Cambodia: Provincial governors urged to attract more investments

Prime Minister Hun Sen has instructed provincial governors to develop their provinces by attracting more investments, which will create jobs for local people and contribute to economic development.

In a meeting with garment workers in the provinces last week, the Prime Minister said that the government has been building the physical infrastructure to connect with the provinces.

“Each province has to have targets to attract more investment to their respective province. With good infrastructure, investors will set up their factories there,” he said.

The government is focusing on the development of the industrial sector, including the provision of employment to the people, the Prime Minister said.

“The construction of necessary infrastructure such as roads and electricity will attract more investment in the manufacturing sector in provinces,” he said.

Phnom Penh is the biggest hub of investment, largely garment, footwear, and travel goods. There are 727 factories, employing around 338,000 workers, followed by Kampong Speu, Kandal, Kampong Chhnang and Takeo provinces, according to the Ministry of Labor and Vocational Training.

Lim Heng, vice president of Cambodia Chamber of Commerce, said that the government’s reforms have contributed to enhancing the potential of the investment environment in the country for both local and foreign investors.

“We have seen a range of reforms that have enhanced the investment environment and attracted investors to Cambodia,” Heng told Khmer Times.

The new investment law and free trade agreements such as the Cambodia-China FTA, Cambodia-Korea FTA, and RCEP, are also giving a big impetus in attracting investment to the Kingdom, Heng said.

Cambodia launched a new investment law in October 2021, aiming to attract investment by providing specific incentives and protections to investors.

The Council for the Development of Cambodia (CDC) approved 65 fixed asset investment projects worth more than $588 million in the first four months of this year. Chinese investors are the largest source of foreign direct investment (FDI) in the country.