Economic Performance
According to the 2025 Investment Climate Statement released by the US Department of State, Cambodia’s gross domestic product grew by 5.3% in 2024 and is projected to rise to 5.5% in 2025. Tourism, hospitality, and foreign direct investment are the main drivers of expansion.
Alongside this growth, the banking and finance sector recorded total assets of USD 91.1 billion in 2024. Meanwhile, inflation remains moderate at a projected 2.6% for 2025.
Investment Framework
Under the 2021 Law on Investment, Cambodia offers:
- 100% foreign ownership in most sectors
- Corporate tax holidays
- Duty-free imports of capital goods
- No restrictions on profit repatriation
Companies with Qualified Investment Project (QIP) status receive approval within 20 working days through a single online portal.
Special Economic Zones
Cambodia operates 32 Special Economic Zones across nine provinces, providing land, infrastructure and one-stop services. Companies in these zones benefit from:
- Tax holidays
- Zero-rated VAT
- Duty exemptions on raw materials and equipment
Key Investment Sectors
Sectors attracting foreign investor interest include:
- Garments and textiles
- Light industry and manufacturing
- Education and training
- Agribusiness
- Clean energy and renewables
Cambodia’s investment climate in 2025 is characterized by 5.5% projected GDP growth, 32 operational SEZs, and four active trade agreements providing preferential market access. Additionally, the 2021 Law on Investment framework offers 100% foreign ownership and streamlined approval processes, positioning Cambodia as an investment destination in Southeast Asia.
Source: Cambodia’s investment climate strengthens with growth and trade deals – Khmer Times