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

  • US imposes sanctions on Oknha Pheap and Kun Kim

    The Ministry of Foreign Affairs and International Cooperation expressed strong dismay on Monday over the designation of Cambodian tycoon Oknha Try Pheap and General Kun Kim under the US’ Global Magnitsky Act. “It is very disturbing when the public figures of a country become the

  • Mother, daughter killed in hotel fire

    The bodies of a mother and daughter were found locked in an embrace after they were killed in a hotel fire in Phnom Penh at around 3:30am on Wednesday at the Phkar Chhouk Tep 2 Hotel and Restaurant in Phsar Doeum Kor commune, in the capital’

  • EBA withdrawal a destruction of EU achievements, PM says

    Prime Minister Hun Sen said the EU’s possible suspension of its Everything But Arms (EBA) agreement amounted to a destruction of its achievements in the Kingdom and the demise of the opposition group. Hun Sen made the remarks while addressing more than 6,700 students during

  • Rights Day forum denied in Sihanoukville

    The Preah Sihanouk provincial administration last Saturday denied the request of land communities for a public location in the province to celebrate International Human Rights Day 2019 as the administration had already held forums to discuss land issues. However, the land community representatives said they would

  • Kingdom calls on Japan to increase number of direct flights to Siem Reap, Phnom Penh

    Cambodia is requesting Japan to increase the number of direct flights from Japanese cities and provinces to Phnom Penh and Siem Reap, so as to contribute to increasing cooperation and tourist numbers between the two countries. During the opening ceremony of 3rd Japan Travel Fair

  • Sri Lanka’s LOLC Holdings plans to sell Cambodian unit

    LOLC Holdings Plc, Sri Lanka’s second-largest publicly traded company by revenue, plans to sell its 70 per cent stake in Prasac Microfinance Institution Ltd, which also counts Hong Kong’s Bank of East Asia Ltd. as a shareholder, LOLC deputy chairman Ishara Nanayakkara said. Nanayakkara