Cambodia seeks EU finance, stresses opportunity, growth
Cambodia seeks EU finance, stresses opportunity, growth
A top official of the Council for the Development of Cambodia (CDC) has urged European financiers to explore opportunities in various sectors in the Kingdom, noting that investments from the bloc appear to be relatively low.
The encouragement came during a March 11 meeting between Deputy Prime Minister and CDC first vice-chair Sun Chanthol and several high-ranking EU officials, as detailed in a CDC press release.
Attendees included Peteris Ustubs, director for the Middle East, Asia and the Pacific of the EU’s Directorate-General for International Partnerships (DG INTPA) and EU ambassador to Cambodia Igor Driesmans.
Chanthol expressed gratitude to the EU for its support in developing bilateral cooperation with Cambodia. However, he noted that investment cooperation between Cambodia and the EU seems modest, with around $540 million invested in 62 qualified projects since 1994.
“Cambodia is open and welcomes all financiers to engage in various sectors, encouraging investment in certain areas as well. The Kingdom has already attracted investors from the US, South Korea, Japan, China and many others. We are particularly keen on attracting more investors from Europe,” he said.
According to the press release, Ustubs praised Cambodia’s development, attributing it to the nation’s dedicated efforts. He proposed that the Kingdom could host events within the 27-member EU to draw in potential investors, recommending that it pinpoint and highlight key areas of priority to showcase.
Ustubs also highlighted the EU’s emphasis on projects related to green and technological developments.
During the meeting, Chanthol briefed the EU delegation on Cambodia’s national development plans, which aim to support the private sector.
These plans include infrastructure development, such as highways, expressways, airports and sea ports, and a comprehensive master plan for the Cambodian transit and logistics system, which encompasses 174 projects, offering numerous investment opportunities for private companies from the EU.
“In alignment with the government’s plan to shift Cambodia’s focus from reliance on labour to the utilisation of intermediate and advanced technical skills, and with an emphasis on human resource development, the government has launched a vocational training and technology programme, aimed at enhancing the capabilities of 1.5 million young people from impoverished or vulnerable households,” he added.
In early August 2020, the European Commission revoked 20% of the tariff exemptions previously granted to Cambodian imports under the Everything But Arms (EBA) preferential trade scheme, citing “serious human rights concerns” and issues related to the democratic process in the country.
The EU remains one of Cambodia’s foremost trading partners, accounting for 9.61% of the Kingdom’s total exports in 2023. Bilateral trade between Cambodia and the EU amounted to over $4.615 billion in 2023, marking a decrease of 9.97% from $4.857 billion in 2022, according to the General Department of Customs and Excise (GDCE).
