Swedish-based company IKEA, which specialises in the production of furniture and household items, sees Cambodia as a potential location for investment expansion. The Swedish giant already has a presence in five countries around the region.
Chea Vuthy, secretary-general of the Council for the Development of Cambodia (CDC), met with a delegation from IKEA led by Giafar Safaverdi, CEO of IKEA for the Southeast Asia region, on March 19 at the CDC headquarters.
Vuthy shared information about Cambodia’s investment policies with the delegation, noting that they have been recognised for the attractive incentives they provide to investors.
The policies include favourable investment laws, non-discrimination based on nationality, a favourable geographical location, stability and excellent transport infrastructure, among others.
“I encouraged the IKEA representative to make a swift decision to invest in Cambodia, to quickly reap the benefits,” said Vuthy.
Safaverdi noted that the IKEA delegation was pleased to be welcomed and informed about investment opportunities in the Kingdom. He explained that IKEA has been operating since 1943.
“This is the first time that IKEA has explored the Cambodian investment market. In the Southeast Asia region, IKEA is already active in several countries, including Singapore, Malaysia, Indonesia, Thailand and Vietnam,” he said.
According to Safaverdi, in 2024, IKEA generated revenue of approximately 26.5 billion euros, equivalent to about $29 billion.
Hong Vanak, an economist at the Royal Academy of Cambodia, told The Post on March 20 that Cambodia’s government investment policies, combined with geopolitical and economic issues between major global countries, have helped Cambodia attract production facilities from many countries.
He noted that recent investments have not only been in the garment, footwear and travel goods industries – as in the past – but also sectors like automobile assembly and manufacturing.
“In the last 2-3 years, I have observed an increasing number of factories and enterprises beginning operations in Cambodia. The Kingdom has become a diverse manufacturing hub for export goods,” he said.
“If IKEA opened a factory in Cambodia, it would contribute to increasing the value of Cambodia’s export goods. Most of Cambodia’s exports at present are processed products,” he added.
Lim Heng, vice-president of the Cambodian Chamber of Commerce (CCC), welcomed all investment projects coming to Cambodia, as they not only create jobs and contribute to national economic income but also help develop human resource capabilities in Cambodia.
He added that the favourable investment laws and the wide export market have attracted increasing foreign investment.
“We are pleased that more and more international companies are showing interest or making direct investments in Cambodia. More capital reduces the need for migration abroad for employment, increases household incomes and also generates tax revenue for the government,” said.
