Phnom Penh, Sept. 18, 2025 – Special Economic Zones (SEZs) are emerging as a key driver in attracting foreign direct investment (FDI) to Cambodia, particularly from China. According to official figures, Chinese direct investment in the Kingdom reached approximately $3.4 billion in 2024, a sharp rise from under $500 million in 2012.
Deputy Prime Minister H.E. Sun Chanthol, First Vice-President of the Council for the Development of Cambodia (CDC) and Co-Chair of the Cambodia-China Intergovernmental Coordination Committee, shared the rapid expansion during a working meeting with Chinese Foreign Minister H.E. Wang Yi in Beijing on September 16.
Also in attendance were Cambodian Ambassador to China Soeung Rathchavy, Minister of Commerce Cham Nimul, Minister of Public Works and Transport Peng Ponea, and other senior officials.
Expanding Cooperation Across Key Sectors
The meeting focused on strengthening cooperation under the Cambodia-China Free Trade Agreement (FTA), the Cooperation Memorandum of Understanding (MoU), and other bilateral mechanisms. Key projects under discussion included the Funan Techo Canal, improvements to National Road No. 3 linking Kampot to Veal Rinh, the construction of the National Road No. 7 section from Romeat to Trapeang Kreal, and the modernization of the wastewater treatment system in Preah Sihanouk province.
Both sides also explored ways to expand Cambodian exports to China, particularly fish and rice, through the creation of a dedicated agricultural corridor. These initiatives are seen as vital in enhancing connectivity, improving infrastructure, and boosting trade under the FTA framework.
H.E. Sun Chanthol expressed deep gratitude to the Chinese government for the warm welcome, which he said reflected the strong and enduring friendship between Cambodia and China. He also congratulated China on the successful hosting of the Shanghai Cooperation Organisation Plus Summit.
SEZs as Engines of Growth
Sun Chanthol underscored that SEZs have played a vital role in drawing investors by offering integrated infrastructure and streamlined administrative processes. Cambodia has so far approved 57 SEZs, with 11 backed by Chinese investment. Between 2020 and July 2025, nearly 400 investment projects were launched within these zones.
“Special Economic Zones are playing a vital role in attracting foreign direct investment, especially from China, into Cambodia,” he noted, highlighting the supportive infrastructure, single-window administrative services, and favorable conditions offered to enterprises.
Sam Soknoeun, chairman of SAM SN Group, echoed this view, saying SEZs are equipped with roads, reliable energy, and simplified processes, making them highly attractive to investors. “All business activities of factories and enterprises within SEZs are very convenient—from importing raw materials for production to exporting finished products to international markets,” he explained.
Strengthening the “Ironclad” Partnership
Wang Yi praised the “Diamond Cooperation” between China and Cambodia, which he said enhances their “ironclad” friendship, fosters mutual trust, and builds a shared future.
The General Department of Customs and Excise (GDCE) reported that Cambodia-China bilateral trade reached $12.7 billion in the first eight months of 2025, up 26% compared to the same period in 2024. Cambodian exports to China totaled $1.06 billion, down 8%, while imports surged 30.4% to $11.64 billion.
With SEZs at the forefront of Cambodia’s economic strategy and a growing portfolio of infrastructure and agricultural projects, officials believe Cambodia–China cooperation will continue to serve as a powerful engine for investment, trade, and development.
Also read, Cambodia and China Sign Agreement on Mekong-Lancang Cooperation Special Fund 2025
