Over the past decade, Cambodia has more than halved its rate of poverty thanks to economic growth averaging 8 percent per annum, strong export performance, and positive changes to the investment climate. Cambodia is an attractive investment destination as it is strategically located at the center of Association of South East Asian Nations (ASEAN), creating significant opportunities for integration into regional and global value chains. With a changing global environment, Cambodia is likely to face increasing challenges maintaining and expanding market access in a dynamic and highly competitive region. The Royal Government of Cambodia (RGC) recognizes the importance of enhancing the investment environment and has initiated a series of reforms. Progress has been greatest on trade facilitation, as reflected by the impressive improvement in Cambodias ranking on the World Banks logistics performance index (LPI). Despite the governments effort at introducing reforms to improve the investment climate, the business environment continues to hamper the competitiveness of firms in Cambodia. The RGCs rectangular strategy identifies the importance of automated trade and business processes, and the need for regulatory reform. The RGC is currently developing its industrial development policy 2014-2024 that deals with many of the issues raised in this report. The RGC will focus on broadening the manufacturing base, attracting new investment, and creating growth poles around the current manufacturing anchors.