Prime Minister Hun Manet leads his first meeting as the president of the Cambodia Development Council (CDC). STPM
The Cambodia Development Council (CDC) approved 414 investment projects in 2024, with a total investment of nearly $7 billion, an increase of almost $2 billion over the previous year.
Prime Minister Hun Manet shared the figures on social media on December 20, immediately after he chaired his first meeting of the CDC, as head of government and chairman of the CDC.
According to his post, in 2024 the CDC approved 414 investment projects, an increase of 54% (146 projects) compared to 2023, which had 268 projects. The total investment of the 414 projects was approximately $6.9 billion, a 40% increase from $4.92 billion.
Hong Vanak, an economist at the Royal Academy of Cambodia, told The Post on December 20 that although the global political and economic situation has not yet fully recovered to pre-2020 levels, Cambodia still has enough potential to attract both domestic and international investors to establish factories and enterprises in Cambodia.
He believed the growth of the companies approved by the CDC reflects investors’ confidence in Cambodia’s political stability and its export market opportunities.
He suggested that this comes from the government’s efforts to develop infrastructure, improve energy connections and enhance the legal framework for investment, noting that ease of investment is a major factor in attracting capital.
“The number of investment projects approved by the CDC will continue to increase in the future. The development of infrastructure and energy distribution systems will help reduce production costs, which will strengthen Cambodia’s competitiveness in the international market,” he said.
Regarding the types of new investment projects, Vanak mentioned that they are increasingly diverse and incorporate advanced technology, such as factories producing electronic devices, electrical equipment, automobile assembly, mineral processing and agricultural products.
Economist Dith Darith described peace, political stability, the continued strengthening of economic freedom and the free trade agreements that Cambodia has signed with many countries are major factors in attracting and encouraging domestic and international investors to bring more capital into Cambodia.
“Economic freedom, along with peace and political stability, provides an environment for investors to see long-term investment opportunities that benefit the development and growth of Cambodia’s economy,” he explained.
He noted that with the continued good development trajectory, the Kingdom’s economy is expected to grow even faster.
Specifically, according to government forecasts, Cambodia’s GDP per capita is expected to reach nearly $3,000 (around $2,924) by 2025, with an overall GDP growth rate forecasted to be 6.3%, supported by key economic sectors such as industry, with a growth rate of 8.6%, services at 5.6%, and agriculture at 1.1%. Inflation is expected to remain around 2.5% in 2025.
To make it easier and more attractive for investors to invest in Cambodia, the CDC launched the “Cambodia Investment Project Management System” (cdcIPM) on November 27. The new digital platform enables investors to apply for investments from anywhere and at any time.
This system will accelerate the registration of investment projects that meet sufficient qualifications, known as Qualified Investment Projects (QIP), by shifting from hard-copy documents to a digital process, reducing the need for in-person meetings with service officers, making it more convenient and increasing trust in Cambodia’s investment climate.
Sun Chantol, first vice-chairman of the CDC, stated that the CDCIPM system will make it easier for investors who wish to invest in Cambodia. The government’s goal in implementing this technological registration system is to attract more investment and provide information to investors.
“This system is user-friendly, allowing users to submit investment requests and track the progress of their applications, avoiding the risk of losing documents or being unaware of where their forms are. Investors can track every step of the process,” he added.
Te Tang Por, president of the Federation of Associations for Small and Medium EnterprisesofCambodia(FASMEC), suggested that opportunities to attract investors to bring more capital into Cambodia will increase if electricity prices can be lowered to levels comparable to neighboring countries.
He explained that all production sectors require energy, so if electricity prices are reduced, production costs will also decrease, making Cambodia more competitive in the international market. He added that large industries have been continuously investing directly in Cambodia recently.
“Oil and electricity prices are key factors in attracting investors, as oil and electricity are essential inputs for production, in addition to costs for raw materials and labor. When oil and electricity prices stabilise and become cheaper, investors will see opportunities,” he said.
