Foreign direct investment in Cambodia surges 73%
A few weeks ahead of the general elections on July 28, Cambodia received applause from the United Nations Conference on Trade and Development which said in its recently released World Investment Report that foreign direct investment (FDI) in Cambodia has risen 73 per cent in 2012 to $1.6 billion compared with $902 million in 2011.
Most of the investment went into the garment sector and other manufacturing industries, the report said, and also into agriculture and tourism.
Among the biggest investors in 2012 was Japan’s AEON Group which poured $205 million into the construction of the 68,000 square meter Aeon Mall in Phnom Penh.
Japan is one of the biggest investors in Cambodia, along with China and South Korea.
With the national election looming, Cambodia’s Commerce Minister Cham Prasidh on July 2 assured international investors that they should put their faith in the country’s economy “regardless of the vote”. Observers, however, expect no government change as the ruling Cambodian People’s Party of Prime Minister Hun Sen does not have any opposition to speak of.
Cambodia’s gross domestic product growth was more than 7 per cent last year and a similar performance expected this year. However, some investors cited lack of skilled labour and high electricity costs, especially in the manufacturing sector, as challenge to invest in the country. Others say that poor business practices, heavy bureaucracy and corruption are serious obstacles. Cambodia currently rank 133rd place out of 185 countries in the “Ease of Doing Business” ranking of the World Bank.
The commerce minister also mentioned that the days of generous tax breaks for manufacturers in Cambodia could soon be over as the government looks to hike its domestic revenues as per the recommendation of the International Monetary Fund.
[caption id="attachment_11706" align="alignleft" width="166"] Cambodia's garment industry receives most foreign direct investment[/caption] A few weeks ahead of the general elections on July 28, Cambodia received applause from the United Nations Conference on Trade and Development which said in its recently released World Investment Report that foreign direct investment (FDI) in Cambodia has risen 73 per cent in 2012 to $1.6 billion compared with $902 million in 2011. Most of the investment went into the garment sector and other manufacturing industries, the report said, and also into agriculture and tourism. Among the biggest investors in 2012 was Japan's AEON Group which...
A few weeks ahead of the general elections on July 28, Cambodia received applause from the United Nations Conference on Trade and Development which said in its recently released World Investment Report that foreign direct investment (FDI) in Cambodia has risen 73 per cent in 2012 to $1.6 billion compared with $902 million in 2011.
Most of the investment went into the garment sector and other manufacturing industries, the report said, and also into agriculture and tourism.
Among the biggest investors in 2012 was Japan’s AEON Group which poured $205 million into the construction of the 68,000 square meter Aeon Mall in Phnom Penh.
Japan is one of the biggest investors in Cambodia, along with China and South Korea.
With the national election looming, Cambodia’s Commerce Minister Cham Prasidh on July 2 assured international investors that they should put their faith in the country’s economy “regardless of the vote”. Observers, however, expect no government change as the ruling Cambodian People’s Party of Prime Minister Hun Sen does not have any opposition to speak of.
Cambodia’s gross domestic product growth was more than 7 per cent last year and a similar performance expected this year. However, some investors cited lack of skilled labour and high electricity costs, especially in the manufacturing sector, as challenge to invest in the country. Others say that poor business practices, heavy bureaucracy and corruption are serious obstacles. Cambodia currently rank 133rd place out of 185 countries in the “Ease of Doing Business” ranking of the World Bank.
The commerce minister also mentioned that the days of generous tax breaks for manufacturers in Cambodia could soon be over as the government looks to hike its domestic revenues as per the recommendation of the International Monetary Fund.
