Despite average annual economic growth of 7% since the early 2000s, which has enabled Cambodia and Laos to achieve progress in reducing poverty, inequality is rising and is particularly affecting rural populations who continue to depend on agricultural production for their livelihoods. The COVID-19 pandemic has caused a major socio-economic crisis that is compounding existing challenges and pushing growing numbers of people below the poverty line. The most vulnerable groups, such as women, ethnic minorities and people living in remote areas, are the worst affected by an economic model built on the unsustainable exploitation of natural resources (large-scale agribusiness, hydroelectric mega projects). Cambodia and Lao PDR, still the poorest countries in South East Asia, are striving to meet significant challenges by driving social and environmental development, diversifying the economy and strengthening inclusive growth. Although the agreement setting up the Association of Southeast Asian Nations (ASEAN) economic community entered into force in 2015, the disparities between the development levels of the poorest and more advanced countries in this region remain considerable and need to be reduced before ASEAN can emerge as a unified economic zone.

Switzerland has good, long-standing relations with countries in the Mekong region. In line with its 2018–21 regional cooperation strategy, Switzerland continues to work in Cambodia and Lao PDR while at the same time adopting a collaborative regional approach to address common development challenges with the support of specialised agencies active in the region. In 2016, Switzerland was given the status of ASEAN Sectoral Dialogue Partner, which enables it to work more closely with this major organisation in South East Asia.

Switzerland promotes gender equality, the inclusion of marginalised groups and non-discrimination in its programmes. It also includes climate change adaptation, disaster mitigation and risk reduction. A conflict-sensitive approach is essential, particularly in a post-conflict context such as Cambodia. 

According to an external evaluation  of the current programme for the period 2018–21, the results achieved so far are excellent: the most important development projects have for the most part met their targets and are able to deliver real improvements to people' lives and livelihoods.  The evaluation confirms that governments, civil society and other development partners highly value the SDC as a development partner. Strengths mentioned in the evaluation include the professionalism and technical expertise of the SDC and its partners, Switzerland's political impartiality and role as an honest broker, its flexibility and adaptability, and its ability to engage at regional, national and sub-national levels through long-term commitments. 

The cooperation programme for the Mekong region for the period 2018–21 will be followed by a cooperation programme for 2022–25 focusing on the following priority areas: a) inclusive economic growth, b) sustainable management of natural resources, climate change adaptation and disaster risk reduction, and c) good governance and the rule of law.