FDI in Cambodia sees slow growth amid economic headwinds

FDI in Cambodia sees slow growth amid economic headwinds

CDC approves 188 investment projects worth $2.7 billion in the first four months, down 20 percent compared to the same period last year.

Despite facing growing uncertainty in the global economy, Cambodia continued to receive foreign direct investment (FDI) inflows, but at a slow pace, as the government implements various reforms aimed at creating a healthy investment and business environment.

According to a report from the Council for the Development of Cambodia released yesterday, 188 fixed-asset investment projects have been licensed with a capital investment of over $2.7 billion in the first four months of this year, down 20 percent compared to the same period of last year, which recorded $3.4 billion in capital from licensed 231 investment projects.

In April alone, the CDC approved 42 investment projects with a total investment of approximately $222 million.

The most notable investment projects for April 2026 are in the agriculture and agro-industry sectors, such as investment projects to establish fruit orchards and processing factories located in Banan district, Battambang province, with an investment capital of approximately $20 million.

Similarly, the most prominent investment projects are in the industrial sector, a factory that will produce and process oil for vehicle tyres and oil for rubber processing products, located in the Sin Bavet Special Economic Zone, Svay Rieng province, with an investment of approximately $9.6 million.

China, Malaysia, Singapore, and the United States remain the top foreign investors, according to the report.

Sun Chanthol, Deputy Prime Minister and CDC’s First Vice Chairman, has recently highlighted that the FDI inflow underscores rising investor confidence in the Kingdom’s economic stability and favourable business climate.

He emphasised that CDC is continuing to strengthen the quality, efficiency, transparency, and accountability of public service delivery through the ‘Single Window’ mechanism, as well as creating public services that are closer to investors by utilising the Cambodia Investment Project Management (cdcIPM) system.

“This is to allow investors to come and receive satisfactory investment services and information, along with various coordination facilities in a comfortable environment,” he said.

Cambodia is facing an uncertain world and regional issues, including the ongoing border tension with Thailand.

With the aim of enhancing the efficiency of support services and investment aftercare, the CDC has established a ‘Business Co-Creation’ working group and a project to arrange physical infrastructure at the CDC headquarters itself, Chanthol said.

Additionally, he noted that the Special Economic Zones SEZs have become vital hubs for attracting high-value projects, particularly in sophisticated sectors, as a number of investments in SEZs has significantly surged.

The growth is a testament to the success of our SEZs in drawing new investments, with a significant shift toward electronic components and high-tech industries, he added.

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