Cambodia is calling on Chinese investors to move beyond low cost manufacturing and put more capital into higher value industries as the Kingdom works to strengthen its industrial base, improve technology and skills, and build stronger connections between foreign investors and local businesses.
The message was delivered by Industry Minister Hem Vanndy at the closing of the China ASEAN Entrepreneurs Summit in Phnom Penh on Tuesday. He said Cambodia’s investment strategy should focus not simply on attracting more capital, but on securing investment projects that create greater economic value and wider benefits for the country.
“Cambodia’s next stage of industrial growth depends not only on attracting more investment, but on attracting investment that brings technology, skills, local supply chains and greater value to the economy.”
Cambodia Seeks Higher Quality Investment, Not Just More Capital
Vanndy said the Kingdom needs to rethink what it expects from foreign investment as it seeks to upgrade its industrial economy. Rather than measuring success by the amount of capital entering the country, Cambodia wants projects that generate broader economic benefits and strengthen the foundations of long term growth.
“The important question now is not simply how Cambodia can attract more investment,” Vanndy said. “The more important question is how we can attract higher-quality investment that generates greater economic spillovers and creates more value.”
The minister’s remarks reflect Cambodia’s growing focus on improving the quality of investment entering the country. Higher value projects can help create better employment opportunities, strengthen technical capabilities and encourage greater participation by Cambodian companies in domestic and international supply chains.
Chinese Investors Encouraged to Build Stronger Local Business Links
Vanndy encouraged Chinese companies operating or investing in Cambodia to establish stronger relationships with Cambodian businesses. He called for greater use of local inputs, the development of domestic suppliers and closer partnerships with small and medium sized enterprises.
Such connections could allow Cambodian businesses to participate more directly in major investment projects instead of remaining separate from foreign owned production networks. Connecting local firms with regional and global value chains could also create opportunities for Cambodian companies to expand their capabilities and reach new markets.
The minister said stronger investment linkages would help Cambodia capture more benefits from major projects through job creation, skills development, technology transfer and greater economic resilience. For businesses and investors, the approach also points toward a more integrated investment environment in which foreign and domestic companies work together across supply chains.
Cambodia Targets Electronics, Automobiles and Green Manufacturing
The government is encouraging greater Chinese investment in sectors with stronger potential for technology, productivity and value creation. These include electronics, automobiles and components, machinery, agro processing, green manufacturing and digital technology.
Vanndy stressed that Cambodia’s future competitiveness cannot depend solely on low cost labour. Moving toward more sophisticated industries would require greater investment in technology, skilled workers, technical expertise and industrial capabilities.
For Cambodia, attracting investment into these sectors could support the country’s broader industrial upgrading ambitions while creating opportunities for local enterprises to develop alongside international companies. It could also help diversify the industrial base and increase the value generated within the domestic economy.
China Remains Cambodia’s Largest Source of Approved Investment
China continues to play a major role in Cambodia’s investment landscape. Official figures show that Chinese capital reached $5.42 billion in approved investment in 2025, representing more than half of Cambodia’s total approved investment.
The scale of Chinese investment gives Chinese companies an important role in Cambodia’s next phase of industrial development. The government is therefore seeking to deepen the economic impact of this investment by encouraging projects that involve local suppliers, develop Cambodian workers and introduce new technologies.
For Cambodia, the objective is not to reduce foreign investment, but to increase the economic value generated from it. The shift could make the quality, sector and local impact of future investment increasingly important considerations for policymakers and investors.
Universities and Industry Urged to Work More Closely
The minister also called for stronger cooperation between industries, universities and research institutions in Cambodia and China. Such collaboration could support faster technology transfer, commercialization of research and technical training.
Closer links between businesses and educational institutions can help address the skills required by more advanced industries. As Cambodia seeks to attract investment in areas such as electronics, machinery, digital technology and green manufacturing, developing a workforce capable of supporting those industries will become increasingly important.
Officials said foreign investment should contribute more than factories and jobs. They emphasized the importance of innovation, human resource development and stronger connections with Cambodian enterprises as part of the country’s broader industrial development.
Cambodia Wants to Manufacture Better, Not Simply More
Cambodia’s message to Chinese investors is increasingly focused on the quality and long term impact of investment. While low cost manufacturing has played an important role in the Kingdom’s economic development, officials are now seeking investment that can bring greater technological capabilities, stronger supply chains and higher value production.
The push toward electronics, automobiles, machinery, agro processing, green manufacturing and digital technology signals Cambodia’s ambition to move further up the industrial value chain. For Chinese investors, it also presents opportunities to participate in a market that is seeking deeper technology partnerships, stronger local business connections and more sophisticated manufacturing capabilities.
The direction is clear: Cambodia wants Chinese capital not just to manufacture more, but to manufacture better.