PHNOM PENH, October 11, 2024 — At a networking session during the ASEAN Business and Investment Summit (ABIS) 2024 in Vientiane, Laos, Cambodian Prime Minister Hun Manet outlined the factors that position Cambodia as an emerging investment hub. Speaking on the sidelines of the 44th and 45th ASEAN Summits, Hun Manet emphasized the country's growing foreign direct investment (FDI) and favorable business environment.
Cambodia attracted $7.5 billion in FDI from September 2023 to September 2024, marking a significant increase of 161% compared to the previous year. This surge, he noted, reflects the strong confidence of international investors in the country's economy.
Hun Manet attributed this success to several factors, including the government's pro-business policies, strategic regional location, young and skilled workforce, and the allowance of 100% foreign ownership in most sectors. "We have implemented laws, policies, and strategies to enhance the business landscape, invested heavily in infrastructure, and promoted digitalization and sustainable development," he said. He added that Cambodia is "one of the most liberalized economies in the world," allowing foreign investors to fully own their projects without local partnership requirements, except for land ownership.
To further attract investment, Cambodia has introduced a new investment law offering generous incentives and streamlined registration processes. The government has also developed a program to boost investment in the less developed northeastern provinces bordering Laos and Vietnam, with plans to improve infrastructure and incentives in these areas. This effort includes a $36.68 billion Comprehensive Master Plan on Cambodia's Intermodal Transit and Logistics System for 2023-2030, encompassing 174 projects over the next decade.
Hun Manet also highlighted the Royal Government's efforts to create open channels for dialogue between the private sector and the government through regular forums, ensuring businesses can express their concerns and suggestions.
Amid global economic uncertainties, Hun Manet acknowledged the rise in protectionism, geopolitical conflicts, and non-traditional security threats that challenge recovery efforts. He praised ASEAN’s stance on neutrality and non-alignment as key to driving global growth and bridging gaps in multilateral trade.
Cambodia is actively expanding its market access and export opportunities through various bilateral free trade agreements, including those with China, South Korea, the Regional Comprehensive Economic Partnership (RCEP), and the Cambodia-UAE Comprehensive Economic Partnership Agreement. Additionally, the country continues to benefit from duty-free and quota-free market access under programs such as the Generalised Scheme of Preferences (GSP) and Everything But Arms (EBA) initiative.
Hun Manet expressed his appreciation to the ASEAN Business Advisory Council (ASEAN-BAC) for its efforts in organizing ABIS, a platform for leaders and the private sector to share insights on growth, integration, and sustainable development.
He underscored the importance of ASEAN in Cambodia’s economic integration, stating that the country has significantly benefited from regional cooperation. "We have shaped and solidified Cambodia’s commitment to inclusive multilateralism as we look toward a future of sustainable prosperity," he said, stressing the need for deeper integration to build a resilient, innovative, and people-centered ASEAN Economic Community.
"I am confident that by fully harnessing the immense potential of the region, we will elevate ASEAN to greater heights," Hun Manet concluded.
