High Quality Tactical Solutions
Why is Cambodia the perfect location to set up your facility?
Manhattan Special Economic Zone (MSEZ) is Cambodia's first and largest special economic zone, covering 600 hectares, with 50+ companies and over 40,000 workers.
Cambodia is a common choice for export manufacturers diversifying their production base. The economy runs largely on US dollars, there are no foreign exchange controls, the workforce is young, and exports benefit from ASEAN and RCEP agreements, bilateral FTAs with China, South Korea and the UAE, and least-developed-country preferences in markets such as the EU, the UK and China. Exports to the United States currently pay an additional 10% tariff (from July 24, 2026), compared with 12.5% for Vietnam, Thailand and China.
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Cambodia Overview
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8 Advantages of Investing in Cambodia
No Foreign Exchange Control
Under the 1997 Law on Foreign Exchange, foreign exchange transactions, transfers and capital flows carried out through authorized banks in Cambodia are not restricted; banks only report periodically to the National Bank of Cambodia. The 2021 Law on Investment also guarantees investors the right to buy foreign currency and remit abroad payments for imports, loan repayments, royalties, management fees, profits and invested capital.
Low Social Insurance Rate
Employers contribute to Cambodia’s National Social Security Fund (NSSF) for occupational risk (0.8%), health care (2.6%, fully paid by the employer since 2018) and pension (2%, with another 2% from the employee), about 5.4% of wages in total. Under the pension schedule, the combined pension rate rises to 8% (4% each) from the sixth year of the scheme (October 2027), bringing the employer total to about 7.4%. By comparison, employers in Vietnam pay 21.5% for social, health and unemployment insurance; in Malaysia, employer EPF contributions are 12–13% plus SOCSO and EIS; in Thailand, employers and employees each pay 5%, capped at THB 875 a month.
Trades in USD
Cambodia’s economy is largely dollarized: wages, rents and trade payments are commonly priced and paid in US dollars, so exporters earn and spend in the same currency and face less exchange-rate risk. In Vietnam, by contrast, transactions within the country must generally be priced and paid in dong. Note that the total on Cambodian tax invoices must be shown in riel, and the government is promoting wider use of the riel.
Monthly Minimum Wage: 200 USD
Cambodia’s statutory minimum wage covers the garment, textile, footwear, travel goods and bag sectors. It is US$210 a month in 2026 (US$208 during probation) and rises to US$212 on January 1, 2027. Increases of just US$2 in each of the last two years, about 1% a year, make labor budgets predictable. Vietnam and Malaysia are raising wages faster: Vietnam’s draft for 2027 lifts regional minimum wages by 7.8% on average (Region I to VND 5.7 million, about US$220), and Malaysia will raise its minimum wage from RM1,700 to RM2,000 a month in June 2027. Thailand’s daily rates range from THB 337 to 400 by province.
Preferential Tariff Treatment
Imports: export-oriented Qualified Investment Projects (QIPs) can import production equipment, construction materials and production inputs free of import duty. Agreements: Cambodia is part of ASEAN’s free trade agreements and RCEP, and has bilateral FTAs with China, South Korea and the UAE. Exports: shipments to the US pay an additional 10% tariff (from July 24, 2026; 12.5% for Vietnam, Thailand and China); exports to the EU enter duty-free under Everything But Arms, except some garments, footwear and all travel goods, which lost the preference in August 2020; the UK and China also grant least-developed-country preferences. Cambodia is scheduled to graduate from LDC status in 2029, after which these preferences will change following transition periods.
Abundant Manpower
Cambodia has a population of about 18.05 million (UN estimate for 2026), growing about 1.1% a year, with a median age of 26.4, younger than Malaysia (31.4), Vietnam (33.9) and Thailand (41.0). The garment, footwear and travel goods industry is the largest manufacturing employer, with more than 1,800 factories and branches and about 1.1 million workers, so new factories can recruit operators with factory experience.
Quasi-National Treatment
Cambodia’s Law on Investment (October 2021) is based on non-discrimination: foreign investors are generally treated the same as domestic investors, and most sectors allow 100% foreign ownership. The main restriction is land: foreigners and companies more than 49% foreign-owned cannot own land, but can secure long-term leases. The law also prohibits nationalization affecting investors’ assets and allows expropriation only in the public interest with fair compensation.
Low Business Income Tax
Cambodia’s standard corporate income tax rate is 20%, the same as Vietnam and Thailand and lower than Indonesia (22%), Malaysia (24%) and the Philippines (25%). Qualified Investment Projects can receive an income tax exemption of 3, 6 or 9 years depending on the investment activity, with a 200% deduction for certain expenses and lower graduated rates for six years after the exemption, or choose accelerated depreciation instead. Vietnam and Thailand also offer incentives, so compare the terms for your specific industry and location.
