The Council for the Development of Cambodia (CDC). Heng Chivoan
In February, the Council for the Development of Cambodia (CDC) issued final registration certificates to projects totalling over $1 billion, following the government’s approval of new investment ventures worth nearly $4 billion from August 2023 to January 2024, as reported by the CDC.
In February, the council greenlit 37 new ventures, comprised of 24 outside special economic zones (SEZs) and 13 within, including one production expansion in each category.
The projects represent a total investment of nearly $1.2 billion and are expected to create around 38,000 jobs, according to a March 12 CDC press release.
The council highlighted considerable investments outside SEZs: the 150MW Stung Meteuk hydropower project in Koh Kong province, under a build-operate-transfer (BOT) framework with a capital investment of about $440 million; the Kampong Chhnang multi-purpose port and logistics centre, costing over $108 million; and two data centre projects in Phnom Penh, valued at approximately $137 million and $30 million respectively.
Within SEZs, the council spotlighted a major expansion in the car tyre production project located in the Chiluchean Pouchai SEZ in Svay Rieng province’s Bavet town. The expansion, worth about $212 million, is expected to create 655 additional jobs.
The council remains confident that the country will become a desirable hub for the growth of various investment projects.
Suon Sophal, deputy secretary-general of the CDC’s Cambodian Investment Board (CIB), emphasised on March 13 the board’s role in fostering connections between local investors and Indian businesses, particularly in the chemical sector,
He made the remarks at the Cambodia-India business matching event, co-organised by the Indian embassy and chamber of commerce in Cambodia and its Basic Chemicals, Cosmetics and Dyes Export Promotion Council.
“The event is of great importance, particularly in choosing Cambodia as the destination for the working visit of the delegation, which focuses on chemicals crucial for factory and manufacturing production lines,” he said.
Sophal acknowledged the increasing interest of the Indian business community in exploring opportunities in Cambodia and contributing to the development of its industrial sector.
Sophal stated that the government’s efforts to improve the investment climate have been considerable, including simplifying application procedures, enhancing investment facilitation mechanisms, adopting international best practices and providing smart incentive packages along with warm investment care services.
He believes these measures will render the country a favourable location for supporting the growth of projects across all sectors.
On March 3, in a meeting with members of the Cambodian diaspora in Melbourne, Australia, Prime Minister Hun Manet reflected on his tenure’s achievements.
He noted that in the six months since assuming office, his foreign visits aimed at attracting investors had yielded fruitful results. He highlighted that during the period, the CDC approved new projects which would create 190,000 jobs.
Hong Vanak, director of International Economics at the Royal Academy of Cambodia, expressed his positive view of the current mandate government’s performance, comparing it favourably with its predecessor.
He highlighted the considerable efforts made by Manet to attract foreign financiers.
“Every time [Manet] travels abroad, he consistently focuses on attracting investors, frequently emphasising ‘customer appeal’. This clearly indicates his dedication to drawing them in. In addition to the government’s initiatives to facilitate new investments, we should also put emphasis on retaining our current investors,” he stated.
The CDC reported that in February, local financers constituted 58.41% of the total investment, with China accounting for 33.19%, Singapore for 4.31% and Vietnam for 4.09%.
