The Nexhealthcare Co., Ltd. factory, which will manufacture gloves (PVC and rubber) and medical equipment, broke ground in the Qilu Special Economic Zone (SEZ) in Svay Rieng province on March 2.

With an investment capital of $273 million, the factory will occupy a 21-hectare site.

Economists have noted that Cambodia's political stability and expansive export market have played a crucial role in attracting more multinational companies and foreign direct investment.

Chea Vuthy, secretary-general of the Cambodian Investment Board of the Council for the Development of Cambodia (CDC), who attended the groundbreaking ceremony, described the new factory as another significant step for the Cambodian government in attracting more foreign direct investment.

Nexhealthcare Co., Ltd. is a subsidiary of Shadong Blue Sail Health Technology Co., Ltd., based in Shandong Province, China.

The company’s health protection gloves are ranked 3rd globally, while their heart monitoring equipment is ranked 4th globally and 2nd in China.

He highlighted the special role special economic zones (SEZs) play in attracting investors to Cambodia.

The success of Cambodia's SEZs stems from an initiative initially started by former Prime Minister Hun Sen, now president of the Senate.

These zones offer significant advantages to investors, including reduced time, lower costs and simplified procedures for business operations.

Vuthy noted mentioned that recently, Prime Minister Hun Manet introduced three additional measures aimed at attracting, maintaining and encouraging investors to continue drawing new investment to Cambodia.

According to an annual 2024 report by the Ministry of Industry, Science, Technology and Innovation, by the end of last year, the Kingdom had opened four new special economic zones (SEZ), bringing the total to 30.

The SEZs are spread across 12 of the Kingdom’s capital and provinces, with 9 in Svay Rieng, 5 in Preah Sihanouk, 3 each in Banteay Meanchey, Koh Kong and Kandal, and one a piece in Pursat, Kratie, Kampot, Kampong Speu, Kampong Chhnang, Kampong Cham and Phnom Penh.

The number of zones has increased from 21 in 2020 to 23 in 2021, 25 in 2022 and 26 in 2023.

“The growth in investment projects and the increasing number of SEZs demonstrate the development of Cambodia’s economic zones, which continue to attract foreign investment, create jobs and enhance the livelihoods of the people, contributing to sustained national economic growth,” said Vuthy.

According to the CDC, in 2024, 414 investment projects were approved, marking a 54% increase (146 projects) from 2023, which saw 268 projects.

Total investment capital amounted to $6.9 billion, a 40% increase from $4.92 billion in 2023.

Lor Vichet, vice-president of the Cambodia Chinese Commerce Association (CCCA), told The Post on March 3 that the US policy under President Donald Trump, which increased tariffs by about 10% on goods imported from China, has prompted more Chinese manufacturers exporting to the US to relocate their factories to countries with fewer tariff pressures. He added that Cambodia has not yet been affected by increased US tariffs.

Additionally, Cambodian Investment Law allows foreign investors to establish 100% foreign-owned businesses in the country.

Vichet noted that the trend of rising US tariffs on Chinese-made goods could continue, prompting Chinese investors to consider Cambodia as a location for factories.

Data from Cambodia's General Department of Customs and Excise (GDCE) showed that in 2024, Cambodia’s total trade (exports and imports) with its partners reached $54.74 billion, marking a 16.9% increase compared to 2023, which stood at $46.83 billion.

Cambodian exports totalled $26.2 billion, an increase of 15.7%, while imports amounted to $28.54 billion, a 18% increase.

Cambodia's top five trading partners are China, the US, Vietnam, Thailand and Japan.