Cambodia’s growth story is one marked by agility. Emerging as one of Southeast Asia’s most dynamic economies, the government adapted swiftly to changing U.S. policy by reaching agreement on a reciprocal trade deal in October 2025. The pact formalized tariff reduction and improved market access, paving the way for growth in trade flows that reached $13 billion in 2024. 

Textiles and footwear exports to the U.S. are a pillar of the economy, but under Prime Minister Hun Manet, the first Cambodian to graduate from West Point, the country is diversifying through major infrastructure projects, including the $1 billion Sihanoukville Port upgrade and the $1.7 billion Funan Techo Canal. Aimed at boosting connectivity, the plan bolsters Cambodia’s role as a strategic gateway to ASEAN markets. Here, Manet explains why his policy agenda and demand for U.S. expertise in sectors including energy, healthcare, security, and agriculture have Cambodia primed for investment. 

Q: What is your vision for Cambodia’s development?
We have come a long way. Maintaining peace, stability, and national unity is essential. We must build strong foundations and create opportunities. The role of the private sector is crucial in our policies – sustainable growth does not come from government alone. We provide support by creating a conducive environment and clear regulations. Ultimately, the market and private sector respond to supply and demand within that framework. 

Competing globally requires us to improve transparency, accountability, and responsiveness. We must also promote our strengths and contributions to the world. Cambodia is committed to this path. 

Q: What is your ambition for expanding relations with the United States?
We are committed to working with the U.S. to improve ties. Any trade friction affects American business interests in Cambodia too. That is life. It cannot always be sunny; there are rainy days too. But ultimately, we set the direction of the relationship to move forward. We will not disconnect. 

There are Americans living in Cambodia and Cambodians with U.S. citizenship. Our ties are deeply connected. We must build on that. This is the foundation of our relationship with the U.S. 

Q: How has the presence of U.S. companies helped shape Cambodia’s economy?
When I was in high school, nearly all finished products were imported. Now, thanks to investment and growth, we produce not only for domestic use but also for export. This includes consumer goods, food, agricultural products, textiles, and even high-tech items like semiconductors, medical products, and solar equipment. Despite tariffs, we continue to export significantly, a testament to our capabilities. 

Our focus now is on strengthening the value chain in Cambodia. Instead of just assembling final products, we are offering incentives and attracting companies to produce components locally. This is a shift in our industrial strategy. 

Q: How does investment in Sihanoukville Port support that strategy?
Sihanoukville is a strategic location. Compared to Singapore, Cambodia offers geographic advantages. However, a major limitation is the shallow port depth. Currently, most cargo must pass through Singapore or other regional hubs, increasing costs. 

We aim to complete the first phase of port expansion by 2030, with an estimated cost of over $900 million, allowing larger global ships to dock directly. This will reduce costs and improve connectivity. The expansion will also drive manufacturing. We have a master plan to transform four coastal provinces into a logistics and manufacturing hub, using the port as a focal point.  

By interconnecting these systems – port, transport, agriculture, and industry – we build internal economic integration. Through roads, water, and rail links, we aim to establish a competitive and resilient economy. We hope that in the next 20 years, this strategy will be fully realized and drive Cambodia’s future growth.

An Evolving Economy

Diversification and reform are driving Cambodia’s rise as one of the region’s most dynamic economies. World Bank figures show GDP grew 6 percent in 2024, while fast-growing sectors such as transportation, healthcare, and energy form the backbone of efforts to build a broader industrial and services base. 

Its business-friendly climate permits 100 percent foreign ownership and offers tax holidays and duty exemptions for qualifying investments. Regulatory efforts to streamline business registration are accelerating entry for international firms, while major U.S. brands such as Coca-Cola and Ford have already leveraged Cambodia’s growing role as a gateway to the ASEAN market. 

With a trade deal in place offering unprecedented market access, Cambodia offers significant scope for U.S. investors willing to engage early in an evolving landscape.

Building Smarter Systems

Cambodia’s modernization push is creating opportunities in sectors such as healthcare and security, with government strategy focused on improving quality and attracting transformative investment. 

Digital health is advancing rapidly, with growing demand for systems that connect patients, providers, and health data. Cancer care is another priority, focused on improving early diagnosis, while high-value specialties such as robotic surgery, assisted reproduction, and molecular diagnostics offer further scope for private investment and knowledge sharing. “Our approach to technology transfer is structured, strategic, and quality driven, and we remain open to innovative partnerships,” says Professor Chheang Ra, minister of health. 

This is mirrored in the security industry, where economic growth is fueling interest in advanced systems for cybersecurity, border control, and public safety. As digital infrastructure expands, so too does demand for U.S. expertise in the sector.