Cambodia sees outcomes of Belt and Road

Prime minister says friendship with China has boosted investments, tourism and jobs

The influx of Chinese investors and tourists to Siem Reap, a resort town in northwestern Cambodia, has been more than welcome to Hun Monivann, the owner of a property development company in the bustling tourist destination.

Hun, who is also the vice-president of the Siem Reap Chamber of Commerce, said he has seen a remarkable increase in the number of Chinese companies investing in the city, largely encouraged by the traditional friendship between the two countries and the Belt and Road Initiative.

"The Chinese investment in Cambodia has been beneficial locally, as it created more jobs, more opportunities and helped the economy," he said on the sidelines of a forum in Beijing to promote Cambodia as an investment destination.

Thanks to investment from China, high-rises are starting to take shape in cities such as Phnom Penh and Sihanoukville, and new expressways are being constructed to link major cities, replacing the old muddy and congested roads, he said.

Hun was one of dozens of representatives from Cambodia looking for business partners from China at the forum in Beijing, which also was attended by Cambodian Prime Minister Samdech Techo Hun Sen and Chinese Vice-Premier Hu Chunhua.

Hun Sen, who was on a state visit to China until Wednesday - his first overseas trip of the new year - expressed gratitude to China for a partnership that has seen increases in investment, tourism and job creation.

Eight cooperative agreements were signed between China and Cambodia on Tuesday to promote cooperation on the Belt and Road Initiative and infrastructure, including highways and reservoir construction.

During his four-day stay, he met with President Xi Jinping, Premier Li Keqiang, top legislator Li Zhanshu and top political adviser Wang Yang.

While meeting with Hun Sen, Xi called for building a China-Cambodia community of shared future, noting that last year marked the 60th anniversary of the establishment of diplomatic ties between the two countries.

He said bilateral cooperation on the Belt and Road Initiative has produced an increasing number of practical outcomes, and the two sides have maintained close communication and coordination on regional and international affairs.

Xi expressed the hope to accelerate the synergy between the Belt and Road Initiative and Cambodia's development strategy, and promote cooperation in the five areas of transportation, production capacity, energy, trade and people's livelihoods.

The Cambodian prime minister expressed gratitude to China for its firm, long-term support and valuable assistance, as well as the friendly feelings toward Cambodia, especially its royal family.

In a keynote speech delivered at the business forum on Tuesday, Hun Sen recalled that only last week he attended a ceremony to mark groundbreaking for construction of Phnom Penh's third ring road, a project that is funded by a concessional loan of $273 million provided by the Chinese government.

"China is our No 1 cooperative partner in trade investment and tourism, helping the diversification of our economic growth and creating jobs for the Cambodian people," he said.

China continued to be the largest source of foreign investment in Cambodia in 2018, with total investment volume reaching $3.6 billion, which made up 53 percent of the country's total foreign investment for the year, he said.

Chinese tourists made 1.9 million trips to the Southeast Asian country in 2018, which accounted for one-third of Cambodia's inbound tourism last year.

Hun Sen also said he believed Cambodia's Rectangular Strategy will "definitely align with the Beltand Road Initiative", as Cambodia seeks to further diversify its economy and transform its labor-intensive industries into professionalized industries.

He added that Cambodia is set to adopt a string of measures to improve its business environment, and it welcomes investors from China to start or expand operations in Cambodia.

Liu Pingsheng, secretary-general of the Cambodia-China Merchant Investment Association, said the association estimates that Chinese investment in Cambodia has helped create hundreds of thousands of local jobs.

"It has also helped improve the skills of the workers, since they will receive training in the process of employment. The Chinese companies have also introduced their management expertise to their local operations," he said.

Liu said Cambodia offers abundant investment opportunities, since the country is on the eve of a construction boom.

Du Jingwei, a manager with Sihanoukville Special Economic Zone Co, said Chinese businesses have helped create more than 22,000 jobs for local residents in the special economic zone.

The development of the economic zone, led by China's Hodo Group, has also benefited from the Belt and Road Initiative over the past few years, as more Chinese businesses have chosen to locate in the zone, he said.

Du said that in 2007, there were only 18 factories in Sihanoukville province, and the number rose to 160 in 2018, thanks to the economic zone program, with industrial output now contributing to more than 50 percent of the province's GDP.

"The Chinese companies brought technology and management experience with them as they settled down in the park," he added. "For the locals, it means more jobs and better pay."

Hu Yongqi contributed to this story.

xuwei@chinadaily.com.cn

(China Daily 01/23/2019 page1)