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Cambodia Attracts $8.1 Billion in FDI, Solidifying Role as Regional Investment Magnet

Cambodia’s record-breaking $8.1 billion in foreign direct investment (FDI) demonstrates strong investor confidence in the nation’s growth sectors—especially in renewable energy, infrastructure, and real estate. Strengthened by the 2025 Investment Law and a streamlined business setup process, Cambodia is positioning itself as Southeast Asia’s next FDI powerhouse.

Between September 2023 and September 2024, Cambodia secured a record $8.1 billion in foreign direct investment (FDI), according to a report by the Ministry of Economy and Finance. This remarkable growth reflects global investor confidence in the country’s pro-growth economic policies and robust political stability.

Top investment partners included China, South Korea, Singapore, Japan, Vietnam, Malaysia, Thailand, Canada, and the United Kingdom—underscoring Cambodia’s growing prominence in the international investment landscape.

At the 2024 Global Chinese Economic and Technology Summit (GCET), Deputy Prime Minister and Finance Minister Aun Pornmoniroth emphasized Cambodia’s emergence as one of Asia’s most dynamic investment destinations. He cited the country’s enduring peace, security, and stability as key drivers of sustained economic performance. Since achieving lower middle-income status in 2015, Cambodia has consistently posted strong growth, significant poverty reduction, and an expanding industrial base.

Looking ahead, the economy is projected to grow 6% in 2024 and 6.3% in 2025, driven largely by export-oriented industries—especially garment manufacturing.

> “Cambodia is wide open for business,” Pornmoniroth stated. “We offer 100% foreign ownership in most sectors, unrestricted capital repatriation, and up to nine years of tax holidays under our Investment Law.”

Investment Momentum Accelerates

In the first nine months of 2024, the Council for the Development of Cambodia (CDC) registered 315 new projects, totaling $5.3 billion and creating over 252,000 jobs. Notably, many of these investments were in non-garment sectorssuch as infrastructure, automotive assembly, agro-processing, and tire manufacturing—signaling a maturing and diversifying economy.

According to Cambodia Chamber of Commerce Vice President Lim Heng, the country’s appeal stems from two major advantages:

Strategic trade agreements—including FTAs with China, Korea, and the UAE, as well as membership in the RCEP bloc.
Investor-focused governance, with regular public-private dialogues and regulatory reforms that support ease of doing business.

China: Cambodia’s Leading Investor

Anthony Galliano, CEO of Cambodian Investment Management Group and Vice President of AmCham Cambodia, highlighted that China remains Cambodia’s single largest foreign investor, fueling major infrastructure and real estate ventures like the Phnom Penh–Bavet Expressway.

However, Galliano noted that high-tech manufacturing has yet to take off in Cambodia—an area seen as essential to global supply chain realignment.

> “The ‘China Plus One’ strategy is prompting investors to look for diversification. Cambodia stands to benefit from this shift—especially in sectors like finance, real estate, agriculture, and energy.”

The financial services sector, including banking, microfinance, and insurance, has also experienced rapid expansion.

FDI Snapshot (2018–2023)

According to the National Bank of Cambodia, the country attracted $48.4 billion in FDI over the past five years. China led the way with 45.6% of inflows, followed by: