FDI Success Stories in Cambodia: 3 Projects that are changing the Game
Foreign Direct Investment (FDI) continues to play a transformative role in Cambodia’s economy. These success stories highlight the nation’s evolution as a top-tier destination for international projects. For those considering entry into this growing market, it’s critical to understand the latest investment law, recent FDI surge, and how to set up a foreign-owned business effectively.
Cambodia has increasingly positioned itself as an attractive destination for foreign direct investment (FDI). While past perceptions centered on low-cost manufacturing, today’s Cambodia is home to transformative FDI projects that are boosting innovation, creating jobs, and redefining the country’s economic narrative.
If you’re considering entering the market, these real-world stories prove that with the right mix of vision, local partnership, and adaptability, success is not just possible—it’s replicable.
🌾 1. Cashew Processing for Export – Kampong Thom Province
Investor Origin: South Korea Sector: Agri-processing Project Type: Greenfield investment in cashew nut shelling and packaging Estimated Investment: $6 million
Why It Worked:
This South Korean agritech firm tapped into Cambodia’s untapped cashew supply, partnering with over 2,000 local farmers to build a fully integrated value chain. Instead of exporting raw nuts through Vietnam, the company developed local processing capabilities, enabling “Made in Cambodia” certified exports directly to China and Japan.
Challenges Overcome:
Lack of processing infrastructure: They imported automated shelling and drying machinery.
Farmer consistency: Provided free training and contract farming incentives to improve yield and quality.
Customs bottlenecks: Worked with the Ministry of Commerce to streamline export permits.
Outcome:
Today, the facility exports over 3,500 metric tons of processed cashew annually and employs more than 200 local staff—70% of whom are women.
🏗️ 2. Phnom Penh Logistics Hub – Public-Private Partnership (PPP)
Investor Origin: Singapore (Consortium with Cambodian stakeholders) Sector: Logistics & Infrastructure Project Type:Dry port and customs bonded zone connected to rail and national roads Estimated Investment: $45 million
Why It Worked:
As Cambodia sought alternatives to Vietnamese ports, this logistics hub became a strategic pivot. Located at the crossroads of National Road 4 and the Phnom Penh–Sihanoukville railway, the project offered a faster, cheaper route to market for importers and exporters.
Backed by ADB technical assistance and designed under a transparent PPP framework, the project benefited from:
Government land contributions
Preferential tax treatment
Railway linkage incentives
Challenges Overcome:
Land acquisition delays: Resolved through coordinated provincial stakeholder forums.
Customs digitization issues: Adopted blockchain-backed documentation with support from the Ministry of Economy and Finance.
Outcome:
Operational since 2023, the hub processes over 500 containers per week, and has helped slash lead times to Sihanoukville Port by 25%.
🏗️ 2. Phnom Penh Logistics Hub – Public-Private Partnership (PPP)
Investor Origin: Singapore (Consortium with Cambodian stakeholders) Sector: Logistics & Infrastructure Project Type:Dry port and customs bonded zone connected to rail and national roads Estimated Investment: $45 million
Why It Worked:
As Cambodia sought alternatives to Vietnamese ports, this logistics hub became a strategic pivot. Located at the crossroads of National Road 4 and the Phnom Penh–Sihanoukville railway, the project offered a faster, cheaper route to market for importers and exporters.
Backed by ADB technical assistance and designed under a transparent PPP framework, the project benefited from:
Government land contributions
Preferential tax treatment
Railway linkage incentives
Challenges Overcome:
Land acquisition delays: Resolved through coordinated provincial stakeholder forums.
Customs digitization issues: Adopted blockchain-backed documentation with support from the Ministry of Economy and Finance.
Outcome:
Operational since 2023, the hub processes over 500 containers per week, and has helped slash lead times to Sihanoukville Port by 25%.
🔋 3. 125 MW Solar PV Plant – Svay Rieng Province
Investor Origin: European Independent Power Producer (IPP) Sector: Renewable Energy Project Type: Build-Own-Operate grid-connected solar farm Estimated Investment: $92 million.
Why It Worked:
This project marks one of Cambodia’s largest foreign-led renewable energy ventures. With strong PPA guarantees from EDC, and support from IFC and UNDP under blended finance models, the investor was able to mitigate risk and access concessional capital.
Key success enablers:
Early-stage land due diligence and community consultations
Robust grid tie-in agreement with EDC
Carbon credit certification underway for monetization under Article 6 mechanisms.
Challenges Overcome:
Grid instability and voltage drops: Coordinated with local substations for reinforcement.
Limited technical talent: Trained local engineers through EU-funded vocational programs.
Overcome:
By mid-2024, the plant supplies clean power to over 200,000 households, and offsets nearly 180,000 tons of CO₂ annually.
🔍 What These Projects Teach Us
Each of these FDI success stories in Cambodia underscores three common traits:
Deep local alignment – Whether through PPPs or farmer partnerships, localization is key.
Regulatory navigation – Success often depends on working with government, not around it.
Sustainability focus – Clean, inclusive projects attract better financing and long-term returns.
✨ Final Takeaway
Cambodia is no longer just a low-cost labor destination—it’s a dynamic frontier for high-impact, future-proof investment. Whether you’re in agriculture, logistics, renewable energy, or beyond, the playbook for success is becoming clearer.
📥 Want an export-readiness checklist or a visual infrastructure map for investors? 📧 Reach out at info@vichetruon.com 🌐 www.vichetruon.com/contact
