China strengthens investment in Cambodia

Cambodian officials and foreign investors visit in Sihanoukville Special Economic Zone (SSEZ) in Preah Sihanouk province in April. (Photo: phnompenhpost.com)

Phnom Penh (VNA) - The Council for the Development of Cambodia (CDC) has announced that it approved 113 new investment and expansion projects with combined registered capital of about 1.1 billion USD in the first half of this year, of which nearly 65% came from Chinese investors.

According to CDC’s report, local investors accounted for nearly 20% of the registered capital in the six-month period. Next on the list of nationalities were Vietnam (6.64%), Seychelles (3.31%), Thailand (1.77%), the Republic of Korea (1.70%), Samoa (0.60%), the US (0.49%), Singapore (0.18%) and Sweden (0.07%).

These undertakings are expected to generate about 122,000 new jobs, the report said, adding that the industrial sector accounted for the most projects, at 102 (90.27%), followed by agriculture and agro-industry (7), tourism (3), and infrastructure (1).

Royal Academy of Cambodia (RAC) economist Ky Sereyvath acknowledged that the key factors shaping the kingdom’s investment appeal include its bilateral and regional trade deals as well as the more recent changes to its legal investment framework, which he stressed are favourable across a range of sectors.

He said that the country is receiving more medium-sized investments, necessitating government initiatives to promote small- and medium-sized enterprises, and encourage these investments and turn the sector toward exports.

China continues to be Cambodia’s top investor, primarily in the processing sector, largely due to the availability of cheaper labour, he said.

On July 11, the CDC approved four new investment projects in Preah Sihanouk and Kampong Speu provinces and the capital of Phnmom Penh with a total investment capital of 26.7 million USD./.