Investment Trend

1. FDI Trend

Investment projects, which are approved by the Council for the Development of Cambodia (CDC) to grant investment incentives and guarantee, consist of Cambodian and foreign capital. Those projects were called “Investment Projects” under the Law on Investment of 1994 and are now called “Qualified Investment Projects (QIPs)” under the Law on Amendment to the Law on Investment of 2003.

In 1995, one year after the enactment of the Law on Investment, the fixed asset investment amount approved by the CIB (CDC) totaled 2.3 billion dollars. From 1994 to 2005, the annual average of twelve years was 640 million dollars, and during the following five years (2006 to 2010), the average amount became approximately 8.3 times larger as 5.3 billion dollars. In 2011, the fix asset investment amount approved by the CIB (CDC) reached 5.7 billion dollars until September 2011. From 1994 to September 2011, the cumulative investment approved by CIB (CDC) is 39.9 billion dollars[1]. Below Table shows such overall investment approval trend in Cambodia.

Investments Approved by CDC by Major Countries (1994 – September 2011)

Million USD

Country	1994-2005 Total		2006	2007	2008	2009	2010		2011 1-9	1994-2011.9 Total
		Rank									Rank
Cambodia	2,260	-	2,081	1,323	3,932	3,753	391	1,367		15,107	-
China	864	2	717	180	4,371	893	694	1,147		8.866	1
Korea	351	5	1,010	148	1,238	120	1,026	134		4.027	2
Malaysia	1,932	1	28	241	3	7	167	231		2,609	3
UK	103	10	4	26	6	6	11	2,222		2,378	4
USA	366	4	62	3	672	2	36	144		1,285	5
Taiwan	529	3	48	40	22	27	92	69		827	6
Vietnam	25	11	56	139	21	210	115	246		812	7
Thailand	284	6	100	108	74	178	2	0		746	8
Singapore	260	7	12	2	52	273	37	0		636	9
Russia	2	13	278	0	103	235	0	0		618	10
HKG	244	8	4	26	0	7	30	68		379	11
Israel	-	14	0	2	300	0	2	0		304	12
France	208	9	0	35	6	50	0	0		299	13
Japan	20	12	2	113	8	5	0	4		152	14
Others	229	-	38	270	81	93	88	42		841	-
Total	7,677	-	4,440	2,656	10,889	5,859	2,691	5,674		39,886	-

Source: CIB (CDC)

As shown in Below Table, the FDI ratio among the total investment amount approved by the CIB (CDC) between 1994 and 2005 was approximately 71%. Such FDI ratio dropped to approximately 36% in 2009 and increased to 85% in 2010. Consequently, overall FDI ratio was approximately 62% of the total approved investment amount from 1994 to September 2011.

Investment Fixed Assets by Source of Investment: 1994-September 2011

Million USD

	Foreign (a)	Cambodia	Total (b)	FDI ratio: (a)/(b) %
1994 – 2005	5,417	2,260	7,677	71%
2006	2,359	2,081	4,440	53%
2007	1,333	1.323	2,656	50%
2008	6,957	3,932	10,889	64%
2009	2,106	3.753	5,859	36%
2010	2,300	391	2,691	85%
2011 (1-9)	4,307	1,367	5,674	76%
Total	24,779	15,107	39,886	62%

Source: CIB (CDC)

In terms of the cumulative FDIs approved in the period of around 18 years ending at September 2011, the largest amount of 8.9 billion US dollars came from China. The second biggest FDI provider is Korea followed by Malaysia. The other major sources of FDI are UK, USA, Taiwan, Vietnam, Russia and Singapore. Below Figure shows the investment approval trend by five leading countries.

Source: CIB (CDC)

Figure II-2-1 Investment by Leading Countries

---

[1] The quoted figures do not include the followings.
-          The QIPs locating in the SEZ, including the SEZ development projects
-          The QIPs that the PMIS approved (Less than 2 million USD)
-          Non-QIPs that have been registered with MOC

2. Investment Trend by Industry

As for the composition by industrial sector, tourism accounts for 50% of the cumulative investment amount at September of 2011, while investment amount in tourism has been changing rapidly every year owing to extensive investment in the initiative days and high amount approved in 2008 and 2009. Investment in industries has been increasing gradually from 2006 to 2011. Investment amount in agriculture sector has remained stably except for 2008. Investment in service sector was dropped in 2009 due to decrease of investment in construction sector damaged by the economic crisis, but recovered in 2010. (Shown in below Tables and Figure)

Investment Approved by CIB by Sector: 1994 – September 2011

Million USD

		Agriculture	Industries	Services	Tourism	Total
1994-2005		344	3,147	1,800	2,386	7,677
	2006	505	987	2,171	777	4,440
	2007	371	338	653	1,294	2,656
	2008	95	726	1,292	8,776	10,889
	2009	590	958	410	3,901	5,859
	2010	554	946	1,059	132	2,691
	2011(1-9)	284	2,695	192	2,503	5,674
2006-2011(9)		2,399	6,650	5,777	17,383	32,209
Total (1994-2011.9)		2,743	9,797	7,577	19,769	39,886
Percentage		6.88%	24.56%	19.00%	49.56%	100.00%

Source: CIB (CDC)

Source: CIB (CDC)

Investment Trend by Sector (2006-2011.9)

CIB-Approved QIPs by Sector in Cambodia (1994-2011.9)

SECTOR		2006	2007	2008	2009	2010	2011 (Jan-Sep)
1.Agriculture		20	9	5	19	23	12
2.Industries		64	93	66	65	74	82
	Energy	5	2	6	5	4	0
	Food Processing	1	2	1	2	5	1
	Garment/Textile	44	45	37	24	41	62
	Machine/ Metal/ Electronics	2	2	1	1	2	2
	Mining	1	19	4	7	2	3
	Petroleum	0	0	0	1	0	0
	Plastic	0	2	2	1	2	0
	Shoes	7	７	2	7	8	4
	Wood Processing	0	４	0	4	1	0
	Others	4	１０	13	13	9	10
3. Services		8	13	9	4	2	2
	Construction/ Infrastructure	6	12	6	4	2	1
	Services	2	1	3	0	0	1
4.Tourism		9	14	20	12	3	5
	Hotel	4	5	6	1	1	1
	Tourism	5	9	14	11	2	4
Total		101	129	100	100	102	101

Source: CIB (CDC)

CIB-Approved Investment Trend by Sector in Cambodia (1994-2011.9)

       Unit: Million USD

SECTOR		2006	2007	2008	2009	2010	2011 (Jan-Sep)
1.Agriculture		505	371	95	590	554	284
2.Industries		987	337	726	958	946	2,695
	Energy	596	11	494	665	589	0
	Food Processing	4	21	4	12	40	7
	Garment/Textile	149	205	147	93	134	280
	Machine/ Metal/ Electronics	4	4	12	2	8	6
	Mining	3	31	5	15	92	31
	Petroleum	0	0	0	3	0	0
	Plastic	0	5	6	2	6	0
	Shoes	31	26	12	28	48	17
	Wood Processing	0	7	0	16	2	0
	Others	200	27	46	122	27	2,354
3. Services		2,171	653	1,292	410	1,059	192
	Construction/ Infrastructure	2,156	640	260	410	1,059	101
	Services	15	13	1,032	0	0	91
4.Tourism		777	1,295	8,776	3,901	132	2,503
	Hotel	21	113	1,189	17	4	58
	Tourism	756	1,182	7,587	3,884	128	2,445
Total		4,440	2,656	10,889	5,859	2,691	5,674

Source: CIB (CDC)