On January 23, 2026, two events in Paris underscored the evolving economic relationship between France and Cambodia, while also highlighting ongoing fiscal debates in France itself. As French lawmakers wrestled with the country’s stubborn deficit, Cambodia’s Commerce Minister Cham Nimul sat down with representatives of MEDEF International and major French companies, aiming to deepen commercial ties and explore new opportunities for investment.
Earlier that day, France’s Prime Minister Sebastien Lecornu survived a tense round of no-confidence votes in parliament. The votes centered on the revenue chapter of a new finance bill, a document that’s become a lightning rod for debate. According to Bloomberg, the bill sets a target to bring France’s deficit down to 5% of economic output by 2026, a figure that falls short of the government’s original—more ambitious—goal of 4.7%. The compromise, adopted on January 23, has drawn both relief and criticism from different corners of the French establishment.
Bank of France Governor Francois Villeroy de Galhau didn’t mince words on January 24. "The government and parliament could have done more to reduce the deficit in a budget compromise adopted on January 23, 2026," he said, signaling disappointment that the final agreement didn’t go further. This sentiment reflects a growing concern among fiscal hawks and centrist economists who worry that France’s persistent deficit could become a drag on economic growth or, worse, invite trouble from financial markets.
Meanwhile, just a few blocks away from the heated parliamentary debates, Cambodia’s Commerce Minister Cham Nimul was orchestrating a different kind of economic dialogue. In a working meeting with MEDEF International Vice-President François Corbin and representatives of six leading French companies, Nimul sought to present Cambodia’s trade and investment potential—and to make a compelling case for deeper bilateral cooperation.
According to The Phnom Penh Post, the French company representatives at the Paris meeting expressed strong interest in learning more about Cambodia’s commercial laws, regulatory framework, and overall investment environment. For many, Cambodia’s recent progress and visible socio-economic development have made it an increasingly attractive destination for business expansion.
Minister Nimul didn’t shy away from highlighting Cambodia’s efforts to foster economic growth across all sectors. She spoke of government initiatives to create a favorable business climate, pointing to recent policy reforms, improved governance, and a push for enhanced competitiveness. Her message was clear: Cambodia is open for business and eager to welcome international partnerships, particularly from France.
"My office is working to facilitate trade and investment by streamlining procedures, strengthening regulatory transparency, and supporting foreign investors," Nimul told the French business leaders, according to The Phnom Penh Post. She emphasized that Cambodia is actively seeking increased engagement from French businesses in key sectors of mutual interest, reinforcing the country’s commitment to a welcoming and competitive commercial environment.
This spirit of openness comes at a time when Cambodia is making concerted efforts to diversify its economy and attract higher levels of foreign direct investment. The government’s recent reforms—ranging from simplifying business registration to improving legal protections for investors—have not gone unnoticed by international observers. French companies, in particular, are eyeing opportunities in sectors like infrastructure, energy, manufacturing, and technology.
For the French firms at the meeting, the draw is twofold: Cambodia’s dynamic growth trajectory and the government’s willingness to engage with foreign partners. Representatives from the six French companies present in Paris shared their visions for expanding commercial operations in Cambodia, with several noting the importance of understanding the country’s legal and regulatory landscape before making significant commitments.
It’s a cautious optimism, to be sure. While Cambodia’s reforms have garnered praise, some French executives remain watchful, looking for concrete evidence that the country’s regulatory environment will continue to evolve in a direction favorable to foreign investors. That said, the tone of the Paris meeting was overwhelmingly positive, with both sides expressing enthusiasm for the future of bilateral trade and investment.
Back in France, the debate over fiscal policy continues to simmer. The finance bill that survived parliament’s scrutiny on January 23 is, at best, a compromise. The government’s decision to set the deficit target at 5% of GDP—rather than the previously stated 4.7%—has been described by some as a pragmatic response to economic realities, and by others as a missed opportunity for deeper reform.
Governor Villeroy de Galhau’s pointed remarks suggest that the pressure is far from over. As he told Bloomberg, "The government and parliament could have done more to reduce the deficit in a budget compromise adopted on January 23, 2026." His comments echo the concerns of many in the French financial sector, who argue that sustained deficits could limit the country’s ability to invest in critical areas or respond to future economic shocks.
Prime Minister Lecornu, for his part, has emerged from the no-confidence votes with his government intact, but the road ahead remains uncertain. The debate over how best to balance fiscal responsibility with economic growth is hardly new in France, but it has taken on renewed urgency as the country faces a shifting global landscape and the lingering aftershocks of recent crises.
For Cambodia, the stakes are different but no less significant. The country’s leadership sees foreign investment—and especially partnerships with established economies like France—as a key lever for sustaining growth and accelerating development. By reaching out to French companies and making a case for Cambodia’s openness, Minister Nimul is betting that international collaboration can help propel the country forward.
The Paris meeting between Cambodian officials and French business leaders is just one step in a longer process, but it’s a clear sign that both countries are looking to the future. For France, the challenge remains fiscal discipline amid political pressure. For Cambodia, it’s about building bridges and convincing global investors that the nation is ready for the next phase of economic expansion.
As 2026 unfolds, the economic destinies of France and Cambodia may seem worlds apart, but in Paris this week, their stories intersected—each side searching for solutions, each hoping that dialogue and cooperation will offer a way forward.