The Cambodian ambassador to South Korea pitched the country's new Pentagonal Strategy, aimed at transforming it into a high-income country for South Korean investors, underscoring the improved investment landscape.
"Cambodia’s new investment law, sub-degree and its launch of Pentagonal Strategy Phase 1 provide a conducive investment environment and create more opportunities for businessmen and investors," Ambassador Chring Botumrangsay said at the 2nd Cambodia-Korea Business and Investment Forum in Seoul on Dec. 21.
"Cambodia is now politically, economically and socially open for business."
The strategic plan, introduced by the Cambodian government in August this year, adopts five key priorities, namely people, roads, water, electricity and technology, and aims to achieve "Cambodia Vision 2050," designed to propel the nation into upper-middle-income status by 2030 and ultimately attain high-income status by 2050.
The plan would spur economic growth, job creation, equity, efficiency and sustainability over a 25-year timeline, according to Cambodia’s Ministry of Foreign Affairs and International Cooperation.
In addition, the Cambodian government has promulgated the implementation of a new law on investment -- which was first adopted in October 2021 -- as of this June under Sub-Decree No. 139. The law is designed to create a favorable investment environment by providing incentives that promote inclusivity and offer tax benefits.
Botumrangsay emphasized her country’s evolution from a struggling economy with poor infrastructure to one of robust development, improved communication networks and a thriving business environment, in recent years.
The ambassador also highlighted the incentives and minimal trade barriers Cambodia offers within the ASEAN region.
"Think of Cambodia as a corridor to the ASEAN market," the Cambodian ambassador said during the business forum. "Cambodia is advantageous to enter regional markets and has access to major markets such as China."
According to Botumrangsay, Korean businesses can expand their reach across Vietnam, Laos, Myanmar, Thailand, Singapore, Malaysia and Indonesia through the Cambodian market, and such diversification is essential in mitigating risks associated with geopolitical uncertainties, such as those arising from the Russian-Ukraine war and the Gaza crisis.
The ambassador also called for Korean companies to leverage key existing bilateral and multilateral agreements, including the Cambodia-Korea Free Trade Agreement, the ASEAN-Korea Free Trade Agreement and the Korea-ASEAN Services and Investment Agreement or KASI.
The event was attended by CEOs and executives of Korean companies; researchers; KITA officials; Cambodian embassy officials; and officials from Cambodia's Chamber of Commerce, Ministry of Industry, Science and Technology, Ministry of Labor and Vocational Training, and the media.
Speaking at the forum, Executive Vice Chairman Jeong Marn-ki of the Korea International Trade Association applauded Cambodian Prime Minister Hun Manet for fostering the digital economy as one of the three major areas in its pentagonal strategy.
Korea has many companies with excellent IT skills, which will increase opportunities for cooperation between the two countries, Jeong hoped in his remarks.
"Cambodia has lower IT labor costs compared to neighboring countries," Jeong said.
"But if it goes beyond this and strengthens the education system focusing on human resource development to cultivate excellent IT personnel, as in the cases of other IT powerhouses such as India, the growth and development of the IT industry will be even more remarkable," he said.
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