50 Chinese firms explore biz prospects in Cambodia

50 Chinese firms explore biz prospects in Cambodia

Top representatives of approximately 50 companies from Henan Province, China, are currently in Cambodia to explore investment opportunities, reflecting further deepening of economic ties between the two countries.

A delegation led by Li Fengzhi, Vice Governor of the People’s Administrative Council of Guangzhou City, Henan province, Wednesday held talks with Sun Chanthol, Deputy Prime Minister and First Vice Chairman of the Council for the Development of Cambodia (CDC) in the capital.

Wang Wenbin, Chinese Ambassador to Cambodia, representatives from relevant ministries and institutions, members of the Cambodian Oknha Association, and other key officials were present at the meeting.

Extending a warm welcome to the Chinese delegation, Chanthol expressed his appreciation for their visit to gain first-hand insights into Cambodia’s investment environment, a gesture that underscores the strong “iron-clad” Cambodia-China friendship.

He highlighted Cambodia’s investment potential in key sectors, including industrial plants, the automotive industry, electronics, infrastructure, agriculture and agro-industry, food processing, green energy, special economic zone development, education and training, healthcare, digital technology, small and medium-sized enterprises (SMEs), and other service sectors.

Ambassador Wang praised the remarkable growth of Cambodia-China relations, emphasizing Cambodia’s attractiveness as a prime investment destination in the region.

Vice Governor Li expressed gratitude for the warm hospitality and productive discussions, particularly for the 50 companies participating in the visit.

She introduced Guangzhou City’s geographical advantages and investment potential, highlighting a proposal to establish an Agro-Industrial Park in Cambodia.

“The Park aims to foster in-depth cooperation in agricultural product processing, serving as a special trade zone for agricultural products, technology services, manufacturing, and storage, while attracting modern agriculture-related businesses,” she said.

During the meeting, several companies showcased their production chains, technologies, and products as a foundation for future cooperation and business matching.

Both sides reaffirmed their commitment to strengthening the Cambodia-China Comprehensive Strategic Partnership and jointly implementing the Cambodia-China ‘Building a Community with a Shared Future in a New Era’ Plan (2024–2028).

The cooperation will cover key projects such as the ‘Industrial and Technological Corridor,’ the ‘Fish and Rice Corridor’, and ‘Digital Economic Infrastructure’ to enhance bilateral development.

Speaking to Khmer Times, Lor Vichet, Vice President of the Cambodia Chinese Commerce Association (CCCA), said many Chinese companies are drawn to invest in Cambodia due to the country’s favourable investment environment and various incentives, especially for businesses with 100 percent foreign ownership.

He emphasized that Cambodia’s business-friendly policies have been a significant factor in attracting foreign investors, particularly from China.

“Additionally, Cambodia has signed multiple free trade agreements with countries worldwide, making it easier for companies to establish operations and export to Cambodia’s trading partners,” he said.

The free trade agreements — including those with China, South Korea, and members of the Regional Comprehensive Economic Partnership (RCEP) — have strengthened Cambodia’s position as a gateway for international trade in the region.

Vichet added that the ongoing China-US trade dispute has encouraged many Chinese companies to seek alternative locations in Southeast Asia to avoid high tariffs. “Currently, the US imposes a 20 percent tariff on Chinese goods and plans to raise it to 60 percent,” he said.

The escalating trade tensions have affected not only China but also several countries in the region. “Moreover, the US is preparing to impose tariffs on many other countries, including Vietnam.

This situation makes Cambodia an increasingly attractive destination for investment, as the country faces lower risks from global trade tensions,” Vichet explained.

“Furthermore, investments in Cambodia benefit from various government protections and incentives, further boosting its appeal to foreign investors,” he added.

According to a CDC report released in early February, Chinese investment accounted for approximately 73.35 percent of Cambodia’s total investment capital in January 2025, amounting to $548.65 million out of the country’s overall $748 million investment.

The report highlighted China as the largest source of investment, followed by Vietnam, which contributed 5.52 percent.

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