Workers at their sewing machines in a garment factory in Phnom Penh. Post Staff
The Council for the Development of Cambodia (CDC) approved 31 new investment and production expansion projects in October, with a combined capital exceeding $226 million and an expected creation of approximately 16,000 new jobs.
According to a November 5 CDC press release, the projects include factories for shoes, decorations, household goods, camping accessories, beverages, bags, agro-industrial products, car accessories, furniture, chemicals and mining, as well as a shopping mall.
Chinese investors were the largest contributors, accounting for 53.39% of total investment, followed by local investors at 29.47%, with further financing from Singapore and Vietnam. More than 93% of these funds were directed to the industrial sector, while over 6% went to agriculture.
The CDC noted that 21 of the 31 projects are located outside special economic zones (SEZs), with the remaining 10 within SEZs.
Hong Vanak, an economist at the Royal Academy of Cambodia, told The Post on November 6 that foreign and local investments during a period of global economic and political uncertainty reflect confidence in the country’s political stability, economic growth and strong export market.
He added that investment growth is likely to increase as the global economy improves, noting that the country now serves not only as a production and export hub for textiles but also for a range of products including electronics, electrical equipment, agricultural goods, beverages and certain minerals.
Vanak stated, “Although the global economic situation has not yet fully improved, Cambodia continues to attract new investment projects and production capacity expansions. Unlike more than a decade ago, these projects are no longer limited to the textile industry.”
He explained that domestic factories and enterprises not only help meet local consumption needs and create jobs for citizens but also contribute to enhancing the country’s export capacity to international markets.
He said that free trade agreements (FTAs) that Cambodia has signed bilaterally and multilaterally with various countries also help encourage both local and foreign investors to establish factories or businesses in Cambodia.
Ung Luyna, director-general of the General Department of Policy at the Ministry of Economy and Finance, mentioned at the 2024 Annual Microfinance Conference held in Siem Reap province earlier this week that, despite the still challenging global economic conditions, the country’s exports have shown a notable increase, particularly in textile products. He noted that this positive trend is expected to continue.
Luyna added that the country’s economic growth in 2024 has surpassed that of 2023 and is projected to improve further in 2025. He said this growth is attributed to exports in the textile sector, an increase in tourist arrivals and the construction sector.
In September, the CDC approved 26 new investment and two production expansion projects, with a combined investment capital of over $443 million, creating nearly 25,000 new jobs. Of the 28 projects, 22 are located within SEZs and six are outside SEZs.
