A bird’s-eye view of factories in the Sihanoukville Special Economic Zone (SSEZ) in Preah Sihanouk province. SSEZ
In January 2025, the Council for the Development of Cambodia (CDC) approved 68 investment projects with a total capital of approximately $748 million, representing an increase of about 300% over January 2024. China continues to account for the highest number of foreign direct investment projects, according to the CDC.
A CDC press release stated that last month, the council approved 64 new projects and 4 expansion projects.
They are expected to create nearly 46,000 jobs. Compared to January 2024, the number of projects approved by the CDC in January 2025 increased by 36 projects, or 112.5%, while investment capital rose by 300%.
Of the total investment of $748 million, 73.35% came from Chinese investors, 13.17% from Cambodia, and 5.52% from Vietnam. Other investments came from the Cayman Islands, the UK and Singapore, among others.
“Among the new investment projects, 39 are located outside special economic zones (SEZ), and 29 within. All 68 projects are in the industrial sector,” added the report.
They include a metal processing factory (with an investment of $350 million in Banteay Meanchey province), a factory which will produce plastic products, a tyre manufacturing plant, a vehicle assembly plant, an aluminium factory, a household goods manufacturing plant and a factory producing vehicle accessories, among others.
In 2024, the Budget in Brief predicted Cambodia’s economy would grow by 6.6%, supported by the industrial sector with a growth rate of 8.5%, followed by services at 6.9% and agriculture at 1.1%.
Hong Vanak, an economist at the Royal Academy of Cambodia, told The Post in January that political stability, reforms to investment laws and the development of skilled human resources have helped Cambodia attract more investment, especially in the establishment of factories and manufacturing enterprises aimed at producing export goods.
He also mentioned how the government’s efforts to negotiating trade agreements with various countries have been instrumental in attracting investors to open factories.
“As more investors set up factories, exports will increase. The manufacturing sector will remain a key export commodity with great potential for Cambodia,” he added.
