Investment projects in Cambodia's industrial sector have been on the rise, comprising over 90% of all ventures approved by the Council for the Development of Cambodia (CDC) in 2023.
A total of 268 investments were approved in 2023, comprising 247 new undertakings and 21 production expansion projects, according to a CDC press release.
The financing, valued at $4.9 billion, is expected to create more than 300,000 jobs.
The CDC noted that the sector accounted for approximately 92.54% (248 projects) of the total number, contributing about 46% of total capital investment.
The projects include the establishment of a cement factory in Battambang province, a motorcycle assembly expansion project and a solar panel manufacture and assembly factory.
Hong Vanak, director of International Economics at the Royal Academy of Cambodia, told The Post on February 12 that the country’s favourable geographical location, political stability, economic growth, investment laws, transport infrastructure, labour, markets and preferential tariffs from major countries are key factors in attracting national and international investors to establish factories and enterprises.
He stated that free trade agreements (FTAs), such as those with China (CCFTA), South Korea (CKFTA), the Regional Comprehensive Economic Partnership (RCEP) and the Cambodia-United Arab Emirates Comprehensive Economic Partnership (CAM-UAE CEPA), also play an important role in drawing financers.
"Cambodia is increasing its potential to lure investors, particularly in recent years, with the emergence of numerous large-scale factory initiatives. These include the automobile assembly-manufacturing industry, tyre production and the manufacture of components, machinery and electrical equipment, with more factories using advanced technology," Vanak said.
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Reporter: Hin Pisei
Source: The Phnom Penh Post
February 13, 2024
