PHNOM PENH: Cambodia and China are strengthening their economic ties through two new initiatives: the Industrial and Technological Corridor and the Fish and Rice Corridor.
This builds on their existing Comprehensive Strategic Partnership and Diamond Cooperation framework. These corridors aim to boost Cambodia’s socio-economic development.
A High-Level Meeting Signals Strong Chinese Interest
HE Chea Vuthy, Secretary General of Cambodia Investment Board (CIB) of the Council for Development of Cambodia (CDC), recently met with a delegation of 40 Chinese companies. This second meeting in just three months highlights China’s growing interest in investing in Cambodia’s textile industry, including garments, footwear, and materials.
Cambodia’s Investment Advantages Attract Chinese Capital
The Secretary General emphasized Cambodia’s attractive investment environment, citing a decade of increasing Chinese investment and trade. Cambodia’s peace, political stability, and investment-friendly laws have positioned it as the top recipient of foreign investment in the first half of 2024.
Cambodia Offers Established Infrastructure and Investment Zones
The meeting also showcased Cambodia’s existing industrial base. The country boasts 44 Special Economic Zones (SEZs), with 28 already operational. Established industries include car tires, electronics, furniture, and more, offering opportunities for cluster investments.
China’s Investment and Aid Fuel Cambodian Growth
The delegation leader expressed strong interest in investing in Cambodia. This aligns with China’s significant contributions, over US$1.3 billion invested in Cambodia during the first half of 2024, ranking them second overall. There were also over US$3 billion in concessional loans and grant aids, funding critical infrastructure projects like roads and bridges.
Cambodia Encourages Sustainable Investment Practices
The Secretary General encouraged the companies to consider establishing industrial zones with complete production chains, catering to domestic, regional, and global markets. He also emphasized the importance of using clean energy to protect the environment.
This meeting exemplifies the deepening economic partnership between Cambodia and China. The establishment of corridors and China’s continued investment hold promise for Cambodia’s socio-economic development.