Phnom penh: 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 emphasized that Cambodia has now secured the same preferential tariff rate as other countries in the region, including Indonesia, Malaysia, and the Philippines.
According to Agence Kampuchea Presse, H.E. Sun Chanthol stated that this development represents a significant achievement under Prime Minister Samdech Moha Borvor Thipadei Hun Manet's leadership. The Deputy Prime Minister noted that the new rate will allow Cambodia to retain its existing manufacturing base while encouraging further investment expansion. He highlighted that the favorable tariff environment is likely to prompt many companies to expand their operations within the country.
H.E. Sun Chanthol also urged Cambodian migrant workers to return home, citing improved trade conditions that would create more jobs and economic opportunities within the Kingdom. In exchange for the U.S. tariff reduction, Cambodia will eliminate import tariffs on all U.S. products entering the Cambodian market. Additionally, he revealed plans for Cambodia to purchase 10 Boeing 727 Max 8 aircraft for the national carrier.
According to CDC data, Cambodia approved 268 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.