From Scam Hub to Safe Bet? Cambodia Fights Back to Win Investors

Authorities have launched a wide-ranging crackdown on cybercrime hubs across Cambodia, after viral social media videos showed large numbers of Chinese and other foreign nationals fleeing suspected scam compounds in Sihanoukville, Kandal, Battambang and Kampot. The dramatic scenes have drawn international attention and sparked debate over whether the operation could help restore investor confidence in a country long linked to online fraud.

International relations analyst Seng Vanly told Kiripost that while the images mark a potential turning point, the impact on foreign investment remains uncertain. He said the raids provide the kind of visible enforcement Western markets expect, but warned that Cambodias reputation as a “scam state” has been deeply entrenched over years. According to immigration data, more than 13,500 people from 66 countries were deported in 2025 for crimes related to online scams and other offences, underscoring the scale of the problem authorities are now trying to dismantle.

Vanly noted that institutional investors tend to focus on long-term legal certainty rather than sudden enforcement drives. While the current actions are an important first step, he said it could take years of consistent reform before reputable capital is fully convinced that reputational risks have eased. He added that targeting high-profile figures such as Chen Zhi is part of a broader strategy to shield Cambodias banking system from international sanctions by showing that even powerful individuals are not beyond the reach of the law.

On the investment front, Vanly said a cleaner economy offers far more sustainable growth than the fast but unstable cash flows generated by scam operations. High-quality foreign direct investment in sectors like manufacturing and technology brings skills, jobs and tax revenue that support long-term development, but only if the country can demonstrate transparency and strong regulation. At the same time, he acknowledged the immediate economic fallout in areas that had grown dependent on scam-related activity, with landlords, food vendors and service workers suddenly losing income.

Economic researcher Hong Vannak from the Royal Academy of Cambodia echoed the view that cracking down on scams and ensuring public safety are essential foundations for attracting investors and tourists. He said the operation sends a strong signal of government commitment and strengthens confidence in law enforcement. Tourism, which has suffered from Cambodias association with scams, could also benefit if the clean-up is sustained.

Despite these efforts, international scrutiny remains. A recent trafficking report again placed Cambodia in the lowest tier for failing to meet minimum standards in addressing human trafficking linked to online scams. In response, Deputy Prime Minister Sun Chanthol reiterated that the government is firmly committed to eradicating illegal activities to create a safe environment for investors and visitors. In 2025 alone, Cambodia approved 630 investment projects worth nearly US$10 billion, expected to create more than 400,000 jobs.

However, the social impact of the crackdown is becoming increasingly visible. Online comments following the viral videos show concerns over unemployment, with some individuals saying scam centres had provided higher incomes for their families. Vanly warned that without a clear plan to replace these grey-market earnings with formal jobs, the government faces the challenge of managing short-term economic pain while rebuilding Cambodias global image. Labour authorities, meanwhile, say tens of thousands of legitimate jobs are available, with training and placement support offered to those affected by the transition.