PHNOM PENH: Cambodia’s economy has consistently demonstrated remarkable growth, averaging 7% annually in the decade preceding the COVID-19 pandemic. Despite global challenges, the country’s economy is projected to expand by 5.2% in 2023, solidifying its position as a dynamic investment destination (General Department of Public-Private Partnerships, GDPPP) .
The Cambodian government has created a business-friendly environment for foreign investors, offering 100% foreign ownership, generous investment incentives, regional market access, and easy foreign currency remittances.
A Competitive Workforce
Cambodia has emerged as a regional manufacturing hub, driven by its highly competitive labor force. The country’s lower labor costs compared to its neighbors and its successful export-oriented industries make it an attractive destination for businesses seeking cost-effective operations.
Registering Your Company
Foreign investors must register their companies with the Ministry of Commerce, the General Tax Department, and the Ministry of Labor and Vocational Training. Additional licenses may be required depending on specific business activities.
With its strong economic growth, business-friendly policies, competitive workforce, and regional market access, Cambodia presents significant opportunities for foreign investors across various sectors.
As noted by the U.S. Embassy, Cambodia’s main economic drivers center around several sectors, including agriculture, real estate and construction, tourism, and manufacturing. The Cambodian government offers a generous package of incentives to foreign investors and imposes few restrictions on imports from abroad.
Examples of investment incentives available to qualified foreign investors include 100 percent foreign ownership of companies, corporate tax holidays of up to eight years, a 20 percent corporate tax rate after the incentive period ends, duty-free import of capital goods, special depreciation on capital expenditure, and no restrictions on capital repatriation.
Opportune sectors for potential investment in Cambodia include tourism, aviation, education, construction, agriculture/agribusiness, automotive, energy, manufacturing, health care, and technology (designated by the Cambodian government as a priority sector for development).