Cambodia lured more than 3.58 billion USD in foreign direct investment (FDI) in 2019. (Photo: phnompenhpost.com)Phnom Penh (VNA) – Cambodia lured more than 3.58 billion USD inforeign direct investment (FDI) in 2019, a year-on-year surge of 11.7 percent,with Chinese investment accounting for 43 percent of the total figure,according to the National Bank of Cambodia (NBC).
The NBC’s Macroeconomic and Banking Progress 2019 Report and 2020 Outlookshowed that some 2.38 billion USD worth of FDI was poured into the financialsector, while the non-financial sector received 1.2 billion USD.
Senior adviser at the Supreme National EconomicCouncil Mey Kakyanwas quoted by the Phnom Penh Post newspaper as saying that soundbusiness environment and investment laws were behind the steady increase in FDIattraction.
FDI is vital for Cambodia to continue experiencing sustained growth as itcontributes to creating jobs and promoting export for the nation, he said,warning the nation should stay prudent to prevent too many investments from asingle region or country.
According to the report, Chinese FDI made up 43 percent of the totalinvestment, the Republic of Korea 11 percent, Vietnam 7 percent, Japan and Singapore6 percent each, and other countries 27 percent.
Vice President of the Cambodian Chamber of Commerce Lim Heng describedfavourable investment laws as a catalyst for the nation to attract foreigninvestors.
The NBC said that the Cambodian economy grew 7.1 percent in 2019, with theinflation rate at 1.9 percent. It also forecasts the economy will expand 7percent, with the inflation rate of around 2.3 percent this year.
Meanwhile, FDI is projected to surge 10 percent to 3.95 billion USD, itadded./.
VNA
