Cambodian Prime Minister Hun Manet has launched two new initiatives aimed at enhancing business and investment opportunities for Korean inve...
Cambodian Prime Minister Hun Manet has launched two new initiatives aimed at enhancing business and investment opportunities for Korean investors in Cambodia. This move underscores the new government's commitment to strengthening political diplomacy and economic ties with South Korea.
The Cambodia-Republic of Korea Business Forum, a collaborative effort between the Cambodian Chamber of Commerce and the Chamber of Commerce and Industry of the Republic of Korea, saw the participation of over 300 Cambodian and Korean investors, representing 198 companies. Despite a tight schedule, Prime Minister Hun Manet presided over the forum, highlighting Cambodia's favorable investment policies to attract Korean investors.
During his speech, Prime Minister Hun Manet emphasized several key factors designed to foster Korean investment in Cambodia. He cited the strong bilateral relations between Cambodia and South Korea and the recently achieved free trade agreements, such as the ASEAN Free Trade Agreement and the Cambodia-Korea Free Trade Agreement. These agreements are pivotal in facilitating smoother trade and investment processes.
Hun Manet also highlighted Cambodia's robust support for the private sector and foreign investments. He pointed out that Cambodia's economy, which maintained a 7% growth rate for two decades before the COVID-19 pandemic, is recovering well. This stable economic backdrop is intended to reassure potential investors of Cambodia's viability as an investment destination.
The first initiative introduced by Hun Manet is the establishment of a consultation mechanism where Korean businesses can meet with the Council for the Development of Cambodia twice a year. This platform aims to provide Korean businesses with direct access to government agencies responsible for investment, fostering a collaborative environment to address investors' concerns promptly.
"Our model is to protect what is already there while attracting something new," Hun Manet stated, underscoring the government's priority to support existing businesses in Cambodia while also attracting new investments.
The second initiative is the creation of an exclusive special economic zone (SEZ) for Korean companies. This zone aims to facilitate the development of ecosystems and supply chain models tailored to the needs of Korean businesses. The Cambodian government plans to work closely with Korean partners to ensure that these businesses have the necessary support and infrastructure.
Through these initiatives, the Cambodian government hopes to find innovative solutions to address the concerns of existing businesses and provide new opportunities for Korean investors. Hun Manet expressed optimism that these measures would make Cambodia an attractive and viable partner for Korean investment and business.
The Republic of Korea is a significant trade and investment partner for Cambodia, with a bilateral trade volume of approximately $751 million in 2023, ranking 11th. Korean direct investment in Cambodia totaled over $5 billion, ranking ninth in 2023. Additionally, the Cambodia-Korea Free Trade Agreement (CKFTA), signed in December 2022, aims to further facilitate Korean investments in Cambodia.
Hun Manet's initiatives reflect a strategic approach to bolstering economic ties with South Korea, positioning Cambodia as a promising hub for Korean investors seeking new opportunities in the region.
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