Cambodia has emerged as a new investment destination for companies in South China’s Guangdong province, given its robust economy and improving business environment, speakers at a recent forum highlighted.

The closer partnership between the two countries has also strengthened investment confidence, said Feng Qiang, president of Shenzhen Municipal Government Procurement Association.

The association, together with the Cambodia Confederation of Investors Association (CCIA), co-hosted the China-Cambodia (Shenzhen) Trade and Business Forum in Shenzhen on Sept 20. It was attended by over 300 company representatives from both nations, including Huawei Technology and BYD.

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Feng pointed out that specific national development initiatives in Cambodia have showcased the country's capacity for substantial growth. “As far as my knowledge extends, Cambodia's upcoming completion of the third phase of its new airport project will elevate it to the world's ninth-largest airport. Additionally, the Techo Funan Canal project will further position Cambodia as a key investment hub in Southeast Asia.”

The implementation of the China-Cambodia Free Trade Agreement and the Regional Comprehensive Economic Partnership has effectively stimulated investment from China, he said.

In 2023, China's investments in Cambodia amounted to $3.24 billion, accounting for nearly two-thirds of total foreign investment in Cambodia, according to official figures.

China is also Cambodia’s largest trading partner. According to the CCIA’s data, in the first eight months of this year, the trade volume between the two countries reached $10.07 billion, up 24.5 percent year-on-year.

“Shenzhen entrepreneurs have a strong sense of ‘going global or being phased out’,” said Feng. “Our association will serve as a bridge to bring quality Chinese products, technologies, and investments to Cambodia.”

Duke Li Kuntai, economic adviser to the prime minister of Cambodia and chairman of the CCIA, said the government's strong reforming measures have fueled the nation's vitality and have increased potential, especially in the infrastructure construction, agricultural development, manufacturing, and tourism sectors.

“Our government has introduced a series of preferential policies to promote foreign investment and industry development, providing excellent opportunities for Chinese enterprises to enter the Cambodian market,” he said.

Meanwhile, Cambodia’s government has trained local companies to enhance their competitiveness, thereby achieving mutual development.

Wang Xin, president of the Shenzhen Cross-border E-commerce Association, said there are huge development opportunities for the e-commerce industry in Cambodia due to the rapid rise of mobile shopping locally and the large number of young people.

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According to the Cambodian Ministry of Commerce, e-commerce revenues in Cambodia are projected to reach $1.78 billion by 2025.

At the forum, six major business associations in Shenzhen, including the ones headed by Feng and Wang, and dozens of cross-border e-commerce companies, including PdaExSea, have cofounded a global alliance.

The alliance aims to provide on-the-ground support services for companies in the Guangdong-Hong Kong-Macao Greater Bay Area to invest and develop internationally.