Prime Minister Hun Manet addresses the Australia-Cambodia Business Forum on March 5. STPM
Prime Minister Hun Manet described Australia’s investment in Cambodia as a collaborative pursuit for mutual growth, emphasising the country’s favourable long-term investment conditions and the government’s work to enhance market access through various trade agreements.
In a speech at the Cambodia-Australia Business Forum, organised by the Cambodian Chamber of Commerce (CCC) and the Victorian Chamber of Commerce and Industry on March 5, Manet mentioned Australia as a significant investment partner over the past three decades.
The premier highlighted that the sectors of education, food and beverage services, financial services, mining prospects, hospitality and clothing have been areas of focus.
Cambodia’s economic growth, including its geographical position in the Indo-Pacific, has presented numerous opportunities to Australian businesses and investors, he said in a March 7 social media post.
“Australia’s investment has also contributed to creating jobs and sustainable economic growth in Cambodia. Looking ahead, Australia’s investment in the Kingdom will become increasingly important in sectors such as agriculture and agro-industries, education, economics, digital, infrastructure and green energy,” he stated.
Manet asserted that the government is convinced of the private sector’s role in driving socio-economic growth and remains committed to enhancing the investment and business climate.
He said the commitment is evidenced by tax laws aimed at increasing transparency, offering attractive tax structures and introducing new investment legislation.
The prime minister reiterated the government’s investment in infrastructure, such as roads, deep sea ports, international airports, logistics centres and key corridors, including plans to provide free training to approximately 1.5 million young people from impoverished and vulnerable households at state institutions over the next five years.
Following Manet’s return from Australia, So Naro, minister delegate attached to the prime minister for ASEAN Affairs, told a March 6 press conference that Australia envisaged making an AU$2 billion investment in the bloc, aimed at boosting trade and investment in several key areas.
“The special envoy of Australia outlined strategic economic projects for Southeast Asia until 2040, focusing on four main points. These include increasing market knowledge, removing tax and non-tax barriers, building capacity and deepening investment in prosperity,” he added.
In a March 7 press release, the Ministry of Foreign Affairs and International Cooperation reaffirmed Cambodia’s commitment to enhancing trade and investment relations with Australia, noting that both nations had signed agreements on air transport services.
Australian Prime Minister Anthony Albanese highlighted the potential for expanded cooperation between the two nations in agricultural productivity.
He also noted Australia’s extensive experience in scientific skills and Cambodia’s opportunities in tourism.
Manet urged collaboration between the two countries through universities to research and develop in the fields of agriculture and science, and to enhance cooperation in education and vocational training.
Ky Sereyvath, an economics researcher at the Royal Academy of Cambodia, stated that investment firms conducting business in Cambodia are likely to profit significantly.
He said this could in turn lead to job creation in the Kingdom, increasing the income of its people and boosting exports.
He noted that Australia holds significant potential for agricultural investment and as a result, the government is prioritising the sector which could stimulate the nation’s economic growth.
“Australia could provide Cambodia with investment, technology and the processing of agricultural or agro-industrial products. In return, the Kingdom needs to allocate sites and facilitate the preparation of agricultural land for Australia, enabling them to establish large-scale farming operations and paving the way for exports,” he stated.
During the forum, Cambodia and Australia signed two agreements: the first, a memorandum of understanding (MoU) between the CCC and its Victorian counterpart aims to foster cooperation in trade, investment and economic areas.
The second MoU, between the Phnom Penh-based Innovation and Development Investors Association (IDI) and Australian-owned La Vie Hospitality Group, is focused on attracting financing in tourism.
According to the General Department of Customs and Excise (GDCE), Australia ranks as Cambodia’s 17th-largest trading partner. From January to August 2023, trade volume between the two nations reached approximately $336.21 million.
Cambodia exported goods worth $236.92 million to Australia during the period, while imports from Australia were valued at $99.29 million.
