Growth Continues Despite Ongoing Challenges
Cambodia’s economy is moving forward with confidence, even as the country navigates challenges related to national sovereignty and territorial integrity. Speaking at the conference reviewing the 2025 results and outlining the work plan for 2026, Hem Vanndy, Minister of Industry, Science, Technology and Innovation, expressed optimism about the country’s economic outlook. He stated, “Despite facing challenges to national sovereignty and territorial integrity, Cambodia’s economy is projected to maintain solid growth, with an estimated 5.2% in 2025 and around 5% of GDP in 2026. This growth is primarily supported by key sectors: the industrial sector, expected to expand by approximately 7.2%; the service sector, by around 3.7%; and the agricultural sector, by 0.9%.” These projections signal resilience and steady progress at a time when global and regional uncertainties continue to test developing economies.
Industry Leads the Way Forward
Among the key drivers of growth, the industrial sector stands out as the strongest pillar of Cambodia’s economic expansion. With an expected growth rate of 7.2% in 2025, industry continues to power job creation, exports, and domestic production. The service sector is also playing a crucial role, projected to grow by around 3.7%, supported by trade, tourism, and other service related activities. Meanwhile, agriculture, though growing at a more modest 0.9%, remains an essential foundation for rural livelihoods and food security. Together, these sectors form a balanced structure that supports both economic stability and long term development.
Rising Income and Stronger Financial Position
Economic growth is translating into tangible improvements for citizens. GDP per capita is projected to increase to 2,858 US dollars in 2025 and could climb further to 3,020 US dollars in 2026. At the same time, Cambodia’s international reserves are expected to strengthen significantly, reaching 25,051 million US dollars in 2025 and 27,989 million US dollars in 2026. These figures reflect not only economic momentum but also improved financial resilience and macroeconomic stability, reinforcing investor confidence and strengthening the country’s ability to manage external shocks.
Foreign Investment Gains Momentum
Foreign direct investment continues to demonstrate strong momentum. According to the Council for the Development of Cambodia, registered foreign investment projects in 2025 reached approximately 10 billion US dollars, marking a remarkable 45% increase compared to 2024. This surge highlights growing international confidence in Cambodia as an attractive destination for manufacturing, innovation, and long term business expansion. Increased FDI inflows also provide capital, technology transfer, and employment opportunities that further stimulate economic growth.
Government Strategy and Long Term Vision
Recognizing the industrial sector as a primary engine of progress, the Royal Government continues to prioritize it as a strategic instrument for implementing the Pentagonal Strategy Phase 1. Industry is viewed not only as a driver of economic expansion but also as a catalyst for social development. This approach aligns with Cambodia’s broader ambition of achieving high income country status by 2050. By maintaining steady growth, strengthening key sectors, and attracting sustained investment, the government aims to build a resilient and competitive economy capable of delivering long term prosperity.
Conclusion
Despite external and internal challenges, Cambodia’s economic outlook remains positive and grounded in strong sectoral performance, rising incomes, and robust investment flows. With industry leading growth, improving financial stability, and clear strategic direction from the government, the country is steadily advancing toward its long term development goals. The coming years will be critical in sustaining this momentum and transforming economic gains into lasting prosperity for all Cambodians.