Cambodia’s Smart City Projects: Opportunities for Foreign Investors (2025 Guide)

Cambodia is embracing the future with a bold vision: to transform its urban centers into smart, sustainable, and inclusive cities. With government-backed initiatives, international partnerships, and rising urban demand, smart city development in Cambodia presents a compelling opportunity for foreign investors.

In this guide, we’ll explore Cambodia’s smart city roadmap, highlight key projects, and show how investors can participate in shaping the Kingdom’s digital transformation—with Adaeng Development Co., Ltd. as your trusted local partner.

What Is a Smart City?

A smart city uses digital technologies and data-driven solutions to improve urban services, enhance quality of life, and promote sustainability. This includes:

Smart transportation and traffic management
Energy-efficient infrastructure
Digital governance and e-services
Waste and water management
Public safety and surveillance
Citizen engagement platforms

In Cambodia, smart city development is not just about technology—it’s about inclusive growth, resilience, and regional competitiveness.

Cambodia’s Smart City Vision

The Royal Government of Cambodia (RGC) has made smart city development a national priority. Key milestones include:

🏛️ National Policy on Smart Cities (2023–2030)

Launched by the Ministry of Land Management, Urban Planning and Construction (MLMUPC), this policy outlines a framework for:

Urban innovation
Digital infrastructure
Public-private partnerships (PPPs)
Capacity building and governance

🌐 ASEAN Smart Cities Network (ASCN)

Cambodia is an active member of the ASCN, a regional platform that promotes smart city collaboration among ASEAN nations. Three Cambodian cities are currently part of the network:

Phnom Penh – Capital and innovation hub
Battambang – Cultural and agricultural center
Siem Reap – Tourism and heritage city

These cities serve as pilot sites for smart city initiatives, supported by ASEAN partners and development agencies.

Key Smart City Projects in Cambodia

1. Phnom Penh Smart City Master Plan

Phnom Penh’s plan focuses on:

Intelligent traffic systems
Smart lighting and energy grids
E-governance platforms
Urban mobility (bike-sharing, EV charging)
Flood monitoring and drainage systems

The city is working with partners like JICA (Japan International Cooperation Agency) and KOICA (Korea International Cooperation Agency) to implement pilot projects.

2. Siem Reap Smart Tourism Corridor

With the opening of the new Siem Reap-Angkor International Airport, the city is investing in:

Smart signage and visitor apps
Digital ticketing for Angkor Wat
Waste management in tourist zones
Smart parking and shuttle systems

This aligns with Cambodia’s goal to become a regional leader in sustainable tourism.

3. Battambang Smart Agriculture & Logistics

Battambang is piloting smart agriculture and logistics systems, including:

IoT-based irrigation and crop monitoring
Cold chain logistics for exports
Digital marketplaces for farmers

These projects are supported by the Asian Development Bank (ADB) and UNDP.

Why Invest in Cambodia’s Smart Cities?

📈 Market Potential

Cambodia’s urban population is expected to reach 40% by 2030
Infrastructure spending is projected to exceed $2 billion annually
Rising middle class demands better services and connectivity

🏗️ Government Incentives

Tax holidays and import duty exemptions for Qualified Investment Projects (QIPs)
Land concessions and fast-track approvals for infrastructure projects
PPP frameworks for foreign participation

🌍 Strategic Location

Cambodia’s position between Thailand and Vietnam makes it a gateway to ASEAN markets, with access to regional supply chains and trade corridors.

Investment Opportunities by Sector

1. Smart Infrastructure

Smart grids and energy storage
LED street lighting and solar integration
EV charging stations and smart mobility hubs

2. Digital Services

E-governance platforms
Citizen engagement apps
Digital ID and payment systems

3. Urban Mobility

Intelligent traffic systems
Public transport digitization
Bike- and car-sharing platforms

4. Waste & Water Management

Smart bins and waste tracking
Water quality sensors and leak detection
Decentralized wastewater treatment

5. Real Estate & Mixed-Use Development

Smart buildings with IoT integration
Green-certified housing and offices
Mixed-use zones with digital infrastructure

Adaeng Development can help identify land, partners, and regulatory pathways for these projects.

How Foreign Investors Can Participate

🧩 Public-Private Partnerships (PPPs)

The Cambodian government encourages PPPs for smart city development. Investors can:

Co-develop infrastructure with local authorities
Operate and maintain smart systems under concession models
Share revenue from digital services or utilities

🏢 Joint Ventures with Local Firms

Partnering with Cambodian companies allows foreign investors to:

Navigate local regulations
Access land and permits
Build community trust

Adaeng Development facilitates joint ventures and provides legal structuring support.

💼 Direct Investment in Tech Startups

Cambodia’s startup ecosystem is growing, especially in fintech, logistics, and agri-tech. Investors can:

Fund early-stage smart city solutions
Support incubators and accelerators
Acquire or scale promising ventures

Explore platforms like Techo Startup Center and Impact Hub Phnom Penh for opportunities.

Case Studies

✅ Phnom Penh Smart Traffic Pilot

In partnership with JICA, Phnom Penh installed smart traffic lights at key intersections, reducing congestion by 20% and improving emergency response times.

✅ Siem Reap Smart Waste Project

With support from KOICA, Siem Reap deployed smart bins with fill-level sensors, optimizing collection routes and reducing overflow incidents.

✅ Smart Grid in Sihanoukville SEZ

A private consortium developed a solar-powered microgrid for the Sihanoukville Special Economic Zone, improving energy reliability and lowering costs.

Challenges to Consider

Regulatory clarity – Cambodia’s smart city laws are evolving
Data privacy – No comprehensive data protection law yet
Infrastructure gaps – Limited fiber optic and 5G coverage
Capacity building – Need for skilled local workforce

Adaeng Development helps mitigate these risks through local expertise, stakeholder engagement, and compliance advisory.

Why Work With Adaeng Development?

At Adaeng Development Co., Ltd., we specialize in helping foreign investors navigate Cambodia’s smart city landscape. Our services include:

Land acquisition and zoning compliance
PPP structuring and government liaison
Feasibility studies and market research
Joint venture facilitation and legal advisory
Project development and investor matchmaking

We’ve supported clients from Singapore, France, China, and the U.S. in launching successful infrastructure and technology ventures across Cambodia.

Explore our Work With Us page to learn how we can support your smart city investment journey.

Conclusion: Building Cambodia’s Future, Together

Cambodia’s smart city movement is more than a trend—it’s a national transformation. With strong government backing, regional collaboration, and rising urban demand, the time to invest is now.

Whether you’re a tech innovator, infrastructure developer, or impact investor, Cambodia offers a rare opportunity to shape the cities of tomorrow—and Adaeng Development is here to guide you every step of the way.

Ready to invest in Cambodia’s smart future? Contact us today for a personalized consultation.