National Bank of Cambodia’s governor foresees economic boost from RCEP, bilateral FTAs

5/23/2024 5:49:52 AM

(MENAFN) According to Chea Serey, the Governor of the National bank of Cambodia, the Regional Comprehensive Economic Partnership (RCEP) agreement and various bilateral free trade agreements (FTAs) are anticipated to enhance Cambodia's ability to attract foreign direct investment (FDI) and stimulate its export activities.

Cambodia is a participant in the RCEP agreement, which involves 15 countries across the Asia-Pacific region, and additionally maintains bilateral FTAs with nations such as China, South Korea, and the United Arab Emirates.

"On the back of the implementation of the RCEP agreement and other bilateral FTAs, Cambodia is expected to attract more FDI inflows and expand its exports to the region," she stated in an address in the opening ceremony of a seminar on Cambodia's economic stability.

Serey emphasized that these trade agreements will play a crucial role in enhancing Cambodia's productivity and facilitating economic diversification. She highlighted that the kingdom's economy is projected to expand by 6 percent in 2024, a notable increase from the 5 percent growth recorded in 2023. This growth trajectory is expected to be propelled by various factors, including a surge in exports, the recovery of the tourism sector, robust growth in transportation and communication, and stable agricultural output.

In the first four months of 2024, Cambodia approved fixed asset investments totaling USD2.5 billion, a move anticipated to generate around 130,000 employment opportunities, according to a government report. On the trade front, the Southeast Asian nation witnessed a significant increase in its exports, amounting to USD8 billion during the January-April period of this year. This represents a notable uptick of 15.2 percent compared to the corresponding period last year, when exports stood at USD6.94 billion.

Penn Sovicheat, the Secretary of State and Spokesperson for the Cambodian Ministry of Commerce, emphasized the strategic significance of the RCEP agreement and bilateral FTAs for Cambodia. He highlighted that these agreements are instrumental in helping Cambodia achieve its ambitious development goals, which include transitioning to an upper-middle-income country by 2030 and ultimately attaining high-income status by 2050.

"These trade pacts have not only given a boost to Cambodia's sustainable trade growth in the long run, but also become a magnet to attract more FDIs to the kingdom," he informed a Chinese news agency.

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