Growing interest in electric vehicle manufacturing in Southeast Asia has led a delegation of South Korean investors to explore the possibility of establishing an electric two-wheeler assembly plant in Cambodia, citing the increasing adoption of electric vehicles among local consumers amid rising global fuel prices.

The investors would join several South Korean e-bike assemblers already operating in Cambodia, including Verywords, whose models are commonly seen on the country's streets.

Youn Heng, Deputy Secretary-General of the Cambodian Investment Board (CIB), met a South Korean delegation of investors at the headquarters of the Council for the Development of Cambodia (CDC) on March 6th.

During the meeting, the delegation stated that it was interested in the growing adoption of electric vehicles among the Cambodian population and intends to study investment potential and opportunities in Cambodia, including the possible establishment of a two-wheeler assembly plant.

Heng provided an overview of Cambodia's investment environment and outlined government policies related to attracting domestic and foreign investment. He stated that Cambodia has been identified as a potential investment destination across several sectors.

Phon Rim, spokesperson for the Ministry of Public Works and Transport, stated that the development of electric vehicles is a global trend. He noted that their adoption is associated with environmental protection, economic development, energy security and the adoption of new technologies, in line with regional and global developments.

He further added that the National Policy on the Development of the Electric Vehicle Sector 2024-2030 functions as a roadmap and policy framework for the Royal Government to guide the development of the EV sector in Cambodia.

"The government provides greater freedom and a wider range of choices for vehicle usage in order to facilitate travel, the transportation of goods, and other services. In fact, the rate of EV usage has increased significantly, especially for two-wheelers and cars. Recently, the Electricity Authority of Cambodia encouraged investors holding electricity supply licences to study the possibility of investing in electric vehicle charging stations, while also promoting further growth in the use of electric vehicles in Cambodia," he said.

Cambodia currently has several electric vehicle assembly plants, including Verywords and the Onion electric two-wheeler and electric three-wheel vehicle assembly plant, a joint investment between local and South Korean companies. The country also hosts electric car assembly plants operated by BYD and Zo Motors Cambodia.