FDI Inflow for Construction & Real Estate Sectors in 2020 Decreases by 10.6%: NBC

• 4 June 2021
• Local News
• 2734 Views

Total FDI inflows, mainly to the financial, construction, real estate, and manufacturing sectors, were recorded at US$3.5 billion in 2020, a 1% decline. Among them, FDI to the construction and real estate sectors, which accounts for 17% share of the total FDI, decreased by 10.6%, according to the National Bank of Cambodia (NBC) Financial Stability Review 2020 published on 31 May.

China is still the top source of FDI inflows to Cambodia. In 2020, FDI from China accounted for 51% of total FDI, followed by Singapore (8.2%), Korea (7.9%), Japan (5.8%), UK (4.4%), Malaysia (4.2%), and Thailand (3.3%).

The FDI inflows from China are mainly to the garments and footwear, hydropower, real estate, finance, and accommodation sectors.

The report added that before the COVID-19 community outbreak in February 2021, the construction and real estate sectors were expected to gradually recover alongside FDI.

However, this expectation is now conditional on how the government contains the outbreak and how global economic activities will rebound in the second half of 2021.

China is one of the main hopes for Cambodia as it is the only country among the G20 nations that saw growth in 2020, with an 8% growth projection in 2021, says the report.

With improved global and regional economic outlooks, the market confidence in 2021 would be restored, and FDI inflows to these sectors would progressively revive, although not to the same extent as 2019.

• Analysis
• Business and Market
• Economy and Finance