An aerial view of various factories in the Sihanoukville Special Economic Zone (SSEZ). SSEZ
The Council for the Development of Cambodia (CDC) approved 40 new investment projects and three production-expansion plans valued at $940 million in November, creating an estimated 39,000 jobs, according to a December 6 CDC press release. This represents an increase of more than 10 ventures compared to October.
The projects span various sectors, including garments, textiles, furniture, toys, shoes, telecommunications, chemicals, hotels, bags, special economic zones (SEZs), camping accessories, packaging, rubber, mechanical equipment, aluminium processing and beverages.
The CDC noted that 32 of the ventures are located outside of SEZs, while 11 are situated within them.
Vietnam was the largest financier, accounting for approximately 51.08% of total investment, followed by China at 24.26%, Cambodia at 14.49% and others including Singapore, Thailand, Canada, the UK and US.
The council highlighted that the largest investments were concentrated in the industrial, tourism and infrastructure sectors.
Economist Duch Darin explained that the country’s strategic location, political stability, robust economic growth, favourable investment laws, skilled workforce and competitive costs make it an attractive destination for direct investment. He noted that these initiatives cater to both domestic and international demand.
Darin said that the country’s membership in the World Trade Organization (WTO) and its free trade agreements (FTAs) with various countries further enhance its investment appeal.
He added that the government has introduced significant reforms in recent years to improve the business environment and attract foreign direct investments.
“Foreign and domestic investments during a period of global economic and political uncertainty reflect investor confidence in Cambodia’s political stability, economic growth and export market resilience. Investment growth in Cambodia will likely accelerate as the global economy improves,” he said.
Darin predicted that in 2025, Cambodia will attract more international investors to establish factories. He suggested this trend could be driven by potential policies from US president-elect Donald Trump, who is expected to impose stricter restrictions on imports from certain countries, particularly China, upon taking office.
In October, the CDC approved 30 new investment projects and one production-expansion plan, worth over $226 million in total capital. These projects are expected to create approximately 16,000 jobs.
Chinese financiers accounted for the largest share, contributing around 53.39% of total investment, followed by domestic investors at 29.47%, with additional contributions from Singapore and Vietnam.
