CDC Encourages Chinese Firms to Invest in Domestic Raw Material Production, Aiming to Boost Self-Sufficiency in Cambodia

• 16 May 2024
• Local News
• 1377 Views

In a bid to reduce reliance on imports, Cambodia’s Council for the Development of Cambodia (CDC) is actively courting Chinese investment in domestic raw material production, according to a meeting held on 15 May 2024.

Secretary General of the Board of Investment of Cambodia, HE Chea Vuthy, met with a delegation from China’s Zhejiang Construction Investment Group Co., Ltd., led by the Chairman of the Board Mr. Tao Guanfeng. The meeting aimed to broaden the scope of China’s investment in Cambodia beyond traditional physical infrastructure projects undertaken by Zhejiang Construction for the past 15 years.

HE Chea Vuthy emphasised the strong economic ties between China, particularly Zhejiang province, and Cambodia. He highlighted this as a key advantage for attracting further Chinese investment, underlining the “mutual understanding” between the Chinese private sector and the Cambodian government.

Significantly, the CDC encouraged Chinese companies to shift their focus towards producing raw materials and semi-finished goods within Cambodia. This strategic move aims to satisfy domestic market demands and reduce reliance on imports. HE Chea Vuthy further urged the delegation to explore partnerships with Zhejiang companies to address not only Cambodia’s needs but also tap into regional and global markets.

The Chinese delegation acknowledged Cambodia’s positive economic trajectory and expressed interest in diversifying and strengthening their investments in the country. This sentiment aligns with the CDC’s recent report, indicating a surge in approved investment projects.

From January to April 2024, a total of 128 projects with a combined value of US$1.9 billion received approval, reflecting a remarkable 97% increase compared to the same period in 2023. Notably, investment from China dominated in April 2024, accounting for a staggering 98% of the total inflow, solidifying China’s position as the leading investor in Cambodia.

This strategic shift towards domestic raw material production, coupled with Cambodia’s robust economic growth and growing investor confidence, positions the nation for a more self-sufficient and sustainable future.

• Investment and Funding
• Cooperation and networking