Cambodia & Economy: CDC, China remains the top investor in Cambodia

In the first year of the 7th-mandate Royal Government of Cambodia, from September 2023 to August 2024, the Council for Development of Cambodia (CDC) has approved 391 new investment projects and production expansion projects with a total capital of more than US$7.5 billion.

Phnom Penh. Photo CG

The figures show an increase of 168 projects and about US$4.67 billion in investment capital compared to the last year of the 6th Royal Government, the CDC said in a press release.

The CDC attributed this significant increase to the presence of new projects in infrastructure, industry, tourism and special economic zone (SEZ) development projects.

Of the total projects, 130 are located in SEZs and 261 outside SEZs and are expected to create about 341,000 jobs for locals. The approved projects ranged from investment in five-star hotels and hydropower dams to the establishment of data centres, tyre manufacturing and the creation of new SEZs.

According to the CDC, China remains the top investor in Cambodia, accounting for 60.44 % of total investment sources, due to the strong economic ties between the two countries and the bilateral free trade agreement and RCEP agreement. Local investors contributed 32.31 % of the total investment.

Other FDI came from Singapore, Malaysia and Vietnam. Kampong Speu province attracted the most investment projects. Svay Rieng province, the capital Phnom Penh, Preah Sihanouk province, Kandal province and Takeo province followed.

The CDC's approval of these investment projects is seen as a positive indicator of Cambodia's economic prospects and ability to attract foreign capital, and signifies investors' continued interest in the country's favourable business climate and growth potential.