Traffic passes through the entrance to the Phnom Penh Economic Zone recently. Post Staff
A total of 26 new investment projects and 2 production expansion projects, with a total investment exceeding $400 million, were approved by the government in September. Of them, nearly 40% of the investment capital comes from Chinese investors, according to the Council for the Development of Cambodia (CDC).
In an October 7 press release, the CDC announced that in September, the Cambodian government, through the CDC, approved new projects and production expansion projects with a total investment exceeding $443 million. The 28 projects are expected to create nearly 25,000 jobs. Among them, 22 are located in Special Economic Zones (SEZs).
Chinese investment comprised 38.23% of the total capital, while local investments accounted for 32.92%. Other investments come from Japan, Malaysia, Singapore, the US, Vietnam and Samoa.
Major projects approved by the CDC in September include the establishment of new SEZs in Pursat and Svay Rieng provinces, a factory for assembling and producing mechanical components; production facilities for dairy products, non-alcoholic beverages and various other food products; factories for producing electric cables and wires; aluminium processing plants; and the expansion of production at garment factories, among others.
Sam Soknoeun, president of the Global Real Estate Association and chairman of SAM SN Group, told The Post on October 8 that there are several factors which contribute to Cambodia's ability to attract investors.
These include political stability, security and investment laws that allow foreigners to provide 100% of their investment capital. Additionally, they can freely repatriate profits from their businesses (in contrast to some countries that impose restrictions on taking profits out).
“Cambodia is a developing country, so there are many investment opportunities. It also has a geographically advantageous location for investing in all sectors, while other conditions, such as labour costs, are also reasonable,” he explained.
He added that Cambodia will become even more attractive once the Funan Techo Canal project is operational, drawing more investors to the Kingdom.
“This canal will greatly contribute to attracting investors by reducing distances to various regions within the country and worldwide. When transportation costs are lower, the competitiveness of Cambodian goods in international markets will also increase,” he said.
Cambodian Chamber of Commerce Vice President Lim Heng recently told The Post that, despite global economic growth being continuously affected since early 2020 due to the spread of Covid-19 and the negative impact of geopolitical conflicts and wars in some countries, Cambodia has still managed to secure new investment projects and continuous production expansions.
He added that Cambodia's attractiveness stems from its political stability, strong economic growth, investment laws, geographic location, labour force and solid infrastructure.
Additionally, Cambodian products benefit from favourable export tax treatment to major countries such as the US, the EU, China, South Korea and Japan. Moreover, trade agreements with key partners like China, South Korea and the 15-country RCEP (Regional Comprehensive Economic Partnership) also contribute to attracting investors.
“Domestic and foreign investment in Cambodia will increase further as global economic and political conditions improve. Direct investment is extremely important for economic resilience because, aside from creating jobs, it also helps boost the capacity to export finished products from Cambodia to international markets,” he said.
In the first half of this year, the CDC approved 190 new projects and expansions of existing ones, with a total investment of around $3.2 billion, creating 168,572 jobs. Compared to the same period in 2023, 77 more projects were approved, while investment capital saw a remarkable increase of more than $2 billion, according to the CDC.
