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

  • Would you like fries with that? US burger chain makes Phnom Penh debut

    California-based The Habit Burger Grill restaurant chain is all set to serve up a delicious array of charbroiled burgers and sides at its newest international location in the centre of Phnom Penh. The Habit is “renowned for its award-winning Charburgers grilled over an open flame,

  • Banteay Meanchey flood victims receive aid

    Prime Minister Hun Sen on Wednesday provided aid to more than 10,000 families affected by flooding in Banteay Meanchey province’s Mongkol Borei district and offered his condolences to the 18 victims who drowned in the province over the past week. He said flooding had occured in

  • PM urges caution as Polish man tests positive for Covid

    The Ministry of Health on Wednesday reported that a 47-year-old Polish man tested positive for Covid-19 after arriving in Cambodia on Monday. There are a total of six Covid-19 patients currently in the country, all of whom are being treated at the Khmer-Soviet Friendship Hospital

  • Banteay Meanchey floods kill one more as death toll reaches 15

    As floodwaters start to recede in Pursat, Battambang and Pailin provinces and Phnom Penh, Banteay Meanchey continues to bear the brunt as one more person was killed on Monday, bringing the total number of flood-related deaths to 15 in the province this month. Banteay Meanchey provincial

  • Serving coffee with a side of robots

    The eye-catching glass building surrounded by greenery at the intersection of Streets 371 and 2002 in Phnom Penh’s Sen Sok district is more than just another coffee shop where you can while away a few hours. UrHobby House cafe is filled with robots and characters from

  • Floods prompt evacuations in Kampong Speu

    Rain-induced floods and water flowing from Kampong Speu province have submerged the houses of 1,527 families living close to the Prek Thnot River in Spean Thma, Tien, Kong Noy and Roluos communes in Phnom Penh’s Dangkor district, according to data from local authorities. Spean Thma