Investing in Cambodia in 2025 is particularly attractive thanks to robust economic growth, a stable political environment, and reforms favorable to foreign investors. Today, the country is positioning itself as one of the most dynamic emerging markets in Southeast Asia.

In this second part of the blog, following Moving to Cambodia, discover our complete guide to investing with confidence in this booming country. We explain all the essential steps you need to know—step by step—to make your investment project a success.

You’ll also find a free downloadable Investor Checklist. to ensure you don’t miss anything during your administrative, legal, and financial procedures.

1. Exceptional Economic Growth

Cambodia is experiencing a strong rebound, with growth projected at around 6.5 to 7% for 2025, one of the highest rates in the region. This dynamism is supported by massive investments in real estate, agribusiness, tourism, as well as information technology and renewable energy.

Stability and Incentives

A stable political climate, streamlined administrative procedures, and ongoing legal reforms make investing safer and more attractive. The government also offers significant tax incentives, with corporate tax holidays of up to nine years in certain strategic sectors.

International Openness

Thanks to its free trade agreements, Cambodia enjoys privileged access to major global markets such as ASEAN, the European Union, the United States, China, and South Korea. This openness reinforces the country’s attractiveness for investors seeking a gateway to the entire region.

In summary, investing in Cambodia in 2025 means betting on a transforming market where innovation, growth, and openness create unique opportunities for those who wish to participate in Asia’s development.

In 2025, Cambodia is emerging as a new strategic destination for international investors, driven by dynamic economic growth and strong post-pandemic recovery. In 2024 alone, the country recorded a GDP growth of 5.3%, and projections for 2025 range between 5.5% and 6.3%, according to the World Bank and the Cambodian government.

This performance is primarily driven by vibrant exports (textiles, footwear, travel goods), the revival of tourism, and the gradual modernization of the industrial sector. Despite external challenges (uncertainty in international trade, limited inflationary pressures at 2.8% according to the IMF), Cambodia offers an increasingly attractive business environment, with GDP per capita nearing USD 3,000 and reforms underway to support investment.

This guide aims to provide a clear, hands-on roadmap for any foreign investor wishing to tap into Cambodia’s potential: economic context, procedures, promising sectors, and a checklist designed to turn a project into long-term success.

2. Macro Context: Economy, Trends, and Risks

In 2025, Cambodia presents major advantages for investors. Its young population, with a median age of around 25, ensures a dynamic labor pool. Wages remain among the most competitive in Asia, attracting labor-intensive industries. The country encourages foreign investment with a suitable regulatory framework and an increasing number of Special Economic Zones (SEZs), offering tax benefits and facilitating industrial setup.

However, Cambodia’s macroeconomic environment is not without risks. Growth remains heavily dependent on exports (textiles, footwear, tourism), making the country vulnerable to fluctuations in international trade and tariff policies—such as the new 19% U.S. tariffs on Cambodian exports introduced in August 2025. According to the IMF, growth could slow to 4.8% this year, impacted by regional tensions and a cooling real estate market.

Cambodia also relies heavily on imports, particularly energy, and operates under partial dollarization: the USD circulates widely in the economy, simplifying transactions but exposing the country to dollar fluctuations and limiting monetary policy flexibility.

To address these challenges, the government is focusing on economic diversification, the development of growth-driving sectors (industry, services, digital tourism), and infrastructure modernization, while remaining vigilant about regional stability and structural reforms recommended by international institutions.

3. Key Sectors & Investment Opportunities

In 2025, Cambodia offers a diverse range of high-potential sectors for foreign investors, each backed by strong dynamics and active government support.

Real Estate & Urban Housing
Condominium construction is booming in Phnom Penh, with over 3,900 units delivered in the first half of 2025. After years of adjustment, demand is stabilizing and now extends to coastal cities like Sihanoukville, offering prospects for rental, residence, or resale.

Tourism & Hospitality
The sector is seeing strong post-pandemic recovery. In 2025, nearly 3.7 million international visitors arrived, fueling the rebound of hotels, coastal tourism, eco-tourism, and luxury tourism. Strategic priorities include beach resorts, natural sites, tapping into new markets (India, the Middle East), and diversifying the tourism offer.

Agriculture & Agribusiness
Cambodia is specializing in cashew nuts, exotic fruits, and high-value projects such as food processing and regional exports. Investors benefit from support programs promoting innovation in agribusiness and integration into global supply chains.

Renewable Energy
The country is accelerating efforts in solar, hydropower, and rural mini-grids, with renewables already accounting for over 50% of the energy mix. This trend opens up significant opportunities thanks to incentive policies and rising demand for green electricity, particularly from major international corporations.

Technology, Digital Services & Outsourcing
A startup and outsourcing ecosystem is emerging in Phnom Penh, driven by the growing digitalization of financial services, education, and commerce. Government support, training initiatives, and regional connectivity make this a key growth area for new entrants.

Commerce, Logistics & Industrial Zones
The expansion of SEZs and the modernization of logistics infrastructure are boosting regional and international trade, especially with Vietnam and China.

Private Education & Professional Training
The rise of an urban middle class is fueling demand for international education and specialized training, creating opportunities for investors in private schools and vocational training centers.

Each of these sectors receives special government attention and attracts rising investment flows, offering a wide range of opportunities to build sustainable and innovative projects in Cambodia in 2025.

4. Legal Framework & Regulations for Foreign Investors

The Cambodian Investment Law, adopted on October 15, 2021, establishes a transparent, open, and predictable framework aimed at encouraging and protecting quality foreign investment in the country. This modern legislation guarantees equal treatment for investors, whether national or foreign, with one notable exception regarding land ownership.

Foreigners cannot directly own land in Cambodia; however, they have solutions such as creating local companies or entering into long-term leases, which allow them to invest in real estate without violating the law. In terms of legal structures, it is possible to create joint ventures or wholly foreign-owned subsidiaries in most economic sectors, apart from land ownership.

Qualified Investment Projects (QIPs) benefit from numerous tax incentives, including exemptions and reductions under certain conditions, to attract more foreign capital. These incentives are further reinforced by specific programs in special economic zones and strategic sectors such as real estate, industrial processing, and renewable energy.

Regarding human resources, the law allows for the recruitment of expatriates when the required skills are not available locally, facilitating access to specialized talent for foreign companies operating in Cambodia. Additionally, sector-specific regulations, including licensing and permits, must be considered depending on the area of activity (tourism, construction, energy, etc.).

Cambodia’s legal and fiscal framework is therefore designed to provide a secure, competitive, and investor-friendly environment, ensuring strong protections against arbitrary nationalization and allowing the free transfer of profits.

5. Financing, Currency & Capital Management

In Cambodia, investors can access various sources of financing, including local banks, foreign capital, and private investors. Credit conditions are often strict, with relatively high interest rates for foreigners and significant guarantees required, making rigorous financial planning essential.

The U.S. dollar (USD) is the dominant currency in commercial and financial transactions, while the local currency, the Cambodian riel (KHR), is less commonly used for major operations. The Law on Foreign Exchange guarantees the free movement of capital, with no restrictions on foreign exchange transactions related to commercial obligations and investment income. This makes cross-border fund transfers easier for foreign businesses.

Effective cash flow management therefore requires a sound strategy to balance flows in USD and KHR, with safety margins in place to mitigate potential exchange rate fluctuations.

6. Practical Steps to Launch a Project

To ensure a successful investment, it is essential to start with a thorough market study to understand local demand and define a clear positioning. The geographical choice of the site—whether near major roads, in a large city, or within a Special Economic Zone (SEZ)—greatly impacts the project’s success.

Acquisition or rental of property is typically done through long-term leases, particularly to address restrictions on land ownership. Obtaining the necessary permits (construction, environmental, sectoral licenses) is a crucial step that should not be overlooked.

Recruiting local staff, complemented by qualified expatriates, along with setting up basic infrastructure (water, electricity, roads, internet), are prerequisites for operational launch. Finally, the marketing phase, sales strategy, and pilot launch allow the project to be tested and adjusted before full-scale implementation.

7. Risk Management & Pitfalls to Avoid

Investing in Cambodia carries certain risks that need to be anticipated, such as unforeseen regulatory or tax changes that may impact profitability. Corruption and slow bureaucracy remain recurring challenges, often associated with hidden costs that are difficult to budget in advance.

Land disputes, uncertainty over property titles, or an overheated real estate market can also result in significant losses. Furthermore, poor cost estimation or overcapacity issues may weaken the project’s financial stability.

It is also crucial to plan a clear exit strategy, since resale, transfer, or share divestment in Cambodia can be complex and time-consuming.

8. Case Studies & Testimonials

Among investment success stories, many real estate projects in Phnom Penh have thrived, particularly in the condominium and rental sectors, driven by growing urban demand. Coastal areas have also seen strong development in resorts and tourist accommodations, boosted by the revival of the tourism industry.

In agribusiness, local companies are developing high value-added processing projects, combining short supply chains with regional exports.

Testimonials from both Cambodian and expatriate entrepreneurs highlight not only the opportunities but also the challenges of the local market, emphasizing the importance of thorough preparation, an in-depth understanding of the environment, and flexibility to adjust strategies along the way.

9. Foreign Direct Investment and Globalization

Foreign direct investment (FDI) plays a central role in Cambodia’s economy. Within the framework of globalization, multinational corporations seek to diversify their locations, and emerging countries like Cambodia have become favored destinations.

Unlike developed or industrialized countries, where markets are already mature, Cambodia positions itself as an alternative development path. The government’s strategy is clearly to attract foreign investors through favorable taxation and streamlined administrative procedures.

Economists note that Cambodia is following a model of accelerated industrialization similar to that observed in other Southeast Asian countries twenty years ago. The presence of Chinese companies in the infrastructure sector and French enterprises in services (tourism, education, hospitality) illustrates the diversity of actors.

The International Monetary Fund (IMF) emphasizes that despite risks linked to debt or external shocks (such as Brexit or a potential global financial crisis), developing countries like Cambodia continue to post higher growth rates than the wealthy OECD nations.

In 2024, foreign direct investments in Cambodia represented several billion dollars, concentrated in textiles, construction, and agribusiness. Every year, thousands of new jobs created strengthen local economic activity, confirming the country’s attractiveness for foreign investors.

10. Competitiveness and Investment Controls

Cambodia’s opening to the global economy requires the country to maintain its competitiveness. To achieve this, it relies on:

• low production costs,

• a young workforce,

• and attractive tax policies.

But, as in other states, the issue of investment control arises. In France, for example, Business France plays a key role in the promotion and regulation of foreign direct investment. Cambodia, for its part, has set up similar agencies to reassure investors while protecting national interests.

In developed countries, controls often aim to safeguard strategic sectors (energy, defense, technology). In developing countries, the objective is more to attract investment while avoiding excessive dependence on certain economic powers.

For foreign investors, understanding this logic is essential. A Chinese multinational investing in infrastructure does not have the same impact as a French SME developing a project in the services sector. Both are necessary for the country’s balance, but their political and economic weight differs.

In the long term, direct investments are seen by experts as a path to sustainable development, provided they are accompanied by knowledge transfers, job creation, and reinforcement of the local economic fabric.

11. Internationalization and the Role of Foreign Subsidiaries

The internationalization of companies is pushing many foreign multinationals to establish subsidiaries in their host countries. For an international actor, opening a foreign subsidiary in Cambodia provides access to a growing market, competitive costs, and privileged access to regional foreign trade (ASEAN, bilateral agreements).

These foreign investments often take the form of productive direct investment: textile factories, agricultural processing plants, and service companies. Cambodia has thus become an investment destination that attracts both foreign-capital companies producing locally and those aiming at export markets.

The foreign subsidiaries established on-site contribute to the local economy by creating jobs, improving employee training, and boosting competitiveness. For the direct investor, this is an opportunity to establish a long-term presence in a country where the economic policy remains favorable to international capital.

12. Investment Flows and Cambodia’s Attractiveness

The flows of foreign direct investment into Cambodia are steadily increasing, despite competition from neighboring countries. The government’s priority is to attract foreign capital to support productive development and accompany the industrial sector’s move up the value chain.

Globally, international investments remain concentrated in developed countries, but a growing share is directed toward developing and emerging economies. Cambodia clearly illustrates this trend: with a growth rate higher than the global average, it has become attractive to investors looking for new growth opportunities.

The sectors attracting foreign investors in Cambodia range from construction to services, agribusiness, and tourism. The country now stands among the rising destinations in Southeast Asia for direct investors seeking to diversify their foreign investments.

13. Comparison with Anglophone Countries and Investor Nations

To fully understand Cambodia’s dynamics, it is useful to compare it with other models. In Anglophone countries such as the United States, the United Kingdom, Canada, and Australia, foreign direct investment (FDI) is regularly monitored and reported in detail. For example, the UK publishes annual reports on inward investment projects, highlighting the number of foreign subsidiaries established and the jobs created. Similarly, the U.S. Department of Commerce and SelectUSA track the billions of dollars of FDI flowing into the American economy each year, reinforcing the country’s role as one of the top global destinations for international investment.

However, investment attractiveness is not determined solely by the size of a market. Cambodia demonstrates that a developing country can also become appealing to foreign investors thanks to tax incentives, a young workforce, and competitive costs. While the U.S. or the UK attract investment through innovation ecosystems, financial markets, and large consumer bases, Cambodia positions itself as a complementary option: smaller, but with rapid growth and easier entry points for investors.

Investor countries such as China, Japan, and South Korea are currently the leading foreign investors in Cambodia, particularly in infrastructure, construction, and manufacturing. Yet, there remains significant space for other players: British companies, American firms, Australian SMEs, and European startups can all find opportunities in sectors like tourism, education, agribusiness, and renewable energy.

By multiplying their foreign investments, these actors diversify their international footprint and strengthen Cambodia’s local competitiveness. For Cambodia, the challenge is clear: to continue attracting international investment while consolidating its own economic fabric and avoiding excessive dependency on any single investor nation.

Conclusion: A Country Open to All Investors

Investing in Cambodia in 2025 means betting on a country in full transformation, where almost every type of project can find its place. Large international corporations are drawn to urban real estate and infrastructure, while smaller entrepreneurs succeed in tourism, agriculture, or hospitality.

For example, an expatriate couple opened an eco-friendly guesthouse in Kampot, which has become a reference point for travelers seeking authenticity. Foreign investors are also successfully launching cashew and exotic fruit farms for export. In Phnom Penh, startups in tech and digital education are attracting both local and foreign capital.

These examples show that there is no single model for successful investment in Cambodia. Whether you are an individual aiming to develop a small-scale project or a company seeking long-term establishment, the country offers diverse and accessible opportunities.

With its young population, open economy, and clear commitment to attracting foreign capital, Cambodia welcomes both cautious investors and ambitious entrepreneurs. Provided you prepare carefully and surround yourself with the right partners, all investor profiles can find their place and contribute to the development of this dynamic nation.

Checklist / Roadmap for Investors in Cambodia

(See downloadable checklist for detailed steps.)

FAQ – Foreign Direct Investment and Globalization

What is foreign direct investment (FDI)?

Foreign direct investment (FDI) refers to the participation of a company or individual in another country with the intention of exercising lasting control, often through the creation of a subsidiary, acquisition of assets, or shareholding in local businesses.

What is the difference between direct investment and portfolio (or external) investment?

Direct investment implies a lasting presence in the host country (subsidiary, production site), while external investments may include financial placements without effective control.

Who is the leading foreign investor in Cambodia and the region?

China is currently the largest foreign investor in Cambodia, particularly in infrastructure, real estate, and special economic zones. Other countries of origin such as Japan, South Korea, and Anglophone nations like the United States, the United Kingdom, and Australia are also increasing their presence through multinational companies.

How is investment attractiveness measured?

Investment attractiveness is measured by the volume and stock of FDI, the number of projects carried out, and the jobs created by both local and foreign investors. A sound attractiveness policy seeks to draw private capital, streamline administrative processes, and regulate sensitive investments.

What types of international investments are most common?

International investments can take several forms:

• Expansion abroad through new subsidiaries,

• Mergers and acquisitions to integrate local businesses,

• Cross-investments between two countries,

• Investments from major transnational corporations.

What role do mergers and acquisitions play in FDI?

Mergers and acquisitions account for a significant share of FDI. They allow companies to strengthen their presence in a foreign territory, access local markets more quickly, and consolidate their international growth.

Why do some countries invest heavily abroad?

Countries invest abroad to diversify activities, support growth overseas, and secure supply chains. These international investments have enabled many economies, including Anglophone ones like the U.S. and the UK, to strengthen competitiveness through the global expansion of their multinational corporations.

How can Cambodia attract new investors?

To attract new investors and encourage private investment, Cambodia highlights:

• tax incentives,

• simplified administrative procedures,

• a competitive labor force,

• and policies that make it easier for multinational companies to establish themselves.

What is the impact of foreign investment in Anglophone countries?

Foreign investment remains strategic in Anglophone economies. In the United States and the United Kingdom, it contributes to the number of annual projects, creates thousands of jobs, and drives innovation. These countries remain highly attractive due to their large consumer markets, financial hubs, and proactive promotion agencies such as SelectUSA (U.S.) or the UK’s Department for Business and Trade.