The Bilateral Free Trade Agreement (FTA) and Regional Comprehensive Economic Partnership (RCEP) with China and South Korea are catalysts for attracting more industrial investment projects to Cambodia.
Heng Sokkung, secretary of state and spokesman for the Ministry of Industry, Technology, Science and Innovation, said the implementation of the trade agreement has given Cambodia access to a larger market.
Attractiveness and investment potential in Cambodia as despite global crisis, war in Ukraine, energy and financial crises, Cambodia has managed public health crises better than other countries in the region He said there is
“Looking ahead to 2023, we are very optimistic. Cambodia will invest more as it is at peace, with better control of the Covid-19 disease, leading to a full resumption of socio-economic activities. It will continue to attract,” he said.
The Cambodia-China FTA and RCEP entered into force in early 2022, and the Cambodia-Korea FTA entered into force in December last year.
RCEP comprises 15 countries in the Asia-Pacific, including 10 members of the Association of Southeast Asian Nations (ASEAN) (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam) and their five trading partners. made up of countries. China, Japan, South Korea, Australia, New Zealand.
The RCEP trade agreement, the world’s largest trading bloc, has a combined Gross Domestic Product (GDP) of $26.2 trillion, accounting for approximately 30% of global GDP, 28% of global trade and 32.5% of global investment.
The ministry has registered 186 new factories by 2022, bringing the total number of factories in the country to 1,982.
With 1,982 factories, the total investment increased from $13,811 million in 2021 to $16,690 million in 2022.
Lim Heng, vice president of the Cambodian Chamber of Commerce, attributes the growth of investment projects to the new investment law promulgated by the government.
“With the new investment law, Cambodia is attracting new investments, especially from abroad, while other countries are still facing the Covid-19 crisis,” Heng said.