The Korea Trade-Investment Promotion Agency (KOTRA) is gearing up to host a significant forum aimed at bolstering investment ties between South Korea and Cambodia. This initiative is strategically designed to enlighten Korean entrepreneurs and investors about the burgeoning opportunities and favorable business environment within the Cambodian market, coinciding with the activation of a bilateral free trade agreement (FTA) between the two nations.
During a recent engagement with Suon Sophal, the Deputy Secretary-General of the Council for the Development of Cambodia (CDC), KOTRA’s Director-General Hacheong Yun laid out the forum’s objectives. This meeting underscored the deep-rooted collaboration between the CDC and the South Korean government in fostering private sector investment, highlighting the pivotal role of the Korea Desk in this partnership.
Sophal expressed optimism about the forum’s potential to significantly enhance Korean investment in Cambodia, although the exact date of the event remains undisclosed. The anticipation around this forum is not just limited to governmental circles but extends to the business community as well.
Lim Heng, the Vice-President of the Cambodia Chamber of Commerce, emphasized the forum’s critical role in elucidating the advantages of the Cambodia-Korea FTA (CKFTA) to stakeholders from both countries. He pointed out that such platforms offer invaluable insights and facilitate a deeper understanding among businesses prior to forging partnerships.
The significance of this forum is underscored by recent investment figures, with South Korea emerging as a leading source of foreign direct investment (FDI) in Cambodia. In the first quarter of 2023 alone, Korean investments accounted for a considerable portion of Cambodia’s total FDI, with predominant interests in sectors like finance, real estate, manufacturing, agriculture, hydropower, and construction.
Trade dynamics between Cambodia and Korea have also witnessed notable developments. Despite a slight decline in overall bilateral trade, Cambodian exports to Korea saw a robust increase, surpassing $281 million in 2023 and marking a substantial growth of over 20% from the previous year. This upswing in exports contributed to a significant narrowing of Cambodia’s trade deficit with Korea, illustrating the evolving economic relationship between the two countries.
As Cambodia continues to engage with its 12th largest trade partner, the upcoming business forum is poised to open new avenues for economic collaboration, leveraging the historical and strategic ties that bind these two nations.
Source: Phnompenh Post
