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Thayer Cambodia: Vietnamese Investment Rises

Thayer Cambodia: Vietnamese Investment Rises

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Published by Carlyle Alan Thayer
An analysis of the factors that have contributed to a marked rise in Vietnamese investment in Cambodia.
An analysis of the factors that have contributed to a marked rise in Vietnamese investment in Cambodia.

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Published by: Carlyle Alan Thayer on Jan 15, 2014
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02/11/2014

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 Background Brief Cambodia: Vietnamese Investment RisesCarlyle A. ThayerJanuary !" #$%
[client name deleted]Prime Minister Hun Sen made an announcement today with visiting Vietnamese Prime Minister Nguyen Tan Dung on Vietnamese foreign investment in 2!"# The figure $um%ed from &'( million in 2!2 to &"2 million in 2!"# This is com%ared to an increase in total foreign direct investment of &2#) *illion in 2!2 to &+#) in 2!"#,nfortunately no other figures were given other to say that Vietnam ran-ed third last year *ehind South .orea and /hina# 0n %revious years Vietnam ran-ed closer to si1th or seventh in terms of foreign direct investment#e see- you assessment of the conte1t of current Vietnamese3/am*odian relations4
hat does increased Vietnamese investment say a*out the relations *etween the two countries5
Do you thin- that today Vietnam /am*odia relations are at their highest %oint or is this merely a natural evolution of increased foreign investment in /am*odia56NS784 The growth of Vietnamese investment in /am*odia is a %roduct of five factors4 demarcation of their common *order9 *etter management of cross3*order security issues9 a decline in /am*odia3Thai economic relations following their *order war in 2'9 the natural evolution of structured *ilateral relations9 and the %romotion of trade and investment *y the two %rime ministers# 0n Novem*er 2!9 /am*odia and Vietnam codified their economic relations in a :oint Declaration on the ;ramewor- for <ilateral /oo%eration# The 2( *order treaty created the conditions for the %romotion of S%ecial 7conomic =ones along their *order# These >ones were set u% to attract Vietnamese investment through ta1 *rea-s and s%ecial services# Vietnam also %rovided su*sidi>ed electricity to *oost com%etitiveness in these >ones# 6t least si1 S%ecial 7conomic =ones have *een licensed since 2?# 0n Se%tem*er 2@9 Prime Ministers Hun Sen and Nguyen Tan Dung agreed to raise two3way trade to ,S &2 *illion *y 2! and to facilitate cross3*order investment including im%roved road and rail access across the *order# 0n
Thayer Consultancy
ABN # 65 648 097 123

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