The main advantages of Cambodia's investment environment are:
(1) The implementation of an open free market economic policy, highly liberalized economic activities, and free circulation of US dollars.
(2) 28 countries/regions such as the United States, the European Union, and Japan grant GSP to Cambodia.
(3) Rich labor resources, low cost, and obvious demographic dividend.

1. Macroeconomics
Since 2011, Cambodia’s GDP has maintained an annual growth rate of more than 7% for 9 consecutive years. In 2019, Cambodia’s GDP reached 26.8 billion US dollars with a growth rate of 7.1%, and the per capita GDP reached 1,679 US dollars; its foreign direct investment (FDI) was US$3.6 billion, showing a year-on-year increase of 12%. Chinese investment accounted for 43% of the total FDI.
Cambodia's economy remains favorable, and various sectors maintain rapid development. Apparel and footwear processing, tourism, construction, and agriculture are the pillar sectors of Cambodia’s traditional economy. In the first ten months of 2019, the total export value of the garment processing industry reached 10.8 billion US dollars; manufacturing, construction, and real estate attracted 9.3 billion US dollars of investment, mainly from China, South Korea and Japan; in the first nine months of 2019, Cambodia issued a total of 3,433 construction project permits, an increase of 35% over the same period in 2018. The rapid development of the construction sector reflects investors' confidence in Cambodian politics and macroeconomic stability. The number of foreign tourists visiting Cambodia in the tourism sector reached 5.29 million in the first 10 months of 2019, including more than 2 million Chinese tourists.

2.   Financial Environment
The currency of Cambodia is Riel, and the exchange rate is basically stable at 4,000 Riel to 1 US dollar. The dollar circulates freely in the market. Over the past decade, the US dollar has become the main medium of exchange for Cambodian society, with circulation accounting for more than 80% of the total market currency circulation.
According to the Cambodian Foreign Exchange Law: residents are allowed to freely hold foreign exchange. Foreign exchange business through authorized banks is not regulated.

3.   Infrastructure
Transportation in Cambodia is dominated by road and river transport. Road transportation is the most important mode of transportation in Cambodia, accounting for 65% of total passenger transportation and 69% of freight transportation. As of the end of 2018, the total length of the Cambodian road network is approximately 78,261 kilometers, including 24,300 kilometers of primary roads and 54,000 kilometers of secondary roads. At present, the first expressway- Phnom Penh–Sihanoukville Expressway is under construction.

Cambodia’s water transportation is divided into sea transportation and river transportation. Sihanoukville is the only deep-water harbor in Cambodia with two berths. Particularly, the lengths of its piers are 240 meters and 160 meters respectively, and the front water depth is 9 meters. The total length of the inland water system in Cambodia is about 1,750 kilometers during the rainy season, and in dry season it is reduced to 580 kilometers. Moreover, there are 7 major river transport ports in the country, including Phnom Penh Port, Kampong Cham Port, Kratie Port, Stung Treng Port, Neak Loeang Port, Kampong Chhnang Port and Chong Khneas Port.

Uneven Regional Development

In the picture, all provinces are marked in four colors respectively, from dark to light, representing the level of economic development of each province. Phnom Penh and Kandal Province are the darkest and the most economically developed provinces. In addition, there are three more developed areas along the coast.
(1) Coastal Economic Belt
(2) Mekong Economic Belt
(3) Tonle Sap Economic Belt