PHNOM PENH: Cambodia offers numerous advantages to investors, some of which may not be widely recognized outside the country.

The main advantages include solid economic growth, a strategic geographical location, a favorable investment climate, abundant natural resources, a competitive labor market, strategic trade agreements, growing infrastructure development, a supportive legal framework, and social and political stability.

In 2022, the Cambodian Investment Board (CIB) and Special Economic Zones Board (SEZB) approved 186 investment projects totaling USD 4.03 billion. Major investors included China, Thailand, and Japan, with investments spanning sectors like agriculture, manufacturing, tourism, and infrastructure.

Last year, local investment accounted for 53.54% of total investment, while Foreign Direct Investment made up the remaining 46.46%. China stood out as a significant foreign investor, contributing 42% of the total.

Thailand and Japan were the second and third largest sources of foreign investment respectively, primarily driven by the tourism sector which attracted both local and foreign investors.

Cambodian Prime Minister Hun Sen said recently that the country’s economy is expected to grow by 5.6% in 2023, up from 5.2% in 2022. This growth is being driven by strong exports, particularly of textile goods, which account for around 70% of total exports. Other key export products include vehicles, footwear, natural rubber, and fish.

In terms of exports, the United States ranked as Cambodia’s top destination at 43.6%, followed by the European Union at 19.7%. From January to November 2022, Cambodia’s exports to the US increased by 42% compared to the previous year, reaching $11,391 million.

The majority of these exports consisted of garments, footwear, bicycles, and furniture, benefiting from trade preferences such as Most-Favoured Nation status and General Specialised Preference (GSP) for travel goods.