Deputy Prime Minister Sun Chanthol and the World Bank’s Tania Meyer chair the meeting at the CDC on February 4. CDC.
The private sector within Cambodia's logistics industry has highlighted the importance of the “Logistic Performance Index (LPI)” in enhancing the Kingdom’s transportation sector, noting that it could attract more international investment.
The point was raised during a February 4 meeting, organised by the Council for the Development of Cambodia, to discuss methods and procedures for LPI data collection.
The meeting, which was attended by key stakeholders such as Deputy Prime Minister Sun Chanthol and Tania Meyer, World Bank country manager in Cambodia, as well as senior government officials, focused on strategies for improving Cambodia’s logistics sector.
According to the CDC, The LPI, developed by the World Bank, is an effective and reliable tool to measure the performance of the logistics sector in different countries globally.
Cambodia aims to improve its LPI rankings in the coming years to foster economic growth.
Since 2025, Cambodia
The Kingdom has implemented changes to the LPI process, increasing surveys and rankings to enhance efficiency in identifying strengths and weaknesses in the supply chain and setting clearer developmental goals.
According to the World Bank, the government regularly works with local authorities to improve logistics performance, focusing on infrastructure, transportation systems and customs clearance procedures.
Sin Chanthy, president of the Cambodian Logistics Association, told The Post on February 5 that the LPI Index is used worldwide, with at least 160 countries regularly assessing their LPI every two years.
He explained that the World Bank and relevant authorities meet biennially to evaluate the effectiveness of past initiatives and make adjustments to enhance the logistics sector.
These improvements focus on reducing transportation costs and increasing efficiency. In general, Cambodia’s LPI score has consistently improved over the years, thanks to active government participation in investing in infrastructure like roads, airports and ports, as well as streamlining customs procedures.
“The government has implemented several policies aimed at improving Cambodia’s LPI. In areas where performance is lacking or declining, the government introduces measures and policies to address the issues and help these areas improve,” he said.
Sin Chanthy noted that it is extremely beneficial to reassess the LPI every two years, as it helps improve national policy development. He also expressed his belief that it is crucial for boosting the efficiency of attracting foreign investors and enhancing the export of Cambodian goods to international markets.
He also broke down the six key elements which are measured in the index. They include customs procedures, transportation and infrastructure, international transport, quality and performance, timeliness and the tracking of shipments to their destinations.
Chea Chandara, president of the Logistics and Supply Chain Business Association, agreed that a higher LPI ranking would help attract more foreign manufacturing operations to Cambodia, as better logistics lead to cost-efficient and timely shipping of goods to international markets.
Improving the LPI is a crucial factor in accelerating the Kingdom’s economic growth, as enhanced logistics infrastructure ultimately boosts competitiveness in the global market.
Compared with their ASEAN peers, in 2023, Cambodia and Laos ranked poorly in overall logistics performance with LPI scores of 2.4 out of 5.0 points.
At 4.3 points, Singapore was top ranked, both within ASEAN and worldwide. It was followed by Malaysia (3.6), Thailand (3.5), the Philippines and Vietnam (both 3.3) and Indonesia (3.0). An index for Myanmar was not available
