Washington has long worried about China’s growing influence across Southeast Asia. That concern is understandable; China is a major presence across the region. But influence comes from being present and engaged.

In Cambodia, the United States has started to do just that. New aviation cooperation, U.S. development finance support for Techo International Airport, renewed military contact and President Trump’s role in helping secure the Cambodia-Thailand ceasefire all point in the right direction. American businesses and investors should follow Washington’s lead.

I have traveled to Cambodia many times for business and in support of the Cambodian Children’s Fund. I have witnessed children and families overcome hardship through education and health care. For me, it is an investment in human potential.

I have observed similar dynamics in business. During nearly forty years at General Electric, I traveled to more than 100 countries and saw emerging markets transform when investment and talent were supported by strong infrastructure. I also saw opportunities missed when investors relied on outdated assumptions or incomplete facts.

Broader Manufacturing Potential

Cambodia is often seen only in the context of its history or of China’s involvement, overlooking its broader potential. The country is fast becoming a production and logistics hub in the Association of Southeast Asian Nations (ASEAN), investing in infrastructure, industrial zones, clean energy and projects such as the Funan Techo Canal. This deserves greater investor attention.

Other countries recognize Cambodia’s potential. Japan, South Korea, Australia, Singapore and European partners are investing alongside China. The United States has positive examples, but not at the scale warranted by the opportunity.

Cambodia offers real advantages: full foreign ownership in most sectors, protection from nationalization, free capital movement, tax incentives and a relatively straightforward regulatory system. Major U.S. companies such as Coca-Cola, Ford, FedEx, GE, Abbott, Cisco, Laurelton Diamonds Cambodia (a subsidiary of Tiffany & Co.) and AHF Products are active in Cambodia because they see genuine business opportunities. American firms have supported Cambodia’s new airport with equipment, elevators, network systems, cybersecurity and data-center systems. Ford assembles vehicles in Pursat Province, Coca-Cola has invested in manufacturing and AHF Products is using its Cambodian facility to serve international customers after ending manufacturing in Shanghai.

As supply chain diversification becomes increasingly important, Cambodia can serve as an additional base in ASEAN. Its growth is driving demand for U.S. technology, logistics, energy, health care, financial services and consumer brands. The country’s infrastructure agenda also creates opportunities in airport logistics, port expansion, digital systems, clean energy and transport links.

This engagement is also strategically important for the United States. To maintain influence in Southeast Asia, America must invest alongside others. U.S. companies contribute standards, training, compliance and long-term partnerships that support the development Washington seeks.

Progress on Trade Policy; Challenges on Safety, Supply Chain

U.S.-Cambodia relations are strengthening. Cooperation in aviation, security, infrastructure finance and diplomacy demonstrates Washington’s commitment to its partnership with Phnom Penh.  American companies and investors should build on this momentum.

Of course, investors should not view Cambodia uncritically. Like many emerging markets, it has issues to address around law enforcement, supply-chain standards, regional stability and investor confidence. 

Scam networks threaten public trust and Cambodia’s reputation. The government has made combating them a priority, adopted a new anti-technology fraud law, strengthened enforcement and increased cooperation with international partners. Recent shutdowns and high-profile arrests show the issue is being taken seriously.

Cambodia was the first country to sign the Agreement on Reciprocal Trade with the United States. That progress shows how trade policy can strengthen confidence, improve market access and support Cambodia’s position as a reliable production base.

In addition, Cambodia has shown a commitment to peace and international law. After Thailand terminated the Memorandum of Understanding for managing overlapping maritime claims, Cambodia turned to the United Nations Convention on the Law of the Sea to keep dialogue alive.

Build Relationships Now or Others Will

Cambodia’s challenges are common among developing countries and should not deter American companies from engaging. Instead, they highlight the need for careful assessment before making long-term investments.

The alternative is clear. If the United States continues to underinvest in Cambodia, others will shape its future. They will build relationships, fund infrastructure, set standards and gain influence. America will complain about an imbalance it helped create by staying away.

Cambodia should not be viewed as a charity case or a geopolitical concern. It represents an opportunity where responsible investment can create new prospects for young Cambodians and advance American commercial and strategic interests. I have witnessed how opportunities in Cambodia and other emerging markets reward early action. My advice to American business leaders is simple: Cambodia deserves a place in your Southeast Asia strategy.