China remains Cambodia’s largest FDI source
China remains Cambodia’s largest FDI source
China has been Cambodia’s largest source of foreign investment, accounting for almost 50 percent of the total investment amount last year, according to a report from the Council for the Development of Cambodia (CDC).
Figures from the CDC showed that the total foreign direct investment (FDI) from China amounting to $34.25 billion or 49.83 percent of the total registered $6.9 investment capital.
Domestic investors and Vietnam ranked second and third, with investment accounting for 33.81 percent and 8.11 percent, respectively, read the report.
Other investors were from South Korea, Singapore, Japan, Malaysia, Thailand, Canada, and the UK.
The Cambodia-China Free Trade Agreement (CCFTA) and the Regional Comprehensive Economic Partnership (RCEP) have provided more momentum to bilateral trade between Cambodia and China, attracting new investment, Vice-President of the Cambodia Chamber of Commerce Mr Lim Heng said.
“Under the Cambodia-China FTA and RCEP, Chinese investors and other foreign investors consider Cambodia a potential export investment hub,” he said.
The report stated that the diverse range of investment projects spans various sectors, including manufacturing, real estate, tourism, and infrastructure development.
Sun Chanthol, Deputy Prime Minister and CDC’s First Vice President has recently attributed the sharp rise to peace, political and macroeconomic stability, better legal frameworks and regulations, and the growth of the Cambodian economy.
The Royal Government of Cambodia has been proactive in addressing the difficulties and challenges of the private sector for both domestic and foreign investors, he said.
“Investment law, skilled labour, trade preference schemes and a newly launched investment approval system, allowing for one-click approval of investment projects and making the process faster and more streamlined for investors, are catalysts in attracting new investment,” explained Sun Chanthol.
