Cambodia's Illicit Trade Challenges: TRACIT Report Highlights Weaknesses

According to a report released by the Transnational Alliance to Combat Illicit Trade (TRACIT) on November 10, 2026, Cambodia has been identified as the worst performer in ASEAN regarding controls on illicit trade, ranking 138th out of 158 countries globally. This assessment underscores significant vulnerabilities in the country's regulatory framework, particularly concerning counterfeit goods and supply chain management.

The TRACIT report indicates that while ASEAN countries collectively scored just below the global average in resilience to illicit trade, Cambodia's position highlights critical gaps in governance and enforcement capacity. The report does not specify the exact factors contributing to Cambodia's low ranking, but it emphasizes the need for tighter customs oversight and stronger regulations for online platforms to combat illicit activities effectively.

In comparison, Singapore leads the region at 29th globally, followed by Indonesia at 39th and Thailand at 56th. Laos and Myanmar also outperformed Cambodia, ranking at 100th and 117th, respectively. The report notes that illicit traders often exploit legitimate infrastructure, such as online marketplaces and free trade zones, to sell and conceal illegal goods, raising concerns about the integrity of supply chains across the region.

Jeffrey Hardy, TRACIT’s director-general, emphasized the importance of strengthening trade-integrity safeguards as ASEAN moves towards its Vision 2045 goals for deeper economic integration and a trusted digital economy. He stated, "Stronger safeguards are essential if ASEAN is to fulfil its Vision 2045 ambitions," highlighting the need for improved coordination among governments, customs authorities, and the private sector.

“Stronger safeguards are essential if ASEAN is to fulfil its Vision 2045 ambitions.”Jeffrey Hardy, Director-General, TRACIT

The report calls for a comprehensive regional action plan that includes establishing national focal points, enhancing public-private cooperation, and implementing best practices across member states. It also points to successful initiatives in other ASEAN countries, such as the Philippines' e-commerce memorandum of understanding and Vietnam's seller-verification rules, as models for Cambodia to consider.

Furthermore, the report's findings were discussed at the Regional Intellectual Property Summit on Enforcement (RISE 2026), which aimed to address the growing challenges posed by illicit trade in the region. The summit was organized by the Intellectual Property Office of the Philippines and the European Union Intellectual Property Office, underscoring the collaborative efforts needed to combat these issues.

In light of these findings, local businesses and authorities are urged to take proactive measures to enhance compliance and accountability within the supply chain. The Cambodian government has already initiated reforms in customs automation and simplified procedures for small and medium enterprises (SMEs) to improve trade facilitation. However, the persistent challenges posed by illicit trade require a more robust and coordinated approach to ensure a fair and competitive market environment.