PHNOM PENH, Jan 23 (Reuters) - Foreign investment in Cambodia nearly quadrupled to close to $4 billion last year, a report by the state investment agency said on Tuesday.
The value of foreign investment last year rose to $3.97 billion from $1.05 billion in 2005, the Council for the Development of Cambodia (CDC) report said.
The number of approved projects fell to 96 last year, from 104 in 2005, it said.
Last year, investment in tourism, mining, energy and construction was more than $2.6 billion. The industry sector, including garments, garnered $552 million and agro-industry more than $481 million, the CDC figures showed.
China has been the leading investor in Cambodia in recent years, although its investments dropped to $319 million last year from $454 million in 2005, the report said.
Suon Sithy, Secretary-General of the Cambodian Investment Board (CIB), said construction was booming because of rising tourism to the impoverished country, still recovering from the Khmer Rouge "Killing Fields" of the 1970s.
About 1.7 million foreign tourists visited Cambodia, last year compared with 1.4 million in 2005.
Cambodia's accession to the World Trade Organisation in 2004 was another factor in drawing investment, especially to the garment industry now the country was compliant with International Labour Organization rules, he said.
Cambodia exported garments worth $2.56 billion last year, a 17 percent rise from 2005, said Van Sou Ieng, head of the country's industry body.
The value of foreign investment last year rose to $3.97 billion from $1.05 billion in 2005, the Council for the Development of Cambodia (CDC) report said.
The number of approved projects fell to 96 last year, from 104 in 2005, it said.
Last year, investment in tourism, mining, energy and construction was more than $2.6 billion. The industry sector, including garments, garnered $552 million and agro-industry more than $481 million, the CDC figures showed.
China has been the leading investor in Cambodia in recent years, although its investments dropped to $319 million last year from $454 million in 2005, the report said.
Suon Sithy, Secretary-General of the Cambodian Investment Board (CIB), said construction was booming because of rising tourism to the impoverished country, still recovering from the Khmer Rouge "Killing Fields" of the 1970s.
About 1.7 million foreign tourists visited Cambodia, last year compared with 1.4 million in 2005.
Cambodia's accession to the World Trade Organisation in 2004 was another factor in drawing investment, especially to the garment industry now the country was compliant with International Labour Organization rules, he said.
Cambodia exported garments worth $2.56 billion last year, a 17 percent rise from 2005, said Van Sou Ieng, head of the country's industry body.
14 comments:
It is not surprised. Everyone I knew who went to Cambodia either bought some properties or planning to sell something in USA to buy what they saw there. Not all investments are good. My cassava farm ruined by long&heavy rain last year. 70% got rotten, 35% lost to transport fees, return is only 1500 out of 20 thousands expanses. A bad news for investors to know before jumping in.
I have been looking for invest in Cambodia for some time. Conditions aren't just right yet for smaller and medium sized businesses. Corruption is so huge, and the rule of law is so unpredictable, that we would have to outlay at least 40% of the total investment for those two expenses. This is why only large companies can afford to go there. If Cambodia could attract that sector of the business, which makes up 60-70% of any national economy, whether in the U. S. or in the EU, this would bring with it a big turnaround in the way the economy goes. This would also bring more money into the average people's pocket, they would become more educated about their daily lives and what's going on in Cambodia. Of course, the current government has to fear this phenomenon. They would eventually be voted out of office because only the big companies, and foreign powers with a vested interest in Cambodia keep them in power.
Sorry to hear the bad news post
12:17, but are you staying with
it or pulling out?
Is there a solution to your
problem?
I heard about a contractor who
build road and lost big time
do to excessive flooding about
10 years ago.
And the think that get me is that
people don't understand the risk
that Enterpreneurs is going
through. They think all bussiness
people are rich an successfull.
LOL.
Very true Post1:49 it does bothered
be a lot when I know that
government today is nothing more
than a corporates' pupets, LOL.
But what can we do. I guess this
is just another imperfection in a
our capitalistic democracy that we
all have to get accustomed to.
If you don't mind, may I ask what
your bussiness experiences are?
And what's is your main trade
product line?
Political oppositions are so weak that the poor will not fast become rich as KI expects.
SiS
corruption, lawless, no real democracy that the real problem!
Government of cheater and killer!that make country economy go nowhere.
Post3:05, the word "rich" is not
even in my vocabulary at the
moment. I'll be happy if we all
get our basic care first. Have you
heard of a saying, "If you look
too far ahead, soon or later, you
will trip"?
Right, it is not about average people getting rich. It is about creating a stable middle class that has enough money in their pockets to support a family, to pay for health care, and hopefully, for a better education for their children. The government needs to create an environment in which this can be accomplished. However, as we all know, for that to happen we need a new government in Cambodia. For the current generation of politicians, and that includes the entire spectrum with a few exceptions, politics is a means to better their own life. They don't think about the welfare of the people.
To 2.53: That would be a long story. My products were rubber (export) and light machinery (import). You can get anything done in Cambodia if you are ready to line the pockets of the bureaucrats, the more you pay the quicker it all happens, e. g. permits, etc. Corruption drives small businesses out of business in Cambodia.
Agree with your first paragraph,
but it is not possible to skip
steps. First, people who lived
UNDER Poverty must be eliminated
while people in poverty slowly
make transition to middle-class
at the same time. This is happening
but at a very slow rate or at the
bottom end of the exponential
curve; and therefore, not obvious
to the naked eye. Once we reached
the knee of the exponential curve
(around 2010), then the evolution
will be more apparent.
Yes, your bussiness sounds perfect
for Cambodia for it rich rubber
plant natural resources.
And I agree with bureaucry
reduction. It used to be
intolerrable. The administration
is well aware of that and they
have cut down a lot of bureaucracy.
Whether or not it currently meet
your requirements, I can't tell.
Have you check for the latest?
Also, just slip my mind, I wanted
to ask you about having to outlay
40% of the investment, which you
posted in 1:49. What is that? How
much cashes is it and for what ...
Would you mind help me understand
it?
It is so true. Corruption kills just about any small businesses at hand. Small businesses can not afford to bribe officials.
Let's say one ton of rubber is $2200, now you need all kinds of permits to export this, e. g. Certificate of Origin, Certificate of Analysis, Export License, Customs Clearance, etc. Each one of the involved government offices charges a fee, which in itself is not so high, but if you want to get it on time you have to add some money to the officer who issues the document (who in turn, of course, kicks back a percentage to his superior). Now if you look at all the documents you need, you end up paying $800 per ton extra. Sometimes it is less, sometimes it is more. If you don't want to pay the extra money you will wait and wait and wait. Now in this business you have term contracts, e. g. you need to deliver by a certain date or face a penalty or lose the contract altogether. The officials know this, of course. In the past I was able to get a good rebate from the rubber plantation to make up for some of those extra charges. I must say, however, this was some time ago as I stopped doing this business. I was simply being outpriced on the world markets by those fees, which, I might add, the Vietnamese buyers didn't have to pay. They simply took delivery of the rubber and trucked it to VN without any paperwork at all.
How smart can that be to hurt your own people!
Thanks for your testimony
post10:56.
Yes, that is a common form of
corruption that we have, and we
need to rout them out. However,
it is easier to say than done.
What you are looking at are people
with lack of moral training from
the Pol Pot's regime. They don't
know what pride is. That is why
they seek life the easy way by
cheating and stealing from others.
And to make thing worse, they are
contanly tempted by westerner
hollywood life-style from TV
programs.
In the 5 years of Pol Pot's ruling
It created about 5-10% of those mad
dogs. We are talking close to 1.5
millions of them. Can we jail that
many people? What we need is a
strong campaign of moral education
if corruption is to fade from
Cambodia. I don't believe it is
an easy task as many believe it
to be.
Again this is all a byproduct of
the backstabers and racists
SISOWATT Sarimatakis. I hope people
don't take this lightly.
2:02 You put your finger squarely on the problem. It is not the Khmer people by nature; they are polite, hospitable, and very friendly. It is the lack of education during the Pol Pot time, the ensuing Communist period, and even after that, Cambodia still has the same people in power - first they were Pol Pot, then VN communists, and now they are democrats? No way. They were corrupted during that time and don't know any different, they have no morals and exploit their own people. A number of people follow that lead, tempted by Western TV, the excesses of the ruling class, etc. Short of an outright revolution, it will take a long time to overcome this problem.
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