The latest SCB EIC report expects ASEAN CLMV nations, including Cambodia, to witness accelerated economic growth in 2024 due to increasing foreign direct investment compared to prior years.
The SCB EIC is the Economic Intelligence Center (EIC) unit of the Siam Commercial Bank Public Company Limited (SCB), headquartered in Bangkok, Thailand.
The EIC produces regular reports on economic shifts in the region for business people and investors.
According to the study, the rise in investment for the CLMV region, including Cambodia, is backed by a recovery in global exports and tourism in 2024 compared to 2023, which can be expected to bolster domestic demand through a labour market recovery within CLMV nations generally.
According to ASEAN regulations, the CLMV countries of the bloc include the latest four members of Cambodia “C”, Laos “L”, Myanmar “M”, and Vietnam “V”.
These four CLMV nations are identified as having lesser overall economic development than the other member states of ASEAN, such as Malaysia, Singapore, the Philippines and others.
Nonetheless, CLMV countries, as members of ASEAN, have unique advantages regarding labour and natural resources compared to some other players and show significant potential for the future as growth leaders of the ASEAN bloc.
As per the EIC report, CLMV economies are primarily strong due to being well-positioned to benefit from the “China+1” strategy in 2024, which is seeing more and more multinational enterprises seeking to diversify their manufacturing bases to mitigate rising geopolitical trade risks.
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This relocation trend is driving foreign direct investment (FDI) in CLMV countries in the medium term, including Cambodia.
In 2024, based on these incoming multinational investors, EIC predicts an overall 6.3 percent growth in FDI into Vietnam in 2024, up from 5.1 percent last year, and the leader out of the CLMV cluster for incoming FDI growth in 2024.
Cambodia, however, came in second place out of all CLMV nations, following its neighbour Vietnam, expecting an overall 6.0 percent growth in FDI this year, rising from 5.6 percent in 2023.
Laos placed third for EIC 2024 FDI predictions, set to attract 4.7 percent growth, a slight increase from 4.5 percent in 2023.
Finally, Myanmar should expect 3 percent FDI, up from 2.5 percent last year, and fourth place for investment growth in the CLMV region according to the EIC. khmertimeskh
