China strengthens investment in Cambodia

Phnom Penh - The Council for the Development of Cambodia (CDC) has announced that it approved 113 new investment and expansion projects with combined registered capital of about 1.1 billion USD in the first half of this year, of which nearly 65 per cent came from Chinese investors.

According to CDC’s report, local investors accounted for nearly 20 per cent of the registered capital in the six-month period. Next on the list of nationalities were Vietnam (6.64 per cent), Seychelles (3.31 per cent), Thailand (1.77 per cent), the Republic of Korea (1.70 per cent), Samoa (0.60 per cent), the US (0.49 per cent), Singapore (0.18 per cent) and Sweden (0.07 per cent).

These undertakings are expected to generate about 122,000 new jobs, the report said, adding that the industrial sector accounted for the most projects, at 102 (90.27 per cent), followed by agriculture and agro-industry (7), tourism (3), and infrastructure (1).

Royal Academy of Cambodia (RAC) economist Ky Sereyvath acknowledged that the key factors shaping the kingdom’s investment appeal include its bilateral and regional trade deals as well as the more recent changes to its legal investment framework, which he stressed are favourable across a range of sectors.

He said that the country is receiving more medium-sized investments, necessitating government initiatives to promote small- and medium-sized enterprises, and encourage these investments and turn the sector toward exports.

China continues to be Cambodia’s top investor, primarily in the processing sector, largely due to the availability of cheaper labour, he said.

On July 11, the CDC approved four new investment projects in Preah Sihanouk and Kampong Speu provinces and the capital of Phnmom Penh with a total investment capital of 26.7 million USD.

Cambodia and Thailand on June 6 launched the second phase of cross-border QR code payments, which will allow Thai nationals to shop in Cambodia using the Thai currency of baht and vice versa.

Cambodian nationals now constitute the largest growing segment of the Vietnam tourism market, reported the Khmer Times.

The National Bank of Cambodia (NBC) has formally rolled out the Cambodian Shared Switch (CSS), a chip-and-card inter-bank payment system, following a pilot run since October 2017.