize in electrical machinery and telecommunications, the principal task for science and technology policy will be to facilitate spillovers in terms of skills and innovation capability from these large operators towards smaller firms and across other sectors.

[72][73] There is little evidence that the Law on Patents, Utility Model Certificates and Industrial Designs (2006) has been of practical use, thus far, to any but the larger foreign firms operating in Cambodia.

Nevertheless, the law has no doubt encouraged foreign firms to introduce technological improvements to their on-shore production systems, which can only be beneficial.