Logo of Phnom Penh Post newspaper Phnom Penh Post - China FDI hits $860M in first 11 months of 2020

China FDI hits $860M in first 11 months of 2020

Content image - Phnom Penh Post
Construction of the 190km Chinese-invested Phnom Penh-Sihanoukville Expressway is around 39 per cent complete. TRANSPORT MINISTRY

China FDI hits $860M in first 11 months of 2020

Chinese direct investment in Cambodia reached $860 million in the first 11 months of last year, up 70 per cent from the same period in 2019, the Chinese embassy in Phnom Penh said on January 1.

The embassy said major Chinese investment projects in the Kingdom have stayed their courses, sidestepping the brunt of Covid-19.

Construction of the 190km Phnom Penh-Sihanoukville Expressway, which the embassy listed as the most important and costly Chinese-invested project, is around 39 per cent complete.

The road is backed by $1.9 billion in capital invested by China Road and Bridge Corp (CRBC) through Cambodian Phnom Penh-Sihanoukville Expressway Co Ltd and is scheduled for completion in early 2023, it said.

With its terminal building having broken ground recently, it said the new Siem Reap international airport will cost Angkor International Airport Investment (Cambodia) Co Ltd (AIAI) nearly $900 million.

The bulk of the direct investment went to construction, garments, electric and electronic components and agriculture, according to the ministry.

Cambodia Constructors Association general manager Chiv Sivpheng said the number of Chinese entities investing in the Kingdom has been on a years-long ascent, which has largely driven the construction sector – a lynchpin of national economic growth – over the past few years.

He said: “Chinese investment in the construction sector has been on the rise, especially in large-scale building construction projects.

“I hope that after Covid-19 ends, more Chinese will come and invest in Cambodia.”

Cambodia Chamber of Commerce vice-president Lim Heng told The Post that the Kingdom’s overall peace, political stability and seven per cent average annual economic growth have attracted many international investors.

And with the recent signing of the Cambodia-China Bilateral Free Trade Agreement (CCFTA) and the Regional Comprehensive Economic Partnership (RCEP), he expressed optimism that more investors from China, Europe and the US would venture into the Kingdom.

“In recent years, Chinese investors have increased investment in the construction, garment, electric and electronic components and agro-industries, and I believe there will be further growth through the trade agreements,” Heng said.

At the China-ASEAN Business Leaders’ Forum held in Nanning, Guangxi province, China in 2019, Minister of Commerce Pan Sorasak said the flow of Chinese capital investment to Cambodia has continued to increase annually, clocking in at about $3.5 billion in 2018 alone.

Bilateral trade between Cambodia and China was worth $9.42 billion in 2019, up 27.29 per cent from $7.4 billion in 2018, according to the embassy.

MOST VIEWED

  • Research key to Kanitha’s rep for expertise

    Sok Kanitha is used to weighing in on controversial issues using a confident approach that signals expertise and authority, and a recent video she made was no exception. Her “Episode 342: The History of NATO” video went live on January 16, 2023 and immediately shot to 30,000 likes and 3,500

  • Cambodia maintains 'Kun Khmer' stance despite Thailand’s boycott threat

    Cambodia has taken the position that it will use the term "Kun Khmer" to refer to the sport of kickboxing at the upcoming Southeast Asian (SEA) Games, and has removed the term Muay from all references to the sport. Despite strong reactions from the Thai

  • Knockout! Kun Khmer replaces ‘Muay’ for Phnom Penh Games

    Cambodia has decided to officially remove the word Muay from the programme of the 32nd Southeast Asian (SEA) Games 2023 in May. “Kun Khmer” will instead be used to represent the Southeast Asian sport of kickboxing, in accordance with the wishes of the Cambodian people. Vath

  • Artificial insemination takes herd from 7 to 700

    Some farms breed local cows or even import bulls from a broad for the purpose of breeding heavier livestock for meat production. One Tbong Khnum farmer has found a more efficient way. Hout Leang employs artificial insemination to fertilise local cows. Thanks to imported “straws”

  • New int’l airport nearly half complete as travel industry returns to life

    Construction of a new airport that is slated to serve the capital has passed the 43 per cent completion mark, raising prospects for a proper recovery in the civil aviation and tourism sectors as international travellers return to the Kingdom in increasingly large numbers. The figure

  • Chinese group tours return to Cambodia starting Feb 6

    Cambodia is among 20 countries selected by Beijing for a pilot programme allowing travel agencies to provide international group tours as well as flight and hotel packages to Chinese citizens, following a three-year ban. As the days tick down until the programme kicks off on February 6,