Cambodia approves $7.8 billion in investment projects in the first nine months

PHNOM PENH, Cambodia (Oct. 3, 2025) — The Council for the Development of Cambodia (CDC) approved 546 investment projects worth $7.8 billion from January to September 2025, marking a 73% increase in project volume compared to the same period last year.

According to CDC data released this week, the surge represents a $2.5 billion rise in capital investment, up 47% from the $5.3 billion recorded during the first nine months of 2024. The number of approved projects has already surpassed the full-year total for 2024 by 132.

In September alone, the CDC’s Cambodian Investment Board registered 55 new projects valued at $467 million, with the potential to create approximately 37,000 jobs. Of these, 38 projects are located outside special economic zones, while 17 are within designated industrial zones.

Deputy Prime Minister Sun Chanthol, First Vice President of CDC, said more than 400 projects approved this year are expected to generate over 300,000 jobs, with over 90% concentrated in the industrial sector.

He also urged Cambodian migrant workers to consider returning home, citing the steady rise in domestic factory development and employment opportunities.

The CDC continues to position Cambodia as a competitive destination for manufacturing and export-oriented investment.

In the late September update to the Asian Development Outlook, the Manila-based lender revised Cambodia’s 2025 growth projection from 6.1% to 4.9%, and its 2026 forecast from 6.2% to 5.0%. Despite the downgrade, the ADB said the economy remains resilient and is expected to post solid gains through 2026, supported by industrial expansion and steady foreign direct investment.

 Cambodia’s inflation rate fell sharply from 6.0% in January to 1.6% in June, and is expected to average around 2.0% in both 2025 and 2026.

Garment exports surged 22.2% year-on-year in the first half of 2025, driven in part by U.S. buyers anticipating higher tariffs on Cambodian goods. The ADB said manufacturing is likely to remain strong, bolstered by a relatively favorable 19% U.S. tariff rate.

Growth in services is projected to slow to 2.8% in 2025 and 2.6% in 2026. Tourism rebounded in the first half of the year, led by increased arrivals from China, but border tensions with Thailand are expected to weigh on the sector in the months ahead.

Agriculture is forecast to grow by 1.1% annually through 2026, supported by export demand and the expected return of Cambodian laborers from Thailand. Agricultural exports rose 14.1% year-on-year in the first half of 2025, led by cashew nuts and milled rice, offsetting declines in cassava and rubber.