Cambodia’s automotive market is a fascinating reflection of the country’s economic development and cultural preferences.

While new cars have their appeal, used cars remain the dominant choice for many Cambodians. To understand why, we need to explore the current state of vehicle imports, the number of used cars on the road, and the ongoing demand for these vehicles.

Cambodia’s Vehicle Import Data and the Used Car Market

Cambodia imports thousands of vehicles every year, with a significant portion being used cars. According to the latest reports from the Ministry of Public Works and Transport, over 70% of the cars on Cambodian roads are used vehicles. This trend has persisted for years, reflecting the preferences of a large segment of the population.

In 2023, Cambodia imported over 60,000 vehicles, and about 80% of these were used cars, mainly from countries like Japan, the United States, and South Korea. This data highlights a strong market for used cars, which continues to thrive despite the availability of new vehicles. The demand for used cars is not just a temporary trend but a deeply ingrained preference that aligns with the financial and practical realities of Cambodian society.

According to Phnom Penh, in response to the proposed ban on used cars in Cambodia, Prime Minister Hun Manet addressed the issue during the groundbreaking ceremony for the construction of the twin flyovers at the intersection of Hun Sen Boulevard and National Road 2 on June 17, 2024, stating that:

Rejection of Ban on Used Car Imports: Prime Minister Hun Manet stated that Cambodia does not need to ban the import of used vehicles, rejecting a suggestion to impose age restrictions on automobile imports.

Proposal for Enhanced Vehicle Inspections: Instead of banning older cars, Manet recommended strengthening the technical automotive inspection system to ensure vehicles meet safety and environmental standards.

Environmental Concerns: Deputy Prime Minister Aun Pornmoniroth had suggested banning the import of cars older than ten years by 2024 and those older than five years by 2030 to address environmental concerns. Manet, however, dismissed this idea.

Economic Considerations: Manet emphasized that many people, including taxi drivers, cannot afford new cars, making used vehicles an essential option. He highlighted the need to balance environmental concerns with economic realities.

Global Practices: The prime minister acknowledged that some countries have banned the import of used cars to boost their automobile industries, but he argued that Cambodia does not need to follow this approach.

Encouragement for Local Automobile Manufacturing: The government encourages foreign companies to build cars in Cambodia, but these companies must offer affordable and reliable vehicles to compete with used car imports.

No Restrictions on Car Ownership: Manet noted that Cambodia does not restrict the number of cars a household can own and is working on transportation solutions that benefit the population.

Demand for Used Cars in Cambodia

The demand for used cars in Cambodia is driven by several factors, including affordability, availability of spare parts, and cultural perceptions. The country’s middle class is growing, but many still find it more practical and economical to buy a used car rather than a new one. This demand is also fueled by the increasing number of roads and infrastructure improvements, making car ownership more accessible and desirable.

Reasons Why Used Cars Remain Popular

1. Affordability: The Economic Reality for Many Cambodians

One of the primary reasons used cars remain popular in Cambodia is their affordability. The average Cambodian’s income level makes purchasing a new car a significant financial burden. According to the National Institute of Statistics, the average monthly income in Cambodia is around $200-$300, which makes the high cost of new vehicles prohibitive for many.

Used cars, on the other hand, offer a more affordable alternative. A reliable used car can be purchased for a fraction of the price of a new one. This affordability makes car ownership possible for a broader segment of the population, enabling many to enjoy the benefits of personal transportation without overextending financially.

2. Availability of Spare Parts at Cheap Prices

Another critical factor contributing to the popularity of used cars is the availability of spare parts at affordable prices. Cambodia has a well-established market for used car parts, with many shops and dealers specializing in importing and selling these parts. The availability of spare parts ensures that maintaining a used car is not only possible but also cost-effective.

This thriving spare parts market is largely driven by the high volume of used car imports. Many of these cars come from countries with stringent vehicle regulations, meaning they are often well-maintained and have parts that are still in good condition. As a result, Cambodian car owners can easily find the parts they need to keep their vehicles running smoothly, further enhancing the appeal of used cars.

3. Perception of Used Cars: A Practical Choice

Cultural perceptions play a significant role in the preference for used cars in Cambodia. Many Cambodians believe that purchasing a used car is a more practical and financially savvy decision. This belief is rooted in the idea that a used car depreciates less quickly than a new one, making it easier to sell later without incurring a significant loss.

For many, the decision to buy a used car is also influenced by the knowledge that they can recoup a substantial portion of their investment when they choose to sell it. This resale value is particularly important in a market where cars are seen as valuable assets that can be liquidated if necessary.

4. High Costs of New Cars: Import Taxes and Service Fees

The high cost of new cars in Cambodia is another reason why used cars remain popular. Vehicle import taxes and service fees significantly increase the price of new cars, making them less accessible to the average consumer.

As of the latest data, the import tax on new cars in Cambodia can range from 30% to 50% of the car’s value, depending on the engine size and type of vehicle. This is compounded by other fees, such as VAT (Value Added Tax), which adds an additional 10% to the cost. These taxes and fees can make a new car almost double the price of its original value when it arrives in Cambodia.

In contrast, used cars, especially those with smaller engines or older models, are subject to lower taxes, making them more affordable. This significant price difference between new and used cars strongly influences consumer behavior, with many opting for the more economical choice.

5. Limited Availability and High Cost of New Car Spare Parts

Another challenge with owning a new car in Cambodia is the limited availability and high cost of spare parts. New car spare parts are often exclusively available through the car’s official dealership or import company, which can make them expensive. The monopoly on these parts by exclusive importers means that consumers have fewer choices and must often pay a premium for genuine parts.

In contrast, the used car market offers a wider range of spare parts at more competitive prices. Many of these parts are available through independent dealers who import them directly from countries like Japan, where they can be sourced at a lower cost. This accessibility and affordability of spare parts make maintaining a used car more practical and cost-effective for many Cambodians.

Conclusion

The popularity of used cars in Cambodia is driven by a combination of economic factors, cultural perceptions, and practical considerations. For many Cambodians, used cars represent an affordable, reliable, and financially sound investment. The availability of spare parts, the perception of value retention, and the high costs associated with new cars further reinforce this preference.

As Cambodia continues to develop and its economy grows, the demand for used cars is likely to remain strong. The affordability and practicality of used cars make them a sensible choice for many, ensuring their continued dominance in the Cambodian automotive market.

We’d love to hear your thoughts! Do you prefer used or new cars? Share your experiences and opinions in the comments below!

Read less

Svay Rieng is one of Cambodia’s eastern provinces with a long history shaped by agriculture, cross border exchange, and its strategic location along Vietnam. Once considered a quiet rural area, it has gradually evolved into an emerging economic zone thanks to its proximity to the border and growing industrial activity. Covering roughly 2,966 square kilometers, the province borders Prey Veng to the west, Kampong Cham to the north, and shares an extensive eastern and southern boundary with Vietnam, particularly with Tay Ninh and Long An provinces.

As of 2026, Svay Rieng’s population is estimated at around 540,000 people, most of whom live in rural communities and rely on farming, small businesses, and factory work. Over the years, infrastructure has steadily improved, with better national roads, expanding Special Economic Zones, and growing access to clean water and electricity, all of which are gradually reshaping daily life and raising living standards.

Located about 125 kilometers southeast of Phnom Penh, Svay Rieng is typically reached via National Road 1, a key transport route that connects the capital directly to the Vietnam border. This road plays a crucial role in facilitating trade, allowing goods to move efficiently between Phnom Penh and major border checkpoints like Bavet, one of Cambodia’s busiest international gateways. The province has become a vital link in Cambodia Vietnam trade, where factories and logistics hubs take advantage of faster cross border movement of goods, especially in manufacturing and agro processing.

Daily life in Svay Rieng reflects this transition, with a mix of traditional rural lifestyles and growing urban and industrial influences, as more people find work in factories and service sectors connected to the expanding trade network.

Transport Links Could Transform Svay Rieng’s Future

If transport links finally connect to Svay Rieng, the province could be on the edge of a major turning point. What happens next matters not only for businesses and investors, but also for everyday people who live and work there. With better roads and railways, Svay Rieng is no longer just a quiet border province. It is shaping up to become one of Cambodia’s most important industrial zones, and that shift could change how people live, work, and invest in the region.

A Province Ready for Change

Speaking at the inauguration of a new water treatment facility, Prime Minister Hun Manet highlighted that Svay Rieng is already growing fast, especially in industry, trade, and foreign investment. But growth alone is not enough. Without strong infrastructure, that momentum can slow down. That is why the government is focusing on long term planning, making sure the province has the systems it needs to support even bigger expansion in the future.

Why Transport Links Matter So Much?

The real game changer lies in connectivity. Svay Rieng sits right along the Vietnam border, giving it a natural advantage as a trade gateway. Once expressways and railway lines are fully developed, goods will move faster, cheaper, and more efficiently across borders. That means businesses can scale up, investors feel more confident, and the province becomes deeply connected to regional supply chains across ASEAN and beyond, even reaching markets like China.

“In addition to agriculture, Svay Rieng has strong potential in the industrial sector,” Mr Hun Manet said. “Within the next 20 years, this province could become a major industrial hub contributing significantly to the national economy.”

Industry Growth Is Already Happening

This transformation is not just a future idea. It is already underway. Svay Rieng currently leads Cambodia in Special Economic Zones, with 12 zones hosting more than 1,000 factories and companies. That level of activity is drawing more investors and creating jobs for local communities. As infrastructure improves, this growth is expected to spread into nearby provinces like Prey Veng, creating a wider economic corridor in the region.

What This Means for Businesses and Jobs?

For businesses, better transport links mean lower costs and faster delivery times. For people, it means more job opportunities closer to home. Industries like agro processing stand to benefit the most, since they rely heavily on moving raw materials and finished products efficiently. Experts believe more Special Economic Zones will follow, expanding industrial capacity even further.

“Expressways and railways will serve all sectors, but Svay Rieng will benefit the most,” said Lim Heng. “Goods can be exported more efficiently, and connectivity within the ASEAN economic community will be strengthened.”

More Than Just Industry

The impact will not stop at factories. Improved connectivity can also boost tourism, energy development, and small businesses. When transportation becomes easier, people may choose to stay in the province instead of moving to big cities. That could help reduce overcrowding in Phnom Penh while improving living standards in provincial areas.

“When transportation becomes easier and faster, people may choose to live or do business in the provinces rather than moving to Phnom Penh,” said Seun Sam. “Convenience, speed, and affordability are key factors that investors consider.”

The Skills Challenge Ahead

However, growth comes with responsibility. As industries expand, the demand for skilled workers will rise. That means education and training will play a critical role. The government is already emphasizing human resource development, especially for young people, to prepare them for jobs in manufacturing, agriculture, and other key sectors.

Building a Sustainable Future

Alongside infrastructure, the government is also working to improve governance, security, and environmental sustainability. Efforts to reduce bureaucracy and crack down on online scams are aimed at creating a more stable and attractive business environment. At the same time, investments in green development and long term infrastructure planning are designed to ensure that growth remains sustainable.

Why You Should Pay Attention?

So why do you need to know all this? Because what happens in Svay Rieng could reshape Cambodia’s economic future. Once seen as less attractive for investment, the province is now emerging as a key driver of growth. If transport links are successfully developed, they will not only boost trade and industry but also improve daily life for thousands of people.

In simple terms, better transport means more opportunities. More jobs. More business. And a stronger connection between Cambodia and the wider region. For Svay Rieng, this could truly be the beginning of a new chapter.

Read less

Why is Phnom Penh’s Rent the 7th Highest in Asia?

In 2025, a surprising report shook the perception many had about Cambodia’s capital city. Phnom Penh, a city often associated with rapid growth and affordable living compared to its regional neighbors, was ranked the seventh most expensive city in Asia for renting a one-bedroom apartment. According to the Global Property Guide, the average cost for such a rental stands at $550 per month. This figure placed Phnom Penh higher than several well-known urban hubs in the region and raised eyebrows among locals, expatriates, and investors alike.

But how did Phnom Penh — a city still considered a developing market — reach this position? The answer lies in a mix of supply limitations, concentrated amenities in certain prime areas, the city’s compact urban design, and the early-stage nature of its real estate market compared to more mature neighbors like Vietnam and Thailand.

The Numbers Behind the Ranking

The Global Property Guide’s 2025 data is based on average median asking rent prices for one-bedroom residential units in ten major Asian cities. These figures were sourced from local property portals and converted into USD or Euro, updated biannually to reflect market shifts. Phnom Penh’s $550 monthly average may seem moderate when compared to Western cities, but in an Asian context, it is notable for a market with lower average income levels.

To put this into perspective:

• In Ho Chi Minh City, Vietnam, the same type of unit costs about $314.
• In Da Nang, Vietnam, it’s even lower at $275.
• Bangkok, Thailand, sits at a hefty $772.
• Phuket, Thailand, follows at $635, and Chon Buri (Pattaya) at $433.

Phnom Penh’s position between these extremes reveals both the city’s growing attractiveness and the structural limitations still present in its housing market.

Prime Districts vs. Non-Prime Districts: The Geography of Rent

One of the most defining features of Phnom Penh’s rental market is the stark price difference between its prime districts and other parts of the city. Chea Kimsea, a senior analyst at CBRE Cambodia, explained that there is a 19 percent difference in average rental prices between prime areas and other districts — and in some cases, the gap can be as wide as 42 percent.

In 2025, the average quoted rental price for a one-bedroom apartment in prime districts such as Boeung Keng Kang 1 (BKK1), Daun Penh, and Toul Kork is $682 per month. In non-prime districts, that drops to around $550 per month.

“This price disparity is primarily driven by occupier profiles and the city’s urban structure. Phnom Penh is relatively compact, with most high-demand facilities and amenities concentrated in prime districts such as BKK1, Daun Penh, Toul Kork, and parts of Chamkarmon. As a result, units in these locations command higher rents due to their accessibility and desirability,” Kimsea said.

Interestingly, proximity to amenities doesn’t always guarantee higher rents. In peripheral areas like Mean Chey or along Hun Sen Boulevard, which are near two mega malls, average monthly rents hover at $326 — significantly lower than Chamkarmon’s $640 or BKK1’s $811. This suggests that lifestyle appeal, central positioning, and prestige often outweigh sheer proximity to commercial developments when it comes to rental pricing.

Kimsea predicts that “as development expands into peripheral districts and more amenities are introduced, the gap between prime and non-prime rental rates is expected to narrow.”

A Young Real Estate Market with Limited Supply

Phnom Penh’s high rent isn’t just about location; it’s also a matter of supply and demand. Compared to Thailand or Vietnam, Phnom Penh’s housing market is still in its early stages.

“In mature markets, a large number of completed condominium projects have introduced substantial rental supply, creating higher competition and putting downward pressure on rental rates,” Kimsea explained. “Phnom Penh, by contrast, still has a relatively limited number of completed projects, resulting in lower competition and higher quoted rents.”

This imbalance between supply and demand also explains Cambodia’s comparatively higher rental yields. While unit sale prices are generally more affordable than in neighboring countries, the rental rates remain relatively high, creating attractive yields for property investors.

However, Kimsea warns that as “more projects are completed, rental yields are expected to normalise due to greater supply and increased competition.”

The Expatriate Effect

Phnom Penh’s condominium rental market has been heavily influenced by foreign residents, especially expatriates and business professionals, who often prefer one-bedroom units in central locations.

“If the number of foreign residents declines, the market could soften. Conversely, continued foreign inflows could support modest rent growth. However, the impact is likely to be limited in the long term due to the large pipeline of new completions entering the market, which will increase competition and stabilise prices,” Kimsea said.

Interestingly, local demand is also on the rise. In prime areas, Cambodian office workers — particularly those employed in multinational companies — rent condos for the convenience of short commutes and access to city amenities. In non-prime areas, more affordable rentals are increasingly sought after by college students and young professionals who migrate from the provinces for work opportunities.

Government Efforts and the Role of Speculation

While the rental market is largely driven by free-market forces, the Cambodian government has been keeping an eye on affordability concerns.

Meas Soksensan, spokesperson of the Ministry of Economy and Finance, told Kiripost that prices in the free market are “based on the demand and supply in recent years.”

Asked whether policies exist to control rising housing costs, Soksensan confirmed that the government is addressing the issue through its affordable housing policy. He also pointed to tax incentives aimed at encouraging home purchases rather than rentals.

“From the government side, we have eased taxes to encourage the purchase of homes,” he said, noting that speculation in the property market also plays a role in inflating prices.

The Economic Perspective: Growth, Infrastructure, and Demand

Economist Duch Darin sees Phnom Penh’s rental market as a reflection of the city’s “new urban dynamism.” He believes the rapid expansion of infrastructure has improved livability, fueling greater interest from both investors and tenants.

“With a larger expatriate and international workforce, demand for prime centrally located housing is on the rise, particularly with new lifestyle-focused developments built with modern comforts. This will exert pressure on rental room prices in high demand areas,” Darin noted.

The city’s evolving cost structure also creates space for mid-tier housing options, particularly in emerging districts with communal malls and retail hubs. Darin emphasized that higher rents don’t just benefit landlords — they also support a chain of related industries, from construction firms to infrastructure developers.

“For that, I am optimistic that Phnom Penh city will still be very appealing to foreign investors, as well as talents. Infrastructure developments such as the new airport and roads which make transportation easy, and also boost investors further positioning the city for long-term investment and talent opportunities,” he added.

Why Phnom Penh Stands Out in Asia’s Rental Landscape?

Phnom Penh’s rental market is unusual in Asia because it combines relatively affordable purchase prices with relatively high rents. This creates a sweet spot for property investors seeking better yields than they might find in Bangkok or Ho Chi Minh City.

At the same time, the city’s compact size means that prime amenities are heavily concentrated in a few central areas, allowing landlords there to charge premium rents. Unlike larger cities with multiple commercial hubs, Phnom Penh’s economic and social heartbeat remains closely tied to a handful of districts.

Furthermore, while infrastructure development is expanding — especially toward the city’s periphery — it takes time for these areas to match the central districts in terms of prestige, convenience, and perceived value. Until that happens, the rental gap between prime and non-prime locations will remain.

The Road Ahead: Opportunities and Challenges

Looking forward, several factors will shape Phnom Penh’s rental market:

• Supply Growth: The completion of more condominium projects will increase competition and potentially stabilize or lower rents.
• Infrastructure Expansion: Projects like the new Techo International Airport and improved road networks will make peripheral districts more attractive.
• Foreign Inflows: Continued arrival of expatriates and investors will sustain demand in prime areas.
• Government Policy: Affordable housing initiatives and tax incentives may shift more people toward ownership, easing rental demand.

However, challenges remain. If speculative investment continues unchecked, it could distort pricing and make the city less affordable for its own citizens. Similarly, overreliance on expatriate tenants could leave the market vulnerable to global economic shifts or geopolitical tensions.

Final Thoughts

Phnom Penh’s position as the seventh most expensive city in Asia for one-bedroom rentals is both a sign of its growing global profile and a reflection of the structural imbalances in its housing market. Limited supply, concentrated amenities, foreign-driven demand, and early-stage market development have combined to push rents upward.

As Chea Kimsea highlighted, accessibility and desirability in a compact city structure play a key role. As Meas Soksensan noted, government policy is beginning to address affordability. And as Duch Darin pointed out, infrastructure and investment will continue to shape the city’s future.

For now, Phnom Penh remains a city of contrasts — where luxury apartments in BKK1 can rival Bangkok prices, while more affordable options still exist in its outer districts. How the market evolves in the coming years will depend on how quickly supply can meet demand, how infrastructure changes the city’s geography of desirability, and how well both the government and private sector manage the balance between growth and affordability.

Read less