Which parts of Cambodia's economy get Chinese investment, and how does China compare with other investors? China sends far more than any other country: about 7 in every 10 foreign dollars in 2025. Most foreign money now goes into factories. So most Chinese money very likely goes into factories too. This is our reading of the data, not an official figure.
What happened
FDI means foreign direct investment. It is money a foreign company puts into a business here, such as a factory, a hotel or a power plant.
In 2025, $5.1 billion of FDI arrived in Cambodia, up 16% on the year before (National Bank of Cambodia, 2025). These are the first published figures, so they could be revised.
China sent 72.7% of it, or about $3.7 billion (our calculation). Singapore was a distant second, at 6.8% (National Bank of Cambodia, 2025). China's share was 41.3% in 2019 and 65.5% in 2024 (World Bank, using National Bank of Cambodia data, 2025).
Most of it went into manufacturing, which means making things in factories. In 2025, $3.5 billion of FDI went into manufacturing. That is 68.1% of all foreign money that arrived, and it grew 53% in one year. Money into hotels and guesthouses fell 39.6%. Construction and real estate fell 32.4% (National Bank of Cambodia, 2025).
These sector numbers cover all foreign investors. The National Bank does not publish a sector split for each country. But China sends about 7 in 10 of the dollars, and manufacturing takes about two thirds. So most Chinese money very likely goes into factories. This is our reading.
What changed, and why?
Before 2020, Chinese money was most visible in Sihanoukville property and casinos. In August 2019, the government banned online gambling. Reports at the time estimated about 10,000 Chinese residents left within weeks (The Diplomat, 2019).
Since then, the mix has moved toward factories, special economic zones (areas built for factories, with special benefits) and big transport projects. Examples include:
- The Phnom Penh to Sihanoukville Expressway. Opened in 2022, it is 187 km long and cost about $2 billion, as reported (National Development and Reform Commission of China, 2022).
- The Sihanoukville Special Economic Zone. Chinese and Cambodian companies developed it, led by China's Hodo Group. As of May 2025, it had 202 companies and institutions and 32,000 jobs (Wuxi Municipal Government, 2025).
- The Funan Techo Canal. In September 2026, China Exim Bank signed a loan of nearly $1 billion for it (Cambodianess, 2026). It is a loan, not investment.
Why did the money move? Trade deals, costs and trade routes are often named. We will test those reasons in a later episode.
Who is involved
On the Chinese side, there are private manufacturers, state-owned builders like China Road and Bridge Corporation, and state banks like China Exim Bank, which lend money.
On the Cambodian side, the Council for the Development of Cambodia, or CDC, approves new projects. The National Bank of Cambodia counts the money that arrives. The Ministry of Economy and Finance is also involved.
Approved money is a promise that has not arrived yet. It includes Cambodian investors. In 2025, the CDC approved about 630 projects worth around $10 billion, up 45% on 2024 (CDC, 2026). In the first 10 months of 2025, China was the largest source of approvals, at 52.38%, about 1 dollar in every 2. Cambodian investors came second, at 32.89%, about 1 in 3 (CDC, 2025).
In the first half of 2026, the CDC approved $4.7 billion. Cambodian investors led, at 41.74%. China was second, at 35.75%, and Singapore third, at 15.38% (CDC, 2026).
Risks and open questions
- Concentration. If one country sends 7 in 10 foreign dollars, a slowdown there hits Cambodia harder.
- Trade rules. A tariff is a tax on imported goods. In July 2025, the United States set a 19% tariff on Cambodian goods. It also set a 40% rate, instead of 19%, on goods it judged "transshipped", meaning passed through Cambodia to avoid US tariffs (White House, 2025). In October 2025, Cambodia and the US signed a trade agreement (Office of the US Trade Representative, 2025). But US tariff rules changed again in 2026.
- Promises are not money. Some approved projects arrive late, shrink or never start.
- Quality. Some analysts ask if factory jobs bring new skills, or stay low-skill (Mom Mit, East Asia Forum, 2025).
- Rising or falling? It depends on the measure. China's share of money that arrived kept rising until 2025. In new promises, Cambodians led in early 2026. But half a year is short, and one big project can swing the numbers. Full-year figures for money that arrived in 2026 are not out yet.
What it means for you
Most new foreign money builds factories. So most jobs it creates are likely factory jobs. The CDC expects 2025 approvals to bring about 438,000 jobs (CDC, 2026). That is an estimate, not a count.
In the first half of 2025, Kampong Speu (92 projects) and Svay Rieng (85 projects) had the most approved projects (CDC, 2025). Wages, skills and whether factories stay can depend on trade decisions far from Cambodia.
Different views
- Investment is bringing jobs and new industries. Some point to record approvals (CDC) and fast growth in factory investment, with manufacturing FDI up 53% (National Bank of Cambodia). The Asian Development Bank says industry was the main driver of growth in 2025.
- Cambodia needs a wider mix of investors. Others point to China's rising share, from 41.3% in 2019 to 65.5% in 2024 (World Bank, using National Bank of Cambodia data). Researcher Mom Mit, writing in East Asia Forum, argues that high FDI numbers hide low-skill jobs and weak technology transfer.
About the data
- Two measures, kept apart. "Arrived" figures are actual FDI counted by the National Bank of Cambodia. "Approved" figures are CDC promises and include Cambodian investors. They cannot be compared directly.
- Data age. The latest full-year figures are for 2025. They are the first published ones, so they could be revised. The newest approval figures cover January to June 2026.
- Different periods. The 2025 country split for approvals covers January to October only.
- Our calculations and reading. The $3.7 billion from China is our calculation. "Most Chinese money goes into factories" is our reading, as no official China-only sector split exists.
- Estimates and labels. The 438,000 jobs and the 10,000 residents are estimates. The canal money is a loan, not FDI. The 2025 US tariff rates are as announced, not today's rates.
