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Cambodia: Reforms aimed at overcoming FDI challenges
The Cambodian government has continuously implemented reforms to overcome challenges to attract more foreign direct investment, a senior official at the Ministry of Economy and Finance said.
Shortage of skilled labour, limited inputs for production, high cost of energy and logistics, and limited commercial facilitation procedures are among the issues the government needs to address, said the ministry’s permanent secretary of state Vongsey Visoth.
Cambodia’s economy returns on a strong, sustainable growth path but it continues to face some major structural problems, Visoth said at a sector policy dialogue last Thursday.
Cambodia is also facing a more complex regional and global environment, he said.
“For investment / foreign direct investment (FDI), Cambodia is absolutely necessary to attract foreign direct investment (FDI) to serve the goal of sustaining growth, creating jobs, increasing income and adding more value to the economy to support the development of the country and the building of our Cambodian state to be stronger and able to stand for a long time in an environment that is difficult to predict in the future with equality and equality,” he said.
The Council for the Development of Cambodia (CDC) approved fixed asset investment projects worth over $4.685 billion in 2022, up 7 percent as compared to a year before.
The sectors that foreign investors come to develop in Cambodia are mostly the garment industry, footwear, bags and most recently real estate.
In October 2021, Cambodia launched the new investment law, which is a law to provide specific advance incentives and protection to investors in order to attract investment to Cambodia.
The new investment law is aimed to provide specific advance incentives and protection to investors in order to attract investment to Cambodia and as a tool to reform Cambodia as a potential hub for investment and enhancement of competitiveness.
Cambodia needs to have an efficient and affordable transportation and logistics, a stable and environmentally sound financial sector, and a highly skilled and healthy workforce, he said.
Source: https://www.khmertimeskh.com/501270538/reforms-aimed-at-overcoming-fdi-challenges/