Cambodia Investment Review
In a recent press conference held at the Embassy of France in Phnom Penh, French Ambassador to Cambodia Jacques Pellet shed light on the significant outcomes of Cambodian Prime Minister Hun Manet’s recent visit to France. The ambassador’s briefing centered on the newfound avenues for French investment and business opportunities in Cambodia, marking a notable shift in the economic relations between the two countries.
Ambassador Pellet emphasized that Mr. Hun Manet’s visit, the first to a European country since his assumption of office, symbolizes a new era in Franco-Cambodian relations, with a strong focus on economic and investment cooperation. “This visit heralds a deepening of ties and a commitment to explore new economic frontiers between Cambodia and France,” Pellet stated.
French Investors and Cambodian Business Opportunities
The French Development Agency’s (AFD) substantial commitment of €400 million ($435 million) in funding for various projects in Cambodia over the next two years. This funding is a strategic move aimed at supporting Cambodia’s transition to a low-carbon economy, enhancing sustainable water management, and promoting regional integration and climate resilience. Since 1993, AFD’s involvement in Cambodia has been significant, with funding totaling nearly €927 million across 92 projects.
Read more: French-Cambodian Business Forum underscores France’s economic interest in Cambodia
The French Embassy’s briefing also focused on the upcoming business forum in Paris. This event is slated to be a cornerstone for facilitating direct interactions between French investors and Cambodian business opportunities. “The business forum is not just an event; it’s a platform for French businessmen to gain firsthand knowledge of the lucrative investment opportunities available in Cambodia,” Pellet explained.
The two countries also have ongoing negotiations for a double taxation avoidance agreement between the two nations. This agreement is expected to provide a more favorable tax environment for French investors in Cambodia, addressing concerns about tax compliance and enhancing the transparency of fiscal policies.
200 French Companies Currently Operating in Cambodia
Despite a slight decrease in bilateral trade last year, which amounted to $515 million, the French Embassy remains optimistic about the potential for growth, especially in sectors beyond the traditional exports of garments, footwear, travel goods, and agricultural products from Cambodia. French imports, predominantly vehicles, electrical and electronic equipment, construction materials, and furniture, also reflect a diverse trade relationship.
The ambassador’s briefing underscored the French investors’ concerns about the Cambodian logistics sector, signaling an area where improvement could lead to enhanced investment. With about 200 French companies currently operating in Cambodia, there is a clear indication of the country’s potential as a favorable investment destination.
