Peace, political stability, macroeconomic stability and multilateral and bilateral free trade agreements have played a critical role in attracting foreign direct investment (FDI) and fostering economic growth in the Kingdom, said Sun Chanthol, Deputy Prime Minister and First Vice- President of Council for the Development of Cambodia (CDC).
He emphasized Cambodia’s favourable investment climate during a dissemination of the “Progress Report on the Implementation of Resolute Reform Measures Introduced at the 19th Government-Private Sector Forum for the First Semester 2024” held recently.
Chanthol said that the country’s commitment to maintaining peace and stability has created a conducive environment for businesses to operate and grow.
In a special reference to the strategic importance of multilateral and bilateral free trade agreements, he said the country has witnessed an upsurge in investment due to Cambodia’s peace, political stability, macroeconomic stability and multilateral and bilateral free trade agreements such as the Regional Comprehensive Economic Partnership (RCEP), bilateral free trade agreements with China, South Korea and the United Arab Emirates.
As of September 2024, Cambodia has four active bilateral and regional free trade agreements including the Cambodia-China Free Trade Agreement (CCFTA), Cambodia-Korea Free Trade Agreement (CKFTA), Cambodia-UAE Comprehensive Economic Partnership Agreement (CEPA), and Regional Comprehensive Economic Partnership (RCEP).
In the first nine months of this year, CDC approved 315 fixed-asset investment projects with a total capital value of $5.3 billion.
Most investment projects focus on industry, infrastructure, energy, agriculture and tourism. The main sources of investment are dominated by investment from China, followed by domestic investment.
The Government-Private Sector Forum (G-PSF) was established in 1997 to provide an efficient platform for consultation between the Government and the Private Sector on investment climate issues ranging from long term policy to day-to-day operations.
The G-PSF also improves the business environment, builds trust and encourages private investment through a demand driven process with the Private Sector identifying issues and recommending solutions.
During the 19th G-PSF Forum in November 2023, the government announced several policies on tax preferences, simplification of administrative procedures, facilitation of the trading of farm produce, and tourism recovery aimed at bolstering business activities in the country.
President of the Cambodian Chamber of Commerce Kith Meng higlighted the remarkable progress due to the cooperation between the private sector and the government under the Government Private Sector Forum (GPS-F) mechanism.
Source: khmertimeskh