Phnom Penh

Phnom Penh concentrates Cambodia's economic metabolism at the confluence of the Mekong, Tonle Sap, and Bassac rivers—a geographic node that has defined the capital's importance since its founding. The garment, textiles, and footwear sector employs over 833,100 workers (75% young women), generating $12.8 billion and accounting for 62% of Cambodia's merchandise exports. This manufacturing base, centered in special economic zones like the Royal Group Phnom Penh SEZ ($1.9 billion in expected 2024 exports, up 20%), drives the national economy alongside tourism.

Cambodia's GDP growth accelerated to 5.8-6.0% in 2024, with per capita income rising from $1,917 in 2023 to projected $2,071. Fixed-asset investment reached $6.9 billion (up 54% over 2023), with 414 approved projects expected to create 320,000 jobs. China dominates foreign investment at $3.43 billion—nearly half the total. The Phnom Penh Autonomous Port generated over $43 million in 2024 revenue (up 20%+), handling goods that flow between Cambodia's interior and global markets.

The capital's centralization parallels Lima or Bangkok: manufacturing, finance, government, and services concentrate in one metropolitan area while provinces contribute raw materials and labor. Real estate development continues with 2,400 condo units added in 2024 and 14,000 projected by year-end, despite a broader market downturn. Phnom Penh's advantage lies in its position as obligate passage for Cambodia's exports, imports, and investment flows—a hub-and-spoke system where the hub captures disproportionate value.