Logo of Phnom Penh Post newspaper Phnom Penh Post - FDI on the rise despite virus, EBA withdrawal

FDI on the rise despite virus, EBA withdrawal

Content image - Phnom Penh Post
The Council for the Development of Cambodia (CDC).

FDI on the rise despite virus, EBA withdrawal

Despite several internal and external challenges, the number of investment projects submitted to the Council for the Development of Cambodia (CDC) is on the rise.

On Monday, CDC reviewed 15 new projects, amounting to a total capital investment of $539 million.

The ventures discussed at Monday’s meeting include projects in the renewable energy, wiring and electrical equipment, tire production, hospitality, agriculture, food and beverage, healthcare, and steel sectors.

Royal Academy of Cambodia researcher Hong Vannak said on Thursday that interest from foreign countries in the Cambodian market is growing as the government maintains political stability and expands trade relations with other countries.

He predicted that economic growth in 2020 will not be much lower than in 2019, despite the impact of the ongoing novel coronavirus outbreak and the partial withdrawal of the EU’s Everything But Arms (EBA) scheme.

“Since the beginning of the year, many companies have applied to register projects with CDC and many of these projects have been approved. A lot of these projects come from China,” he said.

The influx of foreign direct investment’s (FDI), Vannak said, will help offset the economic repercussions of the loss of jobs that the garment sector is experiencing as a result of Covid-19.

Cambodian Chamber of Commerce vice-president Lim Heng said the country is gradually recovering from a raw materials shortage in the garment and footwear industries as shipments from China resumed this week.

“Cambodia has great investment potential in all sectors,” he said.

The CDC approved four projects, worth a combined $17.4 million, during the first 10 days of February.

Among the greenlighted ventures is a Timberpack Carton Co Ltd factory, which will be built in Kandal province’s Ang Snuol district with a capital of $3.8 million. The project is expected to create 138 jobs.

The CDC also approved a shoe factory in Phnom Penh’s Dangkor district that will be developed by Fortress International Co Ltd with an investment of $5.6 million. According to the CDC, the factory will create 1,928 jobs.

Another shoe factory project, this time by Qi You Footwear (Cambodia) Co Ltd, has been given the thumbs up. It will be located in Kandal’s province Ang Snuol district. The factory will cost $5.5 million to build and is expected to generate 1,834 jobs.

Finally, the CDC approved a garment factory project by Home Textiles of Texssel (Cambodia) Co Ltd that will be located in Kampong Speu province’s Bor Seth district. With a capital of $2.5 million, the project is expected to create 1,034 jobs.

CDC secretary-general Sok Chenda Sophea said last month that the number of applications filed to the CDC has not declined despite the Covid-19 threat and the fact that Cambodia will lose 20 per cent of its preferential trade with Europe beginning in August.

He said Cambodia remains a very attractive destination for foreign investment. “While some projects have been suspended or cancelled, new investors have come in,” he said.

MOST VIEWED

  • Cambodia unveils new quarantine regulations

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Hun Sen: Cambodia set to fully reopen

    Prime Minister Hun Sen concludes that the October 5-7 Pchum Ben public holiday, during which many people either flocked to their hometowns for family reunion or gathered at tourist attractions across the country, has not caused an outbreak of Covid-19. In a special address to

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Cambodia resumes issuance of tourist visas

    The Ministry of Foreign Affairs and International Cooperation has announced the resumption of its tourist visa and visa exemption programme after a long hiatus due to the Covid-19 pandemic. In a letter dated October 20 and addressed to foreign embassies and consulates, foreign minister Prak Sokhonn

  • S’ville set to turn into ‘second Shenzhen’

    The Ministry of Economy and Finance has awarded a master plan consultancy contract to top Chinese institute for the development and transformation of Preah Sihanouk province into a “Model Multi-Purpose Special Economic Zone”, Southeast Asia’s next logistics and resort hub and innovation centre. The