Cambodia has witnessed an unprecedented surge in foreign investment, with a staggering $1.3 billion influx in the initial two months of 2024...
Cambodia has witnessed an unprecedented surge in foreign investment, with a staggering $1.3 billion influx in the initial two months of 2024. This monumental leap, revealed by the Council for the Development of Cambodia (CDC), marks a remarkable increase of over 500 percent compared to the corresponding period in 2023.
China emerges as the frontrunner in contributing to Cambodia's foreign direct investment (FDI), constituting approximately 39 percent of the total investment volume. According to Chea Vuhty, Secretary-General of CDC’s Cambodia Investment Board (CIB), Chinese investments are predominantly directed towards sectors such as industry, infrastructure, and agriculture.
Lim Heng, Vice President of the Cambodia Chamber of Commerce, attributes the surge in FDI to robust investor confidence. He underscores Cambodia's stability, peace, and advantageous free trade agreements, which have positioned the nation favorably in the eyes of investors.
Highlighting Cambodia's strategic trade alliances, Heng points out the existing free trade agreements (FTAs) with China and South Korea, along with the Regional Comprehensive Economic Partnership (RCEP). These agreements not only facilitate broader market access but also offer favorable policies, fostering an environment conducive to investment.
The Cambodian government's proactive stance in addressing private sector challenges has further bolstered investor sentiment. Prime Minister Hun Manet, speaking earlier in March, reaffirmed the government's commitment to promoting investments aimed at job creation and livelihood improvement.
In 2023, Cambodia witnessed a commendable growth trajectory in fixed-asset investment, amounting to $4.92 billion, reflecting a significant 22 percent increase from the previous year. CDC's report underscores the dominance of Chinese investment, comprising two-thirds of the total investment capital, with contributions also from Singapore, Malaysia, and other nations.
Industrial projects emerge as the primary recipient of investment, accounting for a staggering 92 percent of total projects. This underscores Cambodia's strategic positioning as an attractive destination for foreign investors seeking lucrative opportunities in the industrial sector.
Amidst the ongoing global economic uncertainties, Cambodia's remarkable surge in foreign investment stands as a testament to its resilience and attractiveness as an investment destination. With a proactive government, strategic trade agreements, and investor-friendly policies, Cambodia continues to pave the way for sustainable economic growth and development.
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