FOREIGN DIRECT INVESTMENT (FDI) in Cambodia

FOREIGN DIRECT INVESTMENT (FDI) in the World:

1.The amount invested in another country.

2.Approximately 85% of all international investments come from developed countries.

3.International trade has increased substantially over the last two decades.

4.Percentage of world trade accounted for by the three major trading blocs has remained fairly consistent.

5.Groups’ share of imports and exports remains in the range of 55 - 59 percent.

6. Multinational corporations ( MNCs) buy domestic companies rather than trying to export products to that country.

FOREIGN DIRECT INVESTMENT IN CAMBODIA

1.According to the National Bank of Cambodia (23/12/2009), FDI to Cambodia dropped by 35.2% to about US$520 million.

2.FDI in 2010 is predicted to recover slowly & improved over last year but might not reached levels seen in 2007 or 2008.

3.Agriculture & Food processing has been widely predicted to grow in 2010. Tourism will also see more investment.

4.Approved investment projects also took a large hit in 2009, dropping 46% from 2008 to 2009, reaching only US$5.9 billion

5.Aside from agro-processing, several infrastructure projects, including hydropower, dams, & transmission lines are predicted to draw more FDI to Cambodia.

Inflow of FDI into Cambodia in 2009 are mainly from:

1.China

2.South Korea

3.Singapore

4.Malaysia

5.Thailand

6.Vietnam

7.France &

8.United States

Chinese FDI in Cambodia for the first 3Qs of 2008 amounts to US$140.5 million. In 2009, it was US$ 339 million.

Source from: Council for the Development of Cambodia (CDC).