Despite global and regional economic downturns due to ongoing geopolitical conflict, Cambodia continues to be a beacon for investments. In the first nine months of 2023, the Kingdom drew in fixed-asset investments worth $3.76 billion, marking an 8.6% rise from the $3.46 billion recorded in the same period last year.
According to data released by the Council for the Development of Cambodia (CDC) on Oct. 7, between January and September they approved 191 investment projects, a 27% increase from 150 projects over the corresponding period the previous year. Leading the charge in foreign investments were nations including China, Malaysia, Singapore, Vietnam, and the British Virgin Islands.
Ngoun Meng Tech, director-general of the Cambodia Chamber of Commerce (CCC), said the Kingdom stands out in southeast Asia for its exceptionally liberal investment framework. The system allows foreign investors to retain 100% ownership of their investments, bypassing the need for a local partner that many other countries mandate.
Meng Tech further highlighted that the government had adopted a new investment law (sub-decree 139) in October 2021, paving the way for a more inclusive and incentive-rich investment environment.
“We don’t deny that current geopolitical tensions impact our economy; they certainly do. However, despite these external challenges from major global players, Cambodia remains committed to drawing more investments, particularly from regional countries,” he stated.
CDC deputy secretary-general Chea Vuthy lauded the country’s economic promise at the Cambodian Business forum on Aug. 11. He underscored the nation’s stability — politically, economically and in terms of security.
Vuthy also emphasized the private sector’s critical contribution to the national economy.
“Despite obstacles like the COVID-19 pandemic and Sino-U.S. trade tensions, Cambodia consistently attracts nearly $4 billion in foreign investment annually. In 2020, while foreign investments in ASEAN plunged by approximately 40%, we remained steady at about $3.6 billion,” he noted.
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