INVESTing IN CAMBODIA

WHY INVEST IN CAMBODIA?

Cambodia offers a compelling investment destination in the heart of Southeast Asia, underpinned by over three decades of political stability that have created a predictable and secure business environment. The country’s consistent peace and stability distinguish it from many emerging markets, providing investors with long-term confidence.

Strategic Location and Market Access

Strategically located, Cambodia provides direct access to key regional markets, including China and the broader ASEAN bloc — a combined consumer base of over 600 million people. The country’s integration into major regional and bilateral trade frameworks — including the ASEAN Free Trade Agreement (AFTA), bilateral FTAs with Korea, Japan, and China, and the Regional Comprehensive Economic Partnership (RCEP) — offers preferential market access to some of the world’s largest and fastest- growing economies. RCEP alone represents a combined GDP of over USD 26 trillion, or approximately 30% of global GDP.

Open Markets and Investment-Friendly Policies

Cambodia is firmly committed to an open and liberalized economic policy, encouraging a competitive and transparent investment climate. This is reflected in the rapid expansion of Special Economic Zones (SEZs), which facilitate seamless international trade and provide fiscal and generous tax incentive frameworks to investors.

CONDUCIVE INVESTOR
CLIMATE

The government plays an active role in enabling private sector development, particularly through expanding public-private partnerships (PPPs) aimed at de-risking private investments. This cooperative model fosters innovation, infrastructure growth, and sustainable development.

Competitive Workforce

Cambodia also boasts a young and dynamic workforce, with roughly 60% of the population under the age of 30. Labor costs remain competitive, while skills in manufacturing — particularly in garments, light industry, and agri-processing — continue to improve.

CONSISTENT, SUSTAINABLE GROWTH

infrastructure investments are transforming Cambodia into a regional hub for trade and logistics. Upgraded seaports, expanding road networks, and the construction of new international airports are enhancing connectivity and supporting long-term economic growth.


Cambodia’s Initiative

  • Pentagonal Strategy Phase I (2023-2028)
  • Cambodia Digital Economy and Society Policy Framework 2021 – 2035
  • Cambodia Industrial Development Policy 2015 – 2025
  • Cambodia Skill Development Roadmap 2023 – 2025
  • National Strategic Development Plan 2024 – 2028
  • Cambodia’s Road Map for Sustainable Development
  • Automotive and Electronics Sectors Development Roadmap
  • TVET 1.5m

Common Questions

Cambodia offers a combination of political stability, an open and liberalized economy, competitive labor costs, and strategic location within ASEAN. The government has actively cultivated an investor-friendly environment, backed by modern investment laws, trade agreements, and Special Economic Zones (SEZs) offering tax and regulatory incentives.

Cambodia offers a highly competitive incentive regime, particularly through its Special Economic Zones (SEZs) and Qualified Investment Projects (QIPs):
–  Corporate income tax exemption of up to 9 years
–  Duty-free import of production equipment, inputs, and construction materials
–  Export tax exemptions
–  Accelerated depreciation on capital equipment
–  VAT incentives on selected domestic transactions
–  Full foreign ownership in most sectors
–  Unrestricted repatriation of profits, dividends, and capital
For green and strategic sectors, additional incentives may be granted under sub-decrees or MoUs with the Council for the Development of Cambodia (CDC).

The government has simplified business registration through the Online Business Registration Platform (OBRP). In SEZs, “one-stop” service centers house customs, labor, and tax officials to streamline administrative processes. Investment registration with the
Council for the Development of Cambodia (CDC) can fast-track large-scale or strategic projects

Cambodia enjoys preferential access to major markets through:
–  ASEAN Free Trade Area (AFTA)
–  Bilateral FTAs with China, Korea, and Japan
–  Regional Comprehensive Economic Partnership (RCEP)
–  EU’s Everything But Arms (EBA) (partial access retained) These agreements provide tariff-free access to billions of consumers globally.

Cambodia is investing heavily in hard and soft infrastructure:

  • Techo International Airport (under construction) to become a regional hub
  • Expressways (Phnom Penh–Sihanoukville, Phnom Penh–Bavet) linking trade corridors
  • Upgraded ports (Sihanoukville, Phnom Penh, Kampot) with expanded capacity
  • Rail modernization plans to improve freight connectivity
  • Dry ports and logistics hubs supporting industrial and agri-export zones A dedicated National Logistics Master Plan and PPP financing pipeline support these developments.

Cambodia’s Law on Investment (2021) provides strong investor protections, including:

  • Equal treatment for foreign and local investors
  • Investor-state dispute resolution (ISDS)
  • Transparent incentives for qualified investment projects (QIPs)
  • Protection against nationalization without due compensation

Cambodia has one of the youngest populations in ASEAN, with around 60% under the age of 30. The country offers affordable labor with growing skills in manufacturing, hospitality, digital services, and agri-business.

To strengthen workforce capacity, the government launched the TVET 1.5M initiative, targeting vocational training for 1.5 million individuals from poor and underserved communities. The program includes:

  • Industry-aligned curriculum development
  • Dual training models combining classroom and workplace learning
  • International certification standards
  • Incentives for firms investing in employee training These efforts are supported by the Cambodia Skills Development Roadmap (2023– 2035), which aligns training with sectoral priorities, especially in manufacturing, digital economy, and value-added agriculture. This approach ensures Cambodia’s labor force is equipped to meet future economic demands.

Investors can approach:

  • Council for the Development of Cambodia (CDC) – for large-scale projects and incentives
  • Ministry of Commerce – for trade facilitation, licensing
  • Ministry of Economy and Finance (MEF): Oversees tax policy, customs, public- private partnerships, and state budgeting.
  • Ministry of Industry, Science, Technology and Innovation (MISTI): Leads industrial development, innovation, and SME support.
  • SEZ Operators – for plug-and-play industrial locations
  • TPAB (Trade Policy Advisory Board) – for policy insights, trade-related research, and sectoral guidance
  • Bilateral Chambers (EuroCham, AmCham, JETRO, KoCham): Provide advocacy, networking, and business development services.
  • Multilateral Partners (ADB, IFC, UNIDO, World Bank): Offer co-financing, technical assistance, and investment risk mitigation.