After decades of robust economic growth, Cambodia reached lower-middle-income status as of 2015, when gross national income per capita reached US$1,070. The strongest drivers have been the garment sector, construction, and services, which have responded to growing internal demand and strong external demand for garment exports. Tourism has continued to grow rapidly with foreign arrivals exceeding 2 million per year since 2007 and reaching around 4.5 million visitors in 2014.
Cambodia’s 1994 Law on Investment established a liberal foreign investment regime, opening all sectors of the economy to foreign investment and allowing companies in most sectors to be 100% foreign owned. Foreign investors also receive corporate tax holidays of up to eight years. There are currently four SEZ in Cambodia: Dragon King SEZ, H.K.T. SEZ, Kampot SEZ, and Manhattan SEZ. The Phnom Penh Special Economic Zone has attracted more than USD 100 million in investments from several large American companies, including Coca Cola, Tiffany & Co., and American Licorice.