AKP Phnom Penh, August 01, 2025 -- 

The United States’ decision to lower tariffs on Cambodian exports to 19 percent will help preserve and enhance Cambodia’s attractiveness for foreign direct investment (FDI), affirmed H.E. Sun Chanthol, Deputy Prime Minister and First Vice President of the Council for the Development of Cambodia (CDC).

Speaking at a press conference at the CDC headquarters in Phnom Penh this morning, H.E. Sun Chanthol emphasised that Cambodia has now secured the same preferential tariff rate as other countries in the region, including Indonesia, Malaysia, and the Philippines.

“This is a very positive development and a new achievement under the wise leadership of Prime Minister Samdech Moha Borvor Thipadei Hun Manet,” he said.

The Deputy Prime Minister stressed that the new rate will allow Cambodia to retain its existing manufacturing base while encouraging further investment expansion.

“With this new rate, Cambodia can maintain all current factories in the country. In fact, this new tariff environment is likely to prompt many to expand their operations,” he added.

H.E. Sun Chanthol also called on Cambodian migrant workers to return home, noting that improved trade conditions would create more jobs and economic opportunities within the Kingdom.

In return for the U.S. tariff reduction, Cambodia will eliminate import tariffs on all U.S. products entering the Cambodian market. Additionally, he revealed that Cambodia is negotiating the purchase of 10 Boeing 727 Max 8 aircraft for the national carrier.

According to CDC data, Cambodia approved268 projects worth US$4.92 billion in 2023; 414 projects worth US$6.87 billion in 2024; and 373 projects worth US$5.78 billion in the first half of 2025.

H.E. Sun Chanthol expressed optimism that the new tariff rate will further strengthen Cambodia’s position as a destination for global investors, especially in light of the country’s improved trade access to the U.S. market.

By Heng Panha