• Economics

US Investment Flows in Private Sectors

• By Meng Seavmey
• March 1, 2024 8:25 PM

PHNOM PENH – February 28 marked a series of discussions and agreements on investments and the private sector between Cambodia and the US. 

Jim Jones, chief executive officer of the US Jones Group International, said increased trade will strengthen the US-Cambodian people-to-people connectivity. 

He talked about investment opportunities with Prime Minister Hun Manet and Sun Chanthol, first-vice chairman of Council for the Development of Cambodia (CDC). 

Jones, who leads the US expert advisory groups on foreign policy, strategic planning, national security and military strategy, said his visit is to “see what private sectors the US can invest in Cambodia to bring the countries close together.”  

He said he also supported Cambodia’s efforts to graduate to a higher-middle income country by 2030. 

And he supported Cambodia’s willingness to cooperate with private investments through a beneficial investment environment, security guarantee, stable politics, social order, and national polices. 

The polices prompt foreign investments and set out new business initiatives such as new example of special economic zones based on the types of industry and the investor’s requirement. 

Chanthol also raised major strategies for seeking future cooperation and expanding the scope of trade and investments. 

These include increasing facilitation of trade by making it convenient with custom procedures and reducing trade barrier and administrative regulations; promoting markets through expanding and integrating made-in-Cambodia products; or negotiating agreements such as free trade agreements (FTA) and strengthening existing agreements. 

The US can also support investments in Cambodia through technical initiatives, capacity building, and activities to promote and enhance investments, Chanthol said. 

Open the door for all investors

Cambodia welcomes investments from all foreign partners, including the US, China and other countries as the investment law applies equally to all investors, Chanthol said after the meeting. 

In the digital age, Cambodia also has the online platform for Qualified Investment Project Registration (QIP Online), which has been running since 2021. The system enables investors to submit investment proposal to CDC. If the system is connected with other institutions, it will be easier for investors to get approvals. 

To attract more foreign investors, the government is adapting the masterplan on logistics which is related to infrastructure, aiming to lower the costs of logistics. Secondly, the country is cutting the cost of  electricity.

Third, we are improving the capacity of the people. Fourth, Cambodia is turning Preah Sihanouk province into a special economic zone, Chanthol said.

Investment attraction is important for socio-economic development and is responding to the job demands of the 1.5 million youth — from poor and vulnerable households — who are taking technical and vocational education and training, Canthol said. 

According to the CDC report, the US investment in Cambodia reached $1.077 billion by January this year. In January alone, the US invested $10 million in industry, giving the US third-place ranking.  

The investments cover four main sectors, including agriculture and agro-industrial sectors, industry sector, tourism sector, and infrastructure. Since 1994, the US has placed its investments in tourism the most with the total budget of over $707 million, the report added. 

More US investments on the same day 

Meeting with Prime Minister Hun Manet, Brian D. McFeeters, managing director of the US-ASEAN Business Council, represented 17 major US companies that operates on modern technology, social media network, tourism, finance, energy, retail markets, manufacture, and energy insurance.

Those included Fedex Express, Pfizer, Master Card, Visa Card, Meta (Facebook), ADM Animal Nutrition, Chevron, and Manulife Cambodia, McFeeters said.

Brian D. McFeeters (left), managing director of the US-ASEAN Business Council, met with Prime Minister Hun Manet (right). Photo: Prime Minister Hun Manet Facebook

He added that they wanted to expand their business, learn more about markets, and policies related to investments in Cambodia. 

Hun Manet called on relevant actors and institutions to continue cooperating with each other to set out plans for private investment. 

In 2023, Cambodia’s trade volume with the US reached $9.1 billion, with exports worth $8.8 billion, and imports worth $257 million. The figure declined by 1.4 percent on the previous year.