FDI surge reflects investors’ confidence in Kingdom
FDI surge reflects investors’ confidence in Kingdom
Increasing Foreign Direct Investment (FDI) flows to Cambodia reflects foreign investors’ confidence in the country’s improving investment climate and its potential for substantial economic growth, said Sun Chanthol, Deputy Prime Minister and First Vice -President of the Council for the Development of Cambodia (CDC), yesterday.
The trend is considered a strong vote of confidence in the country’s stability, peace and burgeoning economic growth, Chanthol said during a lecture on the potential of the Funan Techo Canal (FTC) at the Royal School of Administration.
In the first eleven months of the new government’s mandate from August 2023 to July 2024, CDC registered 237 investment projects worth more than $6 billion, according to Chanthol.
The influx of foreign capital is seen as a testament to Cambodia’s improving investment climate and its potential for substantial economic growth, he said.
“The results show that investors have confidence in the Royal Government of Cambodia, whose Prime Minister has worked hard to attract foreign investors,” he said.
Chanthol referred to investments from foreign countries such as Korea, Japan, France, Switzerland, Australia, Spain, Germany and China.
Cambodia has achieved 20 years of economic growth, along with major factors such as macroeconomic stability, inflation control and exchange rate stability, he noted.
“Factors that motivate investors include peace and political stability of Cambodia because no investor wants to invest in a country that is not peaceful,” Chanthol added.
Next month, a CDC delegation will depart to China, the United States, Europe and the Middle East to attract more investors from these countries.
Echoing Chanthol’s remarks, Vice-President of the Cambodia Chamber of Commerce Lim Heng told Khmer Times that the impressive growth in investments was the result of the new Investment Law and free trade pacts.
According to a CDC report, most FDIs in the country went to manufacturing, both garments and non-garments.
The garment, footwear and travel goods industry is the largest foreign exchange earner for Cambodia and non-garment manufacturing products include electronic components, bicycles, auto parts, furniture, leather and plastic, among others.
