Logo of Phnom Penh Post newspaper Phnom Penh Post - Chinese FDI to flow in on Silk Road

Chinese FDI to flow in on Silk Road

Containers organised in stacks at the Shanghai Free Trade Zone. AFP
Containers organised in stacks at the Shanghai Free Trade Zone. AFP

Chinese FDI to flow in on Silk Road

Cambodia could see massive investments as a result of China’s latest pledge to funnel an enormous sum into developing infrastructure as part of its New Silk Road initiative, an analyst said yesterday.

Chinese President Xi Jinping has pledged a mammoth $124 billion to develop his country’s Belt and Road Initiative, an ambitious plan unveiled in 2013 that will funnel investment into building rail, road and maritime transport infrastructure to expand trade links between China, Asia, Africa and Europe. Addressing a summit on the initiative in Beijing on Sunday, he said “Trade is the important engine of economic development.”

Chheang Vannarith, senior fellow at the Cambodian Institute for Cooperation and Peace, said China’s investment into Cambodia was closely linked to the Belt and Road Initiative.

“More investments, especially in infrastructure, are expected to flow from China into Cambodia,” he said, adding that the Cambodian government should look to attract more Chinese investment in innovation and the digital economy.

He said the Kingdom should use this opportunity to develop its national logistics strategy in order to improve its logistics performance and competitiveness.

“The Belt and Road Initiative is linking the domestic logistics network with the region, as well as job creation,” he added.

Prime Minister Hun Sen, who is attending the summit in Beijing, said on his official Facebook page yesterday that the Belt and Road initiative was “based on win-win cooperation”.

The premier said he met the heads of three major Chinese companies on the summit’s sidelines yesterday to discuss their investments in Cambodian infrastructure.

The meetings included a session with Cao Peixi, president of China Huaneng Group, which is collaborating with Cambodia’s Royal Group to develop the Lower Sesan 2 hydropower project in Stung Treng province. He also met Lu Wenjun, chairman of China National Heavy Machinery Corporation, to discuss the company’s investment in the Stung Tatai hydropower project in Koh Kong province.

The third meeting was with Liu Qitao, chairman of China Communications Construction Co Ltd, which has already invested over $1.6 billion in 16 road construction projects in the Kingdom. The company is involved in railway and port construction, and is building a 190-kilometre expressway between Phnom Penh and Sihanoukville, with construction slated to begin by the end of the year.

MOST VIEWED

  • Phnom Penh placed in two-week lockdown

    The government has decided to place Phnom Penh in lockdown for two weeks, effective April 14 midnight through April 28, as Cambodia continues to grapple with the ongoing community outbreak of Covid-19, which has seen no sign of subsiding. According to a directive signed by Prime Minister

  • Cambodia on the verge of national tragedy, WHO warns

    The World Health Organisation (WHO) in Cambodia warned that the country had reached another critical point amid a sudden, huge surge in community transmission cases and deaths. “We stand on the brink of a national tragedy because of Covid-19. Despite our best efforts, we are

  • Vaccination open to foreigners in Cambodia

    The Ministry of Health on April 8 issued an announcement on Covid-19 vaccination for foreigners residing and working in Cambodia, directing the Ministry of Labour and Vocational Training and local authorities to register them. Health minister Mam Bun Heng, who is also head of the inter-ministerial

  • Culture ministry: Take Tuol Sleng photos down, or else

    The Ministry of Culture and Fine Arts has told Irish photographer Matt Loughrey to take down the photos of Khmer Rouge victims at Tuol Sleng Genocidal Museum which he allegedly colourised and altered to show them smiling. The ministry said Loughrey's work is unacceptable, affecting

  • Cambodia gears up for muted New Year festival

    The recent curfew and restrictions imposed in the capital and other Covid-19 hotspots were intended to break the chain of transmission, Ministry of Health spokeswoman Or Vandine said as municipal and provincial authorities issued new directives banning certain activities during the upcoming Khmer New Year

  • Covid-19 vaccination now obligatory

    Prime Minister Hun Sen on April 11 issued a sub-decree making Covid-19 vaccination compulsory for individuals unless they have a medical certificate proving they have pre-existing health conditions that prevent them from doing so. «This applies to all members of the armed forces and civil servants