Phnom penh: The Council for the Development of Cambodia (CDC) has given the green light to a new automotive investment project, paving the way for further expansion of the country's domestic vehicle manufacturing sector. During a meeting held on March 20, H.E. Chea Vuthy, Secretary General of the CDC's Cambodian Investment Board, alongside inter-ministerial officials, reviewed and approved a proposal by ZDG Assembly Co., Ltd. to establish a vehicle assembly plant in Kandal province.

According to Agence Kampuchea Presse, the upcoming facility will focus on assembling LYNK and CO vehicles, a global automotive brand recognized for its emphasis on high-tech and sustainable mobility solutions. In recent years, Cambodia's automotive sector has witnessed notable growth, propelled by the Royal Government's policy to promote a free-market economy and attract investment, thereby boosting economic growth and job creation.

As of March 2026, Cambodia boasts 10 operational vehicle assembly plants, producing a variety of passenger cars, trucks, and electric vehicles (EVs), including renowned brands such as Ford, Hyundai, Toyota, and BYD. The Ministry of Commerce reports that Cambodia imported US$1.1 billion worth of vehicles in 2025, marking a 60 percent increase from US$686 million in 2024.

During the same meeting, the CDC also reviewed and approved five additional investment projects with a combined investment of over US$170 million. These projects are set to be located in Svay Rieng, Battambang, Takeo, Pursat, Kandal, and Kampong Speu provinces.