Cambodia is a country that has been attracting more and more attention from investors in recent years. The Southeast Asian nation has achieved remarkable economic growth, political stability, and social development, despite the challenges posed by the COVID-19 pandemic. In 2024, Cambodia is expected to offer even more opportunities and advantages for investors who are looking for a dynamic and emerging market.
Here are some of the reasons why you should consider investing in Cambodia in 2024.
Solid Economic Growth
Cambodia has been one of the fastest-growing economies in the world, averaging 7.1% annual growth from 2010 to 2019. The country has successfully diversified its economy from a reliance on garments and tourism to a more balanced mix of manufacturing, agriculture, construction, and services. In 2024, Cambodia’s economy is projected to grow by 6.5%, driven by the recovery of domestic and external demand, the expansion of public investment, and the implementation of trade agreements.
Strategic Geographical Location
Cambodia is strategically located in the heart of Southeast Asia, a region with a population of over 650 million and a GDP of over $3 trillion. Cambodia shares borders with Thailand, Vietnam, and Laos, and has access to the Gulf of Thailand and the South China Sea. This gives Cambodia a competitive edge in terms of trade, logistics, and connectivity. Cambodia is also a member of the Association of Southeast Asian Nations (ASEAN), the Regional Comprehensive Economic Partnership (RCEP), and the Cambodia-China Free Trade Agreement (CCFTA), which provide preferential market access and tariff reductions for Cambodian exports and imports.
Favourable Investment Climate
Cambodia offers a favourable investment climate for foreign investors, with a liberal and open policy regime, a low-cost and young workforce, and a supportive legal framework. Cambodia has no restrictions on foreign ownership, capital repatriation, or currency exchange. Cambodia also offers various incentives and benefits for investors, such as tax holidays, duty exemptions, and investment guarantees. Cambodia ranks 144th out of 190 economies in the World Bank’s Ease of Doing Business 2023 report, an improvement of 13 places from 2022. The government is committed to further improving the business environment and reducing the costs and risks of doing business in Cambodia.
Abundant Natural Resources
Cambodia has abundant natural resources that offer potential for investment and development. The country has rich agricultural land, water resources, and biodiversity, as well as untapped mineral, oil, and gas deposits. Cambodia is also endowed with renewable energy sources, such as hydropower, solar, wind, and biomass. Cambodia aims to become a green economy by 2030, and has launched several initiatives and policies to promote sustainable and inclusive growth, such as the National Strategic Plan on Green Growth, the Long-term Strategy for Carbon Neutrality, and the Partnership for Action on Green Economy.
Growing Infrastructure Development
Cambodia has been investing heavily in infrastructure development to enhance its connectivity, productivity, and competitiveness. The country has been upgrading and expanding its road, rail, port, and airport networks, as well as its power, water, and telecommunications systems. Cambodia has also been collaborating with regional and international partners, such as China, Japan, Korea, and the Asian Development Bank, to finance and implement major infrastructure projects, such as the Phnom Penh-Sihanoukville Expressway, the Cambodia-China Friendship Bridge, and the Lower Sesan 2 Hydropower Plant.
Cambodia is a country that offers many opportunities and advantages for investors who are looking for a dynamic and emerging market. The country has a solid economic growth, a strategic geographical location, a favourable investment climate, abundant natural resources, and a growing infrastructure development. In 2024, Cambodia is expected to continue its economic and social progress, and to attract more foreign direct investment and trade. If you are interested in investing in Cambodia, you can find more information and guidance from the Council for the Development of Cambodia, the Cambodian Investment Board, and the Cambodian Chamber of Commerce.