NBC seeks Indian bank presence in Kingdom

NBC seeks Indian bank presence in Kingdom

Cambodia is eager to strengthen financial ties with India by welcoming the presence of an established Indian bank and advancing cross-border payment cooperation, said Chea Serey, Governor of the National Bank of Cambodia (NBC).

The interest was highlighted during a meeting between Chea Serey and Vanlalvawna Bawitlung, the newly appointed Indian Ambassador to Cambodia, on Monday at NBC’s Wat Phnom Building.

During the meeting, the Governor emphasized the strong relations between the Royal Government of Cambodia and the Government of India and shared insights into Cambodia’s economic progress, trade, and financial system.

Serey also discussed the joint development of a cross-border payment project between Cambodia and India, which will facilitate instant payments for Cambodian tourists in India as well as Indian tourists visiting Cambodia.

Additionally, the NBC Governor informed the ambassador about the favourable conditions for Indian investors in Cambodia, including peace and political stability, direct flights between Phnom Penh and New Delhi, and other advantages.

She requested the ambassador’s support in promoting and encouraging Indian investors, particularly large financial institutions, to explore investment opportunities in Cambodia.

The ambassador expressed gratitude for the warm welcome and emphasized that investing in Cambodia presents a valuable opportunity for Indian investors, particularly in the rapidly developing banking sector.

He also praised Cambodia’s modern, high-tech payment system and fully supported the cross-border payment connection between the two countries, noting its significant contribution to enhancing tourism and strengthening both economies.

Meanwhile, writing on her official social media, Serey said it was a pleasure to meet with the Indian Ambassador to Cambodia, Mr. Vanlalvawna Bawitlung, and his delegation. Ambassador Bawitlung arrived in Cambodia about a month ago.

“We discussed Cambodia’s economy and cooperation with India’s financial sector. I informed the ambassador that Cambodia is keen to see the presence of an established Indian bank in the country and updated him on the ongoing cooperation on cross-border payments between India and Cambodia,” she said.

“This cross-border payment initiative is expected to facilitate transactions for Indian tourists in Cambodia. We also hope that this cooperation will increase Cambodia’s visibility among Indians,” she added.

Speaking to Khmer Times, Hong Vannak, an economic researcher at the Royal Academy of Cambodia, highlighted Cambodia’s strategic location and its potential to attract foreign investment, particularly from India. He emphasized that the country presents numerous opportunities across various sectors, making it an attractive destination for investors.

“To attract investment, especially Indian investment, investors always study our market to assess its profitability. In the Cambodian market, there are still many opportunities for investment to yield significant benefits,” Vannak said.

He explained that one of the key advantages Cambodia offers is its youthful workforce, which provides a strong foundation for economic growth. The creation of more jobs not only boosts income levels but also encourages greater use of financial services, further stimulating the economy. Additionally, Cambodia’s growing middle class and increasing consumer spending present lucrative opportunities for businesses looking to expand into the region.

“The key objective is to attract more investment, tourism, and technology from India to Cambodia, so the banking sector in Cambodia still offers ample investment opportunities for Indian investors,” Vannak said.

He pointed out that as Cambodia continues to modernize its financial infrastructure, the demand for innovative banking solutions is rising. This creates an ideal environment for Indian banks and fintech firms to enter the Cambodian market, providing essential services that can drive financial inclusion and economic development.

With Cambodia’s commitment to economic reforms and regional integration, Vannak believed that fostering stronger economic ties with India will bring long-term benefits to both nations.

Despite global crises, Cambodia’s banking system has remained strong and forward-moving. The NBC’s annual report, published recently, revealed that in 2024, credit in the sector rose by 3 percent, totalling 242.9 trillion riels (around $59.9 billion).

As for funding, deposits grew by 16.3 percent to reach 230.9 trillion riels ($57 billion), while capital increased by 5.2 percent to 40.5 trillion riels ($10 billion), the report noted.

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