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CDC approves $600m in investments

Chhut Bunthoeun / Khmer Times Share:
Women working at a garment factory on the outskirts of Phnom Penh. KT/Siv Channa

The Council for the Development of Cambodia (CDC) last week approved 11 projects worth nearly $600 million.

According to a post on CDC’s Facebook page yesterday, 11 projects were greenlighted on June 5-7, amounting to a total investment of $597 million.

CDC estimates the projects will generate about 15,600 jobs.

The approved developments include projects in manufacturing and agro-processing in Phnom Penh and Kampong Speu province, as well as four and five-star hotels in Sihanoukville, CDC said.

The agency did not reveal the origin of the investment.

In its Financial Stability Review, NBC said that last year China accounted for 41.3 percent of all foreign direct investment, making it the largest investor in the Kingdom. China was followed by Korea (8.1 percent), Singapore (7.3 percent), and Japan (6.4 percent).

Most FDI went into the financial, construction, and manufacturing sectors, NBC said. FDI to the financial sector accounted for 34 percent of total FDI last year, an 11.1 percent increase.

Lim Heng, vice president of the Cambodia Chamber of Commerce, told Khmer Times on Monday that a growing number of foreign investors – particularly from Korea, Japan and China – are interested in the Kingdom’s market.

Mr Heng said that current trade tensions between the United States and China may push investors to gradually move to countries that are part of Asean, including Cambodia.

“In Cambodia, we have a very attractive investment law and a very open business climate. We also have political stability,” he said, adding that “these are major factors attracting foreign investors.”

He said there is great potential for investment in Cambodia’s agriculture sector, adding that the government is looking for investors to build factories to process agricultural goods.

Ngeth Chou, senior consultant at Emerging Markets Consulting, said the sharp increase in construction projects reflects the confidence local and foreign investors have on the country’s stability and economic performance.

“The rise in approved investment projects show strong confidence among local and foreign investors in the political situation and the economy, which is now growing healthily,” he said.

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