A monk walks past the Council for Development of Cambodia (CDC) in Phnom Penh. Heng Chivoan
The Council for the Development of Cambodia (CDC) has approved 10 local and foreign projects with a total investment capital of $59.8 million, which would create 11,794 jobs.
The projects – four in Kampong Speu, three in Phnom Penh and three in Takeo – are involved in the manufacturing of garments, shoes, wiring, light bulbs, electrical equipment and plastic packaging materials.
Hong Vanak, an economics researcher at the Royal Academy of Cambodia, told The Post on August 31 that the interests shown by the investors at a time of global economic uncertainty, indicates Cambodia’s attributes as a favourable investment destination.
“Although the global economy is not very good now, it is not a problem for the Cambodian economy.
“The new investment projects would help create jobs and provide income to workers, but also help to increase exports to international markets in the future,” he said.
Meanwhile, he observed that the combined capital for the approved projects is “not large” and mostly features light and medium industries.
That said, he hoped that larger industries would invest in Cambodia in future, which supports the government’s vision to become an upper middle-income country by 2030 and a high-income nation by 2050.
Through the introduction of new strategies related to the investment law and the development of road and port infrastructures, Vanak said he was optimistic that more national and international investors would invest in Cambodia.
Keo Mom, CEO of Ly Ly Food Industry Co Ltd, a major food processing factory in Cambodia, said the electricity tariff in Cambodia should be equalised with neighbouring countries or lowered so that Cambodia has more opportunities to entice investors.
It would also make commodity prices more competitive in the market.
“Lower electricity tariffs means lower production costs, which would make Cambodian goods more competitive around the world.
“Before foreign investors invest in any country, the first question they ask is if there is adequate electricity and if the price of electricity is high or low?” she said.
Kampong Speu provincial governor Vei Samnang said the province is highly favourable to investors after the capital Phnom Penh.
The factors that make Kampong Speu, as well as Cambodia, attractive are due to its peaceful environment, favourable geographic location, and the new investment law.
According to CDC, 113 new projects with a total investment capital of $1.1 billion were approved in the first half of 2023. The projects are expected to generate 122,000 jobs.
Of the 113 investment projects, 102 are involved in the industrial sector, seven in agriculture and agro-industry, three in tourism and one in infrastructure.
