Korean tech association eyes investments
A DELEGATION from the Korea Industrial Technology Association (Koita) has shown considerable interest in assessing the feasibility and seeking direct investment partners in Cambodia. The move comes as trade between the two countries approached $613 million in the first ten months of 2023.
Shim Myoung Sik, head of Koita’s Overseas Market Research Team, expressed keen interest in exploring investment opportunities and finding collaborators in the country during a November 24 meeting with Suon Sophal, deputy secretary general of the Cambodian Investment Board (CIB) at the Council for the Development of Cambodia (CDC).
Shim noted that his accompanying delegation represented diverse sectors, including automotive, electronics, digital technology, electricity, green energy, information technology and communication.
“We are very interested in studying the feasibility and seeking partners for investment in Cambodia in the near future,” he said.
Sophal warmly welcomed the group and shared the CDC’s vision of engaging in the promotion and facilitation of both foreign and domestic investment. The effort aims to achieve a stable and robust private sector as a key component in the country’s development process.
“The CDC has implemented several
mechanisms, including the recent overhaul of investment policies. These have been instrumental in fostering a mutually beneficial business environment and a welcoming climate for financiers. The initiative is crucial for ensuring the success and expansion of private sector investment projects in Cambodia,” he said.
According to a CDC press release, the meeting’s purpose was to promote understanding of Cambodia’s investment policies, opportunities and climate in the post-pandemic ‘new normal’.
From January to October 2023,
trade between Cambodia and South Korea totalled $612.99 million, a 7% decrease from the same period in 2022. During the interval, Cambodia’s exports to Korea surged by 18.4%, reaching $225.62 million, while Korea’s exports to Cambodia fell by 17.3% to $387.32 million, as per the General Department of Customs and Excise (GDCE).
Hong Vannak, an economist at the Institute of International Relations at the Royal Academy of Cambodia, stated in October that changes to the country’s investment law system and the activation of both bilateral and multilateral free trade agreements (FTAs) have significantly contributed to making the country an attractive destination for direct investors and increasing orders from within the country.
He added that the country is now exporting a wider range of agricultural products, in addition to textile products, to various countries globally.
“The revenue Cambodia has generated from exports to Korea has been steadily increasing recently, yet it remains lower than imports from Korea. This disparity highlights the need for Cambodia to diversify its exports to better adapt to various export market conditions, including those in Korea,” he said.
The National Bank of Cambodia (NBC) reported that by the first quarter of 2023, foreign direct investment (FDI) in the Kingdom had reached approximately $45.8 billion. This represents a 9% increase compared to the end of the first quarter in 2022. Korea was the second-largest investor with $5.5 billion, marking a 10.4% rise from the first quarter of 2022.
Bilateral trade volume between Cambodia and Korea reached $778.924 million in 2022, registering a modest increase of 0.6% compared to 2021. Of this, Cambodia’s exports amounted to $233.64 million, showing a rise of 20.4%. Korea’s imports stood at $545.29 million, which represented a decrease of 6%, as per the GDCE.