Preah Sihanouk – Chinese automotive giant BYD Company, a global leader in electric and plug-in hybrid vehicle manufacturing, has officially commenced construction of its new assembly plant within the special economic zone (SEZ) of Preah Sihanouk province. The project marks a significant step in Cambodia’s growing automotive industry, with the facility expected to have an initial production capacity of 10,000 vehicles annually.
Operating as a subsidiary of BYD Auto Industry, the venture represents an initial investment of approximately USD 32 million. A groundbreaking ceremony was held on April 28, officiated by Sun Chanthol, First Vice-President of the Council for the Development of Cambodia (CDC), alongside Chinese Ambassador Wang Wenbin.
According to the CDC’s official statement, the new facility will function as a Completely Knocked Down (CKD) assembly plant, importing vehicle components for final assembly at the site in Cambodia. Covering 12 hectares, the construction is scheduled for completion by October 2025, with manufacturing operations targeted to commence by early November.
Speaking at the groundbreaking ceremony, Sun Chanthol expressed appreciation to BYD for selecting Cambodia as the location for its new investment. He recalled leading a Cambodian delegation to BYD’s headquarters in Shenzhen in October 2023, where proactive discussions helped secure this commitment.
“The Chinese government has played a significant role in Cambodia’s socio-economic development through initiatives such as the Belt and Road Initiative. This partnership was further reinforced during the recent state visit of Chinese President Xi Jinping,” Chanthol stated.
He added that BYD’s decision to invest reflects the growing confidence of foreign investors in Cambodia’s business environment and in the CDC’s facilitation efforts. He highlighted ongoing government initiatives aimed at improving the investment climate, including updated investment laws, proactive engagement with potential investors, and the simplification of administrative procedures.
The establishment of BYD’s new facility further strengthens Cambodia’s automotive sector, which currently hosts nine assembly plants, six of which are located in special economic zones. Prime Minister Hun Manet recently highlighted this development during an address on April 22.
In the broader investment landscape, the first quarter of 2025 saw the CDC approve 172 projects, representing a total investment value of USD 2.5 billion. These projects are anticipated to create nearly 120,000 jobs across the country. Of the total investment, approximately 56 percent originated from Chinese sources, with Preah Sihanouk province alone securing 16 new projects.
BYD’s investment in Cambodia not only adds momentum to the country’s burgeoning automotive industry but also reinforces Cambodia’s position as an attractive destination for high-value manufacturing in Southeast Asia.
