Cambodia has achieved a historic investment milestone, with the Council for the Development of Cambodia (CDC) approving 630 projects worth nearly $10 billion in 2025. This represents a staggering 45% increase in capital compared to 2024. Driven largely by the industrial sector and significant infrastructure developments like the Funan Techo Canal, these projects are set to create 438,000 new jobs across 21 provinces. For international investors, this surge underscores Cambodia’s rising status as a diversified manufacturing and green energy hub in Southeast Asia.
1. The $10 Billion Breakdown: Industry and Infrastructure Lead
The investment landscape in 2025 shifted toward high-value manufacturing and large-scale infrastructure. While garments remain a staple, the diversification into “non-garment” industries like car tires, medical equipment, and solar technology is evident.
- Industrial Dominance ($5.6 Billion): Accounting for over half of all investment, this sector is fueled by new tire factories in Svay Rieng and Preah Sihanouk, and electronics manufacturing in Kampong Speu.
- Infrastructure & Beyond ($3.8 Billion): Projects include the game-changing Funan Techo Canal, five-star hotels in Phnom Penh, and provincial hospitals.
- Agriculture & Green Energy ($436 Million): Significant expansion in fruit processing in Ratanakiri and a push for climate-smart farming.
2. Provincial Powerhouses: Where the Money is Going
Investment is no longer confined to Phnom Penh. A “provincial boom” is underway, with Kampong Speu and Svay Rieng emerging as the new industrial heartlands.
| Province | Projects | Key Focus Areas |
| Kampong Speu | 142 | Metal smelting, electrical appliances, and toy manufacturing. |
| Svay Rieng | 139 | Car tires, medical equipment, and luxury hospitality. |
| Phnom Penh | 76 | Specialized hospitals, high-end hotels, and service hubs. |
| Takeo | 64 | Funan Techo Canal logistics and furniture manufacturing. |
| Koh Kong | 52 | Hydropower, chemical plants, and SEZ expansion. |
3. Green Frontier: Wind and Solar in the Highlands
A standout feature of the 2026 outlook is the launch of Cambodia’s first wind power projects. Mondulkiri is set to become the “Green Battery” of the country with:
- 300 MW Capacity: Two major wind farms valued at $430 million.
- Renewable Targets: These projects are central to Cambodia’s goal of reaching 70% clean energy by 2030.
- Agricultural Tech: Nearby Ratanakiri secured $226 million for massive farm expansions and fruit processing plants, creating 8,500 jobs.
Orkun Santepheap’s Perspective: The “Funan Factor”
The 2025 investment data reveals that the Funan Techo Canal is already acting as a magnet for industrial clusters. We are seeing a “Canal Corridor” effect in provinces like Takeo, Kandal, and Koh Kong, where factories are positioning themselves to benefit from lower logistics costs and direct water access to the Gulf of Thailand. For investors, the early bird advantage in these provinces is now.