Prime Minister Hun Manet attends the closing of the annual meeting of the Ministry of Environment on December 21. STPM
Prime Minister Hun Manet has invited foreign investment to Cambodia, spotlighting the Kingdom’s commitment to economic reform and growth.
He took to social media on December 23 to reiterate the nation’s attractiveness as an investment destination, noting Cambodia’s robust annual economic growth rate of approximately 7 per cent. Over the years, progress has been evident across all sectors, with gross domestic product (GDP) surging nearly tenfold from $3.11 billion in 1998 to $29.60 billion in 2022.
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According to the foreign direct investments (FDI) Standouts Watchlist 2024 published by fDi Intelligence magazine, the nation is positioned as a top destination for global investment in 2024.
“Cambodia boasts a vibrant young workforce, a vital driving force in our national economic landscape. The country has prioritised modernising its infrastructure, spanning international airports, deep-sea ports, roads, waterways and logistics systems. These enhancements, coupled with unique investment opportunities, make Cambodia an appealing destination,” said Manet.
“The lasting peace in Cambodia is an added advantage, paving the way for a free-market economy to flourish. This, in turn, opens doors for growth in pivotal sectors like renewable energy, manufacturing and tourism – vital keys to our national economic development,” he added.
The prime minister said that Cambodia possesses a well-defined structure essential for sustaining reasonable labour costs, particularly in manufacturing. Additionally, its strategic location serves as an optimal gateway for exporting goods worldwide, facilitated by ASEAN and other bilateral free trade agreements.
“The 7th-mandate government has introduced the Pentagonal Strategy, bringing a fresh strategic dimension alongside the technology embraced by Cambodia’s youth. This initiative aims to develop an efficient digital system for optimal utilisation,” he added.
During a December 22 meeting with a delegation of Chinese investors to discuss investment potential, opportunities and regulations in Cambodia’s automotive sector, Suon Sophal, deputy secretary-general of the Cambodian Investment Board (CIB) at the Council for the Development of Cambodia (CDC), noted the appealing incentive package for investments in the automotive sector. He also detailed the mechanisms outlined in the Kingdom’s Investment Laws, which aid the facilitation of both foreign and domestic investment.
Sophal also outlined the government’s roadmap for the development of the automotive and electronics sector, adding that it will serve as a valuable tool for investors to appreciate the nation’s potential and the strategic measures which it is prepared to take in order to tackle any future challenges.
“I urge the delegation to consider investing at the earliest opportunity to fully reap the maximum benefits offered by the incentive package, in accordance with the current legislation,” he said.
According to the International Monetary Fund’s (IMF) projection, Cambodia’s economic growth will reach 5.6 per cent in 2023, and is expected to accelerate to 6.6 per cent in 2024.
