Increasing investment in Cambodia

(VOV) - Vietnamese businesses will increase investment in Cambodia, aiming to raise their total capital to US$4 billion in 2015.

Key areas will be finance, banking, agriculture, aquaculture, mining, cash crop plantation, hydro power, tourism, and trade.

The Association of Vietnamese Investors in Cambodia (AVIC) announced its plan at a conference in Phnom Penh on December 25, reviewing trade and investment promotion in the country during the past three years.  

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Cambodian Deputy PM Men Som Ol showed the government's support for Vietnamese businesses

Vietnamese businesses have invested in 124 projects with a total registered capitalisation of US$2.4 billion in Cambodia, making Vietnam one of the top five foreign investors in its neighbour.

Their investment increased more than a double, from 41 projects worth US$556 million in 2010 to 90 projects valued at US$2 billion in 2011.

Projects are focused on agriculture, forestry, rubber plantation, energy, mining, finance, banking, aviation, and telecommunications.

Businesses that operate efficiently include Vietnam Airlines, military-run telecom group (Viettel), the Bank for Investment and Development of Vietnam (BIDV), rubber companies, and Nam Sao international group.

In the reviewed period, Vietnamese businesses have contributed hundreds of millions of US dollars to the Cambodian budget and generated jobs for more than 30,000 people.

Two-way trade between Vietnam and Cambodia reached US$2.95 billion from January-November 2012, and is expected to reach US$3.3 billion for the whole year, up 17.8 percent over 2011. Of the total, Vietnamese exports hit US$2.52 billion, up 17.7 percent.

Vietnam mainly exports petrol, steel, and garments, and imports rubber and tobacco materials.

The two countries aim to raise bilateral trade to US$5 billion in 2015.

AVIC and its partners have organized three trade promotion conferences and trade-tourism fairs in Cambodia, lobbied commercial banks to support businesses, and assisted in project implementation.

Deputy Prime Minister Men Som Ol appreciated AVIC’s efficient operations, helping Cambodia develop local economy, reduce poverty and improve people’s living conditions.

The Cambodian government will create the best possible conditions for Vietnamese businesses to operate in the country, by easing difficulties for specific projects, introducing investment incentives, and re-examining signed agreements between the two countries.

At another meeting the same day, Prime Minister Hun Sen said he will meet representatives of the Vietnamese business community annually in Cambodia to foster bilateral economic ties.

Cambodia ranks second amongst 50 countries and territories that have received Vietnamese investment overseas.