Logo of Phnom Penh Post newspaper Phnom Penh Post - Govt approves $1.2b in FDI in first half, down 73 percent

Govt approves $1.2b in FDI in first half, down 73 percent

Govt approves $1.2b in FDI in first half, down 73 percent

Economic crisis blamed for major drop from $4.43 billion in first half of 2008 amid assurances Cambodia remains attractive for foreign direct investment

Investment Decline

  • $1.2b in FDI approved in first half, a 73pc decline on same period last year
  • $4.43b approved in first half of 2008, but $3.8b for just one project - Chinese Union Development project in Koh Kong
  • Economic crisis cited by government as cause of decline

Source: CDC

THE Council for the Development of Cambodia (CDC) has approved 53 investment projects in the first half of the year, worth a total of US$1.2 billion, according to statistics released Monday.

The figures represent a sharp drop from the first half of 2008, when the CDC approved $4.43 billion in investments, including a $3.8 billion tourist development in Koh Kong by Chinese Union Development Group.

A CDC official, who declined to be named, said investment had taken a hit from the global financial downturn, but that in relative terms the Kingdom remained an attractive destination for investors.

"Today's economic crisis has caused direct influxes of capital around the world to decline by 50 percent in the first half of 2008, and cross-border investment to decrease 77 percent," the official said.

Of the investments approved, $354 million went to the tourism sector, $323 million to agriculture, $303 to industry and $241 million to other private-sector developments.

Our FDI is still in a favourable condition despite the world economic crisis.

The CDC official added that Cambodia's pre-existing investment projects had boosted the current economic activity in the country and would continue to propel private-sector development.
He noted, "If no companies came to invest, many other sectors would be sure to grind to a halt. But as long as factories are built, workers are needed.... This will create job opportunities for transportation service providers and other services. What is more, they will pay taxes to the government."

Sok Sina, an independent economic analyst, agreed that most CDC-approved investment projects are now being carried out since the authority had started vetting them more strictly.

"Generally speaking, we are happy to see that many requested investment projects are in operation. It is a good sign for Cambodia's economy, and our FDI is still in a favourable condition despite the world economic crisis."

According to the CDC, ASEAN countries, including Thailand, Vietnam, Singapore and Indonesia, were the leading sources of investment money in the first half, with $389 million in investments. Second to ASEAN were other Asian investors - including from China, Korea, Taiwan, Japan and Hong Kong, which have invested a total of $367 million.

MOST VIEWED

  • Cambodia-Thailand rail reconnected after 45 years

    A railway reconnecting Cambodia and Thailand was officially inaugurated on Monday following a 45-year hiatus, with the two kingdoms’ prime ministers in attendance at the ceremony. On the occasion, Cambodian Prime Minister Hun Sen and Thai Prime Minister Prayut Chan-o-cha travelled together from Thailand’s

  • Thousands attend CNRP-organised pro-democracy vigil in South Korea

    Thousands of supporters of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP) on Saturday gathered in the South Korean city of Gwangju to hold a candlelight demonstration calling for the “liberation” of democracy in Cambodia. Yim Sinorn, a CNRP member in South Korea, said on

  • US Embassy: Chinese trade does not help like the West’s

    The US Embassy in Phnom Penh on Friday said relations between China and Cambodia did not create jobs or help industry when compared to the trade between the Kingdom and the US. “About 87 per cent of trade [with China] are Chinese imports, which do not

  • The Christian NGO empowering Cambodian families in Siem Reap

    With its basketball court, football pitch, tennis court and ninja warrior water sports area, you could be forgiven for thinking that the Siem Reap campus of International Christian Fellowship (ICF) Cambodia is a sports centre. But while these free, family-friendly activities are one of the