Prime Minister Hun Sen has told international investors at the 2022 Davos World Economic Forum that Cambodia is in a strong position for more foreign investment highlighting the country’s key strengths including COVID recovery, free trade agreements and infrastructure development.
The comments were made as Worldbridge Group hosted the first-ever ‘Cambodia Night’ an event showcasing Cambodia and its new law on investment in preparation for the country to assume its role as the Chair of ASEAN in 2022.
This year’s Davos forum marked the first time a Cambodian company has become a WEF member at the Associate Partner level the economic forum brings together over 2,500 global leaders. To read more about the ‘Cambodia Night’ event at Davos click here.
Recovery from COVID and free trade
“In order to promote a resilient, sustainable and inclusive recovery and economic growth, the Royal Government of Cambodia (RCG) has put forth the “Strategic Framework and Programs for Economic Recovery in the Context of Living with COVID-19 in a New Normal 2021-2023”,” Hun Sen said.
“Our philosophy is to transform the challenges posed by this crisis into opportunities for internal reforms, together with an increase in physical and digital infrastructure investments, and socio-economic resiliency promotion,” he added.
Hun Sen also outlined the philosophy would better prepare the country for future crisis, while our economy can quickly recover in the short- and medium-term, and become diversified for a sustainable and inclusive growth in the long-term.
The Cambodian government Cambodian has already allocated over $800 million in 2020 and close to $1.5 billion in 2021 for health, social, and economic interventions, Cambodia maintained macroeconomic and financial stability and prevented a significant increase in poverty. To read more about Cambodia’s 2022 economic outlook click here.
“With a long-term vision, the RGC has also been proactively promoting a better business and investment climate by improving the quality, times and costs of logistics; increasing the efficiency of public services; providing skill development, and modernizing the social security system,” Hun Sen said
“In addition, Cambodia has also made great strides to open up its economy and engaged with new markets by finalizing and adopting Cambodia-China Free Trade Agreement, the Cambodia-Korea Free Trade Agreement, and Regional Comprehensive Economic Partnership (RCEP) Agreement,” he added.
More infrastructure development needed
“Over the past two years, Cambodia has been heavily and actively investing in physical infrastructures at major economic poles such as the improvement of the infrastructure across Siem Reap and Sihanoukville provinces,” Hen Sen said.
“The construction of new international airports in both Phnom Penh and Siem Reap, the construction of deep-sea container ports to eliminate water-depth barriers and provide direct access to Cambodia for large vessels from the United States and Europe,” he added.
The Prime Minister also outlined that the construction of the expressways connecting Phnom Penh to deep-sea ports in Sihanoukville, and building of infrastructure connecting main economic poles of Cambodia and ASEAN; as well as investment in information and digital technology systems.
Cambodia has recorded a cumulative total of $41 billion of Foreign Direct Investment (FDI) over the last 27 years with China accounting for over $18 billion (43%) in that period, according to data released by the National Bank of Cambodia.
The figure has more than doubled since 2014 when it was recorded at $19.2 billion in the first ever FDI survey conducted jointly by the National Bank of Cambodia and National Institute of Statistics. To read more about Cambodia long-term FDI trends click here.