Cambodia adopted a market economic framework in 1989 and industry has begun to respond, with new private businesses emerging in light industry, trade and service areas.
Manufacturing, for example, has gone from negative growth of 12.3% in 1990 to 11.8% in 1996 and remains a respectable 3.7%. The growth is primarily driven by the expansion of the garment industry, and the food and beverages and building materials sectors. Foreign investment trends in the area are encouraging.
Joint ventures and foreign direct investment totaled over US$ 2.2 billion from 1994 - 1996. Investment is primarily directed into the textile and garment industries, construction and tourism.

The energy sector is very important to the growth and development process in Cambodia due to its size and strategic role. Cambodia strongly encourages private sector involvement in projects for the development of energy resources as well as the distribution and sale of energy. Without competitive private sector participation, the Government will not be able to mobilize the required new investments to modernize energy infrastructure and sector management.

Oil and gas exploration recommenced in Cambodia in 1991 and have already produced promising results. 12,000 line kilometers of high quality seismic data have been obtained and indicate the potential for substantial oil and gas generation. Three major oil companies with 30 year contracts have already begun drilling. Regional oil and gas companies are seeking to grab stakes in an offshore oil exploration projects off the coast of Cambodia as well as in the Gulf of Thailand.