Phnom Penh: China has been Cambodia’s largest source of foreign investment, accounting for almost 50 percent of the total investment amount last year, according to a report from the Council for the Development of Cambodia (CDC).

According to Agence Kampuchea Presse, figures from the CDC showed that the total foreign direct investment (FDI) from China amounted to US$34.25 billion or 49.83 percent of the total registered US$6.9 billion investment capital. Domestic investors and Vietnam ranked second and third, with investments accounting for 33.81 percent and 8.11 percent, respectively, read the report.

Other investors hailed from South Korea, Singapore, Japan, Malaysia, Thailand, Canada, and the UK. The Cambodia-China Free Trade Agreement (CCFTA) and the Regional Comprehensive Economic Partnership (RCEP) have provided more momentum to bilateral trade between Cambodia and China, attracting new investment, Vice-President of the Cambodia Chamber of Commerce Mr. Lim Heng said.

“Under the Cambodia-China FTA and RCEP, Chinese investors and other foreign investors consider Cambodia as a potential investment hub for exports,” he noted.

The diverse range of investment projects spans sectors including manufacturing, real estate, tourism, and infrastructure development, stated the report. H.E. Sun Chanthol, Deputy Prime Minister and CDC First Vice President, recently attributed the sharp rise to peace, political and macroeconomic stability, better legal frameworks and regulations, and the growth of the Cambodian economy.

The Royal Government of Cambodia has been proactive in addressing the difficulties and challenges of the private sector for both domestic and foreign investors, he said. “Investment law, skilled labour, trade preference schemes, and a newly launched investment approval system, allowing for one-click approval of investment projects and making the process faster and more streamlined for investors, are catalysts in attracting new investment,” explained H.E. Sun Chanthol.