In 2 months, more than $1.3 billion of investment flow in Cambodia, of which nearly 40% comes from Chinese investment

H.E. Chea Vuthy, Secretary General of the Cambodian Investment Board, stated that in the first two months of 2024, the investment flow in Cambodia was more than $1.3 billion, an increase of more than 500%, of which the Chinese investment flow was about $545 million.

This statement was made on the occasion that His Excellency presided over the meeting on building cooperation and exchanged views between Shandong Province and Cambodia regarding the development of an "Industrial Corridor" and "Fish and Rice Corridor" in the afternoon of March 8, 2024.

H.E. Chea Vuthy stated that “In the first two months of 2024, the flow of investment increased by more than 1.3 billion US dollars, an increase of more than 500% compared to the same period in 2023.”

In addition, the Secretary General stated that in the first two months of 2024, Chinese investment flow was about $545 million, equivalent to about 39% of total investment.

According to H.E. Chea Vuthy, the total investment in Cambodia will increase by about $4.9 billion in 2023, an increase of about 22% compared to 2022. By 2023, China's total investment inflows will reach more than $3 billion, accounting for more than half (66%) of total investment inflows. Chinese investment flows are ranked first, second, or third each year, mostly concentrated in industry, infrastructure, and agro-industry.

Chea Vuthy also highlighted the framework of cooperation between the two countries, upgraded to "Bilateral Diamond Hexagon Cooperation,"  which will enable further political, economic, and security cooperation towards building a community of common destiny in the new era.

The Secretary-General encouraged Chinese investors to learn more and invest in Cambodia, as well as bring knowledge, skills, and technology in industry, agriculture, and agro-industry, especially agriculture, aquaculture, processing, and the marine industry, to add value and modernize these sectors in Cambodia, as well as to meet the huge needs of the Chinese and international markets.

Moreover, H.E. also informed that the senior official of the Ministry of Commerce of the People's Republic of China will visit Cambodia in the future to discuss the establishment of industrial parks to promote the processing of local raw materials and semi-finished products for supply to car tire factories in Cambodia.

Furthermore, a potential enterprise will set up a semi-finished processing and production center to supply the tire industry with tires made from Cambodia's rubber.

Shandong Deputy Governor: Shandong and Cambodia are highly complementary in trade

Song Junji, deputy governor of China's Shandong Province, said that in September last year, Chinese President Xi Jinping stressed during a meeting with Prime Minister Hun Manet that China was willing to work with Cambodia to implement the "Action Plan on Building a China-Cambodia Community with a Shared Future in the New Era between the People's Republic of China and the Kingdom of Cambodia "and jointly develop the "Industrial Corridor", and the "Fish and Rice Corridor" to enhance the initial implementation and effective results of cooperation key operations involved.

He stressed that the Shandong delegation's visit to Cambodia aims to expand and enhance the level of cooperation and help achieve more achievements in building the "two corridors."

He pointed out that in recent years, under the leadership of China-Cambodia joint friendly cooperation, Shandong Province has been actively involved in building the "two corridors" in the fields of economy, trade, humanities, and region. In 2023, the total trade volume between the two sides will reach 7.61 billion yuan (RMB). Shandong Province has established three economic and trade cooperation zones in Cambodia, including the Shandong Sunshell Special Economic Zone (Svay Rieng), the Kratie Special Economic Zone, and the Qilu Special Economic Zone, which attract many companies, provide employment opportunities for thousands of jobs, and promote development and prosperity in the region.

He said that Shandong Province has many advantages in agriculture and a strong ability to innovate agricultural technology. He hoped that the two sides would strengthen practical cooperation in the fields of agricultural breeding, agricultural processing, agricultural machinery, and agricultural skills training to promote the deepening integration of the entire agricultural industry chain.

He pointed out that trade between Shandong and Cambodia is highly complementary, including Shandong's textiles, clothing, furniture, auto parts, and other products, which are highly competitive, and Cambodia's agricultural products, such as longans and mangoes, are very popular in Shandong Province. He hoped that the two countries would make good use of trade mechanisms such as the RCEP and the China-Cambodia Free Trade Agreement to boost the import and export of textiles, home appliances, tires, machinery, vegetables, fruits, rubber, and other products to continue to expand their trade.

Economic and Trade Adviser, Ms. Zhong Jie: Cambodia-China Economic and Trade Cooperation Continues to Deepen and Strengthen

Ms. Zhong Jie, adviser at the Embassy of the People’s Republic of China in Cambodia, said that in recent years, with the implementation of the Comprehensive Regional Economic Partnership Agreement and the China-Cambodia Free Trade Agreement, Cambodia-China economic and trade cooperation has kept going deeper and stronger. According to Chinese statistics, China-Cambodia trade volume will reach $14.82 billion by 2023, and China remains Cambodia's largest trading partner for 12 consecutive years. China has become a major export market for Cambodia, with high-quality rice, bananas, and fresh mangoes, as well as pepper, longans, and other aquatic products, being exported to China, while corn and coconuts will also soon be allowed to be exported to China.

Ms. Zhong Jie remarked that China has become Cambodia's largest source of foreign investment for many years in a row. According to statistics, by 2023, Chinese investment in Cambodia will exceed $3 billion, accounting for 66% of Cambodia's total investment. Cambodia-China economic and trade cooperation has broad prospects and huge potential.

Zhong Jie said that Shandong is China's most populous and important economic and cultural province. We are confident that the exchanges and cooperation between Shandong Province and Cambodia will continue to deepen and develop, contributing to the achievement of mutual benefits, win-win results, and joint development between China and Cambodia.

Neak Oknha Pung Kheav Se: Hopefully, through the building of the "Two Corridors"  more of Cambodia's products can reach the world.

Neak Oknha Pung Kheav Se said that Cambodia is an ASEAN member country with a stable political situation, an open economic policy, low labor costs, no foreign exchange controls, and an open foreign investment policy. At the same time, Cambodia is also an important country in promoting the construction of the Belt and Road Initiative. In particular, the Seventh Royal Government, led by Samdech Thipadei Hun Manet, has paid close attention to the development of friendly relations between Cambodia and China and has promoted a series of incentive policies that benefit the promotion of investment, industrial development, export of products, innovation, science and technology, etc. With the policy of openness and investment protection, improve Cambodia's business environment, make Chinese and foreign enterprises more confident in investing in Cambodia, and promote Cambodia's economic and social development.

He noted that the "Industrial Corridor" and the "Fish and Rice Corridor" are important elements of Sino-Cambodian cooperation and also significant projects for Cambodia's economic and social development. Hoping that through the construction of these two corridors, more of Cambodia's agricultural and industrial products will be exported to China and around the world, bringing job and income opportunities to Cambodians and improving their livelihoods.

Therefore, with the strength and successful experience of Shandong Province, it will accelerate the cooperation between the two corridors and promote community building with a common destiny between Cambodia and China.

Neak Oknha Pung Kheav Se further stated that the Cambodia-Chinese Association is an important social organization that continues the history of the development of the Chinese community in Cambodia for more than a hundred years and brings together many Chinese elites and Chinese enterprises that take advantage of the Khmer-Chinese people in Cambodia, who are fluent in the culture and language of the two countries, to form a natural bridge for exchanges and cooperation between China and Cambodia, actively contribute to the promotion of friendship between Cambodia and China, and promote the attraction of investment and funding from China and foreign investment and operations in Cambodia.