The two Southeast Asian countries that we don’t talk about enough, especially in terms of the digital industry as a whole, are Cambodia and Laos. Regional attention often gravitates towards Indonesia and Vietnam, but Cambodia and Laos are nurturing ecosystems that further reflect the high ambition, growing digital maturity and rising investor interest in leapfrogging legacy infrastructure.
Why is this happening now? Both of these countries have a lot to offer, and investors can no longer turn a blind eye, especially with the rise of both Cambodia’s and Laos’ young startups. It’s subtle but strong enough to make an impact. In both countries, mobile-first business models are taking root, governments are easing regulatory pathways through innovation sandboxes, and strategic partnerships are forming across borders.
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So, these frontier markets are not necessarily trying to recreate the playbooks of other neighbouring countries such as Malaysia and Singapore. What they are trying to achieve is building their own versions of digital economies, cross-border trade realities, shaped by local needs and a young, increasingly connected population.
Local super apps and infrastructure leapfrogging
Now, let’s take a closer look at Cambodia’s digital push, which has been led in part by homegrown players like Pi Pay. Pi Pay is one of the country’s very first mobile payment platforms that gained massive popularity and adoption.
It was launched in 2017 and successfully positioned itself as more than just a wallet – it bundled ride-hailing, merchant services and QR payments in a single mobile-first interface. This super app is almost like China’s WeChat Pay; however, it was adapted for Cambodia’s cash-heavy economy, where smartphones outpaced traditional banking infrastructure.
On the other hand, Laos has the LOCA app, which also has taken a similar approach, becoming the country’s first major ride-hailing and transport platform. Interestingly, the LOCA app’s strength lies in how it bridges transport logistics and tourism, two of Laos’s key growth sectors.
All in all, both of these platforms share one thing in common, which is a mobile-native orientation. In the absence of widespread desktop internet or credit card penetration, startups have generally skipped traditional web-first models and moved straight into mobile-centric ecosystems.
E-Commerce in Cambodia is increasingly driven by messaging-based ordering and Facebook Shops, while fintech adoption is accelerating through digital wallets and QR codes tied to mobile SIM registration.
Yes, these are not just copy-paste models of their Southeast Asian neighbours. In a lot of ways, Cambodia and Laos are “leapfrogging” by necessity and building digital services for users who never had bank accounts or laptops – but who now access everything from transport bookings to farming updates via a smartphone.
The role of policy, proximity and foreign capital
While it is interesting to talk about the adoption of these platforms, policy alignment is important when it comes to implementing the right plan to roll out to the users. Both countries have shown great efforts in supporting digital growth.
In fact, Cambodia launched its Digital Economy and Society Framework 2021–2035 to formalise a vision of inclusive and sustainable tech development, with early results showing in e-government services and digital ID rollout. In Laos, the government’s National Digital Economy Development Plan, which is supported by multilateral institutions like the ADB, focuses on SME digitisation, upskilling and cross-border digital integration.
In addition to that, both countries are benefiting from geographic and trade adjacency to more developed neighbours. For instance, Cambodia’s proximity to Vietnam has somewhat enabled tech spillovers and talent flows. For Laos, the country is tightly linked to Thailand’s logistics and financial systems.
When there are internal attractions within the SEA region, automatically, they are also attract external capital. For example, China’s Digital Silk Road initiative has included Cambodia and Laos in its broader Belt and Road connectivity plans. This plan will bring both infrastructure, data centres and cloud investments.
Another country that is looking at these countries is South Korea. They have also taken a visible interest, with startup accelerators, partnerships, as well as impact VC programmes setting up in cities like Luang Prabang. These efforts will hopefully aim to build digital bridgeheads into underinvested ecosystems and fast-growing ones that could yield the next generation of regional players.
Early-stage ecosystems with global ambitions
The most exciting development from all of this is the emergence of startup founders in these markets who are thinking beyond the national level. Cambodia and Laos have relatively small populations, but their founders are increasingly focused on Mekong-wide opportunities. Fintech startups are positioning themselves as cross-border enablers, SaaS companies are building tools for small businesses to trade regionally and agri-tech ventures are utilising satellite data to serve rural communities across provinces.
The number one challenge still remains: funding, but it is slowly changing. Cambodia’s Khmer Enterprise and Laos’s Ministry of Technology and Communications have both launched initiatives to support startup development and often through partnerships with accelerators or even foreign universities.
The second challenge is the overall mindset. Where entrepreneurship was once associated with tourism services or small-scale trading, but now founders are more likely to be former NGO technologists or even returnees from ASEAN universities. These people will help build businesses from the ground up and flourish ecosystems by investing in local talent, engaging policymakers and mentoring younger founders to unlock new pathways.
As cross-border integration deepens and digital infrastructure matures, we should expect more and more success stories to emerge from Cambodia and Laos. Stories that challenge the notion of where innovation happens in Southeast Asia and who gets to lead its next digital chapter.