The Council for the Development of Cambodia (CDC) approved 106 fixed assets investment and expansion projects worth $2.2 billion in the first three months of this year, a jump of 649 percent over the same period last year.
Of the approved projects, 73 are in special economic zones and 33 others in non-special economic zones, generating 107,000 jobs for local people, a report said.
Breaking down by sectors, investment in the industrial sector has the largest share of 90.57 percent, while agriculture and agro-industry, infrastructure, and tourism accounted for 3.77 percent, 3.77 percent, and 1.89 percent, respectively.
Kampong Speu and Svay Rieng provinces received a large number of projects. While 26 projects are in Kampong Speu province, 23 are in Svay Rieng, with 14 projects in Phnom Penh.
Preah Sihanouk province received 13 investment projects, Kandal and Takeo provinces received nine projects each, and Kampong Chhnang province five.
Koh Kong and Stung Treng provinces received two projects each, while Preah Vihear, Kampot and Kampong Cham provinces received one project each.
“The rapid increase was due to new investment projects in infrastructure, industry, tourism, and investment expansion in special economic zones,” CDC said in the report.
The most prominent investment projects in the first quarter are the establishment and operation of five-star hotels and business centres in Preah Sihanouk province. The project has an investment capital of $574 million and can create 3,860 jobs.
Another is the investment project for building 150 MW hydropower with a total investment of $440 million in Mondul Seima district, Koh Kong province.
At the same time, the most prominent project for a special economic zone is to produce tyres in Svay Rieng province with a capital of $212 million. This project can create 655 jobs.
CDC stated that domestic investors are the largest sources, accounting for 58 percent, followed by China 35.3 percent. Other foreign investors came from Singapore, Vietnam, South Korea, the US and Malaysia.
The investment in the industrial sector showed its potential to both national and foreign investors due to the country’s potential huge market under the free trade pacts, said Lim Heng, Vice-President of the Cambodia Chamber of Commerce.
“The new investment law, free trade agreements, mega-regional pacts, and trade preferences have given an impetus to attracting new investment in the country. With the potential of a huge market under the free trade pacts, Cambodia can attract more investment,” Heng told Khmer Times.
On March 15, Prime Minister Hun Manet said he and other high-ranking officials have met and communicated with the private sector, both inside and outside the country, to promote the investment potential of Cambodia.
Most foreign investors see the potential of Cambodia and they are interested in investing in the Kingdom, he said. khmertimeskh
