Cambodia has seen a strong influx of investment in early 2025, with fixed-asset investments rising to US\$3.4 billion in the first four months of the year — a jump of about 34% compared to the same period in 2024, according to the Council for the Development of Cambodia (CDC).
A total of 231 investment projects were approved between January and April 2025, up from 128 projects in the same span last year. These investments are expected to generate roughly 159,000 new jobs across the country.
China continues to lead as the dominant foreign investor in Cambodia, contributing the largest share of the new capital. Key sectors attracting investment include auto-garage equipment, tire manufacturing, electric three-wheeler assembly, medical equipment, solar power, aluminum and metal processing, tourism infrastructure, and a dry port project.
Officials attribute much of the investment surge to trade treaties and regional agreements. Cambodia’s participation in the Regional Comprehensive Economic Partnership (RCEP) and bilateral free trade agreements with China, South Korea, and the UAE are seen as critical in making it a more attractive destination for foreign direct investment. These agreements help reduce trade barriers and provide more market access, incentivizing investors to commit capital.
Additionally, Cambodia approved nearly 300 investment projects in just the first five months of 2025, with over 60% of those projects backed by Chinese investors. These projects carry combined investment value in the billions and are expected to create over 200,000 jobs.
While the influx is welcome for Cambodia’s economic growth, observers caution that not all approved projects may materialize fully. Challenges such as regulatory delays, infrastructure limitations, corruption risks, and the quality of investment impact (such as environmental and labor standards) remain and could affect the long-term benefit.
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