Electronic worker at the Royal Group Phnom Penh Economic Zone. Photo supplied
The Council for the Development of Cambodia (CDC) registered 54 investment projects during the first 45 days of 2024, valued at over $630 million, predominantly for factory installations and processing in the consumables and garment industries.
In January, the council approved 32 projects with a total investment exceeding $187 million, marking more than double the number compared to January 2023.
They include an electronics factory in Takeo province’s Samrong district; an assembly plant for motorcycles, bicycles, electric tuk-tuks and chargers in Kandal province’s Kien Svay district; a facility to process aluminium, steel and copper in Kampong Speu province’s Kong Pisei district; and a textile, fabric and garment factory in Preah Sihanouk province’s Kampong Seila district.
More than 78% of the capital financing originated from China, followed by 9.65% from Singapore, 5.34% from the US, 3.55% from South Korea and 2.73% from local sources, according to the CDC.
Over the first 15 days of February, the council approved an additional 22 ventures, worth over $444 million.
The projects were spread across the country, with four in Phnom Penh and the rest in various provinces: two each in Stung Treng and Takeo; four in Svay Rieng; three each in Kampong Speu and Preah Sihanouk; and one each in Kandal, Kampong Cham, Preah Vihear and Kampong Chhnang.
According to the council, the industrial sector was the primary target of financing, followed by infrastructure and other sectors, including agriculture.
Deputy Prime Minister and CDC first vice-chairman Sun Chanthol emphasised the government’s dedication to drawing investors during a courtesy call with Australian ambassador to Cambodia Justin Whyatt on February 14.
“Cambodia expects a further increase in investment ventures, despite the current global challenges. In addition, to boost competitiveness, the Kingdom is aiming for 70% of its total energy to come from clean sources by 2030,” he stated.
He also noted the government’s comprehensive master plan for the Cambodian transport and logistics system, spanning 2023-33, and provided updates on the progress of the $1.7 billion Funan Techo Canal – the first-of-its-kind waterway transportation project in Cambodia.
Kampong Speu provincial governor Vei Samnang commented on the influx of investments in the province, attributing this to its high potential and favourable geographical location for setting up various types of factories.
"We are proud that Kampong Speu has received numerous new projects and we will strive to attract even more. However, we are concerned about the labour force, as the province currently faces a significant shortage of skilled labour," he said.
In 2023, the Kingdom attracted 268 ventures with capital investments close to $4.9 billion, a nearly 20% increase from the $4 billion recorded in 2022, as per the CDC.
