The Cambodian government has set very ambitious goals. After attaining lower‑middle‑income status in 2015, it aims for upper‑middle‑income status by 2030 and high‑income status by 2050 . The World Bank notes that Cambodia’s economy grew at 7.6 % per year from 1995‑2019 , but it remains a small, lower‑middle‑income economy (2023 GDP about US$46 billion) relative to Vietnam’s much larger US$459 billion economy . Vietnam has transformed into one of East Asia’s most dynamic emerging markets; real GDP per capita has jumped from less than US$700 in 1986 to about US$4 500 in 2023 . In 2024 Vietnam’s economy expanded 7.1 %, and it aspires to become a high‑income country by 2045 . Cambodia would therefore need to sustain growth several times faster than Vietnam over the next three decades to overtake it.
Nevertheless, there are trends working in Cambodia’s favour. Some observers believe that rapid adoption of digital payments and a youthful, tech‑savvy population could help Cambodia leapfrog development stages and accelerate growth. The following sections examine these factors – English proficiency, digital banking (QR systems), economic growth and middle‑class expansion – and whether Bitcoin‑driven innovation might give Cambodia an edge.
English proficiency – not yet an advantage
The notion that “everyone is so fluent in English” in Cambodia is at odds with available evidence. The EF English Proficiency Index 2024 ranks Cambodia 111th out of 116 countries with a score of 408 (very low proficiency) . Even in Phnom Penh, a 2022 survey found that 93.8 % of children aged 7‑14 and 87.6 % of youth aged 15‑24 were only proficient in Khmer; just 3.4 % spoke both Khmer and English . These figures highlight a significant language barrier outside a small urban elite. By contrast, Vietnam ranks 63rd with a score of 498 , placing it eighth in Asia. Vietnam’s proficiency has even prompted its Politburo to encourage making English a second language in schools . Vietnam’s higher English proficiency gives it an advantage in attracting foreign investment and integrating into global supply chains.
Cambodia can still turn its youthfulness into an asset. Targeted investments in education, especially English and digital skills, would improve human capital. Without improvements, the World Bank warns that Cambodian children could be only 49 % as productive as they would be with full quality education and nutrition – an enormous constraint on growth.
Digital banking and the KHQR/Bakong system – a leapfrog opportunity
Cambodia has made remarkable strides in digital payments. The National Bank of Cambodia (NBC) launched the Bakong platform – a blockchain‑based national payment rail – and the KHQR universal QR code. By 2024 Bakong wallets numbered around 30 million (about 1.7× the population) and 4.5 million merchants could accept KHQR payments . The system processed 608.3 million transactions worth US$104.8 billion, about 330 % of Cambodia’s GDP, and cross‑border links exist with UnionPay, WeChat Pay and Alipay . Most Bakong transactions are free for consumers; interbank fees are minimal . Digital wallets (Pi Pay, ABA Pay, Wing) are extremely popular; the number of digital wallet accounts reached 19.7 million, and KHQR was accepted by 3 million merchants . Visa estimates that contactless transactions in Cambodia rose 16 % in December 2023, showing strong adoption .
Vietnam is also rapidly modernising its payment landscape. The State Bank of Vietnam reported that non‑cash payment transactions in the first 11 months of 2024 increased by 56.8 % in volume and 33.7 % in value. Mobile banking transactions increased 54.5 % in volume and QR code payments experienced the fastest growth – 106.7 % in volume and 84.8 % in value. A Vietnam Investment Review article explains that QR payments grew 8–10 % per month, with transaction value up 20 % in 2024, and near‑field communication (NFC) payments grew 6 % per month. The National Payment Corporation of Vietnam (NAPAS) processed 9.56 billion transactions in 2024, up 30 % in number and 14 % in value from 2023, and aims to expand cross‑border QR payments to China, Japan and South Korea. Vietnam’s digital payments market is much larger – Google, Temasek and Bain estimate gross transaction value jumped from US$126 billion in 2023 to US$149 billion in 2024. Yet Cambodia’s adoption is proportionally deeper relative to its GDP.
Implications
Cambodia’s leapfrog into digital payments provides broad financial inclusion. Low fees and universal QR codes allow even street vendors to accept digital payments. This fosters transparency, reduces informal cash, and collects data for credit scoring. Vietnam’s system is larger but fragmented across many commercial platforms (MoMo, ZaloPay, VNPay). The NBC’s ability to mandate a single national QR standard reduces friction and can accelerate e‑commerce. Nevertheless, Vietnam has a much bigger economy and invests heavily in digital infrastructure. Overtaking Vietnam would require Cambodia to convert its digital adoption into substantial productivity gains across manufacturing, services and exports.
Economic growth, middle class and working class
Cambodia
Cambodia’s growth rebounded to 5.4 % in 2023 and is projected to 5.8 % in 2024 and 6.0 % in 2025 . The World Bank stresses that poverty remains above pre‑pandemic levels and human‑capital indicators lag; it emphasises investments in education, infrastructure and diversification . The rising middle class is mainly urban. A 2025 marketing blog notes that smartphone penetration and e‑commerce are driving consumer expectations, with the middle class expanding rapidly in Phnom Penh, Siem Reap and Sihanoukville and demanding quality products and tech‑enabled convenience . Yet the middle class is still small; the macrotrends database shows Cambodia’s gross national income per capita was only US$2 390 in 2023 . To reach high‑income status (defined as GNI per capita ≥ US$13 935 ) by 2050, Cambodia would need to increase income almost six‑fold. A commentary by Cambodia Investment Review suggests GNI per capita would need to rise to around US$14 005 by 2050 (not directly accessible but widely cited) – a very steep challenge.
Vietnam
Vietnam’s growth story is formidable. Market reforms since 1986 transformed the nation from one of the world’s poorest countries into a middle‑income economy. Real GDP per capita increased to US$4 500 in 2023 , and the poverty rate dropped to <4 % . Vietnam’s economy grew 7.1 % in 2024 and is forecast to grow 5.8 % in 2025 . The country aims to be a high‑income country by 2045, requiring annual per‑capita growth of roughly 6 % for 20 years . The middle class is exploding: Vietnam Briefing estimates the middle class will expand from 13 % of the population (~13 million people) in 2023 to 26 % by 2026. This rising consumer base is fueling domestic demand and attracts foreign investment. Vietnam’s education outcomes are also among the best in ASEAN – the human capital index is the highest among lower‑middle‑income economies . A relatively skilled workforce, stronger English proficiency and participation in global supply chains give Vietnam a structural advantage over Cambodia.
Could Bitcoin accelerate Cambodia’s catch‑up?
Cryptocurrency remains a niche in Cambodia. A 2022 survey reported that only 10.6 % of respondents had used cryptocurrency, while 65 % were aware of the Bakong digital payments platform . The NBC forbids banks from facilitating crypto transactions and emphasises its own Bakong system; new regulations released in January 2025 distinguish between stablecoins and riskier coins and cap banks’ exposure to digital assets at 5 % of capital . The crypto market is small – revenues are projected to reach US$7.5 million with about 530 000 users (≈3 % of the population) in 2025 .
Bitcoin and other decentralized currencies could theoretically promote faster remittances and attract foreign capital. For example, Cambodian workers in Malaysia reportedly use Bakong for low‑fee remittances ; similar cross‑border remittances via Bitcoin could provide alternative channels. In the near term, however, regulatory restrictions and volatility limit crypto’s role. Building on Bakong’s blockchain technology, the NBC could integrate programmable features and cross‑border settlement with neighbouring countries; this would deliver some advantages attributed to cryptocurrencies without the speculative risks. Cambodia’s digital payment infrastructure thus provides a more stable platform for economic inclusion than unregulated crypto.
Conclusion – an inspirational outlook with realism
Overtaking Vietnam’s economy within 30 years is a very ambitious goal. Vietnam has a head start with a ten‑times larger GDP, higher English proficiency, a booming middle class and integration into global manufacturing chains. Cambodia’s strengths lie in its rapid adoption of digital payments, youthful population and entrepreneurial energy. If Cambodia invests heavily in education (especially English and digital skills), healthcare, infrastructure and diversifying exports, it could accelerate income growth. Universal QR payments and Bakong offer a leapfrog opportunity, making it easier for small businesses to access finance, formalize transactions and participate in e‑commerce.
Bitcoin or other cryptocurrencies are unlikely to be the silver bullet; instead, leveraging blockchain‑based national systems and promoting cross‑border QR payments will yield more immediate benefits. Cambodia’s story over the next three decades can be one of innovation, inclusiveness and sustainable growth, but overtaking Vietnam will require sustained reforms and investments that close the human‑capital gap and capitalize on its digital momentum.