The Council for the Development of Cambodia (CDC) Saturday announced that under the leadership of Prime Minister Hun Manet, the Royal Government of Cambodia (RGC) of the Seventh Legislature has attracted $7.5 billion of investment capital over one year period, marking a 161 percent rise compared to the same duration by the previous government.
Chea Vuthy, Secretary General of the Cambodian Investment Board (CIB) of CDC disclosed this during a meeting with the Canadian international trade delegation led by Paul Thoppil, Canada’s Indo-Pacific Trade Representative in the capital on September 13.
The Canadian international trade delegation is examining the investment climate, especially exploring the possibility of cooperation to boost trade and investment in Cambodia.
Vuthy briefly described the structure and roles of the CDC, particularly focusing on the promotion of investment from the private sector, stressing a set of potential opportunities and favourable investment laws and regulations in the Kingdom.
“After one year of the new government, Cambodia experienced a shape growth of investment, receiving approximately $7.5 billion sum of investment capital which marked an increase of 161 percent compared to the same duration led by the Royal Government of the Sixth Legislature of the National Assembly,” he said.
Thoppil said that Canada’s Indo-Pacific Strategy, an initiative aimed at enabling Canada to expand and diversify its economy through stronger ties with key economies in the Indo-Pacific region, is keen on further promoting trade and investment cooperation in Cambodia.
He emphasised the importance of concluding the ASEAN-Canada Free Trade Agreement (FTA) viewing it as a crucial instrument for promoting Canadian investment in Cambodia.
Canada also acknowledged RGC’s strong potential, citing its peace, political and economic stability, investment-friendly policies and a young dynamic workforce.
The CIB Secretary told the visiting delegation that a Cambodian delegation led by Sun Chanthol, Deputy Prime Minister and First Vice-Chairman of the CDC, will visit Canada on September 26 to promote investment opportunities and potential cooperation.
He also requested the Canadian delegation to continue promoting Cambodia’s investment potential to their business communities, encouraging investors and businessmen to explore investment opportunities in renewable energy and agro-industry across the Kingdom.
Responding to Khmer Times’ query on how the RGC can attract investment, Lor Vichet, Vice- President of Cambodia Chinese Commerce Association (CCCA) said that the United States and China trade war has substantially increased tariffs on Chinese goods entering America and this trend is going to remain for the foreseeable future.
“As a result, Chinese manufacturers are offshoring to other countries to set up manufacturing plants in different regions to mitigate risks to their supply chains amid the trade tensions with the United States.”
He continued that the Kingdom is seen as one of the favourite destinations to offshore due to its business friendliness and favourable investment law. A young labour force with competitive wages compared to neighbouring countries has been an advantage towards attracting Chinese and overseas manufacturers.
“Access to a large and dynamic market is also facilitated by Cambodia’s participation in regional trade agreements such as the ASEAN Economic Community and the Regional Comprehensive Economic Partnership,” Vichet added.
He emphasised these factors have significantly contributed to the rise in foreign direct investment (FDI) in the country since the new government took over the office.
(Source: khmertimeskh)