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Industrial Sector Set for Growth
The industrial sector is expected to experience strong growth in 2024, outpacing the services and agriculture sectors. The Ministry of Economy and Finance forecasts a 6.6% economic growth, with the industrial sector projected to grow by 8.5%. This growth is driven by the recovery of the garment sub-sector and strong performance in non-garment manufacturing and construction. The government's new investment law and favorable free trade agreements are set to further boost industry, attracting more international investments and improving export capabilities.
Read more: The Star
Vision 2030, unveiled at the 15th Annual Cambodia Outlook Conference, focuses on seven key reform priorities for sustainable growth. These include reversing pandemic-induced economic impacts, promoting inclusive institutions, expanding social protection, sustainable natural resource investment, diversifying manufacturing, modernizing agriculture, and investing in education and digital infrastructure. The goal is to move Cambodia up the value chain in all sectors, addressing challenges like geopolitical uncertainties and economic volatility, to achieve resilient, inclusive, and sustainable growth.
Read more: Cambodia Investment Review
Government Loan Agreements Surge
Cambodia has experienced a significant increase in government loan agreements, totaling nearly $800 million in the first three quarters of 2023. This is a nearly 1,700% rise compared to the same period in 2022. The loans focus on developing human resources, creating jobs, and boosting exports with a vision to transition Cambodia into an upper-middle-income country by 2030 and a high-income country by 2050.
Read more: The Star
Deposit Protection Demanded for Stability
The ASEAN+3 Macroeconomic Research Office (AMRO) has recommended that the National Bank of Cambodia (NBC) establish deposit-protection schemes to stabilize Cambodia's banking framework by mitigating the risk of bank runs and ensuring exchange rate stability. AMRO also advises on tightening regulatory oversight of shadow banking and maintaining stringent regulations for real estate developers.
Read more: Khmer Times
Techo International Airport
The Techo International Airport is currently under construction near Phnom Penh. Designed by Foster + Partners, the airport blends Cambodian cultural elements with modern architecture, featuring a tree-canopy-like roof and a warm, welcoming interior. The design was informed by local vernacular styles and is intended to be one of the greenest airports globally, powered primarily by onsite solar energy. The project includes an airport city and plans to accommodate 13 million passengers annually in its first phase, with a future capacity of 30 million.
Path to Global Cashew Dominance by 2027
Cambodia aims to become a global leader in the cashew market by 2027. The government's National Policy on Cashew 2022–2027 focuses on increasing production, quality, and market expansion. Currently, Cambodia exports 90% of its 1.1 million tonnes of raw cashews mainly to Vietnam due to a lack of processing facilities. To change this, the government is encouraging investments in processing facilities to boost the economy by exporting processed cashews.
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