Strengthening Franco-Cambodian Economic Ties Ahead of the Francophonie Summit

A few months before the 20th Francophonie Summit, which Cambodia will host in November 2026, Phnom Penh and Paris are multiplying signals of a strengthened economic partnership.

Thomas Lam, president of the France-Cambodia parliamentary friendship group at the French National Assembly

On Tuesday, February 24, a meeting between high-ranking officials outlined strategic investment axes, with the ambition to transform the historic Franco-Cambodian ties—forged since the 1863 protectorate—into concrete commercial opportunities. This dialogue fits into a broader dynamic: the Kingdom, under the impetus of Prime Minister Hun Manet, seeks to diversify its economic partners in the face of China's predominance, which accounts for nearly 40% of foreign direct investment (FDI).

His Excellency Suon Sophal, Deputy State Secretary of the Cambodian Investment Committee (CIC) within the Council for the Development of Cambodia (CDC), received Thomas Lam, president of the France-Cambodia parliamentary friendship group at the French National Assembly.

These talks, held in the capital, explicitly aimed to accelerate the establishment of French companies in the Kingdom. Since 1994, the CDC has approved 44 French qualified investment projects (QIPs), totaling $380 million and promoting the transfer of technologies and skills in various sectors.

Mr. Suon Sophal detailed the flagship reforms driven by the royal government. Among them is an "intelligent" and competitive investment regime, accompanied by targeted tax exemptions and accelerated digitization of administrative procedures. Physical infrastructure benefits from a vast modernization program—highways, ports like Sihanoukville, airports—endowed with $2.5 billion for the 2024-2028 period. Specialized vocational training programs aim to address shortages of skilled labor in agro-industry, electronics, or logistics.

His Excellency Suon Sophal, Deputy State Secretary of the Cambodian Investment Committee (CIC) within the Council for the Development of Cambodia (CDC)

The 2026 Francophonie Summit is presented as an ideal showcase for organizing a major "business-to-business" (B2B) forum, capable of attracting major players from the 88 member countries of the International Organization of La Francophonie (OIF).

Thomas Lam, in response, praised Cambodia's meteoric economic trajectory, with GDP growth of 6.1% in 2025 according to Asian Development Bank (ADB) forecasts.

He committed to promoting French investments in priority sectors: agro-industry (rice, rubber, sugar), logistics, automotive and electronics (component assembly), health (private hospitals), tourism (Angkor and coasts), as well as financial services (digital banks). This working mission, which includes meetings with chambers of commerce and factory visits, ends on February 28.

Context

Franco-Cambodian relations, born under the French protectorate (1863-1953), have weathered the turmoil of the Vietnam War, the Khmer Rouge, and the civil war. Since the 1990s, France has injected more than one billion euros in development aid via the French Development Agency (AFD), funding training, water treatment plants, and other infrastructure. Today, around a hundred French companies operate in Cambodia, but their weight remains modest. The 2026 summit, the second in Asia after Hanoi in 1997, could mark a turning point.