Invest In Cambodia

Preah Vihear province has inaugurated a new natural rubber processing plant, opening up fresh market opportunities for the resource while enhancing livelihoods and promoting ecological balance.

Deputy Prime Minister and Minister of Civil Service H.E. Hun Many presided over the inauguration ceremony of the facility, which is operated by domestic investor Try Pheap Import Export Co. Ltd., on January 28.

Expressing strong support for the investment, the deputy prime minister emphasized the plant’s role in expanding Cambodia’s natural rubber market. He highlighted that the facility would not only generate income for local communities and factory workers but also contribute to forest cover expansion, aiding ecological preservation.

Minister of Agriculture, Forestry, and Fisheries H.E. Dith Tina also addressed the event, recognizing the critical role of private sector engagement, such as the investment from Try Pheap Group, in advancing agricultural development and improving livelihoods.

Preah Vihear Provincial Governor H.E. Kim Rithy extended his appreciation to the deputy prime minister, the agriculture minister, and the investor for their support. He expressed confidence that the new processing facility would significantly bolster the local economy and enhance the well-being of residents in the province.

Beyond the investment in rubber processing, Try Pheap Group is also developing essential infrastructure and facilities, including roads, schools, markets, pagodas, and healthcare centers, to support both factory workers and nearby communities.

Source: Ministry of Information

The Royal Group Phnom Penh Special Economic Zone (RGPPSEZ) announced a record-breaking export value of $1.88 billion in 2024, representing a 16% increase from the previous year. This achievement highlights the critical role of RGPPSEZ and other special economic zones (SEZs) in driving Cambodia’s industrial growth and attracting foreign investment.

Exports from RGPPSEZ’s more than 100 factories and enterprises have shown remarkable growth over the years, increasing from $316 million in 2016 to $683 million by 2021 and doubling within two years to $1.62 billion in 2023. The $1.88 billion milestone in 2024 accounts for approximately 7% of Cambodia’s total export value of $26.66 billion.

Key Contributions and Growth

RGPPSEZ, which now hosts 113 companies from 15 countries, has become a significant contributor to Cambodia’s economy. These companies, operating in sectors such as electronics, energy, vehicle assembly, and automotive parts manufacturing, have created 47,800 jobs for Cambodians and employed 700 foreign experts.

In 2024, the zone welcomed five new companies, enhancing the Kingdom’s supply chain and industrial capabilities. “These achievements inspire us to continue providing an exceptional environment for investors while contributing to Cambodia’s economic development,” stated RGPPSEZ.

National Strategy for SEZ Development

The Ministry of Commerce reported that by the end of 2024, Cambodia had approved 49 investment projects within SEZs, with 26 currently operational. These zones provide vital infrastructure such as roads, energy, and one-stop service offices, streamlining operations for manufacturing and exports.

Sam Soknoeun, chairman of SAM SN GROUP, stressed the importance of SEZs in attracting foreign investors and revealed plans for a Cambodia-Japan Special Economic Zone to strengthen economic ties between the two nations.

At the “Special Investment Promotion Program in Sihanoukville 2024,” Prime Minister Hun Manet shared the government’s vision for developing SEZs tailored to specific industries and countries. These zones aim to attract investments in green technology, digital sectors, and other innovative fields.

“Our future SEZs will be designed to accommodate diverse industries, supporting Cambodia’s transformation into a hub for sustainable and innovation-driven investments,” said the Prime Minister.

As Cambodia continues to refine its SEZ strategies, zones like RGPPSEZ are set to play an even greater role in attracting foreign direct investment and fostering industrial growth.

Source: Phnompenhpost

The industrial sector is set to drive Cambodia’s economic growth in 2025, with an anticipated expansion of 8.6%, according to the Budget in Brief Fiscal Year 2025 released by the Ministry of Economy and Finance. This follows a growth rate of 8.5% in 2024, cementing the sector’s pivotal role in the Kingdom’s development.

Despite facing domestic and international challenges, Cambodia’s economy is projected to grow by 6.3% in 2025. The industrial sector is expected to lead this progress with an 8.6% increase, supported by the services sector at 5.6% and the agriculture sector at 1.1%.

Key Sectors Driving Growth

The report attributes the robust growth of the industrial sector to the stability of both garment and non-garment manufacturing sub-sectors. The garment industry is nearing pre-pandemic growth levels, spurred by rising global demand and the implementation of the “Cambodian Garment, Footwear, and Bag Sector Development Strategy 2022-2027.” Meanwhile, the non-garment manufacturing sub-sector continues to expand due to sustained external demand. Growth in food and beverage manufacturing is also expected to remain positive.

However, the construction sector is projected to grow at a slower pace due to reduced foreign investment, particularly in tourism-related and commercial projects. Residential construction is also anticipated to grow below pre-pandemic levels.

The services sector, forecasted to grow by 5.6% in 2025, is buoyed by steady improvements in hospitality, food services, and tourism-related industries. The agriculture sector, with a modest projected growth of 1.1%, will be driven by positive trends in crop and livestock production, alongside a gradual recovery in fisheries.

Also Read, Cambodia’s Economic Growth in 2025: Key Sectors Driving Progress

Factors Supporting Economic Growth

Hong Vanak, an economist at the Royal Academy of Cambodia, highlighted political stability, reforms to investment laws, and the development of skilled human resources as significant factors contributing to increased investments. These efforts have particularly bolstered the establishment of factories and manufacturing enterprises aimed at exports.

Additionally, the government’s proactive approach to securing trade agreements with multiple countries has played a crucial role in attracting investors. Vanak remarked, “As more investors set up factories, exports will increase. The manufacturing sector will remain a key export commodity with great potential for Cambodia.”

With its strong performance in manufacturing and sustained growth in services and agriculture, Cambodia’s economy appears well-positioned to navigate the challenges ahead and sustain long-term development.

Source: Phnom Penh Post