Number of investment projects increased by more than 50%, is this factor helping Cambodia attract FDI from around the world?

Cambodia's growing economy and business-friendly environment have attracted significant interest from both domestic and international investors.

Investment projects in Cambodia to increase by more than 50% in 2024. (Source: b2b-cambodia.com)

On the morning of December 20, Cambodian Prime Minister Samdech Moha Bovor Thipadei Hun Manet, who is also Chairman of the Council for the Development of Cambodia (CDC), chaired the first meeting of the CDC in the 7th government term at the Peace Palace in the capital Phnom Penh.

According to a report released on December 20, the CDC has approved a total of 414 investment projects in 2024, up 54% from 268 projects in 2023. The report added that the approved investment projects have a total investment capital of 6.9 billion USD, up 40% from 4.927 billion USD in 2023.

Mr. Sun Chanthol, Deputy Prime Minister and First Vice President of CDC, said that Cambodia's strong increase in investment projects is due to peace, political and macroeconomic stability, improved legal and regulatory framework, as well as the growth of the Cambodian economy.

Mr. Sun Chanthol stated that the Royal Government has proactively addressed the difficulties and challenges of the private sector to improve the investment environment for both domestic and foreign investors.

In November 2024, speaking at a workshop on current economic policies of the Ministry of Foreign Affairs and International Cooperation of Cambodia, Mr. Sar Senera, Deputy Secretary General of the Investment Board of Cambodia under the CDC, said that the country's macroeconomic environment is open to investment, providing guarantees and protections for investors, while encouraging participation in various investment sectors and activities.

Mr. Sar Senera added that Cambodia is an attractive investment market, opening up opportunities to access export markets in the ASEAN region, as well as a number of other countries, where products manufactured in Cambodia enjoy low or no tariffs under free trade agreements.

Lim Heng, vice president of the Cambodia Chamber of Commerce, told reporters that the newly approved projects span almost every sector, although the majority are focused on garment, footwear and tourism products. However, recent investments have also been recorded in areas such as tire manufacturing, electronics, construction and some service industries.

This is a point of pride for the country, which continues to attract domestic and international investors, Mr. Lim Heng added. He also stressed that Cambodia is recognized for its favorable business conditions, including investment laws, political stability, a strong labor force and a large export market.

Cambodia’s Minister of Commerce and Spokesperson Penn Sovicheat said the Regional Comprehensive Economic Partnership (RCEP) and Cambodia-China Free Trade Agreement (CCFTA), along with Cambodia’s new investment law, are key factors attracting FDI inflows into the country.

"Both RCEP and CCFTA are magnets attracting foreign investors to Cambodia," he told Xinhua. "FDI, especially from China, plays an important role in promoting Cambodia's socio-economic development, trade growth and poverty reduction."

Cambodia is one of the top-performing economies in Asia. As the country emerges from the economic and social impacts of the Covid crisis, it is expected to quickly return to its pre-Covid growth levels, KPMG said.

Meanwhile, Anthony Galliano, Group CEO of Cambodia Investment Management Holdings (CIM), said there is positive momentum for investment projects in Cambodia. “The positive point is the diversity of projects, which helps develop infrastructure, leading to a recovery in domestic spending and increased allocation to manufacturing,” he noted.

“On the negative side, there is a significant concentration of foreign investment from China, mainly due to trade agreements, the Regional Comprehensive Economic Partnership (RCEP) and the Cambodia-China Free Trade Agreement (CCFTA) and the growing geopolitical trend. Cambodia remains a strong destination for lower-skilled manufacturing investment in the garment, travel goods and footwear sectors,” said Anthony Galliano.

CDC was established on August 5, 1994, with the mission of attracting investment to Cambodia.

Source: https://baoquocte.vn/so-du-an-dau-tu-tang-hon-50-yeu-to-dang-giup-campuchia-hut-von-fdi-tu-khap-the-gioi-298163.html