PHNOM PENH: The 7th mandate’s Royal Government of Cambodia’s commitment to economic development and its active implementation of investor-friendly policies have significantly boosted investor confidence.
This is evident in the remarkable growth of investment projects and capital inflows during the first year of Prime Minister Hun Manet‘s leadership.
From September 2023 to August 2024, the Council for Development of Cambodia (CDC) approved 391 new investment projects and production expansions, totaling over $7.5 billion in capital. This represents a substantial increase of 168 projects and $4.67 billion compared to the previous government’s final year. This reports published yesterday on AKP.
Deputy Prime Minister and CDC First Vice President, HE. Sun Chanthol, emphasized the positive impact of these projects, estimating they will create approximately 340,000 jobs. Compared to the last 12 months of the previous government, the number of approved projects surged by 75%, and investment capital increased by a remarkable 161%.
This significant growth is attributed to new initiatives in infrastructure, industry, tourism, and special economic zone (SEZ) development. Of the 391 projects, 130 are located within SEZs, and the remaining 261 are outside. These projects are expected to generate around 341,000 jobs for Cambodians.
The approved projects span a wide range of sectors, including five-star hotels, hydropower dams, data centers, tire manufacturing, and new SEZ creation.
China remains Cambodia’s top investor, contributing 60.44% of the total investment. This reflects the strong economic ties between the two countries, reinforced by bilateral free trade agreements and the RCEP agreement.
Local investors contributed 32.31%, while other foreign direct investments (FDIs) came from Singapore, Malaysia, Vietnam, and more.
Kampong Speu province attracted the most investment projects, followed by Svay Rieng, Phnom Penh, Preah Sihanouk, Kandal, and Takeo.
The CDC’s approval of these investment projects is a positive indicator of Cambodia’s economic prospects and its ability to attract foreign capital. It signifies investors’ continued confidence in the country’s favorable business climate and growth potential.