Cambodia Investment Review
Aquarii BD Cambodia has released its latest issue of “Connecting Dots,” providing a comprehensive overview of significant economic and trade developments in Cambodia for July 2024.
This update highlights the significant strides made in travel insurance awareness, France-Cambodia business relations, investment projects, blockchain credentials, and the adoption of electric vehicles (EVs). These advancements reflect Cambodia’s dynamic economic landscape and its commitment to sustainable growth and innovation.
Read More: Aquarii BD Cambodia Highlights Key Economic and Trade Developments in June 2024 Issue
In Focus: Travel Insurance in Cambodia
Cambodia’s travel insurance market has seen substantial growth, driven by a burgeoning middle class and increased international travel. Despite this, awareness remains low among the general population. Factors such as a lack of understanding, accessibility issues, and cultural attitudes contribute to this gap.
Mr. Jeffrey Chew, CEO of Phillip General Insurance (Cambodia) Plc, explains, “Many Cambodians view travel insurance as an unnecessary expense and prefer to save money for other travel-related costs.” The Cambodian government, through initiatives like Cambodia Insurance Day, and collaborations between insurers, agents, financial institutions, and travel partners, is working to promote the importance of travel insurance.
As Cambodia’s economy improves and digitalization continues, the future of travel insurance looks promising. Enhanced online accessibility and ongoing education efforts are expected to drive demand, making travel insurance more accessible and appealing to a broader audience.
Strengthening France-Cambodia Relations: A Look at the Business Forum 2024
The Second France-Cambodia Business Forum, held in Phnom Penh and Sihanoukville from July 8-10, 2024, marked a significant step in strengthening bilateral relations. Co-organized by the France Cambodia Chamber of Commerce and Industry (CCIFC) and the Cambodia Chamber of Commerce (CCC), the forum aimed to deepen participants’ understanding of the Cambodian market and promote investment opportunities.
During the forum, two MOUs were signed between CCIFC and CCC, focusing on promoting trade and investment operations, and between CCIFC and the University of Puthisastra, focusing on health education and training support. The event saw the participation of 284 investors from 146 major companies across various sectors, highlighting the potential for increased French investment in Cambodia.
Bilateral trade between the two countries reached USD 515 million in 2023, with USD 206 million recorded in the first five months of 2024. Major exports from Cambodia to France include textiles, garments, and agricultural goods, while imports include machinery, pharmaceuticals, and cosmetics.
190 Investment Projects Worth USD 3.2 Billion Approved in Cambodia for H1 2024
The Council for the Development of Cambodia (CDC) approved USD 3.2 billion for 190 investment projects in the first half of 2024, marking a significant increase compared to the same period in 2023. These projects span various sectors, including industrial and Special Economic Zones (SEZs), and are expected to create over 168,000 jobs.
Cambodian investors contributed 50.15% of the total investment, with China being the largest foreign investor at 42.64%. Other notable investors include Singapore, Vietnam, India, and South Korea. The top five provinces receiving investment were Kampong Speu, Svay Rieng, Phnom Penh, Sihanoukville, and Takeo.
Cambodia Selected for UNDP Blockchain Digital Credentials System Pilot
Cambodia has been chosen as the pilot site for the UNDP’s Universal Trusted Credentials (UTC) platform, leveraging blockchain technology to enhance the integrity of digital credentials. This initiative, developed in collaboration with the Dfinity Foundation, aims to support micro, small, and medium-sized enterprises (MSMEs) by providing reliable data for financial evaluations.
Mr. Ong Teong Hoon, Director and Shareholder Representative of Phillip Bank, stated, “Cambodia’s track record on gaining traction in its digitization efforts, as seen in the adoption of Bakong, speaks for itself, especially with its young IT-savvy populace.” The successful implementation of the UTC platform in Cambodia is expected to set the stage for a global rollout, impacting MSMEs worldwide and fostering economic growth and financial inclusion.
Cambodia Towards Green Future: The Rise of Electric Vehicles (EVs)
Cambodia is rapidly adopting electric vehicles (EVs), with 2,968 EVs registered nationwide as of mid-2024. The Cambodian government’s National Policy on the Development of Electric Vehicles 2024-2030 aims to have 800,000 EVs on the road by 2030, enhancing environmental sustainability, economic growth, energy security, and technological advancement.
Efforts are underway to expand the number of charging stations across the country and foster favorable conditions for EV use. Additionally, BYD has shown interest in establishing an EV assembly plant in Cambodia, which is expected to stimulate the growth of a domestic EV ecosystem, creating jobs in manufacturing, sales, and maintenance.
This shift towards EVs aligns with regional and global green sector trends, positioning Cambodia as a leader in environmentally friendly transportation solutions.
Aquarii BD’s Role and Mission
Aquarii BD emphasizes the importance of providing international businesses and investors with up-to-date information on Cambodia’s economy and market.
“At Aquarii BD, we believe that helping international businesses and investors, particularly those not yet familiar or socialized to Cambodia’s value proposition and opportunities, to formulate an up-to-date understanding of factual developments in Cambodia’s economy and market, remains an important first step to attracting more investments to the Kingdom.”
“‘Connecting Dots’, a monthly compilation of the more salient local developments from the preceding month, coupled with insights and comments from trusted industry experts into Cambodia’s evolving market dynamics, underscores our commitment to equip businesses and investors with the knowledge and information to navigate the local business landscape and to make better-informed decisions on investment opportunities emerging from Cambodia’s socio-economic developments.”
For those interested in a deeper dive into Cambodia’s economic updates and forecasts, the full July 2024 issue of “Connecting Dots” is available for download on Aquarii BD’s website, offering invaluable insights into Cambodia’s economic progress and investment potential.