Cambodia’s Prime Minister Samdech Moha Borvor Thipadei HUN Manet shared in Vientiane, Lao PDR on Oct. 10 some reasons to make Cambodia an investment hub, at a networking breakfast session of the ASEAN Business and Investment Summit (ABIS) 2024, on the sidelines of the 44th and 45th ASEAN Summits and Related Summits.
To begin with, Cambodia has attracted satisfied FDIs so far, and needed to further elevated it to a new height. According to the Cambodian Premier, Cambodia’s FDI inflow amounted to US$ 7.5 billion for a year period, from September 2023 to September 2024, an increase of US$ 4.7 billion (or 161 percent), compared to the same period between 2022 and 2023. This reflects the investors’ strong confidence in Cambodia’s economy.
Next, Cambodia has favourable investment climate such as the Royal Government of Cambodia (RGC)’s effective policy and pro-business approach with support and assistance provision to the private sector, strategic location at the heart of the region, young, vibrate and skillful
workforce, as well as 100-percent foreign ownership.
‘We have implemented laws and policies and strategies to enhance business landscape, and invested heavily in key infrastructures access to regional markets, decent jobs, social protection, digitalisation, and sustainable environment,’ underlined Samdech Thipadei HUN Manet, adding ‘Cambodia is one the most liberalised economy in the world. Foreign investors can set up their investment projects with 100 percent foreign ownership in most sectors without local participation requirement. The only exception is land ownership […] Through the new law on investment, Cambodia offers generous investment incentive schemes together with improved facilitation service by simplifying registration procedures, and providing a wide range of upper care service to investors.’
Likewise, special programme has been formulated to satisfy investment in northeastern provinces, bordering Laos and Vietnam, which is expected to include public infrastructure development projects and ge
nerous incentives to improve investment confidence in the region that is relatively less connected and less developed, said Samdech Thipadei Hun Manet, highlighting the US$ 36.68-billion Comprehensive Master Plan on Cambodia Intermodal Transit and Logistics System 2023-2030, which include 174 projects over the next ten years.
Besides, the RGC has regularly developed and implemented several mechanisms to provide most convenient charters to private sector to express their comments, concerns and suggestions through government-private sector forum.
Regarding global economic environment, Samdech HUN Manet raised the concerns about increased trends of protectionism and unilateralism, causing dim prospect for global economic recovery, threats of violence and conflicts, and non-traditional security, yet valued ASEAN neutrality and non-alignment as driving force for global economic growth and ASEAN platform to bridge gap within multilateralism, including efforts to maintain growth and sustainable development.
In ad
dition to benefits derived from regional agreements within ASEAN, Cambodia has tried to further expand and diversify markets and export opportunities through bilateral FTAs such as Cambodia-China FTA, Cambodia-Republic of Korea FTA, RCEP, and Cambodia-UAE Comprehensive Economic Partnership Agreement.
Moreover, Cambodia has remained a benefactor from a wider Duty-Free and Quota-Free Market Access for LDCs, the Generalised Scheme of Preferences (GSP), EBA and so on.
Samdech Thipadei HUN Manet took the opportunity to appreciate the ASEAN Business Advisory Council (ASEAN-BAC) for continued diligent efforts in organising ABIS, an effective platform that brings together ASEAN leaders, private sector and all stakeholders together to share knowledge and wisdom on how to foster growth, deepen integration, and accelerate sustainable development.
Samdech Thipadei Prime Minister wished to underscore the significance of ASEAN in Cambodia’s integration into the region and the world. ‘We have benefited greatly from the r
egional grouping and have shaped and solidified Cambodia’s utmost commitment to inclusive multilateralism as we look forwards to the future, the road to sustainable prosperity, require status commitment in preserving a deeper integration to build a resilient, innovative, dynamic, inclusive, people-centered and future-proof ASEAN Economic Community against emerging challenges in the region and beyond,’ he said.
‘I am confident that by fully harnessing the immense potential region, we will elevate ASEAN to a greater height,’ the Premier underlined.
Source: Agence Kampuchea Presse