• Journal of the Economic Geographical Society of Korea
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• v.17 no.4
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• pp.832-847
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• 2014

The main aim of this paper is to contribute to building some strategic foundations for future Korean foreign investors in Cambodia by investigating trends and institutional changes in inward foreign direct investment and working conditions in Cambodia. Rapid increase in labor costs, and investment incentives centering on high-tech industries in China and Vietnam has led to the relocation of labor-intensive industries into low wage countries since the early 2000. As a result, Cambodia has emerged as a new alternative investment region in which enable to off-set existing locational and institutional advantages, so that it has implicated in changes in Asian economic geographies. In addition, the Cambodian government has operated two labor relations projects - Better Factory Cambodia and Labor Dispute Resolution Project - with ILO to improve the working conditions of foreign investment firms. These projects could provide an insight into constructing strategies for foreign investment, and also imply institutional embeddedness in Cambodia.