 "Of these projects, the garment sector attracted the most financiers with 10 projects, followed by the electricity sector with five and the plastics industry with four. File Photo- Reuters")
Chinese investors led Cambodia’s leading financers in July this year as it participated in 44 new and expanded investment projects, predominantly in the garment sector.
These projects cost over $396 million in capital and created approximately 25,000 jobs, according to the report of the Council for the Development of Cambodia (CDC).
Among these projects, 41 are new ventures and three are expansions of existing ones. Thirty-one projects are outside special economic zones (SEZs), while 13 are within SEZs.
The garment sector attracted the most financiers with 10 projects, followed by the electricity sector with five and the plastics industry with four.
A notable project outside an SEZ includes the expansion of a laundry, dyeing, and printing facility in Kraing Tea village, Preah Nipean commune, Kampong Speu province’s Kong Pisei district, with an additional investment of over $21 million.
The high-profile project is the establishment of the Koh Kong Zhejiang SEZ in Chroy Svay commune, Koh Kong’s Sre Ambel district, with a $100 million investment, creating 331 jobs.
Another significant undertaking is the construction of a Gallatin food processing plant within the new Koh Kong Zhejiang SEZ, with an investment exceeding $26 million, expected to generate 194 jobs.
For decades, China has significantly influenced global supply chains and shaped the economic landscape of Asia. Due to its strategic geographic position and expanding economy, Cambodia has attracted substantial interest from China, facilitating Cambodia’s integration into global supply chains. Of these projects, the garment and power sectors attracted the most investors with several projects.
Impact Shorts
More ShortsAccording to the reports, China’s infrastructure projects have provided Cambodia with better connectivity, closer economic ties with the world and the region and increased foreign direct investment. However, experts believe Cambodia should consider diversifying its investment portfolio rather than relying solely on funding from China.
On Monday, Cambodia started China-backed construction on a $1.7 billion canal designed to link the Mekong River to the sea. The project has sparked concerns about Beijing’s growing influence in the region. The Cambodian government strongly denies the reports that the Chinese navy might use the canal to threaten neighbouring countries, including Vietnam.