Tom Starkey
In a bid to attract investment to Cambodia’s less developed regions, the “Investment Promotion Conference 2023” was recently held in Siem Reap. Co-organized by the Council for the Development of Cambodia (CDC) and the German development agency, GIZ, the event convened industry leaders and experts to discuss the myriad possibilities for business and investment in Cambodias northwestern provinces.
The conference, which lasted a day, delved into various facets of investment promotion, provincial development, export opportunities, and the impact of environmental, social, and governance (ESG) criteria on businesses. It culminated in a panel discussion, summarizing the event’s key themes such as diversification, the role of data in expansion, and the Sustainable Development Goals (SDGs) as a unified agenda for all stakeholders.
Breaking Down Barriers for Investors
Mr. Harrison White, founder and editor at Cambodia Investment Review, moderated the panel discussion, emphasizing the specific challenges and opportunities awaiting investors in rural Cambodia. Dennamanith Premprey, Business Development Manager at Aquarii BD, urged for solutions addressing the unique hurdles faced by both local SMEs and international investors, like cultural differences, language barriers, and variations in business practices.
We need targeted solutions. Although significant issues like access to finance have been addressed through collaboration between the government and the development sector, smaller yet important matters often go unnoticed, said Dennamanith.
He pointed out Cambodia’s achievements, like winning the worlds best rice award multiple times, but lamented that internationally, Thai and Vietnamese rice are better known. “It’s crucial to disseminate factual and updated information through trusted platforms to reshape outdated international perspectives of Cambodia,” he added.
Learning from Other Countries
The discussion then pivoted to Boris Dolgonos, Partner at Gibson, Dunn & Crutcher LLP, who drew parallels between Liberia and Cambodia, particularly in agriculture and mining sectors. He emphasized that Liberia succeeded in leveraging these sectors to diversify its economy, notably into aquaculture. Dolgonos suggested that Cambodia could benefit from similar strategies, including effective coordination and ensuring foreign investment contributes to community development as well.
Dr. Alavi Panah, a GIS and Remote Sensing Expert from the Banteay Meanchey Administration, highlighted the challenges of inadequate data sharing between governmental bodies and the private sector.
“Its crucial to have accurate data for investment decisions. The current lack of data sharing across sectors hampers this, Panah said. He argued that more companies should collaborate on data sharing to amplify investment opportunities.
Aligning Investments with ESG Principles
Dr. Ivan Gonzalez de Alba, Country Economist at UNDP, noted that the increasing significance of ESG principles in investment decisions is crucial for aligning foreign direct investment (FDI) with sustainable development goals. “We have been working with the CDC to make FDI more compatible with ESG investments,” he mentioned.
The Investment Promotion Conference 2023 succeeded in illuminating the challenges and opportunities that exist in attracting investments to Cambodia’s rural areas. As the speakers emphasized, targeted solutions, international benchmarking, effective data sharing, and a focus on ESG can act as significant enablers in this endeavor.
