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The Better Cambodia > Blog > Investment > Xingtai Shunhe Eyes Investment in Cambodia’s Ethanol-Based Fuel Sector
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Xingtai Shunhe Eyes Investment in Cambodia’s Ethanol-Based Fuel Sector

Last updated: July 24, 2025 2:39 am
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Xingtai Shunhe Eyes Investment in Cambodia’s Ethanol-Based Fuel Sector
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Phnom Penh, July 24, 2025 — Xingtai Shunhe Biotechnology Co., Ltd., a major operator of over 70 private fuel stations in China, has expressed strong interest in investing in Cambodia’s renewable energy sector—particularly ethanol-based fuels—as part of efforts to deepen China–Cambodia cooperation in the energy domain.

The announcement came during a high-level meeting between Xingtai’s President Li Jie and H.E. Chea Vuthy, Secretary-General of the Cambodian Investment Board (CIB) under the Council for the Development of Cambodia (CDC), held at the CDC headquarters on July 23.

Welcoming the Chinese delegation, Vuthy described the visit as timely, coinciding with Cambodia’s emergence as one of the most attractive investment destinations in Southeast Asia.

“China has consistently ranked as either the number one or number two source of foreign direct investment into Cambodia over the past decade,” Vuthy stated, noting that investment flows from China have played a significant role in driving Cambodia’s industrial growth and economic diversification.

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To enhance local value creation and reduce dependency on imports, Vuthy urged Chinese investors to consider utilising locally produced raw materials and semi-finished goods in their operations within Cambodia. He emphasised that such initiatives would strengthen domestic supply chains and boost local employment.

Li Jie briefed the CDC leadership on Xingtai Shunhe’s operations in China, highlighting the company’s expertise as a leading ethanol fuel supplier for a wide range of sectors including automotive, maritime, aviation, and food processing industries.

She noted that Cambodia presents a compelling opportunity for Xingtai Shunhe to expand its footprint in clean energy.

“Our leadership team is exploring investments in Cambodia’s renewable energy sector, particularly ethanol fuel production and distribution. We aim to contribute to Cambodia’s long-term energy security and help reduce its environmental footprint,” said Jie.

The proposed investment aligns with Cambodia’s broader push toward sustainable development and green energy solutions.

Lim Heng, Vice-President of the Cambodia Chamber of Commerce, welcomed the news and reaffirmed that the strong diplomatic and trade relations between Cambodia and China have become a major driver of foreign investment.

“Cambodia’s strategic geographic position, investment-friendly policies, young and abundant labour force, robust infrastructure, and preferential trade access to global markets make the country a prime location for investors from China and beyond,” he said.

He also highlighted that Chinese companies are active across nearly all economic sectors in Cambodia, from infrastructure and construction to manufacturing and technology.

Trade data from the General Department of Customs and Excise of Cambodia (GDCE) illustrates the growing economic ties. In the first half of 2025, bilateral trade between Cambodia and China reached $9.28 billion, a sharp 26.9% increase over the same period in 2024. However, the trade deficit widened, with Cambodia’s exports to China falling by 7.9% to $750.62 million, while imports surged by 31.2% to $8.53 billion.

As a result, the trade deficit stood at $7.78 billion, compared to $5.68 billion in the first half of 2024. Despite the imbalance, trade with China accounted for 30.34% of Cambodia’s total international trade volume in the first half of 2025, underscoring the significance of the bilateral economic relationship.

The potential entry of Xingtai Shunhe into Cambodia’s energy sector could represent a new chapter in the countries’ cooperation, particularly in promoting clean energy and advancing sustainable industrial development in the Kingdom.

Also read, Cambodia Taps Qatari Investment to Scale Up Agro-Exports

SOURCES:The Phnom Penh Post

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