Cambodia Says 10% U.S. Tariff Boosts Investment Appeal but Reforms Key To Staying Competitive

PHNOM PENH, July 28, 2026 (KPT) – Cambodia has welcomed a new 10 percent U.S. tariff rate as a boost to its investment appeal, but Deputy Prime Minister Sun Chanthol warned the Kingdom must press ahead with reforms to stay competitive.

Chanthol, who is also First Vice‑Chairman of the Council for the Development of Cambodia (CDC), told reporters Monday the rate is 2.5 points lower than some regional rivals, giving Cambodia an edge. “This is a positive point for Cambodia, but it is not only the 10 percent tariff that makes Cambodia attractive to investors,” he said.

He stressed investors weigh peace, political and macroeconomic stability, a young workforce, infrastructure and the broader business climate. Cambodia’s open investment law allows 100 percent foreign ownership and profit transfers abroad, while regular forums with the private sector aim to ease business hurdles.

Chanthol highlighted energy reforms, noting 63 percent of electricity now comes from renewable sources. Investment approvals have surged, with 414 projects worth $6.9 billion in 2024 rising to 630 projects worth $10 billion in 2025. The first half of 2026 saw 276 projects worth $4.7 billion, despite global uncertainty.

He said Prime Minister Hun Manet has pushed CDC reforms to simplify procedures and improve logistics, vital for long‑term competitiveness. “We cannot rely entirely on reciprocal tariffs,” Chanthol said, urging continued improvements to sustain investor confidence.