Amidst global economic frailty, foreign direct investment in Cambodia grew by an impressive 73% in 2012. The UN’s Word Investment Report, released today, calculates that FDI reached US$1.6 billion last year, compared with US$902 million in 2011. The influx in investment is credited to businesses looking to cut costs in labor intensive industries, particularly the garment sector. Along with Myanmar and Vietnam, Cambodia is touted as a “bright spot” in Southeast Asia, where overall FDI increased by only 2%.
The Report also stresses Cambodia’s strength in greenfield projects in retail banking. Over the past decade, Cambodia’s banking sector attracted the most capital, US$2.3 billion, of any least developed country, and the second highest number of projects, at 56.
From what we’ve seen so far in 2013, FDI remains robust, especially in manufacturing.