Cambodia Sees Nearly 20% Surge in FDI Inflows in First Half

Foreign direct investment (FDI) in Cambodia saw a significant increase of 18.5% in the first half of 2026, reaching a total of $2.6 billion, according to a report from the National Bank of Cambodia (NBC). This growth occurred despite global economic uncertainties stemming from conflicts in the Middle East and Ukraine, as well as border issues between Cambodia and Thailand. The surge in FDI was primarily driven by a substantial 110.9% increase in investment within the financial sector. Investment in the non-financial sector saw a more modest rise of 8.9%. Within the non-financial sector, manufacturing investments grew by 14%, and the energy sector expanded by 23.3%. Construction investment, however, remained almost stagnant with a marginal increase of 0.1%. Conversely, several other sectors experienced declines in investment, including agriculture, which fell by 29.8%, real estate down 20.2%, and hotels and entertainment sectors seeing a 12% decrease. Hong Vanak, an economist at the Royal Academy of Cambodia, attributed the rise in FDI to foreign investors' confidence in Cambodia's political and economic stability. "Foreign investment will help strengthen the country's production capacity and boost exports of Cambodian-made products to international markets," he told The Post. Vanak also noted that "Cambodian products continue to enjoy preferential tariff treatment in many export markets." The Council for the Development of Cambodia (CDC) reported approving 276 investment projects with a combined value of approximately $4.7 billion during the first half of 2026. CDC first-vice chairman Sun Chanthol highlighted the government's ongoing efforts to attract more foreign investment, emphasizing the substantial benefits FDI brings to national income, household incomes, and job creation. Prime Minister Hun Manet and other Cambodian leaders actively engage with foreign investors to promote the Kingdom's investment opportunities.