The Regional Comprehensive Economic Partnership (RCEP) agreement and various bilateral free trade agreements (FTAs) are set to significantly enhance Cambodia's foreign direct investment (FDI) inflows and export capabilities, according to Chea Serey, Governor of the National Bank of Cambodia.
Cambodia, a member of the RCEP, engages with 15 Asia-Pacific countries and has bilateral FTAs with China, South Korea, and the United Arab Emirates. Speaking at a seminar on Cambodia's financial stability, Serey emphasized the potential of these trade agreements to attract more FDI and expand exports within the region.
"With the implementation of the RCEP agreement and bilateral FTAs, Cambodia is poised to increase FDI inflows and expand its exports," Serey stated. She highlighted that these trade pacts are expected to boost productivity and promote economic diversification, projecting a 6 percent economic growth in 2024, up from 5 percent in 2023.
During the first four months of 2024, Cambodia approved fixed asset investments worth USD 2.5 billion, which are anticipated to create approximately 130,000 jobs. Additionally, the country exported products valued at USD 8 billion from January to April, marking a 15.2 percent increase from USD 6.94 billion in the same period last year.
Penn Sovicheat, Secretary of State and Spokesperson for the Cambodian Ministry of Commerce, noted that the RCEP agreement and bilateral FTAs are instrumental in achieving Cambodia's goal of becoming an upper-middle-income country by 2030 and a high-income nation by 2050. "These trade agreements not only support sustainable trade growth but also attract more FDI to the kingdom," he told Xinhua.
Kin Phea, Director General of the International Relations Institute of Cambodia, underscored the impact of China's Belt and Road Initiative (BRI) on Cambodia's development. He highlighted significant infrastructure projects, such as highways, bridges, expressways, hydropower plants, special economic zones, seaports, and airports, which have been pivotal in promoting connectivity, ensuring a sustainable electricity supply, and enhancing economic competitiveness.
"Flagship projects under the BRI, including the Sihanoukville Special Economic Zone, the Phnom Penh-Sihanoukville Expressway, and the Siem Reap Angkor International Airport, have profoundly impacted Cambodia's development agenda, reducing logistics costs and fostering mutual benefits," Phea said.
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