The recent launch ceremony for Cambodia’s Investment Project Management System. -- Photo: Phnom Penh Post/ANN
PHNOM PENH (Phnom Penh Post/ANN): Cambodia is intensifying reforms and strategies to boost its appeal to both domestic and international financiers, aiming to increase foreign direct investment (FDI) and promote Cambodian-made products.
These measures come as the Kingdom prepares for its graduation from the least developed country (LDC) category by the end of 2029.
Prime Minister Hun Manet, who also serves as chairman of the Council for the Development of Cambodia (CDC), emphasised the importance of adapting to the rapidly changing global political and economic landscape.
Speaking during the CDC’s first meeting of the 7th legislature at its headquarters on December 20, Manet underlined the need for proactive reforms to maintain competitiveness and resilience.
“The rapid changes in the global geopolitical situation and regional competition demand that Cambodia be better prepared, with greater responsiveness and resilience, to adapt to future economic and international trade transformations,” he stated.
The prime minister highlighted the private sector’s critical role in driving economic growth and stressed the CDC’s importance as a key institution in engaging with investors and development partners to promote Cambodia on the international stage.
During the meeting, Manet outlined several recommendations for the CDC. These included biannual consultations with key partners such as Japan, South Korea, the US and the EU, enhancing the government-private sector dialogue held annually and conducting sector-specific and geographical investment assessments.
He also emphasised the importance of establishing monitoring mechanisms for licensed projects, improving coordination of investment flows between national and local levels and fully implementing the CDC Investment Project Management System (cdcIPM).
Additionally, he called for more effective promotion of diverse investment opportunities and strengthening human resources to deliver quality services to investors.
Economist Duch Darin told The Post on December 24 that the country’s legal investment reforms and ongoing government measures have supported steady economic growth despite global instability.
He credited strong export growth, a rise in tourism, public investment and private sector contributions as key drivers.
“The presence of large international companies will bring numerous benefits, such as increased capital flow, more job opportunities for citizens, improved labour force skills, and elevated local business standards,” Duch added.
He further explained that these investments also encourage technology transfer, innovation and enhanced global competitiveness.
According to the CDC, 414 investment projects were approved in 2024, marking a 54% increase compared to 2023. The total investment capital reached $6.9 billion, a rise of $1.97 billion or 40%. The industrial sector accounted for 69% of the approved projects.
Cambodia will officially graduate from the LDC category on December 19, 2029, after holding the status since 1991. The UN General Assembly adopted resolution A/79/L.49 on December 19, confirming the graduation of both Cambodia and Senegal.
“The two countries will graduate from the LDC category ... after being granted, on an exceptional basis, an extended preparatory period of five years – the standard period is three years – to enable them to effectively prepare for graduation and ensure a smooth transition out of the category,” the UN stated. - Phnom Penh Post/ANN
