HE Sok Siphana: China to Increase Investment with Cambodia in 2024

• 22 January 2024
• Local News
• 1271 Views

A promising outlook for Cambodia-China economic and trade cooperation in 2024 has been painted by Sok Siphana, senior minister and Chairman Emeritus of the Board of Directors of the Asian Vision Institute. Mr Sok envisions a year of deeper collaboration, emphasising that the steadily increasing bilateral trade and investment volumes between the two nations will continue to yield mutual benefits.

In an exclusive interview with Xinhua​ dated 19 January 2024, Mr Sok highlighted the implementation of the China-Cambodia community with a shared future in the new era and the China-Cambodia People-to-People Exchange Year in 2024. He emphasised that economic and trade cooperation between the two countries will act as a pivotal force, propelling economic growth and fostering sustainable social development.

“The potential of China-Cambodia tourism cooperation will continue to be better explored, and Cambodia’s infrastructure investment will achieve higher growth,” Mr Sok remarked, underlining the positive trajectory expected in key development corridors such as the “Industrial Development Corridor” and the “Fish and Rice Corridor.”

Citing the World Bank’s recent report, Mr Sok anticipates Cambodia’s economic growth to rebound to 5.8% in 2024. He acknowledged the commendable results achieved in 2023, where Cambodia and China experienced increased two-way trade and growing Chinese investment in Cambodia, constituting 66% of the kingdom’s foreign investment sources.

China has consistently held the position of Cambodia’s largest trading partner for 12 consecutive years and remains the primary source of foreign direct investment. Mr Sok credited the formal entry into force of the China-Cambodia Free Trade Agreement and the Regional Comprehensive Economic Partnership Agreement (RCEP) for injecting vitality into bilateral trade.

Highlighting the diverse range of high-quality agricultural products approved for export to China, including rice, cassava, bananas, mangoes, longans, peppers, and ongoing assessments for durians and bird’s nests, Mr Sok emphasised the pivotal role of China as the largest export market for Cambodian bananas and longans.

Mr Sok reiterated Cambodia’s commitment to high-level diplomacy with China, staunch support for the Belt and Road Initiative (BRI), and the alignment of the BRI with Cambodia’s Pentagonal Strategy. He praised flagship BRI projects in Cambodia, such as the Siem Reap Angkor International Airport and the Phnom Penh-Sihanoukville Expressway, for promoting economic development and connectivity.

“Investments from Chinese technology companies have also expanded Cambodia’s digital economy and green economy. China and Cambodia have achieved outstanding results in jointly building a high-quality, high-level, and high-standard community with a shared future,” concluded Mr Sok, expressing confidence in the continued success of the Cambodia-China partnership.

In 2022, China was Cambodia’s largest export market, with exports totalling US$1.24 billion, representing 5.5% of Cambodia’s total exports. During the same period, Cambodia’s imports from China amounted to US$10.4 billion, accounting for roughly 34.1% of Cambodia’s total imports(fulcrum, 2023). The bilateral trade between Cambodia and China reached US$11 billion in 2022, and it is expected to reach US$15 billion by 2025 (KhmerTimes, 2023). China is Cambodia’s largest trading partner, with trade volume projected to hit US$12 billion, accounting for 8.6% of Cambodia’s total trade (phnompenhpost, 2023).

• Analysis
• Business and Market
• Investment and Funding
• Cooperation and networking