Phnom Penh, October 8, 2025 — Cambodia has demonstrated remarkable economic momentum in 2025, with the government approving investment projects totaling $7.8 billion across 546 initiatives during the first nine months of the year, according to the latest report from the Council for the Development of Cambodia (CDC). This represents a substantial 47% year-on-year increase, signaling robust investor confidence in Cambodia’s emerging market economy.
Preah Sihanouk Province Leads Investment Growth
Preah Sihanouk Province, home to Cambodia’s premier deep-sea port, has emerged as a key beneficiary of the government’s special investment promotion program. The province has attracted significant attention from both domestic and international investors seeking to capitalize on Cambodia’s strategic location and business-friendly incentives.
As of mid-April 2025, the Working Group for Promoting Investment in Preah Sihanouk Province had approved special incentives for 287 projects with an estimated total investment of $6.875 billion. This demonstrates the province’s pivotal role in driving Cambodia’s economic transformation.
Q2 2025: Continued Investment Momentum
The second quarter of 2025 saw sustained growth in investment activity across Preah Sihanouk Province. The Provincial Investment Promotion Working Group approved 27 new business and investment projects valued at approximately $282 million, marking an 11% increase compared to the first quarter. These projects are expected to generate substantial employment opportunities and contribute to the province’s economic diversification.
Strategic Sectors Attracting Investment
Cambodia’s investment landscape in 2025 reflects a diverse mix of sectors, including:
- Manufacturing and light industry – Leveraging Cambodia’s competitive labor costs and preferential trade agreements
- Tourism and hospitality – Capitalizing on Preah Sihanouk’s coastal location and improving infrastructure
- Logistics and warehousing – Supporting Cambodia’s role as a regional trade hub
- Special Economic Zones – Offering enhanced incentives for export-oriented industries
- Real estate and construction – Meeting growing demand from both commercial and residential sectors
Government Incentives Driving Success
The Royal Government of Cambodia has implemented a comprehensive special investment promotion program specifically designed for Preah Sihanouk Province. This program offers:
- Streamlined approval processes through a single-entry mechanism
- Tax incentives for qualified investment projects
- Import duty exemptions for capital goods and raw materials
- Simplified licensing procedures for foreign investors
- Enhanced support for project implementation and monitoring
The success of this provincial initiative has prompted discussions about potentially expanding similar programs to other provinces across Cambodia.
Regional Investment Patterns
The first nine months of 2025 saw investment distributed across multiple provinces, with Preah Sihanouk Province consistently ranking among the top destinations. Other significant investment locations included:
- Svay Rieng Province – Benefiting from proximity to Vietnam border
- Phnom Penh – Attracting service sector and technology investments
- Koh Kong Province – Developing tourism and cross-border trade opportunities
- Kandal Province – Supporting industrial expansion near the capital
Chinese investments continued to play a significant role, comprising approximately 38% of total capital inflows, while domestic Cambodian investments also showed strong growth, reflecting increasing confidence among local entrepreneurs.
Job Creation and Economic Impact
The approved investment projects are projected to create over 200,000 jobs across various sectors, providing significant employment opportunities for Cambodia’s growing workforce. This job creation is particularly important for Preah Sihanouk Province, which is positioning itself as a major economic center beyond traditional industries.
The investment surge also supports Cambodia’s broader economic goals, including industrial diversification, export growth, and technological advancement.
Infrastructure Development Supporting Growth
Cambodia’s investment success in 2025 is supported by ongoing infrastructure improvements, particularly in Preah Sihanouk Province. Key developments include:
- Port expansion and modernization projects
- Road and highway connectivity improvements
- Power generation and distribution enhancements
- Digital infrastructure and telecommunications upgrades
- Industrial park and SEZ development
These infrastructure investments create an enabling environment for businesses and reduce operational costs for investors.
Looking Ahead: Investment Outlook for Late 2025 and Beyond
With 546 projects already approved in the first nine months and momentum continuing, Cambodia is on track to exceed $10 billion in approved investments for the full year 2025. The government’s commitment to maintaining stable policies, improving business regulations, and offering competitive incentives positions Cambodia as an increasingly attractive destination for regional and international investment.
The Investment Promotion Working Group continues to monitor, review, and promote the implementation of approved projects while actively seeking new investment opportunities that align with Cambodia’s development priorities.
Why Invest in Cambodia’s Preah Sihanouk Province?
For businesses considering market entry into Cambodia, Preah Sihanouk Province offers compelling advantages:
- Strategic location – Direct access to international shipping routes through Cambodia’s only deep-sea port
- Special incentives – Generous tax breaks and regulatory support unavailable in other regions
- Growing market – Rapid economic development creating new business opportunities
- ASEAN integration – Access to regional trade agreements and supply chains
- Government support – Dedicated investment promotion team providing hands-on assistance
Conclusion
Cambodia’s investment performance in 2025 demonstrates the country’s successful transformation into a competitive investment destination in Southeast Asia. With $7.8 billion in approved projects across 546 initiatives in just nine months, and Preah Sihanouk Province leading the charge with specialized incentives and infrastructure development, Cambodia offers significant opportunities for investors seeking growth markets.
The combination of government support, strategic location, competitive costs, and improving business infrastructure makes Cambodia an increasingly attractive option for businesses looking to expand in the ASEAN region.
About Cambodia Market Entry
Cambodia Market Entry (www.cambodiamarketentry.com) provides comprehensive business intelligence, market analysis, and investment guidance for companies exploring opportunities in Cambodia. Stay updated with the latest investment news, regulatory changes, and market trends shaping Cambodia’s business landscape.
Contact us to learn more about investment opportunities in Preah Sihanouk Province and across Cambodia.
