Chinese electric vehicle manufacturer BYD on Monday began to build an automotive assembly plant in Cambodia, the Council for the Development of Cambodia (CDC) said in a press release.

Cambodian Deputy Prime Minister and CDC First Vice-Chairman Sun Chanthol attended the groundbreaking ceremony for the plant at the Sihanoukville Special Economy Zone in the southwestern coastal province of Preah Sihanouk, the press release said.

Chanthol said the assembly plant was another fruit of close Cambodia-China cooperation, particularly under the Belt and Road Initiative.

"The presence of BYD company in Cambodia is a testament to Chinese investors' confidence in Cambodia's business and investment environment," he said.

Chanthol is confident that the plant will be a venue for the transfer of technical skills and new technology in the EV sector to Cambodian talents.

Thong Mengdavid, a lecturer at the Institute for International Studies and Public Policy of the Royal University of Phnom Penh, said BYD's assembly plant project in Cambodia marked a strategic move to tap into the country's growing industrial capacity and EV market in the Association of Southeast Asian Nations.

"It aligns with Cambodia's ambitions to become a regional automotive hub while benefiting from trade advantages under the Regional Comprehensive Economic Partnership," he told Xinhua.

He said China's EV expansion contributes to global carbon reduction by promoting cleaner transport.

"Strengthening green energy infrastructure is crucial to maximizing EV benefits in Cambodia and other emerging markets," he said.

BYD is the most popular EV brand in Cambodia, followed by Japan's Toyota and America's Tesla, according to the Ministry of Public Works and Transport.

Cambodia registered a total of 2,253 EVs in 2024, a rise from 313 in the year before, the ministry said.

The Southeast Asian country aims to increase the number to 30,000 by 2030, the ministry added.