CDC Greenlights $2.2 Billion in Investment Projects for Cambodia’s First Quarter of 2024

CDC Greenlights $2.2 Billion in Investment Projects for Cambodia’s First Quarter of 2024

Phnom Penh, April 5, 2024: The Council for the Development of Cambodia (CDC) has given the nod to an impressive slate of 106 investment projects and expansions for the first quarter of 2024, marking a significant increase of 67 projects compared to the same timeframe last year.

This morning’s press release from the CDC revealed a staggering year-on-year growth of 649 percent in approved investment capital, totaling US $2.2 billion for the initial three months of the year. These projects are anticipated to create approximately 107,000 job opportunities for locals.

A sectoral breakdown of the investments shows a dominant preference for the industrial sector, which claimed 90.57 percent of the total capital. Agriculture and agro-industry, infrastructure, and tourism sectors followed, with shares of 3.77 percent, 3.77 percent, and 1.89 percent, respectively.

The CDC’s report further detailed the origins of these investments, highlighting that local investors contributed to 58 percent of the total investment capital. Chinese investments constituted 35.34 percent, followed by Singapore with 3.16 percent, Vietnam with 2.23 percent, and the remainder sourced from South Korea, the US, and Malaysia.

Lim Heng, Vice-President of the Cambodia Chamber of Commerce, commented on the surge in investment, attributing it to Cambodia’s attractive potential under the new investment law, various free trade agreements, mega-regional pact, and trade preferences.

Heng specifically pointed to the new investment law and free trade agreements, including the Cambodia-China FTA and Cambodia-Korea FTA, along with the Regional Comprehensive Economic Partnership (RCEP), as pivotal factors enticing Chinese investments into Cambodia for production aimed at export markets.

This robust start to 2024’s investment landscape underscores Cambodia’s growing appeal as a prime destination for foreign investment, bolstered by favorable trade agreements and a supportive regulatory environment.

Leave a Reply

Your email address will not be published. Required fields are marked *