Logo of Phnom Penh Post newspaper Phnom Penh Post - China tops list of investors in H1

China tops list of investors in H1

Content image - Phnom Penh Post
The Phnom Penh-Sihanoukville Expressway is one of the major projects in Cambodia invested by Chinese companies. SUPPLIED

China tops list of investors in H1

China was ranked first in terms of foreign direct investment (FDI) equity inflows to Cambodia in the first half of this year, at about $2 billion, according to the Chinese ambassador.

Speaking in a recent interview with Bayon Television (BTV), Wang Wentian said major projects invested by Chinese companies include the Phnom Penh-Sihanoukville Expressway, a coal-fired power station in Preah Sihanouk province and the Siem Reap-Angkor International Airport.

“Practical cooperation in all fields between the two sides has been deepened and played an active role in the Cambodian economy, overcoming the effects of the Covid-19 virus,” he said, stressing that the Chinese side is “pleased to continue to strengthen practical cooperation with Cambodia in all areas to help revive its economy”.

Royal Academy of Cambodia economic researcher Hong Vanak pointed out that Chinese FDI stock dipped year-on-year, but represented a greater share of total inflows last year than in 2019.

According to the Council for the Development of Cambodia (CDC), China accounted for 69 per cent of total FDI stock.

Vanak told The Post that a good number of projects are pending an injection of funds, or have yet to begin to fully take form. He suggested that investors at other ventures could have just started to look for partners who may be interested in investing in the Kingdom.

“We believe that the Chinese investment comes due to the good relations between the Cambodian and Chinese governments.

“However, investment is still limited because the investment values are only on paper. The actual disbursements won’t match the [total amount of capital registered], so there’ll be no crisis caused by overwhelming Chinese investment,” he claimed.

The Cambodia-China Free Trade Agreement (CCFTA) was signed by Minister of Commerce Sorasak and his Chinese counterpart Zhong Shan via video link on October 12, with Prime Minister Hun Sen and Chinese foreign minister Wang Yi as witnesses.

The Cambodian commerce ministry previously said the CCFTA would provide the Kingdom duty-free access to over 300 items. China would grant duty-free status to 95 per cent of agricultural imports from Cambodia, it said.

Ministry spokesman Seang Thay told The Post early this month that once the CCFTA is ratified by both countries, Cambodia expects to receive a litany of benefits, such as access to a wider market.

He noted, however, that China will accord duty-free status to more imports from Cambodia than the Kingdom will to those from the East Asian economy.

Other perks include a freer flow of goods and additional opportunities to attract foreign investment to Cambodia, as well as a shot in the arm for Cambodian agricultural exports to the Chinese market, he said.

“This agreement will play a large role in stimulating domestic production, especially in some agricultural segments such as bananas, mangoes, cassava, longan, cashew nuts and so on,” Thay said.

Cambodia and China plan to boost bilateral trade to $10 billion by 2023.

Bilateral trade between Cambodia and China surged 1.4 per cent last year over 2019, to $9.56 billion, according to the ambassador.

And according to the CDC, Cambodia approved 87 new investment projects and expansions of existing ones, worth more than $2.96962 billion.

MOST VIEWED

  • Hong Kong firm done buying Coke Cambodia

    Swire Coca-Cola Ltd, a wholly-owned subsidiary of Hong Kong-listed Swire Pacific Ltd, on November 25 announced that it had completed the acquisition of The Coca-Cola Co’s bottling business in Cambodia, as part of its ambitions to expand into the Southeast Asian market. Swire Coca-Cola affirmed

  • Moody’s sets outlook rating to ‘negative’ for Cambodia

    US global rating agency Moody’s Investors Service Inc on November 15 announced that it downgraded Cambodia’s outlook from “stable” to “negative” and maintained its B2 local and foreign currency issuer ratings. “The negative outlook reflects a deteriorating external position as illustrated by the severe

  • NagaWorld union leader arrested at airport after Australia trip

    Chhim Sithar, head of the Labour Rights Supported Union of Khmer Employees at NagaWorld integrated casino resort, was arrested on November 26 at Phnom Penh International Airport and placed in pre-trial detention after returning from a 12-day trip to Australia. Phnom Penh Municipal Court Investigating Judge

  • Korean first lady paves way for ill boy’s surgery

    A 14-year-old boy with congenital heart disease who was lucky enough to meet with South Korean first lady Kim Keon-hee may get the chance of a lifetime and receive surgery and treatment at Asan Medical Center in Seoul, South Korea. After seeing his plight, many

  • Kingdom’s rice crowned world’s No1

    Cambodia’s Phka Rumduol jasmine variety has been crowned the World’s Best Rice for the fifth time at the TRT (The Rice Trader) World Rice Conference in Phuket, Thailand on November 17, according to leaders of the Kingdom’s apex rice industry body. Phka Rumduol

  • Ministry to 'seek justice' for officials indicted in US for 'monkey smuggling'

    The Cambodian government and the Ministry of Agriculture, Forestry and Fisheries said they will make the “utmost effort” to seek justice for a Cambodian official arrested in John F Kennedy International Airport in New York for allegedly conspiring to smuggle crab-eating macaque monkeys (Macaca fascicularis)