Logo of Phnom Penh Post newspaper Phnom Penh Post - Investment from Vietnam hits a dry patch: CDC

Investment from Vietnam hits a dry patch: CDC

An employee picks out a Metfone SIM card for a customer at a Phnom Penh store.
An employee picks out a Metfone SIM card for a customer at a Phnom Penh store. Sovan Philong

Investment from Vietnam hits a dry patch: CDC

Vietnamese investors shied away from the Cambodian market during the first half of the year as the Council for the Development of Cambodia (CDC) failed to register a single qualified investment project (QIP) from Vietnam during that period for the first time in its 22-year history, a Cambodian official said yesterday.

Speaking at the Cambodia-Vietnam business forum in Phnom Penh, CDC deputy secretary-general Chea Vuthy said that no Vietnamese investment projects were recorded during the first half of the year, but insisted this was not a cause for concern.

“There is no negative effect because this often happens when doing business,” he said, explaining that investment registration numbers regularly fluctuate during different periods. He also pointed out that QIP status is not provided to small investments, or those made in the banking and services sectors.

“I think that other areas of [Vietnamese] investments that do not need approval from the CDC, like the service sector, are still coming to Cambodia,” he added.

Vietnamese firms were the fourth-largest source of foreign direct investment (FDI) in Cambodia for 2015, as total investments to the Kingdom reached $4.64 billion during the same period, CDC figures show.

Nguyen Duc Thanh, president of the Vietnam Institute for Economic and Policy Research, attributed this year’s investment slump to the poor performance of Cambodia’s agricultural sector.

“Recently, the price of rubber has not been good so I think [Vietnamese investors] do not see this as a good time to make investments,” he said.

Ha Thi Thanh Binh, general secretary of the Association of Vietnamese Investors in Cambodia (AVIC), told reporters that Vietnam’s overall investments in Cambodia reached $2.85 billion through 182 different projects.

Four more Vietnamese firms have now committed to invest in Cambodia through QIP projects and this will improve CDC investor figures for the second half of the year, she added.

Major Vietnamese investors in Cambodia include telecom giant Viettel, whose local subsidiary Metfone is one of the Kingdom’s biggest mobile telecom operators.

Vinamilk, Vietnam’s largest dairy company, has invested in a $23 million production facility in Phnom Penh, while Vietnamese rubber giant Hoang Anh Gia Lai owns several economic land concessions (ELC) in the country and has heavily invested in Cambodia’s agricultural sector.

The governments of both countries had set a target to boost bilateral trade to $5 billion by 2015, but failed to reach their goal as total exchange reached just $3.37 billion last year.

MOST VIEWED

  • Hun Sen: Full country reopening to be decided in two weeks

    Prime Minister Hun Sen has announced that if the Covid-19 situation remains stable for 15 consecutive days from the end of the October 5-7 Pchum Ben public holiday, Cambodia will reopen fully, albeit in the context of Covid-19 whereby people have to adjust their lives to

  • 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 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