Major US companies evince keen interest in expanding investment in Cambodia

Major US companies evince keen interest in expanding investment in Cambodia

Cambodia is viewed as an emerging ‘ASEAN rising star’, rather than a fringe frontier market by global investors. Monday’s meetings mark a significant step forward in deepening Cambodia-US economic relations, as both governments and investors signal readiness to unlock fresh commercial opportunities in the years to come.

Major American companies have reaffirmed their commitment to expanding and exploring new investment opportunities in Cambodia, following back-to-back high-level engagements with the Royal Government, signalling renewed momentum in Cambodia-US economic relations.

Prime Minister Hun Manet Monday received a courtesy call from a delegation of leading American firms led by Ted Osius, retired US Ambassador and Senior Vice-President and Regional Managing Director of the US-ASEAN Business Council (US-ABC).

Welcoming the delegation, Prime Minister Hun Manet acknowledged the meaningful contributions of American investors to Cambodia’s economic development and bilateral relations.

He outlined the Royal Government’s policies, strategies, and investor-support mechanisms designed to improve the ease of doing business and ensure a favourable investment climate. He also reaffirmed the Royal Government’s determination to continue strengthening the G-PSF to resolve issues raised by the private sector.

In the course of the meeting, Ted expressed his appreciation to the Prime Minister for the warm reception and the Royal Government’s longstanding support and close cooperation with the US-ABC. He praised Cambodian ministries and institutions for addressing investors’ concerns in an open and transparent manner, noting that such responsiveness has strengthened confidence among US companies operating in the Kingdom.

Ted commended the government’s commitment to the Government-Private Sector Forum (G-PSF), which he described as a vital platform for dialogue and problem-solving. The delegation expressed optimism about Cambodia’s economic direction under the current leadership and highlighted the importance of strengthening Cambodia-US economic cooperation.

Members of the US-ABC delegation apprised the Prime Minister of their ongoing business operations in Cambodia and conveyed their intention to expand investment portfolios as well as explore new opportunities in sectors including healthcare, tourism and hospitality, digital technology, banking and finance, infrastructure, smart cities, automotive, and insurance.

They reiterated their commitment to remain close partners of the Royal Government in advancing national development priorities, particularly the Five-Point Strategy of the Seventh Legislature.

The American investment delegation also held high-level talks with Deputy Prime Minister Sun Chanthol at the Council for the Development of Cambodia (CDC) on Monday. The meeting underscored a shared commitment to strengthening economic, trade, and investment cooperation.

The US-ABC delegation expressed strong enthusiasm for assessing new investment opportunities in Cambodia’s rapidly evolving economic landscape.

Chanthol used the opportunity to highlight Cambodia’s competitive strengths, pointing to the modern and flexible framework provided by the new Law on Investment. He noted that the ongoing reforms to improve transparency, predictability, and administrative efficiency, alongside expanded efforts to integrate Cambodia more deeply into regional supply chains.

He emphasised that Cambodia is positioning itself as a strategic hub for American companies seeking access to ASEAN and global markets. Key reforms include digitalisation of public services, the official rollout of the cdcIPM digital platform and the integration of secure online payments through Visa and MasterCard via partner banks.

During the talks, both sides examined new mechanisms to stimulate greater US Foreign Direct Investment (FDI) inflows, with a shared objective of supporting Cambodia’s sustainable economic development.

Strengthening cooperation between the Government and the American private sector was a central focus, particularly in scaling long-term investments that support innovation, diversification, and job creation.

Delegation members also discussed policy reforms, trade facilitation, and the overall investment environment. They welcomed Cambodia’s steady implementation of the new investment law and its alignment with international standards to boost competitiveness.

More than a routine courtesy visit, the meeting served as an important Public-Private Dialogue Forum, enabling both sides to identify challenges, share expectations, and outline new pathways for collaboration. Officials said the engagement is expected to increase investor confidence and encourage greater participation of American firms in Cambodia’s priority sectors.

The two high-level meetings mark a significant step forward in deepening Cambodia-US economic relations, as both governments and investors signal readiness to expand cooperation and unlock fresh commercial opportunities in the years to come.

Anthony Galliano, Group CEO of Cambodian Investment Management Holdings (CIM) and Vice President of the American Chamber of Commerce in Cambodia (AmCham Cambodia), has said that Cambodia is increasingly being viewed by global investors as an emerging “ASEAN rising star”, rather than a fringe frontier market.

Speaking to Khmer Times, Anthony noted that investor interest is expanding across several key sectors, particularly low-skilled manufacturing and assembly, light industry, garments and textiles, education and training, agribusiness, clean energy and renewables.

He emphasised that the United States remains one of the largest sources of FDI into ASEAN, historically dominated by manufacturing and finance. However, recent trends show a clear shift.

“There is growing investment into semiconductors, electronics, the digital economy, cloud services, digital services, data centres, pharmaceuticals, biomedical industries, critical minerals and supply chain segments,” Anthony said. “There is a shift from traditional manufacturing and finance dominance to more technology-intensive, high-value and strategic sectors. This is where the big money is going, and unfortunately, Cambodia is not structurally prepared for these evolving high-tech sectors. The country still needs to upgrade its human resource capabilities and capacity to attract them.”

Anthony also highlighted Cambodia’s increased visibility in Washington following the recent ceasefire negotiations in which the US President played a role.

“Cambodia has gained greater visibility and prominence with the current administration as a result of the intervention by the President, contributing to the ceasefire. This is a short-term advantage that the Royal Government can leverage. The frenzied and dynamic pace in Washington may soon make this achievement ancient history,” he said.

He added that the timing is favourable for both sides to push forward a sustainable and comprehensive trade deal, noting that current arrangements remain “fragmented”.

In the financial sector, Anthony struck a more cautious tone.

“Until the financial and capital markets are developed, I see very little opportunity in this sector. Frankly, there is not one US bank, insurance company or investment manager in the country,” he stated.

He described capital market development as one of Cambodia’s most promising near-term opportunities. “I believe the capital markets are one of the greatest short-term opportunities the country has, and I admire the work of the SERC and the Exchange. However, more top-down support will be needed to gain traction.”

The General Department of Customs and Excise reported that Cambodia’s exports to the US rose to $10.4 billion, an increase of 26.4 percent, while imports expanded markedly to $326 million, up 49.7 percent. The figures underline resilient commercial activity despite global uncertainties.

Overall, bilateral trade between Cambodia and the US reached $10.7 billion, up 27 percent compared with the same period in 2024, reflecting favourable conditions for domestic enterprises and sustained export growth.

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