‘China is Cambodia’s largest source of foreign investment’
‘China is Cambodia’s largest source of foreign investment’
China has been Cambodia’s largest source of foreign investment for 12 consecutive years, thanks to the bilateral diamond cooperation that led to the growth of investment and trade between the two countries.
According to Chinese statistics, bilateral trade between January and October this year reached $14.4 billion, an increase of 19 percent year-on-year, and notably, its imports from Cambodia grew by 20 percent year-on-year, said a report presented by Zhong Jie, Economic and Trade Adviser of the Embassy of the People’s Republic of China in Cambodia.
Cambodian statistics also show that China has been the Kingdom’s largest source of foreign investment for many years, she said, adding that, from January to October this year, Chinese enterprises signed investment agreements in Cambodia worth nearly $3 billion.
Speaking at the opening ceremony of the Cambodia Renminbi Clearing House at Hyatt Regency Phnom Penh on Friday, Zhong, said China and Cambodia are steadfast partners who support each other and share a common destiny. In recent years, under the strategic guidance of the leaders of our two nations, the building of the China-Cambodia Community of Shared Future has deepened steadily.
“The ‘Diamond Hexagon’ cooperation framework has become more robust, and significant progress has been made in the development of the ‘Industrial Development Corridor’ and the ‘Fish and Rice Corridor,’ bringing tangible benefits to both countries,” she said.
This year marks the 66th anniversary of diplomatic relations between the two countries and the China-Cambodia People-to-People Exchanges Year, said Zhong, adding that China is willing to work with Cambodia to further deepen financial cooperation, encouraging financial institutions from both countries to provide financing and financial services to support trade and investment collaboration.
“I believe that financial cooperation between China and Cambodia will yield more tangible results, injecting fresh momentum into the building of a high-quality, high-level, and high-standard China-Cambodia Community of Shared Future in the new era,” she said.
Rath Sovannorak, Deputy Governor of the National Bank of Cambodia, said the deep-root friendship between China and Cambodia spans many centuries. This enduring connection has evolved into a present-day partnership which is marked by strong trade, investment, and cooperation across various fields.
Currently, China is the Cambodia’s largest source of foreign direct investment (FDI) and primary trading partner. By the second quarter of 2024, the total FDI from China accounted for about 47 percent, amounting to $23 billion, with the majority directed towards manufacturing, said Sovannorak.
Additionally, China continues to be Cambodia’s top trading partner, with bilateral trade reaching $11 billion in the first three quarters of 2024, reflecting a 22 percent increase compared to the same period in 2023.
These developments highlight the importance of Chinese investment in helping drive Cambodia’s economic growth. Therefore, it is in Cambodia’s national interest to create favourable business conditions for both current and potential Chinese investors, particularly in financial services, to ensure the success and expansion of their operations in Cambodia.
“This will also help generate employment opportunities for Cambodians. Meanwhile, Cambodia has potential in terms of agricultural products which can be exported to China as well, particularly in sectors such as rice, rubber, and tropical fruits, offering opportunities for growth in trade and expanding economic ties between the two nations,” Sovannorak added.
