Germany Pledges to Boost Investment in Cambodia

Germany is looking to deepen economic, trade and investment cooperation with Cambodia, with newly appointed German Ambassador Silke Röfer pledging to encourage more German companies to invest in the Kingdom.


The commitment was made during a meeting between Acting Head of State Hun Sen and Röfer on Tuesday afternoon at the Senate’s Samakki Hall in Phnom Penh, where the ambassador presented her credentials.

Key Facts

ItemDetails
CountriesCambodia and Germany
Key focusTrade, investment and economic cooperation
German AmbassadorSilke Röfer
Cambodian officialActing Head of State Hun Sen
LocationSenate’s Samakki Hall, Phnom Penh
Key commitmentEncourage more German companies to invest in Cambodia
Bilateral tradeAround $3 billion, according to Hun Sen
Investment frameworkCambodia-Germany Investment Promotion and Protection Agreement in force since 2002

Germany Seeks Greater Investment Engagement

Röfer told Hun Sen that she would work during her diplomatic mission to promote stronger economic and trade cooperation between Germany and Cambodia, particularly by encouraging German businesses to explore investment opportunities in the Kingdom.

Senate spokesperson Chea Thyrith said the ambassador’s appointment could contribute to strengthening bilateral relations, with economic and commercial cooperation identified as an important area for further engagement.

Hun Sen welcomed the commitment, emphasizing the importance of trade and investment to the relationship between the two countries.

“Economics, trade and investment are the core of relations between the two countries,” he said, according to the Senate spokesperson.

He also noted that bilateral trade had continued to increase, describing Germany as an important European trading partner for Cambodia and putting the value of two-way trade at around $3 billion.

Longstanding Cambodia Germany Economic Ties

Cambodia and Germany have maintained diplomatic relations since 1967, with relations interrupted during periods of conflict before being restored in the early 1990s. Germany remains one of Cambodia’s important European trading partners.

According to the German Federal Foreign Office, Cambodia exports products including textiles, footwear and bicycles to Germany, while German exports to Cambodia include machinery, chemicals, electronics and vehicles. The two countries also have an Investment Promotion and Protection Agreement that entered into force in 2002.

The German Embassy in Phnom Penh describes the bilateral relationship as covering politics, business, development cooperation, education and culture. Röfer has also stated that she intends to further deepen and expand relations between the two countries.

Cambodia Highlights Investment Opportunities

The renewed focus on German investment comes as Cambodia seeks to expand economic ties with European markets and attract foreign capital into productive sectors.

In June, Deputy Prime Minister and First Vice Chairman of the Council for the Development of Cambodia Sun Chanthol held discussions with a high-level German parliamentary delegation on Cambodia’s investment opportunities and incentives.

Cambodia has been promoting its investment framework, including incentives available under the Law on Investment, as well as measures aimed at improving the business environment and addressing challenges faced by investors.

The Council for the Development of Cambodia has continued to engage foreign investors and business delegations on investment opportunities, regulations and incentives as part of its broader investment promotion efforts.

Germany’s Role in Cambodia’s Trade and Development

Germany’s engagement with Cambodia extends beyond commercial trade. The German government has also worked with Cambodia and European partners on development and trade facilitation initiatives.

In April 2026, Germany and the European Union joined Cambodian authorities in efforts to modernize customs and improve logistics efficiency. The initiative included work on reducing trade barriers and improving express air cargo procedures at Techo International Airport.

These areas could complement Cambodia’s broader efforts to improve logistics, manufacturing capabilities, technology adoption and access to European markets.

Angkor Times Analysis

The latest diplomatic engagement places investment promotion at the centre of Cambodia Germany economic relations. For Cambodia, attracting more German companies could support diversification of foreign investment beyond traditional manufacturing while strengthening links with European industrial and technology networks.

For German businesses, Cambodia’s investment framework, expanding infrastructure and access to regional markets provide areas for further exploration. However, the meeting itself announced no specific German investment project or financial commitment. The immediate outcome is therefore a stronger diplomatic and investment promotion commitment rather than a confirmed new investment.


FAQs

What did Germany pledge to do in Cambodia?

German Ambassador Silke Röfer pledged to encourage more German companies to invest in Cambodia and to promote stronger economic and trade cooperation.

Who met the German ambassador?

Acting Head of State Hun Sen met newly appointed German Ambassador Silke Röfer at the Senate’s Samakki Hall in Phnom Penh.

How much is Cambodia Germany bilateral trade?

Hun Sen said bilateral trade had reached around $3 billion.

When did Cambodia and Germany establish diplomatic relations?

The two countries established diplomatic relations in 1967. Relations were later suspended before being restored in the 1990s.

Does Cambodia have an investment agreement with Germany?

Yes. The Cambodia Germany Investment Promotion and Protection Agreement entered into force in 2002.

What does Cambodia export to Germany?

According to the German Federal Foreign Office, major Cambodian exports to Germany include textiles, footwear and bicycles.

What does Germany export to Cambodia?

German exports include machinery, chemicals, electronics and vehicles.

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