A meeting between officials from the Council for the Development of Cambodia (CDC) and a Chinese delegation at the CDC on November 29. CDC
A company based in China’s Zhejiang province has expressed interest in investing in Cambodia's energy supply sector, highlighting power as a crucial factor in attracting investors across industries and driving national economic growth.
The matter was discussed during a November 29 meeting at the Council for the Development of Cambodia (CDC) between Suon Sophal, deputy secretary-general of the CDC’s Cambodian Investment Board (CIB), and a Chinese delegation from Zhejiang led by Yang Yaming, president of Xianghu Ceramic Art Island Zhejiang Co Ltd, along with the deputy director-general of Zhejiang Energy Group Co Ltd.
During the meeting, the Chinese delegation shared insights into their business activities, trends in electricity sector development and the investment climate in Cambodia. Zhejiang Energy Group expressed its intent to invest in the country’s energy sector.
According to the CDC, Zhejiang Energy is the leading electricity producer in Zhejiang province, experienced in power generation from coal, solar energy and liquefied natural gas (LNG). The company is also involved in infrastructure development, coal-fired energy production and solar panel manufacturing.
Sophal welcomed the delegation and encouraged them to conduct a first-hand study of the country’s investment climate and opportunities. He highlighted developments in key investment sectors, the rapid growth of investments in the country and the attraction of special economic zones (SEZs) for industries like coal-fired and solar energy production.
Sophal also suggested that the company engage with relevant stakeholders, particularly the Ministry of Mines and Energy, to seek technical support. He urged the delegation to expedite their investment plans and encouraged them to promote Cambodia’s investment environment among other Chinese financiers.
Hong Vanak, an economist at the Royal Academy of Cambodia, told The Post on December 2 that industrial and technological advancements have increased energy demand, making it an essential component for the development of all sectors. He noted that a country with sufficient electricity has greater potential to attract investment.
Vanak explained, “Currently, every production cycle in factories, enterprises and service companies requires electricity. If we have more sources at affordable prices, it will surely help Cambodia attract more investors to open businesses, and the country's export products will be more competitive in international markets.”
Te Tang Por, president of the Federation of Associations for Small and Medium Enterprises of Cambodia (FASMEC), previously stated that lowering electricity costs further would be a key factor in attracting more investment. He emphasised that lower electric prices directly decrease production costs, boosting the country’s competitiveness in the global market.
He explained, "Oil and electricity prices are important factors in attracting investors as they are essential for production, alongside raw materials and labour costs. When the prices of oil and electricity are stable and low, foreign investors will see opportunities from all of these factors."
The country’s energy sector has made steady progress since its modest beginnings in 1979, with notable advancements achieved over the past two decades.
In 2009, Cambodia’s electricity sector had a capacity of 579 Megawatts (MW). This figure increased to 4,649 MW by 2023, with plans to expand to 4,809 MW by the end of 2024. Of this, approximately 86% is produced domestically, while 14% is imported from neighbouring countries, according to the energy ministry.
