The Cambodian government is hopeful that China’s recently announced Silk Road funding plan will boost the Kingdom’s public infrastructure development.
During talks with leaders from Bangladesh, Cambodia, Laos, Mongolia, Myanmar, Pakistan and Tajikistan on Saturday, Xi Jinping, China's president, announced the $40 billion New Silk Road initiative. The initiative aims to improve the participating countries’ road, railway, air and sea connectivity.
“The funding will be provided in both grants and loans,” Chheang Vun, CPP lawmaker and chairman of the Foreign Affairs Committee of National Assembly, said.
“We need capital for the country’s development. Investors will come to Cambodia once infrastructure like roads, electricity and other public services are improved.”
Srey Chanthy, an independent economic analyst, said the funding would certainly assist Cambodia’s development, however it was also a clear attempt by China to reach a bigger market for their products.
“Better infrastructure will help cut down production cost making Cambodia a competitive place for investment,” he said.