Cambodian workers in a garment factory15 October 2007
By Channel NewsAsia's IndoChina Correspondent Anasuya Sanyal
PHNOM PENH, Cambodia: Cambodia, one of the world's poorest countries, is enjoying an influx of foreign investments, and land prices in the capital Phnom Penh have been shooting up.
Demand is strongest for affordable housing suitable for growing families and projects with foreign partners are particularly attractive to Cambodians.
Scores of South Korean construction companies are getting in on the action.
Camko City, a US$2 billion residential community, is the single largest investment in the country's history.
The project, led by a conglomerate of South Korean companies, has gone ahead with the government's full support.
Thach Sotharath, a commercial real estate agent, said: "The landowners, they want to build something – a big, big project – so they have only the land, they don't have the capital to build, so they have to find an investor to come to join venture or to buy their land."
With the high level of interest shown by investors, land prices in the city have skyrocketed from US$5 per square metre in 2004 to US$100 this year – a twenty-fold increase.
"Many investors have come in and Cambodian people are happy that they have so many jobs," said Sotharath.
Many foreign investors were once concerned about putting money in a country with a troubled past.
But they were won over by the Hun Sen government's business-friendly policies, which include a one-stop service to facilitate paperwork.
James Chang, a South Korean investor, said: "Many foreign investors used to be very worried about the political situation in Cambodia. But nowadays everything has been very stabilised."
With foreign investments pouring into the once war-torn economy, Cambodia's GDP growth is expected to hit more than 9 percent this year.
Cambodia's business boom can be attributed to Asian investors like South Korea and China.
Total direct foreign investment in the country has quadrupled over the past three years and it looks likely to reach half a billion US dollars in 2007.
While Cambodia is now seen as a profitable destination for investors, there are still concerns over business risks.
As the country opens its doors wider, it has to improve transparency, amid allegations of government corruption.
Demand is strongest for affordable housing suitable for growing families and projects with foreign partners are particularly attractive to Cambodians.
Scores of South Korean construction companies are getting in on the action.
Camko City, a US$2 billion residential community, is the single largest investment in the country's history.
The project, led by a conglomerate of South Korean companies, has gone ahead with the government's full support.
Thach Sotharath, a commercial real estate agent, said: "The landowners, they want to build something – a big, big project – so they have only the land, they don't have the capital to build, so they have to find an investor to come to join venture or to buy their land."
With the high level of interest shown by investors, land prices in the city have skyrocketed from US$5 per square metre in 2004 to US$100 this year – a twenty-fold increase.
"Many investors have come in and Cambodian people are happy that they have so many jobs," said Sotharath.
Many foreign investors were once concerned about putting money in a country with a troubled past.
But they were won over by the Hun Sen government's business-friendly policies, which include a one-stop service to facilitate paperwork.
James Chang, a South Korean investor, said: "Many foreign investors used to be very worried about the political situation in Cambodia. But nowadays everything has been very stabilised."
With foreign investments pouring into the once war-torn economy, Cambodia's GDP growth is expected to hit more than 9 percent this year.
Cambodia's business boom can be attributed to Asian investors like South Korea and China.
Total direct foreign investment in the country has quadrupled over the past three years and it looks likely to reach half a billion US dollars in 2007.
While Cambodia is now seen as a profitable destination for investors, there are still concerns over business risks.
As the country opens its doors wider, it has to improve transparency, amid allegations of government corruption.
7 comments:
Excellent news, and I would like to thank you all for their outstanding works and contributions to make this possible for our people. I can't ask for anything more.
However, there are still much more works to be done yet, I know this is quite a challenge, and I will continue will pray to the heaven to assist all of us in striving together to bring our country out of hardships.
Thus, everyone should continue to be patient and to avoid temptation so that we can defeat poverty that has been plaguing us and be a good role model for other nations to follow.
Why should I be fool by this photograph of Cambodian women only worker and what happen to all the Cambodian men? Ahahahah! I have to wonder does any Journalists or News Writers ever interview these dirt poor Cambodian woman workers to find out if they earn just enough to pay for their rent or to pay for all the basic needs such as good clean water, food, and transportation, doctor visit for illness...
I know these Journalists wouldn't dare ask those questions because actually dirt poor Cambodian people is getter poorer and poorer according to statistic with all these economic expansion!
By the way, the work environment in these garment factory are very toxic due to the fume and particulate matters floating in the air and the owners of the factory can't even afford to install proper air ventilation systems to reduce the hazardous!
*Look at the photograph carefully and tell me do you see any holes in the ceiling to let the air flow into the work place? I hope these dirt poor Cambodian women can last to see their children grow up!
That is such a stupid argument, 1:02. Did anyone said that does people make big bucks anywhere. We all know there are lot of works yet need to be done, and we also know there are millions of people who have yet to be benefit from the booming economy, but everyone ultimately will. So, what is your stupid point, idiot?
To 5:20PM!
Thank you for answering my questions! Ahahahhah! Cambodian people are nothing more than a commodity that can be trade or sold or work as slave!
Just watch when these foreign factories have enough of their profit and they will pack their shit and leave and dirt poor Cambodian people will be left behind to pick up the pieces! I believe more indigenous factories are needed because they will think twice about packing their shit and leave since the indigenous factories are part of the community then it force them to solve the problem and take full responsibility!
True, we do need our own domestic factory, but first we have to learn from the foreigner investors. And by the time they leave, we should be able to run it ourself.
Oh and also that is why I am not opposing to any land lease to foreigners for development either because by the time the lease is up, we get to keep everything. Just like Hong Kong. Do you see what I am getting at?
To 12:23AM!
What? Hong Kong is part of English empire! You can’t use little factories to compare with Hong Kong! You just wait and see and the only things that left behind in Cambodia are the toxic wastes and the raw sewages and inhabitable places! You talk like Cambodian people are the director of the factories! Cambodian are a slave worker!
No! I just don't see where you are getting at?
I wasn't talking about small factory. I was talking about land lease for development. That is what the Chinese Emperor did with the UK with HK.
Oh and BTW, Hong Kong was not a democracy either when it were under the UK ruling, and it turned out just perfect. And thank to Beijing for managing it well and not allowed it to be destroyed like many of the South Africa nations.
I believe IndoChina can be the New Hong Kong, if we strategically working together with all our neighbors without creating violent scene to the world.
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