Cambodia is a member of the RCEP agreement that engaged with 15 Asia-Pacific countries, and the kingdom also has bilateral FTAs with China, South Korea and the United Arab Emirates.

“On the back of the implementation of the RCEP agreement and other bilateral FTAs, Cambodia is expected to attract more FDI inflows and expand its exports to the region,” she said in a speech during the opening ceremony of a seminar on Cambodia’s financial stability.

These trade pacts will help boost Cambodia’s productivity and promote its economic diversification, Serey said, adding that the kingdom’s economy is forecast to grow 6 percent in 2024, up from 5 percent in 2023, driven by a rise in exports, recovery in tourism, robust growth in transport and communication, and flat growth in agriculture.

Cambodia approved the fixed asset investment of 2.5 billion U.S. dollars in the first four months of 2024, which will create approximately 130,000 jobs, said a government’s report.

On the trade side, the Southeast Asian country exported products worth 8 billion dollars during the January-April period this year, up 15.2 percent from 6.94 billion dollars over the same period last year.

The Cambodian Ministry of Commerce’s Secretary of State and Spokesperson Penn Sovicheat said the RCEP agreement and bilateral FTAs will help Cambodia realize its ambitious goals of becoming an upper-middle income country by 2030 and a high-income nation by 2050.

“These trade pacts have not only given a boost to Cambodia’s sustainable trade growth in the long run, but also become a magnet to attract more FDIs to the kingdom,” he told Xinhua.

RCEP comprises 15 Asia-Pacific countries including the 10 ASEAN (the Association of Southeast Asian Nations) member states of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, and their five trading partners, namely China, Japan, South Korea, Australia and New Zealand.

Kin Phea, director general of the International Relations Institute of Cambodia, a think tank under the Royal Academy of Cambodia, said besides these free trade agreements, China’s Belt and Road Initiative has laid a solid foundation for Cambodia’s socioeconomic development in the long term.

“Under the BRI framework, China has heavily invested in infrastructure projects such as highways, bridges, expressways, hydropower plants, special economic zones, seaports, and airports,” he told Xinhua. “These BRI flagship projects have significantly impacted Cambodia’s development agenda, brought opportunities for Cambodia to get rid of poverty, and promoted mutual benefit and win-win results, which are deeply rooted in the hearts of the people.”

Phea said these large-scale projects have greatly contributed to promoting connectivity, securing the sustainable source of electricity supply, enhancing economic competitiveness, diversifying sources of growth, and reducing logistics costs in Cambodia.

“Among flagship projects in Cambodia under the BRI, I have been impressed by the Sihanoukville Special Economy Zone, the Phnom Penh-Sihanoukville Expressway and the Siem Reap Angkor International Airport,” he said. ■ Xinhua

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At a get-together and solidarity dinner with some 5,000 media practitioners on the occasion of the World Press Freedom Day 2024, Samdech Thipadei Hun Manet expressed thanks to the media for reporting the citizens’s support to this historical project.

Regarding to this project, Deputy Prime Minister and First Vice President of the Council for the Development of Cambodia H.E. Sun Chanthol said this project had been thoroughly studied by a group of nearly 50 experts.

Speaking at a press conference this morning, after a meeting with foreign diplomatic corps, including Vietnam, H.E. Sun Chanthol said that the Funan Techo Canal has negative impact less than that of the Phnom Penh-Sihanoukville Expressway and Phnom Penh-Bavet Expressway.

The Funan Techo Canal project has very little impact, while the economic analysis and evaluation show that it will provide great benefits for the areas of trade, tourism, urban planning and construction and so on, he underlined.

According to the project’s feasibility study, the US$1.7 billion Funan Techo Canal project, which will be broken ground for construction at the end of 2024, is 180 kilometres long and 100 metres wide upstream and 80 metres downstream with two navigation lanes. The construction would take around four years to complete.

The canal will link Prek Takeo of Mekong River to the sea in Kep province crossing four provinces: Kandal, Takeo, Kampot and Kep with a total of 1.6 million people living on either side of the waterway.

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Sok Siphana, a senior minister and chairman emeritus of the Board of Directors of the Asian Vision Institute, said 2024 is the year to implement the China-Cambodia community with a shared future in the new era and the China-Cambodia People-to-People Exchange Year.

“China-Cambodia economic and trade cooperation will continue to deepen and become a driving force for the China-Cambodia economy as well as an important driving force for sustainable social development,” he told Xinhua in a recent interview.

“The potential of China-Cambodia tourism cooperation will continue to be better explored, and Cambodia’s infrastructure investment will achieve a higher growth,” he added.

Siphana said the construction of the “Industrial Development Corridor” and the “Fish and Rice Corridor” will achieve new developments.

He said Cambodia’s economic growth is expected to rebound to 5.8 percent in 2024, citing a World Bank’s recent report.

The senior minister said Cambodia and China had achieved good results in their trade and investment ties in 2023 amid declining global demand, saying that the two-way trade increased last year, as China’s investment in Cambodia accounted for 66 percent of the kingdom’s foreign investment sources.

He said China had been Cambodia’s largest trading partner for 12 consecutive years and remained the Southeast Asian country’s biggest source of foreign direct investment.

Siphana said the formal entry into force of the China-Cambodia Free Trade Agreement and the Regional Comprehensive Economic Partnership Agreement (RCEP) have injected vitality into the continued growth of the bilateral trade volume.

According to him, Cambodia’s rice, cassava, bananas, mangoes, longans, peppers, and other categories of high-quality agricultural products are approved to be exported to China.

Durians and bird’s nest are currently undergoing market access assessment, he said, adding that China has become the largest export market for Cambodian bananas and longans.

Siphana said Cambodia is committed to maintaining its high-level diplomacy with China and supporting the Belt and Road Initiative (BRI).

“The BRI is an important factor in attracting more Chinese investment,” he said.

The senior minister added that the BRI is deeply aligned with the first phase of Cambodia’s Pentagonal Strategy, enriching the “Diamond Hexagon” cooperation framework between the two countries, as well as playing an important role in Cambodia’s economic development and improvement of people’s livelihood.

He highlighted flagship BRI projects in the kingdom, including the Siem Reap Angkor International Airport officially launched last November, the Phnom Penh-Sihanoukville Expressway formally put into operation in November 2022, and the ongoing construction of the second expressway from Phnom Penh to Bavet.

“A large number of infrastructure projects such as roads, bridges, airports, and ports implemented by Chinese-funded enterprises have promoted Cambodia’s economic development and connectivity,” Siphana said.

He added that the construction of hydropower stations and transmission grids invested by China, the construction of multiple industrial parks such as the Sihanoukville Special Economy Zone, and the construction of car tire and cement plants have improved the level of industrialization in Cambodia and created a large number of jobs and tax revenues for the kingdom.

“Investments from Chinese technology companies have also expanded Cambodia’s digital economy and green economy,” he said. “China and Cambodia have achieved outstanding results in jointly building a high-quality, high-level, and high-standard community with a shared future.

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Trade in goods between Cambodia and China topped 10 billion U.S. dollars in the first 10 months of 2023, up 4.6 percent year-on-year, according to figures released by Cambodia’s General Department of Customs and Excise (GDCE).

China remained the biggest trading partner of Cambodia, followed by the United States, Vietnam, Thailand, and Japan, the report said.

Cambodian Ministry of Commerce’s Secretary of State and Spokesperson Penn Sovicheat said RCEP and the CCFTA, which both came into force last year, had given a boost to this growth.

“With the two free trade agreements, our made-in-Cambodia products have been exported to China with preferential tariffs,” he told Xinhua.

Sovicheat said China is a huge market for Cambodia, especially for its potential agricultural products such as milled rice, yellow bananas, mangoes, longans, and pepper, among others.

“Thanks to the close relationship between our two countries, I believe that our bilateral trade volume will continue to rise throughout this year and next years,” he said.

According to the GDCE figures, Cambodia’s total international trade volume was valued at 38.66 billion dollars during the first 10 months of this year, a drop of 3.1 percent from 39.9 billion dollars in the corresponding period last year.

Kin Phea, director-general of the International Relations Institute of Cambodia, a think-tank under the Royal Academy of Cambodia, agreed that RCEP and the CCFTA have injected vigorous momentum into the Cambodia-China trade amid global economic slowdown and uncertainties.

“These FTAs have enormously boosted economic, commercial, and investment cooperation between Cambodia and China, as they have opened up new market access for Cambodian products to China and other RCEP member countries,” he told Xinhua.

“China’s Belt and Road Initiative (BRI) projects such as the Sihanoukville Special Economic Zone and the Phnom Penh-Sihanoukville Expressway have also greatly promoted Cambodia’s trade with China and the rest of the world,” he added.

Phea said the sharp growth in Cambodia’s exports to China demonstrated the strong economic relationship between the two countries.

“Despite global challenges, the trade volume has continued to expand, indicating the resilience of their trade partnership,” he said.

Seun Sam, a policy analyst at the Royal Academy of Cambodia, said the BRI has played a significant role in strengthening trade relations between China and Cambodia.

“With improved infrastructure and logistical capabilities and free trade agreements, Cambodia has become an attractive destination for international investors and businesses looking to expand their presence in the region,” he told Xinhua.

“The increased bilateral trade volume has resulted in a more diversified economy and helped Cambodia develop its energy, telecommunications, financial, logistics, tourism and agricultural sectors,” he added.

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In a congratulatory message on the first anniversary of the Phnom Penh-Sihanoukville Expressway dated Nov. 6, Samdech Thipadei said the expressway, the first of its kind in Cambodia, is one of the mega projects under the BRI.

The expressway, connecting Phnom Penh’s capital, the first economic pole, to the second economic pole of Sihanoukville of Preah Sihanouk province, which is being developed into a “Model Multi-purpose Special Economic Zone,” has been playing a key role in improving the efficiency of people’s travel, helping avoid traffic jams and shortening the travel time to about two hours only, the Premier stressed.

“The company’s investment in the development of the expressway has shown tangible benefits that Cambodia has received from the BRI and the invaluable iron-clad friendship cooperation between Cambodia and China,” he added.

Initiated by Chinese President Xi Jinping, BRI is a global infrastructure development strategy adopted by the Chinese government in 2013 to invest in more than 150 countries and international organizations.

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He made the remark at the International Symposium to commemorate the 10th Anniversary of China’s Principle of Amity, Sincerity, Mutual Benefit, and Inclusiveness in Neighborhood Diplomacy held on Oct. 24 in Beijing, People’s Republic of China.

The exact valuable achievements from the above-said initiative include Siem Reap Angkor International Airport, the under-construction of the new Phnom Penh International Airport, the Phnom Penh-Sihanoukville Expressway, the under-construction of Phnom Penh-Bavet Expressway connecting the Vietnamese border and other infrastructures, he said.

“China’s Belt and Road initiative has enormously helped the Cambodian people, rapidly reducing poverty and promoting Cambodia’s socio-economic development towards becoming a high-economic country by 2050,” said H.E Sun Chanthol, who is also the First Vice-President of the Council for the Development of Cambodia.

The main positive results of the diplomatic relations between Cambodia and China are based on the four principles of friendship, honesty, mutual benefit, and inclusion under the BRI initiative proposed by Chinese President H.E Xi Jinping, he added.

The Cambodian Deputy Prime Minister also encouraged both sides -Cambodia and China to continue their healthy relations and cooperation for the common benefit of the two peoples.

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In a recent meeting with Deputy Prime Minister Sun Chanthol, Zhaoyuan Lin, CEO of Yuexiu Group, said that the company was interested in a number of sectors in Cambodia, including transport infrastructure, real estate, and agro-industry.

He added that the company had decided to hold an internal dialogue after the meeting to discuss and study the possibility of investing in Cambodia within any framework.

Cambodia has a number of factors that make it an attractive investment destination, including peace, macroeconomic stability, a favorable investment law, and open trade agreements with the People’s Republic of China and many other partner countries.

The country also has a nationwide infrastructure network that is developing, including the Phnom Penh-Sihanoukville Expressway, the new Siem Reap Airport, the opening of the new Phnom Penh Airport, the Phnom Penh-Sihanoukville Railway, the Phnom Penh-Phnom Penh Railway, and deep water port expansion project.

Yuexiu Group has experience in investing in major sectors such as hotels, commercial buildings, residential buildings, banking, transport infrastructure, and agro-industry.

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During the meeting, the H.E. Deputy Prime Minister expressed his appreciation and encouragement for BYD to participate in the installation of more electric charging stations in Cambodia and to study the feasibility of building a car assembly line factory in the country. He noted that Cambodia has a young and highly productive population, making it an ideal location for such a factory.

Deputy Prime Minister also briefed the company on a number of infrastructure projects that the Royal Government of Cambodia is developing, such as the Phnom Penh-Sihanoukville Expressway, Siem Reap Angkor Thmey Airport, and the Phnom Penh-Bavet Expressway, which would make it easier to transport and distribute BYD’s vehicles throughout the region.

In order to encourage more investment in electric vehicles, the Deputy Prime Minister also instructed the company to provide input on the standards that they have successfully implemented in the past in the field of electric vehicles (EV) in Cambodia. This input would be used to draft legal documents related to investment in the electric vehicle sector in Cambodia.

BYD expressed its commitment to the Cambodian market and its plans to build two service centers and two showrooms in 2023, with a new showroom in Siem Reap planned for 2024.

The company also plans to introduce new types of cars to the Cambodian market, citing the country’s political stability, economic potential, growth of social infrastructure, and increasing electric vehicle traffic.

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Addressing the summit, PM Hun Manet said that he will attend the 20th China-ASEAN Expo (CAEXPO) in Nanning and pay a visit to Beijing for the Belt and Road Initiative (BRI) Summit.

Cambodia recognized the common interests of the nearly three-decade of good relations between China and ASEAN, he underlined.

BRI has provided many benefits for Cambodia, especially in the field of transport and logistics, such as the Phnom Penh-Sihanoukville Expressway, which is an example of the achievements of this initiative, he added.

The PM also took note of the importance of tourism as a key driver of economic growth, but this sector remains in a low-level situation compared to the pre-COVID-19 era.

In this regard, Samdech Thipadei stressed the need for ASEAN to promote the effective implementation of the ASEAN-China Joint Statement on Tourism Cooperation.

The 26th ASEAN-China Summit was chaired by H.E. Joko Widodo, President of Indonesia and Chair of ASEAN for 2023, and Chinese Prime Minister H.E. Li Qiang. AKP

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The outlook, he said, was based on trade pathways paved between the two countries, including the Cambodia-China Free Trade Agreement, which enables exports, especially of Cambodia’s agricultural products, to China.

China is one of Cambodia’s largest trading partners, with $20 billion in Chinese investment in 2022 alone, and the volume is building up, he continued. Cambodia and China also established a Belt and Road Bilateral Cooperation Framework in 2017 to promote economic-trade-investment infrastructure connectivity.

Within the framework, the Sihanoukville Special Economic Zone, the Phnom Penh-Sihanoukville expressway, and a new international airport in Siem Reap have been constructed, and more are in the pipeline. The two friends reached a deal on the “Diamond Cooperation Framework” in Feb. 2023 focusing on political cooperation, quality and production capacity, agriculture, energy, security, and people-to-people cooperation.

They also agreed to establish two new economic corridors, namely the “Fish and Rice Corridor” and the “Industrial and Technological Corridor”.

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