Photo by: Heng chivoan Workers at a South Korean building project in Phnom Penh. South Korea was the second-largest foreign investor in 2008.
The Phnom Penh Post
Thursday, 05 February 2009
Kay Kimsong
But critics say figures do not represent real cash injection
The government approved more than US$10 billion in fixed-asset investment in 2008, up more than $8 billion over 2007 figures, according to Cambodia Investment Board documents obtained by the Post Tuesday.
CIB figures say 101 investment projects were approved by the Council for Development in Cambodia in 2008, representing fixed-asset investments of $10.89 billion, compared with 129 projects worth $2.6 billion in 2007.
Fixed-asset investments for 2008 accounted for 36.1 percent of total investments in the Kingdom, the said CIB.
But the figures have raised questions about the actual substance of the fixed-asset investments. Cambodia Economic Association President Chan Sophal told the Post Wednesday that fixed-asset investments represent pledged dollar amounts rather than actual foreign investment capital.
"Fixed assets represent only figures registered with the government, but they don't mean actual capital that will be spent in Cambodia," he said.
"The real FDI capital flow in Cambodia was about $700 million to $800 million [in 2008]," he said, adding that only an estimated 20 percent of the $10.89 billion in fixed assets represented actual investment in the economy. The World Bank put Cambodia's FDI in 2008 at $821.7 million.
Chap Sotharith, a senior researcher at the Cambodian Institute for Cooperation and Peace, agreed that CDC investment capital figures do not represent actual dollar amounts invested in the country.
"We don't really have a clue about the actual amount of FDI unless we know how much money investors have actually transferred into the country," Chap Sotharith said.
Sam Rainsy Party lawmaker Yim Sovann claimed that as much as 50 percent of foreign investments fail due to corruption and unfair competition.
The largest projects approved last year were the Union Development Group Co's Koh Kong Sea Coast Development (China), with $3.8 billion, followed by Evergreen Success and Asia Resort Development (Cambodia), with $1.84 billion.
By sector, Cambodia approved $8.77 billion in tourism investments, $1.29 billion in service sector investments and $715 million in industry, the CIB figures show.
Thursday, 05 February 2009
Kay Kimsong
But critics say figures do not represent real cash injection
The government approved more than US$10 billion in fixed-asset investment in 2008, up more than $8 billion over 2007 figures, according to Cambodia Investment Board documents obtained by the Post Tuesday.
CIB figures say 101 investment projects were approved by the Council for Development in Cambodia in 2008, representing fixed-asset investments of $10.89 billion, compared with 129 projects worth $2.6 billion in 2007.
Fixed-asset investments for 2008 accounted for 36.1 percent of total investments in the Kingdom, the said CIB.
But the figures have raised questions about the actual substance of the fixed-asset investments. Cambodia Economic Association President Chan Sophal told the Post Wednesday that fixed-asset investments represent pledged dollar amounts rather than actual foreign investment capital.
"Fixed assets represent only figures registered with the government, but they don't mean actual capital that will be spent in Cambodia," he said.
"The real FDI capital flow in Cambodia was about $700 million to $800 million [in 2008]," he said, adding that only an estimated 20 percent of the $10.89 billion in fixed assets represented actual investment in the economy. The World Bank put Cambodia's FDI in 2008 at $821.7 million.
Chap Sotharith, a senior researcher at the Cambodian Institute for Cooperation and Peace, agreed that CDC investment capital figures do not represent actual dollar amounts invested in the country.
"We don't really have a clue about the actual amount of FDI unless we know how much money investors have actually transferred into the country," Chap Sotharith said.
Sam Rainsy Party lawmaker Yim Sovann claimed that as much as 50 percent of foreign investments fail due to corruption and unfair competition.
The largest projects approved last year were the Union Development Group Co's Koh Kong Sea Coast Development (China), with $3.8 billion, followed by Evergreen Success and Asia Resort Development (Cambodia), with $1.84 billion.
By sector, Cambodia approved $8.77 billion in tourism investments, $1.29 billion in service sector investments and $715 million in industry, the CIB figures show.
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