China has emerged as the largest investor in Cambodia globally. In 2022, China accounted for a substantial 43% share of all foreign direct investment in Cambodia. The key sectors of China’s investment in Cambodia encompass:

Infrastructure

China’s investment in Cambodia’s infrastructure has been substantial, with a particular focus on roads, bridges, airports and seaports. Such investment has greatly enhanced Cambodia’s connectivity, making it easier for businesses to operate within the country.

Property

Chinese investors are actively engaging in residential, commercial and industrial property investment in Cambodia. The country offers attractive affordability, enormous potential for capital growth, robust overall economic growth and political stability.

Energy

China has made a significant investment in Cambodia’s energy sector, including in hydropower dams and thermal power plants. This has effectively addressed Cambodia’s escalating energy requirements while concurrently decreasing reliance on imported energy sources.

Industry

China’s investment initiatives extend to various industrial projects in Cambodia, such as garment factories, cement plants and steel mills. This, in turn, has driven employment opportunities and fostered exports, contributing to Cambodia’s overall economic progress.

Tourism

Cambodia greatly benefits from Chinese tourists, who make up a significant percentage of the tourist sector. Chinese investors have actively participated in developing numerous tourism projects in Cambodia, including hotels, casinos and theme parks.

China’s investment in Cambodia has significantly impacted the Cambodian economy, propelling economic growth, generating employment and actively reducing poverty.

Chinese Investment in Cambodian Property

Sihanoukville, Cambodia

Chinese investment in Cambodian property significantly increased in 2022, and is estimated to be worth US$3 billion, which is an impressive 50% increase from the previous year when investment was around US$1.5 billion. The 2022/23 Cambodia Investment Climate Assessment report by the World Bank attributes this growth to several factors, including:

• Strong economic growth in Cambodia: Cambodia’s economy is expanding rapidly, resulting in an increased demand for property.
• Affordability of property in Cambodia: Compared with other nations in the region, the cost of property in Cambodia is relatively low.
• Potential for capital growth: As the Cambodian property market grows, there is significant potential for capital growth.
• Political stability in Cambodia: As a politically stable country, Cambodia has become an attractive investment destination.

Chinese investment in Cambodian property has had a major impact on Cambodia’s economy by boosting economic growth, generating job opportunities and attracting foreign tourism.