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In 2024, the China undeniably stands out as the first foreign investor At Cambodia, attracting almost 50% of foreign direct investment in this country. This remarkable dynamism is the result of strategic trade agreements and incentive reforms, which make Cambodia a real platform for Chinese and international investors. In a context where the political stability and a constantly improving legal framework are increasingly attracting foreign capital, the trend does not seem ready to reverse.
In 2024, the China established itself as the main foreign investor in Cambodia, representing almost 50% of foreign direct investment (FDI) of the country. This growth is the result of strategic trade agreements and attractive reforms, which create an environment conducive to business.
Chinese dominance in foreign investments
According to a report from Cambodia Development Council (CDC), the China invested nearly $34.25 billion, or approximately 49.83% of the IDE totals recorded at Cambodia in 2024. This represents a colossal share of $6.9 billion of capital invested over the year.
To shed some light on this phenomenon, it is interesting to note that national investors take second place with 33.81% investments, followed by Vietnam with 8.11%. Other nations like South Korea, Singapore, THE Japan, and European countries like Canada and the United Kingdom also contribute to this dynamic.
Strategic trade agreements
One of the drivers of this rise in Chinese investment is undoubtedly the framework of free trade agreements. TheCambodia-China Free Trade Agreement (CCFTA) and the Regional Comprehensive Economic Partnership (RCEP) play a key role in attracting foreign investment.
According to Mr. Lim Heng, Vice President of the Cambodia Chamber of Commerce, these agreements position Cambodia as an essential platform for exports. Their impact is palpable because they attract Chinese investors but also other nationalities, who find interesting opportunities here. Stability and reforms: the pillars of attractiveness The impressive increase in
investments
was attributed by H.E. Sun Chanthol , Deputy Prime Minister and First Vice-President of the CDC, to several determining factors: Peace and political and macroeconomic stability that reassure investors,A constantly improving legal framework,
- Continued economic growth, thus attracting investment flows.
- The Royal Government of
- Cambodia
has also implemented initiatives to facilitate investments. Among them, a simplified project validation system. For H.E. Sun Chanthol , these measures foster a favorable business climate, essential to attract more investors.Outlook for the future With the Chineseeconomy struggling to maintain a constant growth rate, with figures reaching only
5% in 2024, the deepening of relations between
China and Cambodia could play a crucial supporting role. Investments in different sectors are essential for sustainable and inclusive development.The evolution of relations between these two nations will be one to watch closely. Other future-oriented initiatives, such as infrastructure projects and investments in technology, could continue to solidify this dominant position. For more details on the current situation, see the information on the growth of China and on ongoing reforms, available on Le Figaro .
FAQs on Chinese investments in Cambodia in 2024 What share of foreign direct investment in Cambodia comes from China in 2024? In 2024, China represents nearly 50%foreign direct investment (FDI) in Cambodia.
What is the total amount of foreign investments in Cambodia for the year 2024?
The total amount of foreign direct investment recorded in Cambodia in 2024 amounts to $6.9 billion
. How does China stack up against other investors? China ranks first with$34.25 billion
, followed by national investors with 33.81% and Vietnam with 8.11% .What trade agreements contributed to these investments? Agreements such as the Cambodia-China Free Trade Agreement (CCFTA) and the Regional Comprehensive Economic Partnership (RCEP) have been instrumental in attracting new investments. What factors were mentioned to explain the increase in investments? Factors include peace andpolitical stability
, an improved legal framework, and the economic growth
continues. What initiatives has the Cambodian government put in place to encourage investments? The royal government has established initiatives such as asimplified project validation system to encourage a favorable business climate.