Cambodia's Construction Investment Exceeds $7.3 Billion, Up Nearly 70% Year-on-Year

According to the latest statistics from the Ministry of Land Management, Urban Planning and Construction, Cambodia's construction industry investment reached $7.32 billion this year, representing a 69% year-on-year growth, indicating that the industry continues to show strong signs of recovery.

The report indicates that a total of 3,503 construction projects have been approved nationwide this year, with a total construction area of 18.67 million square meters and an investment amount of 7.32 billion USD. In 2024, the construction investment amount is 4.33 billion USD, with a total of 2,622 projects, showing a significant increase in both the number of construction projects and investment amount. In terms of construction categories, residential projects still account for the majority. The report shows that there are 2,724 residential construction projects nationwide, with an estimated investment amount of 2.51 billion USD; commercial building projects number 189, with an estimated investment amount of 790 million USD.

The Ministry of Land Planning and Construction stated that the construction industry is an important pillar for driving national economic growth, long-term boosting household economies, creating job opportunities, and promoting urban development. Successive governments have continuously introduced relevant policies, including encouraging construction investment, improving regulations and technical standards, enhancing the quality of public services, strengthening supervision, and severely cracking down on illegal construction activities, such as encroaching on public land, unauthorized construction, and violations of construction regulations. Meanwhile, the government requires all construction sites to set up wastewater treatment facilities to maintain urban appearance, public safety, and environmental sanitation.

Before the pandemic, the construction industry was a key driver of economic growth in Cambodia. The contribution of the construction and real estate sectors to GDP growth increased from 0.5 percentage points in 2011 to an average of 2.5 percentage points from 2016 to 2019. However, during the pandemic, the industry was severely impacted, with its contribution to GDP growth falling to negative 1.2 percentage points in 2020. Since then, the recovery has been slow, and it has not yet returned to pre-pandemic levels.