A bird’s eye view of Phnom Penh in November 2022. Hong Menea
Prime Minister Hun Sen announced his strong commitment to deepen reforms and encourage more foreign investment in Cambodia.
“The government is arranging trade facilitation and strengthening competition legislation to encourage investors, on a platform of peace, liberal democracy and pluralism without discrimination,” he said, in an April 1 letter addressed to the nation on the occasion of the Khmer New Year, year of the rabbit.
He recalled that the Kingdom, like so many other nations, was suffering the negative effects of Covid-19 on public health, society, the economy, and the daily lives of the people. It had even disrupted Cambodia’s advanced development process, he noted.
Last year, the Cambodian economy grew at around 5.5 per cent, although it is estimated that it will see growth of 6.6 per cent this year.
“Cambodia has carefully pursued macroeconomic policies and stabilised its economy, while promoting economic diversification and competitiveness. It has also pushed the production and consumption of domestically manufactured goods,” he said.
He described the exchange rate as stable and the inflation rate as low and manageable.
“International reserves in 2018 were $14.629 billion and increased to $17.805 billion in 2022. They are expected to hit $22.149 billion in 2023,” he said.
“At the same time, the Kingdom’s investment laws have created a positive environment for investment, and are expected to attract more foreign capital,” he added.
Cambodian Chamber of Commerce (CCC) vice-president Lim Heng said that the private sector has high expectations for the contributions of the government’s leadership.
“They have always made it very convenient for both domestic and foreign investors to inject funds into all areas, especially potential growth sectors such as agriculture and industry,” he added.
“Through the efforts of the Royal Government, the private sector strongly believes that the growth of foreign direct investment in Cambodia will continue, especially in key sectors such as agriculture, industry, processing and technology. Peace, political stability and encouragement from the government are what investors desire,” he concluded.
According to data from the Ministry of Economy and Finance, gross domestic product (GDP) per capita increased from $1,730 in 2021 to about $1,785 in 2022. It is expected to increase to $1,924 in 2023.
