CDC approves projects worth $60M in initial 15 days of ‘24
THE government approved 10 investment projects, totalling more than $60 million, in the first 15 days of 2024, primarily in the garment manufacturing industry.
According to the Council for the Development of Cambodia (CDC), seven of the projects are in the textile sector, expected to create 12,695 jobs.
The remaining three projects encompass an electronics factory; a facility producing ice buckets, jerry cans, heat boxes and kayaks; and a factory for various light bulbs and spare parts.
The CDC detailed that the distribution of the 10 projects include two in Phnom Penh, five in Kampong Speu, two in Takeo and one in Kandal province.
Hong Vanak, director of International Economics at the Royal Academy of Cambodia, told The Post on January 18 that investors meticulously examine factors such as geographical location, political climate, investment laws, export markets, labour force and transportation systems before committing to investments.
He noted that the surge in funding indicates growing confidence in the country’s political stability and robust economic growth.
Vanak added that the easing of current political and economic crises plays a significant role in attracting investments.
He highlighted the country’s extensive diplomatic and industry relations worldwide, including trade agreements and preferential tariffs in major markets.
“Although exports of some products, particularly Cambodian textiles to international markets, declined in 2023, investors remain optimistic about investment prospects in Cambodia, anticipating a recovery from 2024 onwards,” he explained.
Vanak predicted that with the global economy’s improvement, increased travel would boost demand for clothing, shoes, bags and other related accessories, leading to a rise in textile exports compared to the previous year.
Kaing Monika, deputy secretary-general of the Textile, Apparel, Footwear and Travel Goods Association in Cambodia (TAFTAC), reflected on the challenges faced since late 2022 and throughout 2023, expressing hope for improvement in textile production this year.
“I believe our sector will recover, albeit gradually, in 2024. We’ve seen a slight shift in market diversification. Besides the US, EU, UK, Canada and Japan, there’s a gradual increase in exports to China and other destinations,” he said.
Regarding raw materials for textile production, Monika said: “Local raw material supply is very limited. We rely heavily on overseas suppliers”.
He specified that the majority of the country’s raw textile materials are imported mainly from China, Vietnam, Taiwan, South Korea and Hong Kong.
Vei Samnang, the provincial governor of Kampong Speu, attributed the growth of investment companies in the country, particularly in Kampong Speu, to several factors.
He said these include peace, reasonable pricing, an abundant and skilled labour force, and a favourable legal framework for funding projects.
“[Financiers] are encouraged to invest in Kampong Speu due to the peace and security guaranteed by the authorities, as well as the hard work and honesty of the workers,” he added.