A delegation of the Hong Kong Trade Development Council probed investment opportunities in Cambodia which has recently been ranked as the most potential destination for foreign direct investments (FDI) in 2024 by the FDI Standouts Watchlist for the year.
The delegation from the Hong Kong Special Administrative Region of China, led by led by its Chairman Peter KN Lam, was received by Sun Chanthol, Deputy Prime Minister and First Vice President of the Council for the Development of Cambodia (CDC) at its headquarters in Phnom Penh on Wednesday.
According to an official press release, the delegation sought more investment expansion opportunities in Cambodia.
On the occasion, the Deputy Prime Minister gave a presentation about the Kingdom’s current investment opportunities and potential. CDC is entrusted with coordinating and facilitating foreign direct investments in the country.
Lam appreciated Chanthol for the detailed presentation about the opportunities in Cambodia and expressed his intention to consider the possibility of expanding Hong Kong investments in the country.
This, he explained, would also promote bilateral ties between Cambodia and China, as well as tighten the good collaboration in the ASEAN region.
Before the meeting, Chanthol exchanged two Memorandums of Understanding (MoUs) on investment cooperation with Margaret Fong, Executive Director of Hong Kong Trade Development Council, and a representative of Hong Kong Investment Corporation Limited.
The MoUs were signed in the presence of Prime Minister Hun Manet and John KC Lee, Chief Executive of the Hong Kong Special Administrative Region, at the Peace Palace.
Meanwhile, earlier reports quoting FDI Standouts Watchlist 2024 pointed out that Cambodia is the most potential destination for foreign direct investments (FDI) in 2024.
According to a list, put together by fDi Intelligence, six Asian countries featured among the top ten countries with the strongest FDI momentum for 2024, with Cambodia leading the way.
The country’s GDP is expected to grow by around six percent next year, bolstered by a strong manufacturing base and recovery in services following the Covid-19 pandemic.
This year, Cambodia scored 5.1 in the Inward FDI Performance Index – carried out by Investment Monitor – showing it received more than five times its share of inward greenfield FDI compared to what could be expected when looking at its GDP.
As a result, Cambodia came up first in rankings, well above regional competitors like Malaysia (3.39), Singapore (4.28), Thailand (2.36) and Vietnam (3.85).
The new Investment Law of Cambodia is believed to have laid the foundation for the conducive FDI climate in the country. The law offers a wide range of incentives, including income tax exemption for three to nine years, depending on the nature of investments, as well as exemptions for certain customs duties.
According to a report by the National Bank of Cambodia (NBC), FDI in Cambodia reached $48.4 billion between 2018-2023. The main source of FDI inflows was China which accounted for 45.6 percent of total FDI inflows.
This was followed by investment from South Korea (11.8 percent), Singapore (6.5 percent), Japan (6.2 percent), Vietnam (5.3 percent), Malaysia (4.4 percent), Thailand (four percent), Canada (3.5 percent), and the UK (3.2 percent). FDI inflows from other countries were at 9.5 percent.
