Logo of Phnom Penh Post newspaper Phnom Penh Post - FDI to Cambodia rockets 12% to $3.5 billion in 2019

FDI to Cambodia rockets 12% to $3.5 billion in 2019

Content image - Phnom Penh Post
Total foreign direct investment (FDI) to the Kingdom amounted to $3.588 billion, up 11.7 per cent from $3.212 billion last year. Heng Chivoan

FDI to Cambodia rockets 12% to $3.5 billion in 2019

Cambodia attracted more than $3.5 billion in foreign direct investment (FDI) last year, an increase of nearly 12 per cent over 2018, thanks in part to Chinese investors who accounted for half of the investments, a National Bank of Cambodia (NBC) report released last week showed.

According to the Macroeconomic and Banking Progress 2019 Report and 2020 Outlook, total FDI amounted to $3.588 billion, up 11.7 per cent from $3.212 billion last year.

Of the total, the financial sector received FDI worth $2.385 billion, while the non-financial sector received $1.203 billion.

“Cambodia is experiencing a steady increase in FDI at this time because of sound environmental and investment laws.

“Investors are confident [in the prospect of] decent profitability upon investing in Cambodia,” Supreme National Economic Council senior adviser Mey Kalyan told The Post on Saturday.

He said FDIs were vital for the Kingdom to continue experiencing sustained growth since they generated jobs and increased export potential, but warned that the Kingdom should be wary of accepting too many investments from any single region or country.

A breakdown of the data by country showed that Chinese FDIs accounted for 43 per cent, South Korean (11 per cent), Vietnamese (seven per cent), Japanese and Singaporean (six per cent), and other countries (27 per cent).

“To avert risk, it would be a positive step if countries invested capital at the same level so that we are not dominated,” Kalyan said.

Cambodian Chamber of Commerce (CCC) vice-president Lim Heng credited favourable investment laws for the Kingdom’s rise as an attractive destination for foreign investors.

“Last year, the CCC met with a lot of foreign investors who expressed interest in investing in Cambodia.

“I anticipate Cambodia to generate additional FDI as it negotiates a free trade agreement with China,” he said.

Cambodian Valuers and Estate Agents Association president Chrek Soknim told The Post that a large influx of Chinese investors boosted the real estate and construction sectors.

“Foreign capital investment in Cambodia will continue to see high growth in 2020,” he predicted.

The NBC report showed the Kingdom’s economic growth to have reached 7.1 per cent last year, with an inflationary rate of approximately 1.9 per cent. It also forecasts economic growth to be at seven per cent with an inflation rate of some 2.3 per cent this year.

Meanwhile, FDI will grow by 10 per cent to reach a total value of $3.951 billion in 2020, the NBC said.

MOST VIEWED

  • Prince Norodom Ranariddh passes away at 77

    Prince Norodom Ranariddh, the second son of the late King Father Norodom Sihanouk and former First Prime Minister of Cambodia, has passed away in France at the age of 77. “Samdech Krom Preah Norodom Ranariddh has passed away this morning in France just after 9am Paris-time,”

  • Cambodia purchases 4 million Molnupiravir tablets

    Cambodia has arranged for the purchase of four million US-made Molnupiravir pills – enough to treat 100,000 Covid-19 patients – even though the current rate of daily infections in Cambodia remains low. The medicine will be distributed to state hospitals, pharmacies and private clinics, according to the Samdech

  • Rise in planned flights lifts travel hopes

    Six airlines have applied to resume flights in December, while two others have put in for additional flights and routes, according to State Secretariat of Civil Aviation (SSCA) head Mao Havannall on November 29. These account for 43 new weekly domestic and international flights in December, up 16

  • Is Cambodia’s travel sector in for another cheerless holiday season?

    The travel and tourism sector was heaving back to life as borders started to reopen, promising a festive vibe for the holidays and New Year. But Omicron and other Covid-related issues are threatening to close the year on a bleak note ‘Seems [like] Covid-19 won’

  • Cambodia planning new border checkpoint at Thma Da

    Cambodia is looking into the possibility of opening a new Thma Da Border Checkpoint with Thailand to boost trade and tourism. The Ministry of Public Works and Transport said on December 4 that Minister of Public Works and Transport Sun Chanthol led a technical working group

  • Hun Sen: Manet to be candidate for prime minister

    Prime Minister Hun Sen has reaffirmed that his oldest son Hun Manet will be his successor as Prime Minister if he is elected. Speaking during the inauguration of a new sewage treatment facility in Preah Sihanouk province on December 2, Hun Sen said Manet will be