Economy Outlook

Q: What is Cambodia’s GDP average annual growth rate?

A: According to the World Bank in Oct 2021, the economy of Cambodia has sustained an average annual growth rate of 7.7% from 1998 to 2019

Q: What is the size of Cambodia’s nominal GDP?

A: The Kingdom’s GDP in 2019 reached an all-time high of USD 27.089 billion.

Q: What is Cambodia’s GDP per capita?

A: In 2019, GDP per capita also reached a high of USD 1,700. According to the National Bank of Cambodia, GDP per capita will be upgraded to USD 1,842 in 2022, a 6.4% increase compared to 2021, $1,771, according to the National Bank of Cambodia.

Q: What are the sectoral contributions to GDP in Cambodia?

A: The sectoral contribution to GDP is agriculture, garment, construction, trade, real estate and finance, hotel and restaurant and garment.

Q: What has been the projection of economic growth of Cambodia by the Asian Development Bank, World Bank and Cambodia’s Ministry of Economy and Finance?

A: The economy was significantly impacted by the COVID-19 pandemic in 2020; economic growth fell to -3.1% but according to the Asian Development Bank (ADB), the World Bank (WB) and the Ministry of Economy and Finance (MEF), Cambodia’s economic growth for 2021 rebounded into positive territory, with projections between 2.2% to 3%. 2022 economic growth is projected to be between 4.5% to 5.5%.

Q: How much are Cambodia’s total Exports? What is the total value of Cambodia’s exports?

A: Cambodia is an active trading country and recorded a total export of USD 17.2 billion in 2020, an increase of 16.72% from 2019. 

Q: Which countries are Cambodia’s main export destinations?

A: Main export partners are China, Germany, Japan, the United Kingdom and the United States

Q: What are the main export products from Cambodia?

A: The country’s exports, composed mainly of garments and agricultural products, have increased steadily since the 1990s and account for more than 60% of the GDP.

Q: How many airports are in Cambodia?

A: There are three international airports in Cambodia.

Q: How many deep seaports are in Cambodia?

A: There is a deep-sea in Sihanoukville.

Q: Which are the tariff exemption program and free trade agreements in Cambodia? Does Cambodia enjoy tariff exemption from other countries? Does Cambodia have FTA with other countries?

A: Businesses and investors have yet to fully optimize the tariff exemption/preference schemes that the developing country enjoys from the European Union [Everything-But-Arms (EBA)] and the US [Generalized Scheme of Preferences Plus (GSP+)], and the Free Trade Agreements (FTA) with China and South Korea.

Q: What are the free trade agreements between Cambodia and other countries?

A: Businesses and investors have yet to fully optimize the tariff exemption/preference schemes that the developing country enjoys from the European Union [Everything-But-Arms (EBA)] and the US [Generalized Scheme of Preferences Plus (GSP+)], and the Free Trade Agreements (FTA) with China and South Korea.

Q: What is the total size of Cambodia’s public debt?

A: Cambodia’s debt-to-GDP ratio reached 33.6 percent of GDP (US$8.8 billion in outstanding debt) in 2020 and is projected to increase to 35.2 percent of GDP (US$9.6 billion) in 2021. 

Q: What is Cambodia’s debt to GDP ratio?

A: Cambodia’s debt-to-GDP ratio reached 33.6 percent of GDP (US$8.8 billion in outstanding debt) in 2020 and is projected to increase to 35.2 percent of GDP (US$9.6 billion) in 2021.

Click here to read more about Economy and Finance in Cambodia.

Q: What constitute trade balance of Cambodia?

A: Trade balance is indicated in this graph

Q: What are Cambodia’s main import and export products?

A: The main import: Textiles, construction materials, steel, and cement while the main export: clothing, footwear and travel accessories.

Q: Which countries are Cambodia biggest trade partners in Asia?

A: Biggest trade partners in Asia are Japan, China, Republic of Korea, India, Thailand and Vietnam.

Q: Which countries are Cambodia biggest trade partners in Europe?

A: The biggest trade partners in Europe is UK, EU and EAEU.

Q: Which country is the biggest export market for Cambodia?

A: Its top export markets in 2019 were the US, EU, Japan, China, UK, Canada, Thailand, Vietnam and Singapore, whereas its top import partners were China, Thailand, Vietnam, Japan, EU, Singapore and the US.

Q: How many bilateral / free trade agreements have Cambodia signed with international counterparts?

A: Not many may be aware that an agreement with the European Patent Organization came into force at the beginning of 2018, providing validation of EU patents in Cambodia and signatory states, or essentially protecting the innovation of manufactured products by EU companies in Cambodia for the Asian market. Moreover, given the tariff exemption/preference schemes under the EBA and GSP that the EU and the US respectively accord to the Kingdom, the Free Trade Agreements (FTA) that Cambodia signed with China (July 2021) and South Korea (Oct 2021), as well as the Regional Comprehensive Economic Partnership (RCEP, Nov 2020), businesses and investors should leverage on the comparative advantage of setting up their manufacturing or assembly facilities in Cambodia for export to these overseas markets.

Click here to read more about Trade in Cambodia.

Q: What are the main reasons to invest in Cambodia?

A: The attraction of Cambodia to foreign businesses and investors that realized its potential and opportunities were and continue to be attracted by its business-friendly open economy, low labour, and production costs, and its strategic location and close proximity to production facilities in Thailand and Vietnam as well as favourable access to the Chinese, US, EU, Japan, and South Korea markets.

Q: What is the percentage of ownership a foreign investor have for a business in Cambodia?

A: Cambodia’s investment laws allow 100% foreign ownership of companies in most sectors, and provision for the protection of investments from regulated prices and nationalization. 

Q: How many Specialized Economic Zone (SEZ) are in Cambodia?

A: There are 54 SEZs approved, 33 SEZs by Sub Decree, 26 SEZs are operational, 18 SEZs have special admin office, 21 SEZs are seeking funds, 6 SEZs are under construction.

Q: Which countries are Cambodia’s top investment partners?

A: Cambodia’s top investment partners over the past few years have been China, Vietnam, South Korea, Japan, Singapore, Malaysia, Thailand, the UK, Canada, and the US.

Q: Do international businesses need a local partner to start a company / business in Cambodia?

A: Cambodia’s investment laws allow 100% foreign ownership of companies in most sectors, and provision for the protection of investments from regulated prices and nationalization.

Q: What is the total FDI of Cambodia?

A: In 2019 when Cambodia’s GDP hit an all-time high of USD 27.1 b, its total stock of FDI also reached a high of USD 34 b.

Q: Which sectors attract most FDI in Cambodia?

A: Prior to the ban on online gambling which was effective 1 Jan 2020 after it was first announced in Aug 2019, the sectors that attracted the most Foreign Direct Investments (FDI) were real estate and construction, garment manufacturing, tourism, other forms of light manufacturing, services and agriculture.

Q: How has Covid pandemic impacted FDI in Cambodia?

A: The continuing Covid pandemic, disruption to global supply chains, rising costs in raw materials and travel restrictions have severely impacted Cambodia’s open and export-oriented economy. FDIs remained relatively weak at USD 538m or a YOY decline of 83.6% for the first nine months of 2021.

Click here to read more about Investment in Cambodia.