Cambodia is rapidly emerging as a prime destination for foreign investment, driven by strong economic growth, government-backed infrastructure projects, and a booming tourism and manufacturing sector. The country’s GDP is expected to grow by 6.3% in 2025, according to the Cambodian People’s Party (CPP), marking a return to pre-pandemic expansion. The Asian Development Bank (ADB) projects a slightly more cautious 6% growth, but both estimates reinforce investor confidence.
From billion-dollar infrastructure investments to a surging manufacturing sector, here’s why Cambodia is attracting global capital.
Infrastructure: A $9.32 Billion Investment Push
A $9.32 billion government budget for 2025 is fueling Cambodia’s largest infrastructure expansion in years, with a strong emphasis on transportation, logistics, and energy.
Key projects include:
- Techo International Airport (opening in 2025) – Set to accommodate 13 million passengers annually, with expansion plans to 50 million by 2050.
- Sihanoukville Port Expansion – Enhancing Cambodia’s maritime trade capacity to compete with regional hubs.
- Phnom Penh Logistics Centre – Streamlining transportation and commerce in the capital.
- Kampot International Tourism Port – Expected to boost both trade and tourism along Cambodia’s coastline.
The International Business Chamber of Cambodia (IBC) reported that the country’s financial sector saw $30 billion in new loan disbursements, signaling robust investor activity.
Manufacturing: Cambodia’s Competitive Edge Over Vietnam and Thailand
Cambodia’s low labor costs, favorable trade agreements, and business-friendly policies continue to attract multinational companies looking for alternatives to Vietnam and Thailand.
The textile and garment sector, which employs 918,718 workers and contributes over one-third of GDP, remains a key driver. However, electronics and automotive parts manufacturing are also expanding rapidly:
- Electronics industry – Expected to grow at 10.34% annually, reaching $461.2 million by 2029.
- Automotive parts production – Attracted $1.687 billion in investment, with a 10% CAGR growth from 2020 to 2022. The sector now produces over 400,000 motorcycles annually.
- Food processing – Projected to grow at 14.5% CAGR (2022-2027), strengthening Cambodia’s position in global agribusiness.
Tourism Recovery: 7.5 Million Visitors Expected in 2025
Tourism, which contributes 12% of GDP, is on track for a strong rebound, with the government targeting 7.5 million international visitors in 2025, up from 6.7 million in 2024.
Major infrastructure projects, including Techo International Airport and Kampot International Tourism Port, are set to increase tourist capacity, while new visa reforms and tax incentives aim to make Cambodia more accessible to international travelers.
A Market on the Rise
With strong economic growth, strategic infrastructure projects, and expanding manufacturing and tourism industries, Cambodia is positioning itself as a key player in Southeast Asia’s investment landscape. While challenges remain, including regulatory hurdles and logistical inefficiencies, investors are increasingly drawn to the country’s untapped potential and competitive advantages. For those seeking opportunities in emerging markets, Cambodia is one to watch in 2025 and beyond.
