Cambodia-US boost investment ties amid tariff risks

Cambodia-US boost investment ties amid tariff risks

Cambodia and the United States reaffirmed their commitment to fostering economic cooperation during the second Cambodia-US Public-Private Sector Dialogue on Wednesday, co-chaired by Sun Chanthol, Deputy Prime Minister and First Vice Chairman of the Council for the Development of Cambodia (CDC), and Bridgette L. Walker, Chargé d’Affaires of the US Embassy in Cambodia.

However, Casey Barnett, President of the American Chamber of Commerce in Cambodia (AmCham Cambodia), who was present at the meeting, told Khmer Times on Thursday that due to Cambodia’s substantial trade surplus with the US and its tariffs and non-tariff barriers on certain American goods and businesses, the country faces a potential risk of US tariffs.

The event was attended by representatives from relevant ministries and institutions, AmCham Cambodia’s members, the US-ASEAN Business Council (US-ABC), private sector representatives, and various experts, according to CDC’s press release.

The event highlighted Cambodia’s record-breaking investment growth in 2024 and showcased the government’s efforts to digitize investment processes, reinforcing its commitment to a business-friendly environment.

“The dialogue proceeded smoothly according to the planned agenda, focusing on priority topics related to Cambodia’s investment and business environment. These topics included relevant regulations and standards, enabling factors to enhance US investment and business access to the Cambodian market, investment facilitation procedures, and other related issues,” the statement said.

Welcoming the Chargé d’Affaires of the US Embassy in Cambodia, representatives of ministries and institutions, and US private sector representatives who attended in large numbers, Chanthol expressed his gratitude to all US investors who have chosen to invest in Cambodia, expand their business operations, and increase their investment volume.

He also highlighted Cambodia’s remarkable investment growth, particularly the record-breaking achievement of 414 approved projects in 2024.

“This figure reflects the effectiveness of Cambodia’s Investment Law and the Royal Government’s policies in supporting private sector investment, recognizing it as a key driver of national economic growth,” he said.

Chanthol also discussed the ongoing digitization efforts at CDC through the implementation of the Cambodian Investment Project Management System (cdcIPM). Notably, he emphasized the system’s e-Signature function, which enhances flexibility by allowing investment project approvals from anywhere and at any time via the Internet.

During the dialogue, US representatives expressed strong interest in the Royal Government’s attention to their concerns. They were optimistic about the opportunities to discuss challenges and exchange views, especially after having received responses and solutions following the first meeting on September 19, 2024. They also expressed hope that this second meeting would yield further improvements in procedures and legal standards.

In the course of the dialogue, Casey said they discussed ways that US investors can work with the Cambodian government to adjust policies and practices in order to bring more American investment to Cambodia, including arranging clean, low-cost energy, sharing interpretations of Cambodian law, and digitizing government processes.

Deputy Prime Minister through the Cambodia-US Public-Private Sector Dialogue has facilitated American investment and given confidence to American investors who can see first-hand that the Cambodian government is working hard to remove any obstacles to investment and business in Cambodia, he added.

“This dialogue is extremely effective because it brings together all of the relevant decision makers in a single forum. During the dialogue, AmCham received immediate clarification of tax regulations.

“We also received an invitation to further consult with the government on the best ways to provide clean, affordable energy. The government also responded positively to request to digitize certain government processes,” Casey said.

On the concerns about the possibility of US tariffs on Cambodia, he said the Trump administration has announced that it will impose reciprocal tariffs on countries whose tariffs are higher than those currently charged by the United States. Also, the Trump administration has indicated that it will use tariffs to reduce trade imbalances.

“Because Cambodia has a significant trade surplus with the US and because Cambodia has tariffs and non-tariff barriers to certain American goods and business, Cambodia faces a risk of US tariffs, but none have been announced yet and the Trump administration has made no public mention of Cambodia,” Casey said.

“To avoid potential US tariffs, Cambodia needs to urgently signal that it is willing to support American business and discontinue practices that are seen as protectionary. To achieve this, Cambodia could reduce tariffs on a broad range of US products and fast-track licensing approval for American companies such as Starlink,” he added.

It is worth noting that this dialogue was organized to address and resolve the concerns of American investors through a spirit of cooperation and consensus, guided by the leadership of the Prime Minister Hun Manet and US officials. The investment support mechanism established for this event underscores the Royal Government of Cambodia’s commitment to strengthening investor confidence.

This includes fostering collaboration between public and private sectors – both existing and new investors – by enhancing the effectiveness of the public-private dialogue mechanism at both policy and technical levels. These efforts align with the political program of the Royal Government of the 7th Legislature of the National Assembly and the Pentagonal Strategy – Phase 1 for Cambodia’s socio-economic development.

According to the General Department of Customs and Excise of Cambodia (GDCE) data, Cambodia-US trade totalled $1.67 billion in the first two months of 2025, marking a 25.7 percent increase.

Cambodian exports to the US reached $1.62 billion, up 25.4 percent, while imports from the US rose 34.6 percent to $48.76 million.

khmertimeskh