Logo of Phnom Penh Post newspaper Phnom Penh Post - CDC approved 238 investment projects worth $8.2B last year

CDC approved 238 investment projects worth $8.2B last year

Content image - Phnom Penh Post
The Council for the Development of Cambodia approved 20 projects worth $621 million in January. CDC

CDC approved 238 investment projects worth $8.2B last year

The Council for the Development of Cambodia (CDC) approved 238 investment projects worth a total of $8.2 billion last year, down 12 per cent from 2019, according to a CDC press statement.

At the same time, the CDC noted that it gave the green light to 20 investment projects with a total capital investment of $621 million last month, up from 17 projects worth $93 million in January last year.

“These results are the fruit borne from the implementation of drastic measures to control the Covid-19 epidemic and the government’s sweeping package of reform measures launched at the 18th Government-Private Sector Forum on March 29, 2019 in a bid to improve and streamline the investment climate in Cambodia,” the statement said.

CDC secretary-general Sok Chenda Sophea said in the statement that the government is in the process of drafting new investment laws and other regulations related to investment that are aimed at increasing foreign direct investment (FDI).

“The new investment law will increase the attractiveness of investment as a basis for investors, business people to decide to invest and do business in Cambodia,” he said.

The National Bank of Cambodia (NBC) said in “Macroeconomic and Banking Progress Report 2019 and Outlook 2020” that FDI inflows to Cambodia totalled $3.588 billion in 2019, an increase of 11.7 per cent compared to 2018’s $3.212 billion.

A breakdown of the data by country showed that China led the FDI inflows into Cambodia in 2019, accounting for 43 per cent, followed by South Korea (11 per cent), Vietnam (seven per cent), Japan, Singapore (six per cent) and other countries (27 per cent).

Hong Vanak, director of International Economics at the Royal Academy of Cambodia, told The Post that the Covid-19 outbreak was a serious deterrent to FDI inflows last year.

“Foreign investors who wish to invest in Cambodia have had their projects delayed due to the disease,” he said.

He pointed out that China has been the leading source of FDI for the past decade, for the most part investing in garments, construction, real estate, hospitality, agriculture and mineral resources.

“The main factor that leads the Chinese to invest in Cambodia is strong diplomatic relations between Cambodia and China. In the future, I believe Chinese investors will remain the most dominant in Cambodia,” Vanak said.

Cambodia Chamber of Commerce vice-president Lim Heng said the drop in the investment capital in the approved projects last year would not have a significant impact on the economy.

“This is just to show the number of new investment projects being registered, it is not worrying. On the other hand, if the investment is registered and then the project is withdrawn, that’d be a matter of concern,” he said.

CDC data show that China was Cambodia’s leading foreign direct investor for five consecutive years from 2013-2017, pumping in FDI worth $5.3 billion during the period, or about $1 billion annually.

MOST VIEWED

  • Cambodia to waive quarantine requirements Nov 15, no PCR test required

    Prime Minister Hun Sen has decided to lift all quarantine requirements for fully vaccinated travellers and visitors – both Cambodians and foreign nationals – effective from November 15 onward. In a special message addressed to officials and relevant authorities on November 14, Hun Sen said this policy will enable

  • PM: No more quarantine for vaccinated travellers

    Cambodia is lifting all quarantine requirements for vaccinated inbound travellers entering Cambodia by air, waterway or land border checkpoints effective from November 15. Travellers will be required to take a rapid antigen test on arrival rather than waiting for the results of the lengthier polymerase chain

  • No payment required for travellers taking rapid Covid tests on arrival

    Ministry of Health officials said there would be no payment required for the rapid Covid-19 tests given to travellers who arrive in Cambodia from November 15 onwards after the quarantine requirement is lifted for fully vaccinated people. Health ministry spokeswoman Or Vandine told The Post on

  • General’s gun smuggling ring busted

    The Military Police sent six military officers to court on November 22 to face prosecution for possession of 105 illegal rifles and arms smuggling, while investigators say they are still hunting down additional accomplices. Sao Sokha, deputy commander of the Royal Cambodian Armed Forces and commander of

  • More Cambodians studying in US

    The number of Cambodian students studying at US colleges and universities in 2020-21 increased by 14.3 per cent over the previous year despite the Covid-19 pandemic, according to a recent US government report. The 2021 Open Doors report on International Educational Exchange showed that 848 Cambodian students studied

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration