Investment inflows into Cambodia in the first two months of 2024 surpassed $1.3 billion, with Chinese investors contributing nearly 40% of the total, as reported by the Council for the Development of Cambodia (CDC).
Chea Vuthy, secretary-general of the CDC’s Cambodian Investment Board (CIB), stated that Chinese financing for the period was around $545 million, or about 39% of total foreign direct investment (FDI).
He revealed the figures at a meeting focused on cooperation and exchange between China’s Shandong province and Cambodia regarding the development of the “Industrial Corridor” and the “Fish and Rice Corridor”.
“Between January and February, we had seen a remarkable surge in investment flow, representing a more than a fivefold increase compared to the same period last year,” he said.
He emphasised that China consistently ranks among the top three FDI providers annually, mainly in sectors such as industry, infrastructure and agro-industry.
According to the National Bank of Cambodia (NBC), as of the first quarter of 2023, China was the largest contributor of FDI in Cambodia.
It said Chinese financing constituted approximately 45% of Cambodia’s total FDI, which amounted to 185.7 trillion riel ($45.86 billion), followed by South Korea, Singapore, Japan, Vietnam, Malaysia and Thailand.
Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC), told The Post on March 10 that the enhancement of diplomatic relations between the two countries,along with the government’s policies, significantly encourages investors.
He noted that the government frequently organises forums with the private sector to address challenges faced by both domestic and international financiers.
He highlighted the important contribution of Chinese investors to the Cambodian economy, noting their involvement in diverse projects.
These include ventures in textiles, agriculture, electrical equipment, electronic components, machinery, mineral resources, energy and infrastructure.
Heng said the Cambodia-China Free Trade Agreement (CCFTA) has also been established to facilitate access to larger markets.
“I would like to encourage [the Chinese] to continue to expand their investment in Cambodia. Our country offers a fantastic opportunity for foreign investors seeking broader markets, favourable policies and potential for growth.
“Chinese financiers can establish factories in Cambodia and export products under preferential tariffs to numerous countries, taking advantage of free, regional, multilateral and bilateral trade agreements,” he said.
According to the General Department of Customs and Excise (GDCE), trade between the two nations reached $12.26 billion in 2023, representing a 5% increase from 2022.
Cambodia’s exports to China were valued at $1.48 billion, a rise of 19.2%, while imports totalled $10.79 billion, a 3.3% increase.