Investment in Cambodia 2024
- Andrew Millar
- Jul 7
- 3 min read
Updated: Jul 9
VDB Loi Cambodia
Report Description
Summary
The report places particular emphasis on the surge of Chinese capital under the Belt & Road Initiative (BRI) and explores how BRI‑driven growth has generated FDI opportunities across sectors like manufacturing, real estate, telcos and tourism.
It provides practical guidance for foreign investors navigating the Kingdom’s legal, tax and regulatory frameworks, outlining key investment structures available, such as Qualified Investment Projects (QIPs), branch offices and representative offices, and explains the implications of Cambodia’s 2021 Law on Investment:
Regulatory Clarity Under the New Law on Investment: The 2021 law streamlines approval processes for Qualified Investment Projects (QIPs) and expands eligibility for tax incentives, making Cambodia more accessible to foreign investors.
Diverse Entry Structures: Investors can operate through local companies, branches or representative offices, each with distinct regulatory and tax implications.
Attractive Tax Incentives: QIPs may benefit from profit tax holidays, import duty exemptions, and VAT relief, subject to conditions tied to sector, location and capital investment levels.
Compliance & Licensing Insights: The report offers guidance on regulatory requirements across sectors such as telcos, construction and real estate, including procedures with the CDC, MPTC, and other key ministries.
Practical Legal Considerations: Issues like foreign ownership limitations, repatriation of profits, related-party transactions and land rights are addressed with a focus on minimising risk and ensuring enforceable contracts.
Economic Outlook
Cambodia is positioned for moderate‑growth resilience, though the pace may be slower than past trends.
The report notes Cambodia’s economic momentum is driven by ongoing infrastructure investments, such as motorways, ports, airports and the Funan Techo Canal, which continue to enhance logistics and unlock investment potential across industry clusters.
It highlights the government’s Pentagonal Strategy, which aims to guide Cambodia toward upper‑middle‑income status by 2030, focusing on poverty reduction, job creation, economic diversification, private‑sector and digital development, and climate‑resilient growth.
While acknowledging increased global trade tensions, especially US tariffs on textiles and footwear exports, creating uncertainty for export‑dependent sectors, the report argues Cambodia can mitigate these risks by deepening ASEAN and global partnerships, nurturing higher‑value industry, and leveraging its young workforce.
By balancing near‑term vulnerabilities with long‑term reforms and infrastructure enhancements, VDB Loi presents a cautiously optimistic outlook: growth may slow to roughly 4–6 per cent in the short term depending on external conditions, but structural transformation and strategic policymaking support a credible path toward sustainable capital inflows and increased economic complexity.
VDB Loi Investment in Cambodia Series
The VDB Loi Investment in Cambodia report is part of a broader ASEAN-wide series examining how Chinese Belt and Road Initiative (BRI) infrastructure investments are reshaping the region’s economic landscape.
Focused on practical investor guidance, the series maps out where Chinese capital has been deployed, particularly in energy, transport and logistics, and identifies the downstream opportunities these projects create in sectors like real estate, manufacturing, and services.
By highlighting how large-scale infrastructure can catalyse high-potential investment zones, VDB Loi provides foreign investors with strategic insights on where to 'piggyback' on BRI momentum, positioning the series as a key resource for regional investment planning.
About VDB Loi Cambodia (Andersen)
VDB Loi Cambodia, established in Phnom Penh in 2012 by Edwin Vanderbruggen and Jean Loi, is a leading legal and tax advisory firm in the Khmer market, now operating as Andersen in Cambodia following its integration into Andersen Global in September 2024.
With a team of lawyers and advisors across Southeast Asia, the firm specialises in foreign investment structuring, energy and infrastructure projects, tax planning, corporate finance and M&A, and real estate transactions.
Widely recognised for its quality and responsiveness, VDB Loi was named Cambodia Tax Firm of the Year in 2021 by ITR Asia-Pacific and is highly ranked in Legal 500 and Chambers benchmarks.
The firm differentiates itself through deep sector knowledge, strategic regulatory insight and integrated legal-tax advisory services tailored to foreign investors navigating Cambodian markets.