Cambodia-EU dialogue pushes for fresh FDI boost

Cambodia-EU dialogue pushes for fresh FDI boost

The discussions underscore the government’s commitment to improving the business climate while deepening the strategic partnership and mutual trust between the two parties.

Deputy Prime Minister and First Vice-Chairman of the Council for the Development of Cambodia (CDC) Sun Chanthol and Ambassador of the European Union (EU) to Cambodia Igor Driesmans yesterday co-chaired the “5th Cambodia-Europe Public and Private Sector Dialogue” to strategise the expansion of strategic partnership in trade and investment.

The public-private sector meeting, organised at the CDC headquarters in Phnom Penh, focused on leveraging private sector partnerships to increase foreign direct investment (FDI) in the Kingdom.

Both sides discussed priority topics, including key deliverables achieved through the past four sessions of the bilateral dialogues, exchanged views on ongoing development initiatives at Sihanoukville Autonomous Port and outlined upcoming action plans such as planned investment roadshows in European countries, according to a CDC news release yesterday.

The meeting was attended by the leadership of the CDC General Secretariat and the Cambodian Investment Board; representatives from relevant ministries and institutions; the leadership of the European Chamber of Commerce in Cambodia, as well as private sector representatives and government officials.

Chanthol emphasised that despite global economic uncertainties, Cambodia remained steadfast in its mission to attract and promote FDI by providing a favourable, stable and predictable investment environment to its European partners.

Chanthol credited the strategic direction of the government in enhancing the investment climate, noting that the parties had made progress in logistics cooperation over the last year to drive trade connectivity, boost supply-chains and increase efficiency and competitiveness.

He shared updates on the expansion of Sihanoukville Autonomous Port, noting the Phase 1 development process scheduled for completion in mid-2027.

Chanthol said the milestone achievement is expected to reduce maritime transport costs by approximately 30%, serving as a strategic factor in enhancing international market competitiveness.

Driesmans praised the dialogue as a highly useful and effective platform for addressing challenges and fostering close cooperation between the public sector and European businesses in Cambodia, according to the CDC.

He welcomed plans for the CDC to host an investment roadshow across EU countries, noting that the success of the initiative will be reflected in the future growth of FDI from European investors, signalling strong and growing confidence in Cambodia’s investment climate.

Driesmans also highlighted the 25th anniversary of the Everything But Arms initiative, the preferential trade scheme that grants duty-free and quota-free access to the EU market for all products (except arms and ammunition) from Least Developed Countries, including Cambodia.

In addition, the European delegation emphasised the significance of the Kingdom’s clear regulatory scheme and promotion of fair competition as a central driver of the ongoing bilateral trade relationship, according to a news release from the EU in Cambodia.

The EU delegation discussed proposals to attract and retain European investment by continuing to simplify business procedures, enabling textile recycling and improving conditions in the automotive sector.

Underscoring the government’s commitment to deepening strategic trust with the EU, the dialogue prioritised business climate enhancements including green investment incentives, streamlined environmental procedures and reliable commercial dispute resolutions.

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