The Nexhealthcare Co., Ltd. factory, set to produce PVC and rubber gloves alongside medical equipment, officially broke ground on March 2 in the Qilu Special Economic Zone (SEZ) in Cambodia’s Svay Rieng province.
With an investment capital of $273 million, the factory will span a 21-hectare site, reinforcing Cambodia’s reputation as an attractive destination for foreign direct investment (FDI).
Cambodia’s Stability and Economic Zones Drive Investment
Economists credit Cambodia’s political stability and its expanding export market as key factors in drawing multinational corporations and foreign investors to the country.
Chea Vuthy, secretary-general of the Cambodian Investment Board of the Council for the Development of Cambodia (CDC), emphasized the strategic importance of SEZs in facilitating investment. He described the new factory as a testament to the Cambodian government’s commitment to fostering a favorable business climate.
“The growth in investment projects and the increasing number of SEZs demonstrate Cambodia’s economic progress, attracting foreign investment, creating jobs, and improving livelihoods, which contribute to sustained national economic growth,” Vuthy stated.
Special economic zones have played a crucial role in this success, offering reduced operational costs, streamlined procedures, and faster business setup times. This initiative, originally launched under former Prime Minister Hun Sen, has continued under Prime Minister Hun Manet, who recently introduced three new policies to attract, retain, and support investors.
Nexhealthcare: A Global Leader in Health Protection Products
Nexhealthcare Co., Ltd. is a subsidiary of Shandong Blue Sail Health Technology Co., Ltd., a major player in the global healthcare market. The company ranks third worldwide in health protection gloves and fourth in heart monitoring equipment, where it holds the second-largest market share in China.
Surging Investment and Expansion of SEZs
According to the Ministry of Industry, Science, Technology and Innovation, Cambodia expanded its SEZs to 30 by the end of 2023, up from 21 in 2020. These zones are distributed across 12 provinces and the capital, with Svay Rieng leading the count at nine SEZs.
The rise in SEZs has coincided with a significant increase in investment. The CDC reported that in 2024 alone, Cambodia approved 414 investment projects, a 54% rise from the 268 projects in 2023. Total investment capital surged to $6.9 billion, marking a 40% increase from the previous year.
US-China Trade Tensions Fuel Investment Shift to Cambodia
Lor Vichet, vice-president of the Cambodia Chinese Commerce Association (CCCA), highlighted the impact of rising US tariffs on Chinese goods. The policy shift, which began under former US President Donald Trump, has driven more Chinese manufacturers to relocate their production to tariff-friendly destinations like Cambodia.
Additionally, Cambodia’s investment laws allow 100% foreign ownership of businesses, further strengthening its appeal to global investors.
Cambodia’s Expanding Trade Ties
Data from the General Department of Customs and Excise (GDCE) showed that Cambodia’s total trade volume (exports and imports) reached $54.74 billion in 2024, reflecting a 16.9% increase from the previous year. Exports grew by 15.7% to $26.2 billion, while imports rose by 18% to $28.54 billion.
Cambodia’s top five trading partners remain China, the United States, Vietnam, Thailand, and Japan, underscoring its growing role in regional and global commerce.
With increasing foreign investment, expanding SEZs, and rising trade volumes, Cambodia continues to position itself as a prime destination for international manufacturers and businesses.
