Chinese investment in Cambodia increases in 2021 despite pandemic

A report from the Council for the Development of Cambodia (CDC) said China was the top foreign investor in the south-east Asian nation, accounting for 53.4 per cent of the total investment of $4.35 billion the kingdom approved last year.

Heng Sokkung, secretary of state and spokesman for the ministry of industry, science, technology and innovation, said close ties, the Cambodia-China Free Trade Agreement (CCFTA) and the Regional Comprehensive Economic Partnership (RCEP) are the main factors encouraging Chinese investors.

"I believe that these free trade agreements, together with Cambodia's favorable investment law, peace and political stability, have provided a great opportunity for foreign investors, particularly Chinese ones, to invest in Cambodia," he told a news agency.

Sokkung said a high COVID-19 vaccination rate, which has allowed Cambodia to fully reopen since mid-November last year, is also a conducive atmosphere for attracting both foreign investors and tourists.

China's investment in Cambodia focuses on the fields of real estate, garment, footwear and travel goods industry, tourism and agriculture, among others.

"Chinese investment, especially during the pandemic, is essential to help boost Cambodia's economy and create new jobs for Cambodian people," Lim Heng, vice president of the Cambodia Chamber of Commerce, said.

The trade volume between Cambodia and China was valued at nearly $11.2 billion in 2021, up by 38 per cent from 2020, according to the country’s ministry of commerce.

Fibre2Fashion News Desk (DS)