Cambodia Investment Review
Aquarii BD Cambodia, a leading business development firm, has released its August 2024 issue of “Connecting Dots,” highlighting the key economic and trade developments in the Kingdom. The report provides insights into foreign investment trends, significant business collaborations, and sectoral growth.
Read More: Aquarii BD Cambodia Highlights Key Economic & Trade Developments in July 2024 Issue
Cambodia’s Investment Growth Surges with Over USD 6 Billion in New Projects
According to the Council for the Development of Cambodia (CDC), the Kingdom saw an impressive rise in foreign direct investment (FDI) during the first 11 months of Prime Minister Hun Manet’s seventh mandate. A total of 237 investment projects, valued at over USD 6 billion, were approved, representing a 220% increase in capital compared to the previous mandate. In July 2024 alone, 44 projects worth USD 396 million were given the green light.
This increase in investment is attributed to Cambodia’s favorable economic policies, its youthful demographic, and political stability. “We are witnessing a clear upward trajectory in Cambodia’s investment climate. Political continuity, strategic location, and favorable incentives are all contributing to a more dynamic and appealing business environment for global investors,” said Michael Tan, Founding CEO of Aquarii BD Cambodia.
Hong Kong and UK Delegations Boost Economic Collaboration
In late July 2024, a delegation from Hong Kong, comprising 30 leaders across finance, insurance, and technology sectors, visited Phnom Penh to strengthen economic ties. The visit resulted in the signing of 13 Memorandums of Understanding (MoUs), focusing on trade, banking, innovation, and technology. This marks a significant step forward in Cambodia’s goal to expand its digital economy.
Additionally, the UK Export Finance (UKEF), the UK government’s export credit agency, expressed strong interest in supporting Cambodia’s infrastructure development. During their visit in early August, UKEF pledged to finance projects in public services and infrastructure under the British Investment Partnership, signaling a potential rise in British investments in Cambodia.
Japan and China Strengthen Ties with Green Technology and Infrastructure Projects
Japan continues to be a key economic partner for Cambodia, particularly in the areas of sustainable development. On August 7, JETRO, Japan’s external trade body, led a business mission to Phnom Penh, involving 19 companies focusing on green technology and carbon credits. This collaboration aligns with Cambodia’s objective to increase clean energy usage to 70% by 2030. “The integration of Japanese innovations with Cambodian businesses will pave the way for mutual economic benefits and sustainable growth,” remarked Tan.
China, Cambodia’s largest source of FDI, remains committed to expanding its footprint in the Kingdom. A delegation from Jiangsu province visited in mid-August to explore cooperation in agriculture, technology, and fisheries. Cambodian Prime Minister Hun Manet has welcomed further collaboration, particularly the reopening of direct flights between Cambodia and Shantou, which would boost bilateral trade and investment.
South Korea and India Explore New Investment Avenues
South Korea has become the second-largest source of FDI in Cambodia, according to the National Bank of Cambodia (NBC). The country’s interest in Cambodia’s manufacturing, technology, and infrastructure sectors is growing. His Excellency PARK Jung-Wook, New Extraordinary and Plenipotentiary Ambassador of the Republic of Korea highlighted that Cambodia’s favorable investment policies have helped boost investor confidence. “We are seeing increased interest from South Korean businesses following the Prime Minister’s recent visit to Korea. This is a positive signal for future bilateral trade and cooperation,” Ambassador Park noted.
India’s Adani Ports and Special Economic Zone Ltd. (APSEZ), India’s largest port operator, is also exploring opportunities in Cambodia’s logistics sector. The company’s executive director met with Cambodian authorities in August to discuss potential investments in cargo and port infrastructure. These developments underscore Cambodia’s potential as a regional hub for logistics and trade.
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 August 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.
