Cambodia Investment Review
Australian businesses are increasingly eyeing Cambodia as a growth market, with new survey data showing rising confidence in the country’s potential despite regional governance and regulatory challenges.
The 2025 Australian Business in Southeast Asia Survey, released by AustCham ASEAN in partnership with RMIT University, found that 18% of Australian companies plan to expand operations in Cambodia, signaling a shift toward emerging ASEAN economies. The survey recorded its highest-ever participation, with more than 300 respondents across sectors including professional services, financial services, agriculture, and infrastructure.
Cambodia Gains Attention
Nicholas Whillas, AustCham ASEAN’s Executive Director, said the survey results highlight Cambodia’s growing appeal to Australian firms.
“The 2025 survey results demonstrate remarkable resilience and optimism among Australian businesses operating in Southeast Asia. With Cambodia continuing to attract interest—18% of respondents plan to expand operations there—we’re seeing Australian companies look beyond traditional markets to emerging opportunities across ASEAN,” Whillas told Cambodia Investment Review.
He noted that agriculture, infrastructure development, and professional services were sectors where Cambodia stood out, despite persistent hurdles around governance and regulation.
Rising Importance of ASEAN Integration
One of the survey’s strongest signals was the rising importance placed on ASEAN’s economic integration. Seventy percent of respondents now view integration as critical to business success, up sharply from 43% in the previous year. This shift, Whillas said, reflects “a deeper understanding of the region’s interconnected nature and the opportunities it presents.”
For Cambodia, regional integration could help the country capture more investment in export-led sectors and professional services, aligning with ongoing government efforts to diversify beyond garments and tourism.
Diplomatic Support for Deeper Ties
Australian Ambassador to ASEAN, H.E. Tiffany McDonald, emphasized that Canberra sees ASEAN—and Cambodia in particular—as key to long-term economic resilience.
“A peaceful, stable and prosperous ASEAN is crucial for Australia’s economic security, prosperity and resilience,” McDonald said in the report. “ASEAN is already Australia’s second largest trading partner, and its economic growth is undoubtedly a positive development for Australian exporters, investors and consumers.”
She added that initiatives such as the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) Upgrade and the Regional Comprehensive Economic Partnership (RCEP) are helping to create predictable rules and lower barriers, making it easier for Australian companies to expand into frontier markets like Cambodia.
Growth Opportunities vs. Structural Challenges
While sentiment is positive, challenges remain. Survey respondents cited corruption, barriers to ownership, and government bureaucracy as persistent obstacles to doing business in ASEAN, with Cambodia no exception
Still, the overall mood is bullish. Nearly one in three Australian businesses expect significant revenue growth in Southeast Asia over the next five years, with Cambodia part of this momentum.
“As businesses navigate global uncertainties, Southeast Asia’s dynamic markets offer compelling prospects for diversification and growth,” Whillas said.
For Cambodia, that means the country’s position within ASEAN’s integration drive and its expanding opportunities in agriculture and infrastructure could make it one of the next focal points for Australian investment.
