‘Cambodia top investment destination for Western FIs’
‘Cambodia top investment destination for Western FIs’
Cambodia has been ranked as one of the top 20 priority destinations for investment or business development by US and European FIs, based on the market’s strong gross domestic product (GDP) forecasts and business potential for western financiers, says a recently published survey by the Standard Chartered, a London-based financial institution (FI).
According to the survey results, which compiled the preferences of 400 European and American-headquartered FIs, Cambodia was ranked thirteenth internationally as a priority destination for investments this year outranking regional peers such as Thailand, which took out the fifteenth place and Vietnam, which took twentieth place in the Standard Chartered global rankings.
China took out the number one position as the highest priority market for new investments by Western FIs, followed by India.
Notably, ASEAN markets performed particularly highly in the survey results, with Malaysia, Singapore, the Philippines, and Indonesia taking out fourth, fifth, sixth and seventh positions, respectively.
Of the top ten destinations for Western FIs investments, seven are located in greater Asia.
Meanwhile, other regional countries ranked in the top 20 investment markets in the Standard Chartered poll, including Bangladesh, which took out tenth place, ahead of Cambodia (13), Thailand (15), and Vietnam (20).
The survey results indicated that countries from “emerging and developing Asia” in particular are increasingly drawing investors from more “developed” nations, such as western banks and financial institutions.
The results suggest that comparative global economic growth trends are effectively redirecting Western capital to new and fast-growing markets.
According to estimates by the International Monetary Fund (IMF), while nations described as “emerging and developing Asia” are predicted to experience real annual GDP growth averaging between 4.5 and 5.2 percent in the coming year, in comparison, GDP growth in “advanced economies” is expected to grow at just 1.7 to 1.8 percent.
Meanwhile in December, Standard Chartered predicted global economic growth to be broadly flat in 2025, slowing slightly to 3.1 percent, down from 3.2 percent in 2024.
According to Molly Duffy, global co-head, Financial Institutions Coverage at Standard Chartered, as cited by MSN’s Asian Banking and Finance publication, over the medium term, emerging Asian economies that fit this profile – such as India, the Philippines, Vietnam and Bangladesh – are likely to maintain consistently higher GDP growth rates than other global markets, and offer greater opportunities for incoming capital.
Cambodia is demonstrating a similar medium-term growth trajectory compared to other emerging Asian economies; the Kingdom is expected to achieve 5.5 percent GDP growth over the 2025-2026 period, according to recent projections by the World Bank.
Duffy added that, “Banks are clearly at the forefront of supporting capital entering dynamic markets.”
Hence, she said that Standard Chartered expects that “sizable” investments in high-conviction asset classes in these emerging economies are set to continue.
Meanwhile, according to Standard Chartered, the ‘China Plus One’ phenomenon, which encapsulates the notion that Western firms and investors should avoid overdependence on Mainland China by increasing their exposure to other economies, is another key reason why the survey results reflected a growing demand by Western FIs for investments in a wide range of dynamic new markets, such as Cambodia and other regional emerging economies.
However, despite this trend, China, as a frontrunner in the poll, still remains a magnet for Western FI investments.
According to Standard Chartered, Mainland China’s size and economic clout means it will inevitably continue to attract foreign investments.
