Cambodia Urges Chinese Investors to Shift to Higher-Value Industries

PHNOM PENH, Sept 2, 2026 (KPT) — Cambodia is urging Chinese investors to move beyond low‑cost manufacturing and channel more capital into higher‑value industries, as the Kingdom seeks to upgrade its industrial base through technology, skills development and stronger local supply chains, officials said Tuesday. Speaking at the closing of the China‑ASEAN Entrepreneurs Summit in Phnom Penh, Industry Minister Hem Vanndy said Cambodia’s investment strategy must focus not only on attracting more capital but on securing higher‑quality projects that generate broader economic benefits. “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.” He encouraged Chinese companies to strengthen links with Cambodian businesses by using more local inputs, developing domestic suppliers, partnering with small and medium‑sized enterprises and connecting local firms to regional and global value chains. Such linkages, he said, would help Cambodia gain more from major projects through job creation, skills development, technology transfer and stronger resilience. Vanndy called for greater Chinese investment in electronics, automobiles and components, machinery, agro‑processing, green manufacturing and digital technology, stressing that Cambodia’s future competitiveness cannot rely solely on low‑cost labour. China remains Cambodia’s largest source of approved investment. In 2025, Chinese capital reached $5.42 billion, accounting for more than half of total approved investment, according to official figures. The minister also urged closer cooperation between industries, universities and research institutions in both countries to accelerate technology transfer, commercialization and technical training. Officials said foreign investment should contribute not only factories and jobs but also innovation, human‑resource development and stronger connections with local enterprises. Phnom Penh’s message is clear: Cambodia wants Chinese capital not just to manufacture more, but to manufacture better.