A new tyre manufacturing factory in a Preah Sihanouk province special economic zone (SEZ) . Supplied
From September 2023 to August 2024 – the first year under the seventh-mandate government of Prime Minister Hun Manet – the Council for the Development of Cambodia (CDC) approved 391 new and expanded projects, amounting to over $7.5 billion in investment, which created approximately 340,000 jobs.
The figures, which represent an increase of 168 projects over the previous year, were shared in an August 28 CDC press release.
The same statement noted that total investment rose by $4.672 billion, a 161% increase when compared to the same period in the previous year.
“This significant increase is due to the presence of new projects in infrastructure, industry, tourism and the creation of special economic zones (SEZs),” it added.
Kampong Speu province has seen the highest number of investment projects improved, with 91 of them underway.
Among the most prominent individual projects which were approved is a five-star hotel with 2,870 rooms and a commercial centre in Preah Sihanouk province’s Sihanoukville. The project features an investment of approximately $574 million, and is expected to create 3,860 jobs.
Additionally, the 150 MW Stung Meteuk hydropower plant is under construction in Mondol Sima district, Koh Kong province. Built under a build-operate-transfer (BOT) model, more than $400 million has been invested in the project.
Investment projects in SEZs have also increased, with investments exceeding $1 billion and thousands of jobs created.
“Throughout this year, investment sources from China ranked first, contributing 60.44% of the total investment, while domestic investment accounted for 32.31% of the total,” noted the CDC.
By sector, the industrial sector ranked first with 52% of total investment. It was followed by infrastructure, at 39%, and tourism with 8%, while agriculture accounted for just 2%.
Hong Vanak, an economic researcher at the Royal Academy of Cambodia, believed that the growth in investment projects reflects the context of the post-Covid-19 economy, as well as ongoing global crises.
“The surge in these investment projects should be a source of pride for all of us because investors see potential and opportunities, peace, and the results of Cambodia's economic, diplomacy and relations with partner countries. Coupled with Cambodia's efforts to improve investment conditions and expand infrastructure, this has led to increased investment in the Kingdom, he said.
He added that Chinese investment projects dominate due to the influence of regional agreements, bilateral free trade agreements and the “Hexagon Cooperation Agreement”.
Vanak also noted that one noteworthy area of recent investment is in car manufacturing, with total investment of close to a billion dollars.
“Investment, whether foreign or domestic, does not happen by chance. If the government did not strive [to attract it], no one would be interested in investing in Cambodia. Therefore, everything stems from their efforts, especially in terms of infrastructure support, encouragement and investment laws that offer opportunities for investors to choose Cambodia,” he explained.
