While Cambodia has achieved stellargrowth and poverty reduction over the last two decades, thenext wave of growth is anticipated to come from increasingvalue-added as well as nurturing new sectors such as theDigital Economy. Over the past two decades, facilitated bypreferential trade treatment and strong foreign directinvestment inflows, growth and job creation have been takingplace in activities with relatively limited value added,such as garment manufacturing, rice cropping, andconstruction. In recent years, Cambodian authorities haveissued several policy documents relevant to digitaldevelopment. Overall, the objectives and high-level programgoals are generally consistent with international goodpractice, and envisage partnerships between the Governmentand the private sector at multiple levels. The RectangularStrategy Phase III 2013-2018 highlights the need to furtherdevelop e-Government and encourage the private sector toinvest in technology. This was followed in 2014 by theapproval of the Cambodia ICT Master Plan 2020 which aims toimprove ICT industry and human resources development,internet connectivity, cybersecurity, and governmente-services—and in 2016 by the Telecoms and ICT Policy whichoutlines policy measures and associated targets to expandICT infrastructure and develop ICT human capacity. Inaddition, a draft Cambodia e-Government Master Plan2017-2022 has been drafted, although not yet adopted. Thedraft outlines programs to provide quality information anddigital services, in collaboration with prospectivebeneficiaries; connect with people on public policies anddecisions, in particular through social media; and increasegovernment efficiency by establishing basic foundations fordigital government (e.g. cloud, enterprise architecture,intensive staff capacity building) and a government portalon which ministries can host their services. Numerousinstitutions across Government are tasked with theimplementation of these policies and strategies. This policynote responds to a request from the Royal Government ofCambodia for the World Bank to assess the current state ofits Digital Economy and identify policies to further developit.The Policy Note applies the analytical frameworkpresented in the World Bank’s World Development Report 2016:Digital Dividends, to identify challenges and suitablepolicy options, and it is intended to inform the preparationof the upcoming Rectangular Strategy Phase IV (2018—2023).