SOK CHAN
Foreign direct investment (FDI) into Cambodia increased by 25 percent last year amounting to $2.15 billion, most of which were channeled into the financial and manufacturing sectors, a report released by the National Bank of Cambodia (NBC) on Friday said.
The report revealed that $539 million went to the banking sector, while $390 million was directed to the manufacturing sector, $370 million to real estate and $232 million to agriculture.
FDI flow into sectors like food and accommodation was $228 million, $19 million for mining operations, $15 million for information and communications technology, $15 million for the electrical sector and $278 million for other sectors.
“The investment inflow from foreign countries mostly went to the financial sector, especially to banking, which increased by about five percent due to the increase in banking institutions’ capital reserves while the FDI in the manufacturing sector dropped about 13.7 percent due to macroeconomic factors in 2016, compared to the foreign investment flow in 2015,” the report read.
According to the report, outstanding loans within the banking sector hit $17.6 billion, up 18.3 percent, while deposits reached $15.4 billion, up 20.7 percent compared with the year before.
“The banking sector continues to show strong growth and contribute to the sustainable and inclusive growth of economic activities,” the report said.
The report also noted that China was the largest foreign investor, with an inflow of $511 million, followed by Hong Kong at $237 million, Vietnam at $192 million, Japan at $185 million and $169 million from Singapore.
NBC governor Chea Chanto said at the NBC’s annual meeting that Cambodia maintains strong macroeconomic and financial stability despite fluctuations in the global economy caused by Brexit and the slowing of China’s economy.
“Cambodia’s economy continues to grow by an average of seven percent yearly due to its strong garment, property and construction sectors.”
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