A thousand-year-old nation, founded by a saintly king and heir to a once-great empire that extended well beyond its present borders. A nation with a convoluted recent history and memories of Communist repression still fresh in the minds of its elders. A nation where, over the past decade, political stability has fostered economic growth, and a strategic geographic location has made it a key player even beyond its immediate neighbourhood.
These descriptions could apply just as aptly to either Hungary or Cambodia. The two countries have maintained diplomatic relations since 1956—with a notable deepening of bilateral ties over the past five years. This comes as Hungary expands its political and economic engagement in Southeast Asia, drawn by the region’s rapid economic growth and crucial role in global supply chains. Given its location and relative political neutrality, Cambodia could become a central piece in the Southeast Asian chapter of Budapest’s Connectivity Strategy, as well as a regional pillar of its Eastern Opening—alongside Vietnam.
The growing importance of Southeast Asia to Hungarian foreign policy was recently put on display during the celebrations of the 75 years of relations between Hungary and Vietnam. The first months of this year were packed with commemorative events, on the one side, and the signature of important agreements on the other. Following a visit to Hanoi by Foreign Minister Péter Szijjártó, high-level events dedicated to the country were held in the Hungarian Parliament and in Budapest’s iconic Pesti Vigadó concert hall. In late May, President Tamás Sulyok visited Hanoi at the invitation of his Vietnamese counterpart, Lương Cường. Against this backdrop, the two countries announced a deepening of their strategic partnership and intentions to further expand trade relations. The interest in Vietnam is not solely economic, either. The country is treated as a key Southeast Asian ally in Hungary’s Eastern Opening strategy, that is, Budapest’s economic and diplomatic pivot towards Asia. The Eastern Opening is also closely linked to Hungary’s broader geostrategic outlook, which finds its political translation in Budapest’s Connectivity Strategy. In their assessment of Hungary’s position vis-à-vis Asia, both policies are strongly anchored in the idea of an increasingly multipolar world, where geopolitical centre of gravity has shifted Eastwards almost to the same extent as the chokepoints in global supply chains.
‘The Eastern Opening is also closely linked to Hungary’s broader geostrategic outlook, which finds its political translation in Budapest’s Connectivity Strategy’
Southeast Asia is, thus, a crucial region in both geostrategic terms and economically, being a major infrastructural hub and home to some of the region’s fastest-growing economies. Vietnam has, over the past decade, become Hungary’s main regional partner. Vietnamese economic might, a Free Trade and Investment Protection Agreement with the EU in force since 2020, and the signature of the Comprehensive Strategic Partnership with Hungary one decade ago ensured Hanoi’s protagonism. Relations with other regional actors have mostly improved, though, still, at a slower pace. Ties with Cambodia have greatly benefitted from the opening of a Representative Office of Hungary in Phnom Penh in 2020, though diplomatic relations are still managed out of the Hanoi Embassy. The Hungarian National Trading House has had a mission in Cambodia since at least 2015, while, in 2023, a bilateral Joint Committee on Economic Cooperation was established, gathering yearly. Memoranda of Understandings on key sectors of the Cambodian economy such as agriculture have been signed. Trade between Hungary and Cambodia has increased by 23.9 per cent per annum between 2021 and 2023. In general, however, economic relations, though fast-growing, fall short of the potential that a deeper, comprehensive Hungarian–Cambodian partnership could yield.
Much of Cambodia’s attractiveness to Hungary can be explained by looking into Sihanoukville, a coastal city by the busy Gulf of Thailand, and home to the country’s largest maritime port. Cambodian ports operate under a public-private partnership scheme, with Sihanoukville specifically benefitting from major investment from China and Japan. Cambodia has been keen to leverage Western investment in both Sihanoukville and other maritime ports and industrial zones, including one near Phnom Penh, benefitting from the capital’s major port by the Mekong. The creation of Special Economic Zones, known as SEZs, was heavily promoted by Phnom Penh to attract international investors through the provision of facilitated fiscal, bureaucratic, and logistic procedures. SEZs serve most of Cambodia’s largest economic sectors, such as agri-food, automotive components, and heavy industry. The SEZ in the Port of Sihanoukville is served by several Western companies, notably French logistics operators that are also active in other Cambodian ports.
‘Creating direct links between Hungary and Sihanoukville…sets Budapest as a direct stakeholder in the region, rather than a distant spectator’
A further point of interest in Cambodia is its small but fast-growing mineral industry. The country has several mineral reserves, many of which remain severely underexplored, with gold, iron ore, manganese, and bauxite among the main minerals being extracted and exported through Sihanoukville and Phnom Penh. Creating direct links between Hungary and Sihanoukville, be it through direct investment in the port, in related projects such as the ongoing container terminal upgrade, or through investment in the SEZs, sets Budapest as a direct stakeholder in the region, rather than a distant spectator. Most importantly, it would greatly elevate Hungary’s weight in a growing and increasingly Europe-linked trade route.
In Phnom Penh, Hungarian overtures have been exceptionally well-received. This year alone, two high-level official visits took place between Hungary and Cambodia. The Hungarian delegation, led by the First Deputy Speaker of the Hungarian National Assembly Márta Mátrai, was received both by President of the Cambodian National Assembly Khuon Sudary and President of the Senate Hun Sen. The latter’s interest is particularly noteworthy, as Hun Sen served as Prime Minister of Cambodia for nearly 40 years and is widely regarded as Cambodia’s de facto leader, alongside current Prime Minister Hun Manet. In welcoming the Hungarian delegation, Hun Sen called for the deepening of trade relations and for further investment avenues to be explored between the two countries. Some months later, Hungarian Ambassador to Vietnam and Cambodia Tibor Baloghdi reinforced Hungary’s interest in the country, stating that the two countries had entered a ‘new age of cooperation’. Hungarian interest in Cambodia and the two countries’ growing proximity has been widely reported in Khmer- and English-language Cambodian press, not least by the ruling Cambodian People’s Party vehicles.
Beyond the purely political and economic, a strong civilizational synergy remains between the two nations. Hungary and Cambodia share the common fate of being ancient countries undergoing processes of national renewal and self-discovery, with the traumas of Communist anti-historicism—and the temptations of liberal ahistoricism—now largely behind them. In Hungary, the past decade and a half has been marked by a rediscovery and valorization of the country’s Christian culture and traditional values, along with a renewed appreciation of its heritage. In Cambodia, recent decades have seen parallel developments: a revival of its unique folk culture and the reintegration of Buddhism into public life, following years of Communist repression and the upheavals of the 1990s.
Despite significant differences in cultural roots—and in the nature of the challenges each country has faced, however similar their ideological origins—both nations have been imbued with a spirit of national and cultural revivalism throughout the 21st century. These shared experiences can and should form the foundation for a new cultural and intellectual diplomacy between Hungary and Cambodia. The exchange of best practices in heritage preservation and restoration, with Hungary offering its considerable expertise, would add a deeper, more human dimension to an already strong political relationship—and could even help foster closer economic ties.
‘Phnom Penh can, and should, become a valued Hungarian partner and a strategic gateway to Southeast Asia – from the Danube to the Mekong’
In the medium-term, the Hungarian–Cambodian relationship should be elevated to a Comprehensive Partnership. A significant first step would be the opening of Embassies in both capitals. Presently, the Hungarian Embassy in Hanoi is also responsible for relations with Cambodia. Ambassador Baloghdi, who has served since 2023, has played a pivotal role in the deepening of ties between Budapest and Phnom Penh. Hungary has a Representative Office in Phnom Penh, its only representation in Cambodian soil. Establishing an Embassy in Phnom Penh, besides being seen as a goodwill gesture and a statement of Budapest’s intentions to deepen bilateral ties, would provide Hungary with a stronger institutional presence in the country. An Embassy with a dedicated budget for investment and business promotion would also have greater freedom to establish initiatives to attract potential Hungarian investors in Cambodia and local stakeholders interested in trading with Hungary.
As Hungary and Cambodia prepare to celebrate 70 years of diplomatic relations next year, current efforts to strengthen ties should be extended and intensified across both the economic and political spheres—engaging actors from both the public and private sectors. Timing the inauguration of the Hungarian Embassy, along with announcements of deeper economic and political engagement in Cambodia—whether in Phnom Penh, Sihanoukville, or elsewhere—so that they coincide with the anniversary celebrations would add a highly appreciated symbolic dimension to these gestures.
Phnom Penh can, and should, become a valued Hungarian partner and a strategic gateway to Southeast Asia—from the Danube to the Mekong.
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