Cambodia has exceeded expectations in terms of foreign direct investment (FDI), outperforming predictions by threefold with a score of 3.6. This achievement has placed Cambodia among the top 25 countries worldwide in FDI performance. In 2012, FDI reached an unprecedented peak of 14.1%, and although it came close to reaching the same level in 2020 with 14%, it experienced a decline and has been slow to recover due to the global Covid-19 pandemic. Nevertheless, Cambodia remains optimistic about its economic growth, with a projected GDP growth rate of 6.2%, ranking as the third highest in the region. Despite the challenges posed by the pandemic, Cambodia has demonstrated a strong commitment to promoting sustainability. In October 2021, the Kingdom of Cambodia introduced the new Law on Investment (LoI), aiming to establish a transparent, predictable, and favorable legal environment that attracts both domestic and foreign investment. This law offers various benefits to investors, including exemptions from income tax and customs duties incentives.
