Thailand
Cambodia: Investment projects declined in first three quarters this year
The Council for the Development of Cambodia (CDC) approved 134 investment projects in the first three quarters of this year, a 28 percent decrease compared with the same period last year.
The approved investment projects were valued a total of $3.3 billion, a year-on-year decrease of 48 percent.
Of the projects, 101 are located outside the special economic zones and 33 others are located inside the special economic zones.
A total of 111 investment projects went to the industrial sector and 12 projects to the agro-industry, while nine and two projects went to the infrastructure and tourism sectors respectively.
The investment projects generated 85,572 jobs.
The Cambodian economy continued to be affected by the Covid-19 crisis, especially the Feb 20 community event, which is ongoing and putting pressure on key indicators of economic growth, the Ministry of Economy and Finance said in a report released earlier in October, adding that activities in the construction sector and foreign investment have been declining.
Lim Heng, vice-president of the Cambodia Chamber of Commerce, said yesterday that the new registered investment projects showed positive signs although the number of investment projects decreased in the period.
“In the Covid-19 context, the global economy drops. Cambodia saw a drop of investment projects registered, but it was small, which is a positive sign that the country still has new investment projects registered,” Heng said.
Heng, however, remains optimistic that Cambodia will attract more investments driven by new investment law, trade preferences and a well-vaccinated population.
The draft law on new investment was endorsed recently, offering further opportunities.
“In addition to the new investment law, which is important in Cambodia, the population of [Covid-19]-vaccinated people is almost nationwide, which builds confidence in investors,” Heng said.
Having trade preference statuses – the General System of Preferences, the Everything but Arms deal – as well as bilateral trade between Cambodia and China and South Korea, and the Regional Comprehensive Economic Partnership (a free trade agreement among the Asia-Pacific nations of Australia, Brunei, Cambodia, China, Indonesia, Japan, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, South Korea, Thailand and Vietnam) this will make Cambodia a potential source for investors, he added.
Prime Minister Hun Sen said in September that the production chain in the garment sector in Cambodia has significantly surged as purchases increased.
Output in garment-producing countries such as Myanmar, Brazil and Vietnam have not been adequate to supply enough goods because of the Covid-19 pandemic and orders have turned to Cambodia.
Heng also shared the same sentiment.
“The Covid-19 outbreak spread in countries such as Vietnam and Myanmar, which caused delayed purchase orders. Some factories have been reportedly relocated elsewhere. In Cambodia, because there is almost a fully vaccinated population, I believe that the delayed purchases will come to Cambodia,” he said.
The Cambodian government is approaching its target for a vaccinated population by the end of October.
With herd immunity, the government aims to reopen social and economic activities soon.
Last year, the CDC approved 238 investment projects, registering a total of $8.2 billion, a year-on-year decrease of 12 percent.
Source: https://www.khmertimeskh.com/50951600/investment-projects-declined-in-first-three-quarters-this-year/