FDI inflow seen as driving economic development
A modest increase in the inflow of foreign direct investment is a sign that Cambodia remains an attractive destination to investors, and will go a long way toward the country’s development, analysts said on August 31. Total capital inflow of foreign direct investment to Cambodia amounted to $511 million during the first half of the year, a 6 per cent increase over the same period last year, central bank data show. The figures, contained in a government mid-year assessment of Cambodia’s macroeconomic outlook released on August 30, did not indicate how the FDI was distributed. However, less than a quarter of these capital inflows went to the banking sector, “indicating that a high proportion of these flows went into productive sectors”, the report said.
