Cambodia lured more than 3.58 billion USD in foreign direct investment (FDI) in 2019. (Photo: phnompenhpost.com) Phnom Penh (VNA) – Cambodia lured more than 3.58 billion USD in foreign direct investment (FDI) in 2019, a year-on-year surge of 11.7 percent, with Chinese investment accounting for 43 percent of the total figure, according to the National Bank of Cambodia (NBC).
The NBC’s Macroeconomic and Banking Progress 2019 Report and 2020 Outlook showed that some 2.38 billion USD worth of FDI was poured into the financial sector, while the non-financial sector received 1.2 billion USD.
Senior adviser at the Supreme National Economic Council Mey Kakyanwas quoted by the Phnom Penh Post newspaper as saying that sound business environment and investment laws were behind the steady increase in FDI attraction.
FDI is vital for Cambodia to continue experiencing sustained growth as it contributes to creating jobs and promoting export for the nation, he said, warning the nation should stay prudent to prevent too many investments from a single region or country.
According to the report, Chinese FDI made up 43 percent of the total investment, the Republic of Korea 11 percent, Vietnam 7 percent, Japan and Singapore 6 percent each, and other countries 27 percent.
Vice President of the Cambodian Chamber of Commerce Lim Heng described favourable investment laws as a catalyst for the nation to attract foreign investors.
The NBC said that the Cambodian economy grew 7.1 percent in 2019, with the inflation rate at 1.9 percent. It also forecasts the economy will expand 7 percent, with the inflation rate of around 2.3 percent this year.
Meanwhile, FDI is projected to surge 10 percent to 3.95 billion USD, it added./.
VNA
