Cambodia ranks No. 1 on the FDI Standout List in Southeast Asia

Cambodia tops the list of foreign direct investment (FDI) in Southeast Asia, with strong investment flows expected in 2024 due to the strong economic recovery of the International Monetary Fund (IMF), which is projected to grow by 6.1 percent next year. This is according to a recent report from the annual standout list of FDI intelligence.

According to the report, Cambodia received the highest index score of 96.11 out of 100, with an annual growth rate of FDI of 109.76% and a growth rate of FDI of 393.47% during the period 2021–2023.

The report, which analyzes the macroeconomic and foreign direct investment trajectories of the world’s top 50 FDI destinations using data from the IMF and foreign investment monitor FDI Markets, has listed the countries that are entering the new year with strong macroeconomic and FDI momentum amid the world continuing to grapple with a tough post-Covid recovery.

"Asia has done well on this year's watchlist, with six countries in the top 10, with Cambodia leading the overall list, followed by the Philippines in second place, Iraq in fourth, Kazakhstan ranked sixth, Azerbaijan seventh, and India tenth. The only three African countries in the top 10 are Kenya in third place, Namibia in fifth place, and Morocco in eighth place. Serbia is the only country outside of Asia and Africa that has become one of the top 10 countries, ranking ninth," the report showed.

The Council for the Development of Cambodia (CDC) reported that from the start of 2023 until September, 191 new foreign direct investment (FDI) projects have been approved, according to data available from the investment council. The new projects demonstrate a 27 percent growth on last year’s approvals, and the long list of investment sources suggests that the Kingdom is getting investment from a range of international interests.

The new approvals will likely improve Cambodia’s Gross Domestic Product (GDP) ratings this year, given that FDI accounted for 38 percent of the overall national GDP in 2022. The new statistics also suggest a great third quarter for the investment sector, given that as of July 2023, reports from the CDC had confirmed 113 fixed asset investment projects worth more than $1.1 billion for the first half of this year.

It should be mentioned that Chinese investors were the largest source of FDI in the Kingdom, accounting for $588 million. Other investors in the country included Vietnam, the Seychelles, Thailand, South Korea, Samoa, the US, Singapore, and Sweden.

In the third quarter of the current year, Cambodia has also seen new projects slated from Malaysia, Singapore, Vietnam, and British Virgin Islands investors, among others.