Cambodia is entering a new era of openness and competitiveness. Prime Minister Hun Manet recently announced that the Royal Government now permits 100% foreign ownership in nearly all sectors, removing the previous requirement for local shareholding. This landmark reform is designed to attract global investors, strengthen Cambodia’s role in ASEAN, and provide long-term clarity and predictability for businesses.
To complement this policy, Cambodia is offering tax holidays of up to 14 years, making the country one of the most investor-friendly destinations in Southeast Asia. These measures are expected to boost foreign direct investment (FDI), create jobs, and accelerate Cambodia’s integration into regional and global supply chains.
Key Highlights of the Policy
Full Ownership Rights: Foreign investors can now establish businesses without mandatory local partners.
Extended Tax Holidays: Incentives lasting up to 14 years reduce operational costs and improve ROI.
Investor Confidence: The government emphasizes transparency, trust, and long-term predictability.
Regional Competitiveness: Cambodia aims to capture a larger share of ASEAN’s growing FDI inflows.
Key Sectors Open to 100% Foreign Ownership
Cambodia’s new policy covers nearly all industries, but several sectors stand out as particularly promising in 2026.
Real Estate The real estate sector is booming, driven by urbanization, tourism, and expat demand. Phnom Penh continues to attract commercial and residential development, while coastal cities such as Kampot and Sihanoukville are emerging as hotspots for long-stay tourism and retirement living. Investors can capitalize on residential developments, serviced apartments, and commercial projects catering to international tenants.
Manufacturing Manufacturing remains Cambodia’s backbone, with garments and footwear leading exports. In 2026, diversification into electronics and light manufacturing is accelerating, supported by trade agreements and competitive labor costs. Investors can benefit from Cambodia’s integration into global supply chains and rising demand for sustainable production.
Tourism Tourism is rebounding strongly, with Cambodia’s cultural heritage sites, eco-tourism destinations, and coastal resorts attracting international visitors. Long-stay tourism is a growing trend, creating opportunities in hospitality, serviced apartments, and niche tourism ventures such as wellness retreats and adventure travel.
Infrastructure Infrastructure development is critical to sustaining growth. Major projects in transport, logistics, and renewable energy are underway, offering opportunities for foreign investors to participate in public-private partnerships. Roads, ports, and energy facilities are essential to support manufacturing and tourism expansion.
Digital Finance and Technology Cambodia’s young population is driving rapid adoption of digital services. Fintech, e-commerce, and digital payment platforms are expanding, supported by government initiatives for digital transformation. Investors can tap into this fast-growing sector by introducing innovative solutions in banking, logistics, and online retail.
Opportunities in 2026
Each of these sectors presents unique opportunities for investors in 2026.
In real estate, demand for long-stay tourism housing and expat accommodation is rising, particularly in coastal provinces.
In manufacturing, Cambodia’s competitive labor costs and trade agreements make it an attractive alternative to regional peers.
In tourism, the rebound in international arrivals is fueling growth in eco-tourism, cultural heritage, and coastal resorts.
In infrastructure, foreign investors can participate in building transport networks, logistics hubs, and renewable energy projects.
In digital finance and technology, Cambodia’s youthful demographics and rapid digital adoption create fertile ground for fintech and e-commerce ventures.
Why Investors Should Pay Attention
Ease of Market Entry: No local partner requirement reduces complexity and speeds up business setup.
Tax Incentives: Up to 14 years of tax holidays improve ROI and reduce risk.
Strategic Location: Cambodia offers access to ASEAN’s $3 trillion economy and regional supply chains.
Growth Outlook: GDP growth projected at 5% in 2026, supported by tourism, manufacturing, and infrastructure expansion.
Cambodia’s Position in ASEAN
ASEAN attracted over $226 billion in FDI in 2025, and Cambodia is determined to capture a larger share of this inflow. By aligning with regional investment trends and offering competitive incentives, the country is sending a clear message: Cambodia is open for business.
With its strategic location, youthful workforce, and investor-friendly reforms, Cambodia is positioning itself as a rising hub for foreign investment in Southeast Asia.
Conclusion
The removal of local shareholding requirements and the introduction of extended tax incentives mark a turning point in Cambodia’s investment policy. For global businesses seeking new opportunities, this is the ideal time to explore Cambodia market entry and leverage the country’s investor-friendly environment.
Whether in real estate, manufacturing, tourism, infrastructure, or digital finance, Cambodia offers diverse opportunities in 2026. Investors who act now can secure a strong foothold in one of ASEAN’s most promising markets.
