Cambodia has drawn an impressive $5.8 billion in fixed-asset investments in the first half of 2025, marking a remarkable 77 per cent surge compared to the same period last year, according to the Council for the Development of Cambodia (CDC).
Greenlight to 373 investment projects
The country greenlit 373 investment projects between January and June, almost doubling last year's figure of 190 projects, setting the stage for the creation of around 255,000 new jobs. The booming investment highlights Cambodia's rising appeal as a dynamic destination for growth and development.
According to the Council for the Development of Cambodia (CDC), China remained the leading foreign investor, followed by investors from Singapore, Vietnam, the United Kingdom, the United States, Samoa, and South Korea.
Ministry of Commerce Secretary of State and Spokesperson Penn Sovicheat highlighted that the Regional Comprehensive Economic Partnership (RCEP) Agreement, along with Cambodia's bilateral free trade agreements (FTAs) with China, South Korea, and the United Arab Emirates, are key drivers behind the surge in foreign direct investment.
Is aluminium a growing market in the region?
Among the key projects fuelling this investment boom are aluminium processing plants, a testament to the rising importance of the lightweight metal in supporting both manufacturing and green energy transitions. Additional projects include solar power plants, solar panel production facilities, hydroelectric plants, and electric three-wheeler assembly units, sectors where aluminium plays a crucial role thanks to its durability, recyclability, and efficiency.
As Cambodia positions itself on the global investment map, aluminium is emerging as a key material powering its industrial and sustainable development ambitions. Other projects include an auto garage equipment factory, a car assembly plant, car tire manufacturing facilities, wind power stations, metal and a dry port, and tourism resorts.
This growing emphasis on aluminium is also mirrored in Cambodia's expanding trade in the sector.
According to Observatory of Economic Complexity (OEC), in 2023, Cambodia exported aluminium articles worth $269 million, ranking as the world's 62nd largest exporter of aluminium products out of 222 countries. Aluminium articles also emerged as Cambodia's 17th most exported product among 96 categories that year, highlighting the sector's growing significance in the nation's trade portfolio.
Thailand was the top destination for Cambodia's aluminium exports, receiving shipments worth $198 million, followed by China ($46.4 million), South Korea ($11.4 million), the United States ($8.7 million), and Vietnam ($1.22 million). Notably, the fastest-growing markets for Cambodian aluminium between 2022 and 2023 were China, with an increase of $14.5 million, Indonesia, which saw a rise of $633,000, and the Philippines, up by $439,000, showcasing expanding regional demand for Cambodia's aluminium products.
In 2023, Cambodia imported aluminium articles worth $640 million, positioning itself as the world's 50th largest importer of aluminium products out of 226 countries. Aluminium articles ranked as the 11th most imported product among Cambodia's 96 import categories, reflecting the material's vital role in the country's industrial and manufacturing sectors. China dominated as Cambodia's leading supplier, accounting for $329 million of the imports, followed by Vietnam ($110 million), Thailand ($81.1 million), Malaysia ($76.6 million), and Hong Kong ($20.5 million).
The fastest-growing sources of Cambodia's aluminium imports between 2022 and 2023 were Hong Kong, which saw an increase of $11 million, Thailand with a rise of $5.07 million, and Japan, up by $4.83 million, indicating a widening network of trade partners in the aluminium supply chain.
Conclusion
Cambodia's remarkable surge in fixed-asset investments, driven by a strategic mix of free trade agreements, regional partnerships, and an investor-friendly environment, is reshaping the country's economic landscape. Aluminium has emerged as a key pillar in this transformation, fuelling both Cambodia's manufacturing expansion and its transition toward greener, more sustainable industries. With aluminium processing plants, renewable energy projects, and electric vehicle manufacturing gaining momentum, the lightweight metal is becoming central to Cambodia's industrial ambitions.
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