Logo of Phnom Penh Post newspaper Phnom Penh Post - CDC greenlights five projects worth $1.3B

CDC greenlights five projects worth $1.3B

Content image - Phnom Penh Post
The Council for the Development of Cambodia (CDC) on Friday approved five new investment projects worth about $1.3 billion and expected to absorb 2,250 workers. CDC

CDC greenlights five projects worth $1.3B

The government on March 26 approved five new investment projects worth about $1.3 billion and expected to absorb 2,250 workers, even amid a dramatic escalation in the ASEAN member’s fight against the spread of the Covid-19 disease.

The projects include Huadian Sihanoukville Power Generation Co Ltd’s $1,283 million 700MW coal-fired power plant and Fang Hua Polyurethane Material (Cambodia) Co Ltd’s $1 million factory, according to the Council for the Development of Cambodia (CDC).

The ventures will be located in Sihanoukville Special Economic Zone and are expected to provide 520 and 420 jobs, respectively.

Additionally, Island Laboratoire Co Ltd’s $6.3 million pharmaceutical factory in Phnom Penh’s Chroy Changvar district will create 260 jobs, Herba (Cambodia) Co Ltd’s $3.6 million agricultural processing and packaging factory in Phnom Penh Special Economic Zone will bring 120 new jobs and YT Plastic Co Ltd’s $5.8 million electrical-equipment, light-bulb and lamp-components plant in Shandong Sunshell (Svay Rieng) Special Economic Zone in Svay Rieng province’s Bavet town will deliver 930 jobs.

Hong Vanak, director of International Economics at the Royal Academy of Cambodia, told The Post on March 28 that most of these investment projects are Chinese-owned, suggesting that the developments come as windfall from the Cambodia-China Bilateral Free Trade Agreement signed in 2020.

This and similar pacts with other trade partners will entice international players to invest in Cambodia, or set up factories in the Kingdom, he said.

“Without all the agreements, Cambodia would definitely have trouble wooing international investors to invest,” Vanak said.

The government is working to revise procedures to enable cooperation with many countries to expand, he said. More investment will further cut down on outbound labour migration.

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.

Speaking at a workshop on “Sustainable Investment Opportunities in Cambodia” hosted by the UK-ASEAN Business Council via video link last month, CDC secretary-general Sok Chenda Sophea noted this decline was small compared to the global trend and partially buoyed by a raft of measures launched by the government during the Covid-19 outbreak.

“This decline is still at an optimal level compared to the United Nations Conference on Trade and Development [UNCTAD] forecast for foreign direct investment flows in the world, that they’d be reduced by about 42 per cent in 2020,” he said.

MOST VIEWED

  • Cambodia unveils new quarantine regulations

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Hun Sen: Cambodia set to fully reopen

    Prime Minister Hun Sen concludes that the October 5-7 Pchum Ben public holiday, during which many people either flocked to their hometowns for family reunion or gathered at tourist attractions across the country, has not caused an outbreak of Covid-19. In a special address to

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Cambodia resumes issuance of tourist visas

    The Ministry of Foreign Affairs and International Cooperation has announced the resumption of its tourist visa and visa exemption programme after a long hiatus due to the Covid-19 pandemic. In a letter dated October 20 and addressed to foreign embassies and consulates, foreign minister Prak Sokhonn

  • Cambodia voted ‘world’s friendliest country’ in Rough Guides reader poll

    Cambodia ranked number one among the “World’s Friendliest Countries”, according to a reader poll conducted by London-based international website “Rough Guides”. Taking submissions through Twitter and Facebook, “Rough Guides”, a well-known travel agency and publisher of guidebooks, said the Kingdom “was by far the