The Yunnan provincial delegation from China with the leadership of the Council for the Development of Cambodia (CDC) outside the council’s headquarters in Phnom Penh on September 25. CDC
Cambodia has urged a group of financiers from Yunnan province, China, to explore direct investments in the country, particularly in agricultural product processing using advanced technologies and value-added methods to meet domestic demand and boost exports.
The proposal was put forward by Chea Vuthy, secretary-general of the Cambodia Investment Board (CIB) under the Council for the Development of Cambodia (CDC), during a meeting with a delegation of Yunnan investors led by Liu Jie, deputy director of the Yunnan provincial commerce department, at CDC headquarters on September 25, according to a council press release.
Vuthy described Cambodia as an appealing investment destination, citing its open, transparent and predictable laws and regulations, as well as the numerous incentives offered by the government. He also noted that both Cambodia and China have jointly established an “Industrial and Technological Corridor” and a “Fisheries and Rice Corridor” to further promote socio-economic development.
“Notably, Cambodia has witnessed significant growth in Chinese investments over the past decades,” he said. “I encourage companies to consider investing in Cambodia's agricultural processing sector to meet domestic supply and increase exports.”
Jie stated that the information gathered from the meeting would serve as a foundation for Yunnan-based investors to make informed decisions in Cambodia, based on their respective sectors.
He also mentioned that the purpose of the visit was to promote and attract more Chinese investors, particularly from Yunnan, to invest in Cambodia.
According to the CDC, the delegation included investors from various sectors such as energy, digital technology, e-commerce, agriculture, agro-industry, food production and investment consulting services.
In addition to the meeting with Yunnan investors, CDC leadership also met with representatives from other Chinese companies on September 25, including Sichuan Pan-Asia Investment Development Co Ltd, which specialises in mining, logistics construction, agriculture and agro-industry and CGN Energy International Holdings Co Ltd (CGNEI), which focuses on renewable energy.
In 2023, Vuthy noted that the council had established a "China Desk" to provide advisory services specifically for Chinese investors.
Hong Vanak, an economic researcher at the Royal Academy of Cambodia, told The Post on September 26 that the strong cooperation between the Cambodian and Chinese governments has consistently yielded positive results in investment flows and trade volumes between the two countries.
He highlighted that China, with its large population and rapidly growing economy, has seen an increasing number of Chinese investors venturing abroad, particularly to countries in the region.
“Currently, most projects in Cambodia, whether small or large, involve Chinese investors. This number is expected to continue growing as the Cambodian government has been working hard to promote and draft new laws to attract a more diverse range of investors to establish businesses in Cambodia,” he said.
Data from the CDC notes that in the first half of 2024, China ranked as the second-largest source of foreign investment in Cambodia, after domestic investors.
According to the General Department of Customs and Excise (GDCE), total trade between the two countries from January to August 2024 amounted to nearly $10.08 billion, an increase of 24.5% compared to the same period in 2023. Of this, exports to China were valued at $1.15 billion, up 22.3%, while imports from China reached $8.93 billion, a 24.8% increase. China remains Cambodia’s largest trading partner.
