Cambodia to dominate in attracting FDI this year

Cambodia’s robust economic outlook is bolstered by forecasts from the International Monetary Fund (IMF), anticipating a GDP growth of 6.1 per cent in 2024, up from 5.6 per cent in the previous year even as recent efforts to enhance trade partnerships with China, Korea, and the European Union have further strengthened Cambodia’s economic prospects.

Notably, the lifting of travel restrictions by China has fuelled a rapid resurgence in Cambodia’s tourism sector under the zero COVID strategy. Projections indicate a substantial surge in average fixed asset investment (CAPEX) of FDI projects by 393 per cent compared to the previous year, alongside a 110 per cent increase in the number of FDI projects by 2024.

Following Cambodia, the Philippines holds the second position, with GDP growth forecasted at 5.9 per cent in 2024, up from 5.3 per cent in 2023. The Philippines anticipates a 312 per cent rise in CAPEX of FDI projects and a 51 per cent increase in project numbers compared to the previous year.

Meanwhile, Kenya ranks third, experiencing a notable uptick in FDI inflows across various sectors. Key investments include Moderna’s $500 million mRNA vaccine plant—the first of its kind in Africa—and plans by AMEA Power to set up a green hydrogen plant in Mombasa, Kenya, with an estimated investment of $2.29 billion.

Meanwhile, Serbia stands out as the sole non-Asian or non-African country among the top 10 FDI destinations.

Fibre2Fashion News Desk (DR)