In the initial months of 2024, Cambodia has witnessed a substantial influx of investments, with approved fixed-asset investment projects amounting to $1.39 billion. This figure represents an approximate fivefold increase from the corresponding timeframe in the previous year, as reported by the Council for the Development of Cambodia (CDC).
Chinese investments constituted a significant portion of this capital, accounting for $545 million or 39 percent of the total investment during January and February. The variety of projects approved reflects a broad spectrum of industries, including an electronics manufacturing facility, assembly plants for electronic bikes and motorbikes, a steel production plant, and establishments in the garment and textile sector. Additionally, investments in a fruit processing unit and a luxury hotel were also noted, showcasing the diverse nature of the economic activities being attracted to Cambodia.
The surge in foreign investment can be attributed to several pivotal factors, according to Penn Sovicheat, Secretary of State and Spokesperson for the Cambodian Ministry of Commerce. Key among these are the Regional Comprehensive Economic Partnership (RCEP) agreement and the Cambodia-China Free Trade Agreement (CCFTA), coupled with Cambodia’s recently enacted investment legislation. These elements collectively serve as potent incentives for international investors, particularly drawing significant attention from Chinese investors.
Sovicheat emphasized the crucial role of foreign direct investment, especially from China, in propelling Cambodia’s economic and trade development. He pointed out that the new influx of investments is set to introduce fresh capital, cutting-edge technologies, and substantial employment prospects for the Cambodian populace, underscoring the positive impact of these developments on the nation’s economic landscape.
