Economy: CDC requests Canada's assistance in promoting Cambodia's investment potential

CDC requests Canada's assistance in promoting Cambodia's investment potential to Canadian investors. Trade between the two countries reached a value of $646 million during the January to July period of 2024, representing an increase of 20.7%.

H.E. Chea Vuthy made the request while receiving the Canadian delegation, led by Mr. Paul Thoppil, Canada's Indo-Pacific Trade Representative, late last week

The meeting was held to discuss Cambodia's investment environment and ways to promote bilateral trade cooperation between the two countries.

H.E. Chea Vuthy provided his guest with an overview of Cambodia's favourable investment environment and the legal framework that supports it, which is open, transparent and predictable, and designed to attract and promote quality, effective and efficient investments.

Mr. Paul Thoppil thanked H.E. Chea Vuthy for the comprehensive information and informed him about Canada's Indo-Pacific Strategy, emphasizing Canada's desire to see Cambodia play a pivotal role in this strategy.

The Canadian side also acknowledged Cambodia's high potential, including economic stability, investment incentives and a young labour force. However, they stressed the necessity to promote Cambodia to the Canadian business community, mentioning the success of Canadian investment in Cambodia, such as ABA Bank and Manulife Insurance.

Furthermore, he emphasised the significance of concluding the negotiations on the ASEAN-Canada Free Trade Agreement, which will facilitate the attraction of Canadian investment to Cambodia.

H.E. Chea Vuthy confirmed the CDC's willingness to collaborate with the Canadian side in promoting Cambodia as an appealing investment location. He also announced that on 26 September 2024, H.E. Sun Chanthol, First Vice President of the CDC, would lead a delegation to Canada with the objective of showcasing Cambodia's investment potential to the Canadian business community.

According to the General Department of Customs and Excise (GDCE), trade between Cambodia and Canada reached a value of $646 million during the January to July period of 2024, representing an increase of 20.7 percent compared to the same period in 2023.

While exports from Cambodia to Canada increased by 21.8 percent, reaching $605 million during the first seven months of this year, imports saw a 6.5 percent rise, reaching $41 million, according to the data.

Furthermore, Cambodia recorded a trade surplus of $563 million with Canada during this period.

Cambodia exports a range of products to Canada, including textile-related items, bicycles, electrical equipment, electronic components and agricultural products. In return, it imports motor vehicles and parts, construction materials and advanced technical equipment.

Canada offers tariff-free quotas for Cambodian exports of clothing, footwear and textiles, which are the Kingdom's main export items. Canada is also the third largest source of foreign direct investment (FDI) in Cambodia, after China and South Korea, according to data from the National Bank of Cambodia for 2023.

In February of this year, the Canadian and Cambodian Foreign Ministries signed a memorandum of understanding (MoU) to enhance bilateral cooperation through the promotion of trade, investment, and tourism.

Subsequently, in June, a delegation led by Kelvin K. Mo, Head of the Office of the Representative of the Cambodian Chamber of Commerce in Montreal, Canada, visited Cambodia to gain insight into the potential for investment in Cambodia and the Royal Government's strategic policy for attracting investments.