Logo of Phnom Penh Post newspaper Phnom Penh Post - Chinese FDI to flow in on Silk Road

Chinese FDI to flow in on Silk Road

Containers organised in stacks at the Shanghai Free Trade Zone. AFP
Containers organised in stacks at the Shanghai Free Trade Zone. AFP

Chinese FDI to flow in on Silk Road

Cambodia could see massive investments as a result of China’s latest pledge to funnel an enormous sum into developing infrastructure as part of its New Silk Road initiative, an analyst said yesterday.

Chinese President Xi Jinping has pledged a mammoth $124 billion to develop his country’s Belt and Road Initiative, an ambitious plan unveiled in 2013 that will funnel investment into building rail, road and maritime transport infrastructure to expand trade links between China, Asia, Africa and Europe. Addressing a summit on the initiative in Beijing on Sunday, he said “Trade is the important engine of economic development.”

Chheang Vannarith, senior fellow at the Cambodian Institute for Cooperation and Peace, said China’s investment into Cambodia was closely linked to the Belt and Road Initiative.

“More investments, especially in infrastructure, are expected to flow from China into Cambodia,” he said, adding that the Cambodian government should look to attract more Chinese investment in innovation and the digital economy.

He said the Kingdom should use this opportunity to develop its national logistics strategy in order to improve its logistics performance and competitiveness.

“The Belt and Road Initiative is linking the domestic logistics network with the region, as well as job creation,” he added.

Prime Minister Hun Sen, who is attending the summit in Beijing, said on his official Facebook page yesterday that the Belt and Road initiative was “based on win-win cooperation”.

The premier said he met the heads of three major Chinese companies on the summit’s sidelines yesterday to discuss their investments in Cambodian infrastructure.

The meetings included a session with Cao Peixi, president of China Huaneng Group, which is collaborating with Cambodia’s Royal Group to develop the Lower Sesan 2 hydropower project in Stung Treng province. He also met Lu Wenjun, chairman of China National Heavy Machinery Corporation, to discuss the company’s investment in the Stung Tatai hydropower project in Koh Kong province.

The third meeting was with Liu Qitao, chairman of China Communications Construction Co Ltd, which has already invested over $1.6 billion in 16 road construction projects in the Kingdom. The company is involved in railway and port construction, and is building a 190-kilometre expressway between Phnom Penh and Sihanoukville, with construction slated to begin by the end of the year.

MOST VIEWED

  • Tensions high ahead of historic Kun Khmer match up

    The long-awaited November 5 matchup between Kun Khmer legend Prum Samnang and Myanmar-Canadian boxer Dave Leduc has become the most anticipated fight of the year. The Wurkz Sena Kun Khmer promotion, which will be held at the Town Arena at Chip Mong 271 Megamall, will see six

  • Manet: Cambodia safe for travel

    Prime Minister Hun Manet acknowledged that Cambodia and China have cooperated to tackle internet scamming, fraud and other cross border crimes, but insisted that the “Kingdom of Wonders” is completely peaceful and safe. He welcomed tourists to come and explore its rich heritage. During a

  • UNESCO formally list Battambang gastronomy

    Battambang, renowned for its cultural heritage, has achieved a significant milestone as the first Cambodian municipality to join the UNESCO Creative Cities Network (UCCN). The UCCN unites nearly 300 cities prioritising creativity and cultural industries in local development plans and international cooperation. On World Cities Day,

  • Cambodia pivots to solar, wind energy

    Cambodia is planning a move towards solar and wind energy to meet its rising power demands, according to Minister of Mines and Energy Keo Rottanak. On the sidelines of the Singapore International Energy Week event held recently, Rottanak emphasised the urgency of diversifying Cambodia’s

  • Angkor causeway symbol of Cambodia-Japan ties

    In a historic moment marking another milestone in the 70-year-long diplomatic relations between Cambodia and Japan, King Norodom Sihamoni celebrated the formal inauguration of a causeway located to the west of the world-renowned Angkor Wat. While presiding over the November 4 ceremony, the King emphasised the

  • Manet calls for Cambodia’s railways to get back on track

    Prime Minister Hun Manet has instructed the relevant authorities to expedite studies into upgrades to the Phnom Penh to Preah Sihanouk railway line. He suggested that the maximum speed on the line should be increased to 80km/h, in order to expedite the transportation of