Cambodia is at a crucial juncture in its economic development, transitioning from a post-conflict recovery phase to a more robust and diversified economy.
I had the chance to sit down with the Deputy Prime Minister of Cambodia, Sun Chanthol, who outlined the country’s strategic vision for economic growth, emphasizing the importance of international investment, economic reform, and the country’s ambitions to be a high-income nation by 2050.
Chanthol, who also serves as the First Vice Chairman of the Council for Development of Cambodia (CDC), described his role in attracting foreign direct investment (FDI) from key global partners, notably the United States and Canada, to support Cambodia’s economic infrastructure.
The CDC’s mandate is pivotal: “Our role is to promote investment, review applications, approve investments, and take care of investors,” said Chanthol.
Highlighting recent successes, he noted a significant rise in foreign investment, including a 75% increase in the number of projects and a remarkable 162% jump in investment capital.
This growth aligns with the government’s recognition of the private sector as a “key engine for economic growth,” said Chanthol.
“Our government believes that the private sector is the engine of economic growth. We need the private sector to create jobs for our people,” he added.
To sustain this growth, Cambodia is pursuing significant shifts in industry and infrastructure.
Industrial growth and strategic shifts
Cambodia’s economy is currently anchored by the garment industry, which provides the majority of its exports. However, Chanthol underscored the importance of diversifying and transitioning to high-value industries, including electronics, automotive, and food processing.
“This kind of industry will not take us to the next level,” he said, articulating a vision to attract industries that create high-skill, high-wage jobs.
This shift is part of the national Industrial Policy 2015–2035 plan, which focuses on transforming Cambodia from a labor-intensive economy to one based on skilled industries. Over my long career of studying and writing about globalization, this is a familiar pattern for East Asian countries, and it reminds me of Japan, and South Korea’s post-war economic models. And more recently Cambodia’s neighbour Vietnam.
“With peace and stability, we’ve been able to rebuild our country and our economy. It has allowed us to attract investment, create jobs, and improve living standards,” said Chanthol. “I want people to see for themselves a country that was once completely destroyed, but has been rebuilt… The scars are still there, but Cambodia is now young, dynamic, and full of potential,” he said.
A Message to Global Investors
Cambodia’s relations with China have been historically close, with China ranked as the country’s largest investor.
Recalling this bond, the Deputy Prime Minister Chanthol described the two countries as “ironclad friends,” with China offering substantial financial support in the form of concessional loans and grants.
Chanthol maintained, however, that Cambodia’s economic policies are open to all nations, stating that they “do not discriminate” against investors from other regions, including the EU, Canada, and the United States. With the recent election of soon-to-be President Trump trade relations might significantly evolve in 2025.
The government encourages international investors to view Cambodia as an open, thriving economy with ample opportunities for growth.
“Cambodia has the most liberal investment regime in ASEAN,” said Chanthol, highlighting that foreign investors can own 100% of their businesses across all economic sectors, a rarity in the region. And something that, in my experience, appeals to many multinationals if they are confident the country is fully committed to it. Given their history, I think they are—time will tell.
Infrastructure and Environmental Initiatives
The Deputy Prime Minister highlighted several infrastructure projects aimed at reducing logistics costs and supporting Cambodia’s trade capabilities.
Key developments include the construction of new expressways and the expansion of deep-sea ports, which will enable Cambodia to ship goods directly to global markets.
These advancements also have a green dimension, with Cambodia committed to achieving carbon neutrality by 2050.
The country’s energy sector is increasingly reliant on renewable sources, generating 62% of its electricity from renewable resources, with plans to reach 70% by 2030, said Chanthol.
In conclusion, Cambodia’s development journey, powered by international partnerships and a focus on sustainable growth, sets a strong foundation for the country’s economic future.
With progressive policies and a young, dynamic workforce, Cambodia is poised to achieve its 2050 high-income vision, promising substantial returns for investors willing to join in its growth journey. If they faithfully stick to this approach, it may well be of considerable benefit in our uncertain times for world trade.
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