Wed, 27 Feb 2008
DPA
"Competing regionally remains less than easy. Trading partners use the words 'friendly' and 'cooperation', but of course they always look after their own interests" - Sok ChendaPhnom Penh - China overtook South Korea as Cambodia's largest foreign investor last year, but Japan had shown an increased interest in investment as opposed to aid, a senior Cambodian economist said Wednesday. Speaking at a press conference in the capital, the secretary-general for the government's Council for the Development of Cambodia (CDC), Sok Chenda, gently chided Western nations for lagging behind Asian nations in foreign direct investment.
He said between 1994 to 2003 investment from Western nations made up just 15 per cent of the country's total, with 60 per cent coming from Asian nations such as Malaysia, China and Korea.
"I can't predict foreign investment figures for 2008 but I hope for even more. Prime Minister Hun Sen just returned from a visit to South Korea yesterday and we are hopeful that will generate renewed investment interest there," Chenda said.
"There is also new interest from other quarters, and especially Japan. Japanese investors have certainly now entered the doors of our home."
Approved foreign investments from 1994 to 2007 totalled 14.83 billion dollars, he said, with China accounting for 1.76 billion dollars of that total and South Korea 1.5 billion dollars.
Industrial investments made up 34 per cent of that total, followed by the service industry with 32 per cent.
Agriculture made up just 7 per cent, but Chenda said that was a promising area of growth and with a boom in global bio-fuel demand and the recently launch of several food processing factories in Cambodia it was expected to continue to grow.
However he admitted the less developed nation still faced obstacles, such as Cambodia's terrible balance of trade and lack of secondary industries, which meant container ships arrived full but often left with room to spare.
He also appealed to foreign governments to help Cambodia strengthen its ability to curb money laundering, pointing out that the country lacked an investment board to investigate potential investors thoroughly, such as the boards set up in Thailand and Japan.
"Competing regionally remains less than easy. Trading partners use the words 'friendly' and 'cooperation', but of course they always look after their own interests," he said.
6 comments:
Good news. But at least ask the Chinese to train all Khmer to know how to do the job.
I wish the United States invested and trained people more in Cambodia instead of China. China is just too second rate compared to the U.S.
True, that what I was saying last time. How come USA want to see Cambodia as a democracy country, but not encourage the democracy activists. Rwanda genocide just happened recently and USA (BUSH) went there. How come they kept Cambodia for so long to trial the perpetraitors. For me, I believe USA and China is sharing world power to control in each region. If USA wants to see Cambodian living standards growth or out of poverty they should heavily invest in Cambodia. USA should do more!!!
You are on the right track, my friend (2:50). The US rarely do anything before it hits them in the face.
Take the recent security threat to the Embassy here for example: They said they didn't take it as a threat because it was only a letter. For crying out loud, what form of threat will they take it more seriously, phone call? It sounds so stupid. If that is not stupid, tell me why so many US embassy had been blown to bits and pieces in the US and around the world? Do this has anything to do with the US failure to take all threats seriously, or not?
Japan had shown an increased interest in investment as opposed to aid, a senior Cambodian economist said Wednesday
It is sadly truth that Japanese used to be the leading donor in Cambodia. Marubini [a Japanese company] who has had many countless investments almost on most corner of the globe, has been in Cambodia for a while. The only investment/loan credit they did in Cambodia is Sokimex fuel depot and terminal in Sihanoukville.
Trading partners use the words 'friendly' and 'cooperation', but of course they always look after their own interests" - Sok Chenda
It is nothing unusual for foreign investors to make sure that their interest and profits are there and are to be protected.
To 2:45 AM
I wish the United States invested and trained people more in Cambodia instead of China. China is just too second rate compared to the U.S.
Chevron is US company who finds the black gold in Cambodia, and are holding a few more exploring and drilling licenses off Cambodia coast.
However he admitted the less developed nation still faced obstacles, such as Cambodia's terrible balance of trade and lack of secondary industries, which meant container ships arrived full but often left with room to spare.
Balance of trade is not only facing Cambodia [a developing country] but in every nations. USA [deficit trade] and China [surplus trade] have had many countless meetings trying to get the trade balance right. Nevertheless they still can't get it right.
In case of Cambodia, might have to look at second industries such as food processing factories.
a boom in global bio-fuel demand
There are good and bad news about bio-fuel.
The good news is it will costless for production depending on fuel alone when the market price goes over 100US$ a barrel.
The bad news is, when all grains are being converted to accommodate bio-fuel, then quantity preserve for food will be declined and therefore the price of foods will be on the increased at all time as shown concerns by the world food programme - they can buy less quantity with the same money to help poor peoples across the globe.
The Western investors don't quite trust the political climate and the stability in Cambodia yet. Europeans like to invest in Eastern Europe first, as it is much closer to home and they have better leverage. The U. S. is pretty hypocritical in its dealings with underdeveloped countries, unless there is a strategic or economic interest, which so far Cambodia has not had. Oil will change that. Other than that, don't expect the West to come and help to democratize Cambodia through their investments. South Korea, Japan, Singapore, Thailand, and Malaysia are good partners, and so is China, in spite of being Communist and a dictatorship. Money knows no political affiliation.
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