Cambodia Positions Itself as One of Region’s Most Open Economies for Foreign Investors

PHNOM PENH, May 8, 2026 (KPT) — Cambodia is reinforcing its reputation as one of Southeast Asia’s most open and investor friendly economies through expanded trade agreements, liberal investment policies and business reforms, Deputy Prime Minister Sun Chanthol said Thursday.

Speaking at the Cambodia Investment Forum 2026, themed “Beyond Investment: Strengthening Resilience Through Proactive Aftercare and Strategic Partnership,” Chanthol said strong inflows of foreign capital reflect growing confidence in Cambodia’s long term prospects. “The continued inflow of investment is not only a reflection of stability and growth, but also clear evidence of investor confidence in Cambodia,” he noted.

Chanthol, who also serves as First Vice Chairman of the Council for the Development of Cambodia, highlighted market access gains through free trade agreements with China, South Korea and the United Arab Emirates, alongside ASEAN frameworks and the Regional Comprehensive Economic Partnership. Cambodia also benefits from preferential schemes including the EU’s Everything But Arms initiative and the UK’s Developing Countries Trading Scheme.

He pointed to Cambodia’s reciprocal trade agreement with the United States signed in October 2025, adding that future tariff talks could build on the accord to keep rates at 19 percent or lower.

Chanthol emphasized Cambodia’s liberal investment environment, including 100 percent foreign ownership in most sectors and unrestricted repatriation of profits and foreign currency. He described this policy as a “strategic advantage” for investors seeking flexibility.

Despite global uncertainty, Cambodia’s economy has maintained growth of around 5 percent, with investment approvals hitting a record US$10 billion in 2025. In the first four months of 2026, 184 projects worth US$2.6 billion were approved.

Officials said Cambodia’s 35 special economic zones are driving diversification into vehicle assembly, electronics, furniture and other industries, reinforcing the country’s position as a competitive regional hub.