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Cambodia Tops List of Emerging Markets for Investment in 2024

PHNOM PENH, May 17, 2024 — Cambodia has been ranked the number one emerging market for investment in 2024, according to a recent report by fDi Intelligence. The report highlights the top ten emerging markets, with Cambodia leading the pack due to its robust GDP growth, low inflation rate, and significant increases in foreign direct investment (FDI) metrics.

The report shows Cambodia achieving a GDP growth of 6.1%, an inflation rate of 3.0%, a 393% increase in FDI capital expenditure, and a 110% growth in FDI projects. These impressive statistics underscore Cambodia's growing appeal to investors and its strategic importance in the global market.

The Philippines follows Cambodia, with a GDP growth of 5.9% and a 312% increase in FDI capital expenditure. Kenya, Iraq, and Namibia also feature prominently in the list, showcasing diverse opportunities across various regions.


Cambodia's top ranking is a testament to the country's proactive measures to attract foreign investment. The Royal Government of Cambodia has implemented policies to streamline business processes, enhance infrastructure, and foster a conducive investment environment. These efforts have paid off, as reflected in the substantial growth of FDI projects and capital expenditure.


Cambodia's economy has diversified beyond its traditional reliance on the garment sector. Non-garment exports, including electrical and vehicle parts, have expanded, accounting for 13% of total exports in 2023, up from 5% in 2019. This diversification has bolstered the country's economic resilience and attractiveness to foreign investors.


The tourism sector, a significant contributor to Cambodia's economy, has also seen a robust recovery. In 2023, international tourist arrivals reached 5.4 million, approaching 82% of pre-pandemic levels. This resurgence in tourism, combined with stable FDI inflows—remaining around 10% of GDP in 2022-23—further strengthens Cambodia's economic position.


While the outlook is positive, Moody's Investors Service has noted potential risks, particularly in the real estate sector. A downturn in this sector could impact financial stability and the banking system. Nonetheless, Cambodia's efforts to diversify its investment sources and sectors are expected to mitigate these risks.


Other countries in the top ten list include Kazakhstan, Azerbaijan, Morocco, Serbia, and India, each presenting unique opportunities and challenges. For instance, Namibia saw the highest growth in FDI capital expenditure at 570%, highlighting its emerging potential despite a lower GDP growth rate of 2.7%.


Cambodia's emergence as the top market for investment in 2024 underscores its dynamic economic growth and strategic initiatives to attract and sustain foreign investment. As the country continues to develop its infrastructure and diversify its economy, it stands as a compelling destination for global investors seeking opportunities in emerging markets.

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