Logo of Phnom Penh Post newspaper Phnom Penh Post - Forex reserves surge to $21.3B at end-2020

Forex reserves surge to $21.3B at end-2020

Content image - Phnom Penh Post
An aerial view of Phnom Penh showing numerous high-rise buildings. Hong Menea

Forex reserves surge to $21.3B at end-2020

The narrower current account deficit and continued capital inflows from foreign direct investment (FDI) and other sources supported a continued increase in gross foreign-exchange (forex) reserves, which rose to $21.3 billion at the end of last year from $18.8 billion at end-2019, the Asian Development Outlook (ADO) report issued last week said.

The report noted that the economy is forecast to expand by 4.0 per cent in 2021 and 5.5 per cent in 2022. The economic recovery in major trading partners will support strong demand for Cambodia's merchandise exports and continued FDI inflows.

Industrial production is expected to grow strongly, expanding by 7.1 per cent in 2021 and 7.0 per cent in 2022 on the back of a rebound in the garments, footwear and travel goods sector and growth in light manufacturing, it said.

Agriculture is also expected to pick up, growing by 1.3 per cent in 2021 and 1.2 per cent in 2022, underpinned by higher crop production after last year's flood damage, continued aquaculture growth, and rising agricultural exports to China from a new bilateral free trade agreement.

The Council for the Development of Cambodia (CDC) reported that it had approved $85.88 billion in investment projects as of end-2019 since it was established in 1994.

In 2019 alone, the CDC approved $9.40 billion worth of investment projects, of which mainland Chinese investors accounted for $2.75 billion. Hong Kong ranked second at $912.55 million, while Japan took third with $298.84 million.

Of the cumulative FDI approved in 1994-2019, the largest share was from mainland China (21.81 per cent), which in the early years had been the source of extensive investment in the fields of infrastructure, resource development (such as natural rubber) and tourism.

South Korea took the second largest share at 6.16 per cent and the UK placed third at 5.01 per cent.

Other major sources were Malaysia (3.59 per cent), Japan (3.13 per cent), Hong Kong (3.05 per cent), Taiwan (1.77 per cent), Vietnam (2.31 per cent), Singapore (1.64 per cent) and Thailand (1.54 per cent) – whose investment comes mainly from the garment sector.

MOST VIEWED

  • Cambodia maintains 'Kun Khmer' stance despite Thailand’s boycott threat

    Cambodia has taken the position that it will use the term "Kun Khmer" to refer to the sport of kickboxing at the upcoming Southeast Asian (SEA) Games, and has removed the term Muay from all references to the sport. Despite strong reactions from the Thai

  • Artificial insemination takes herd from 7 to 700

    Some farms breed local cows or even import bulls from a broad for the purpose of breeding heavier livestock for meat production. One Tbong Khnum farmer has found a more efficient way. Hout Leang employs artificial insemination to fertilise local cows. Thanks to imported “straws”

  • Chinese group tours return to Cambodia starting Feb 6

    Cambodia is among 20 countries selected by Beijing for a pilot programme allowing travel agencies to provide international group tours as well as flight and hotel packages to Chinese citizens, following a three-year ban. As the days tick down until the programme kicks off on February 6,

  • Capital-Poipet express rail project making headway

    The preliminary results of a feasibility study to upgrade the Phnom Penh-Poipet railway into Cambodia’s first express railway indicate that the project would cost more than $4 billion and would take around four years to complete. The study was carried out by China Road and

  • Thai boxers to join SEA Games’ Kun Khmer event

    The Cambodian SEA Games Organising Committee (CAMSOC) – together with the Kun Khmer International Federation (KKIF) and Khmer Boxing Federation – have achieved a “great success” by including Kun Khmer in the upcoming biennial multi-sports event on its home soil for the first time, said a senior

  • Bullets to bracelets: Siem Reap man makes waste from war wearable

    Jewellery is often made from valuable gemstones like emeralds or diamonds and precious metals like gold or silver, or valueless things like animal horns. But a man in Siem Reap has approached the manufacture of delicate pieces from a different angle. His unique form of